How To Avoid Getting In Debt

Perhaps the best advice ever written about debt came from the British novelist Charles Dickens, who had one character advise another that a happy life depends on making sure that outgoing funds never exceed incoming ones.  Well over a century later, that guidance remains as relevant as ever.

Understand your income and expenses

A first step in avoiding the debt trap is to understand three things about your finances: your monthly spendable income, your required expenses, and your discretionary expenses.  Young people often start out spending beyond their means because they have underestimated their true spendable income.  Due to a variety of taxes, the amount each of us has to spend is significantly less than the sum we think of as being our disposable income.

An individual’s net income must stretch far enough to pay for essential items things such as rent, food, and clothing.  Whatever is left over is available for either discretionary spending or saving.  The amount “left over,” however, is not a constant even if net income remains unchanged.  This is because required expenses (Read More….)

What Business Expenses Can I Claim?

Understanding what expenses are allowable by the Inland Revenue can be confusing and frustrating. Mistakes calculating taxes can be costly, with fees and fines costing as much as the back tax owed, not to mention the possibility of time in prison if you are found guilty of tax evasion!

Fortunately, working with an umbrella company can relieve the freelance contractor of those headaches by absorbing the paperwork and the responsibility for compliance. You simply hand over your paperwork and receipts; the company does the rest, leaving you assured that you won’t run afoul of compliance regulations. Using an umbrella company allows you to maximize your allowable expenses while ensuring compliance. By filtering claims, the company helps protect clients from tax evasion accusations.

Claims must be supported with receipts, and should be incurred wholly, exclusively and necessarily in performing the duties of the particular job. Allowable claims include meals (but only in certain circumstances), necessary travel, and other incidentals. In general, there are two types of claims. Chargeable (Read More….)

Would Getting the Economy On Track Give Us A Free Pass Out of the Federal Budget Mess?

Would Getting the Economy On Track Give Us A Free Pass Out of the Federal Budget Mess?

By Scott Bittle and Jean Johnson, Authors of Where Does the Money Go? Rev Ed: Your Guided Tour to the Federal Budget Crisis

It looks like the country might finally be gearing up to tackle our massive federal deficits and growing federal debt. If history is any guide, serious debate about unpleasant things like cutting popular programs and raising taxes will be accompanied by plenty of people hawking miracle cures that will take away our pain.So it’s no surprise that a lot of commentators, on both the left and the right, say that the real answer to the deficit and national debt is to fire up the economy and “grow our way out of it,” with some even calling economic growth “the miracle deficit cure.”

There’s hardly anything more popular than prosperity. Business people thrive when the economy is growing; it creates jobs and rising incomes so workers like it too. If you’re a comic book fan, even super-villains like Lex Luthor and the Penguin enjoy the benefits. (Read More….)