Earned Income Tax Credit Awareness Day

January 20, 2012 By Cricket

  • Did you know that the Southern Indiana Asset Building Coalition offers FREE tax preparation at a dozen sites in the Southern Indiana area?
  • Did you know that qualified applicants can receive as much as $6,000 from the EITC?
  • Did you know the EITC is the Federal Government’s largest benefit program for workers?
  • Did you know we want to partner with YOU to spread the word about these important services to our community?

The Southern Indiana Asset Building Coalition will hold
Earned Income Tax Credit Awareness Day
at the Jeffersonville Township Library on
January 27th, 2012.


A panel of esteemed guests, including trained and certified tax preparers, will offer information on qualifying for the tax credit, tax services and the advantage to receiving a tax credit like this.

Registration begins at 11:30 and the panel discussion, with time for questions, begins at 12:00 p.m. Lunch will be provided.

We’re doing this because we feel it is vital to spread the word to the community. As tax season begins and people are trying to find every possible advantage, we are dedicated to provide information about this important tax credit.

The EITC is particularly important for people in the following categories:

  • Whose earnings declined or whose marital or parental status changed
  • With limited English skills
  • Living in rural areas
  • Who are Native Americans
  • Who have disabilities or are raising children with disabilities
  • Without children
  • With earnings below the filing requirement
  • Living in non-traditional homes, such as a grandparent raising a grandchild

“EITC is a financial boost for working people in a recovering economy and allows more funds to flow within your community. It’s money that can make lives a little easier.” Whitney Bishop, Executive Director, SIABC said.

Not only does the Southern Indiana Asset Building Coalition want to spread the word about the EITC, we can help those who qualify, and others, prepare their taxes at one of our many tax prep sites in 4 counties of Southern Indiana. We are asking that you partner with us to spread the word to those who most need to hear about these crucial services. You never know, it could even impact YOU!

For more information about the tax credit and our services please contact the SIABC office at 812.206.7520 . If we join together to promote financial advantages to everyone, we strengthen our community as a whole.

Filed Under: Earned Income Tax Credit, Financial Expert, financial literacy, Financial Stability, Southern Indiana Asset Building Coalition, Uncategorized, vita tax preparation

Purse Strings event featured holiday shopping, entertainment and revealed a whole new look for SIABC

December 21, 2011 By Cricket

The Southern Indiana Asset Building Coalition held “Purse Strings” on December 6, 2011 at 300 Spring In Jeffersonville, IN. 10 vendors were featured in a Holiday Shopper’s Village, Kitty Slickers provided music and door prizes were presented to 10 lucky guests. The event also featured a purse drive benefiting Dress for Success Louisville. The highlight of the evening was when Executive Director, Whitney Bishop talked about the future of the organization. She revealed a new logo and programs for the non-profit which provides financial education, coaching, credit counseling and free tax preparation for individuals and families.

 

Guests enjoying Kitty Slickers at Purse Strings

“We are pleased to announce that moving forward our identity will feature the “Making Change” brand. This simple statement sums up what our mission is all about. To make change in the lives of the people we serve and the community where we live. 

Over the last several months the Southern Indiana Asset Building Coalition worked with Allen Howie at Idealogy to create the new logo and imaging. It will be the driving force behind the goals and ideas the organization will implement in the future, including increased community awareness and education, more individuals receiving services and a financial resource center that individuals can utilize to conduct their personal financial business in a convenient and secure environment.

The Southern Indiana organization, based in Jeffersonville, IN, plans to add more volunteers and partners to increase opportunities to serve in our community and our region.
For more information about how to get involved in the exciting things happening at Southern Indiana Asset Building Coalition, contact Executive Director, Whitney Bishop at 812 206 7514
Filed Under: Asset Building, Financial challenges, financial counseling, Holidays and money, Southern Indiana Asset Building Coalition

Budget Basics – What is Budgeting?

November 10, 2011 By Cricket

Is BUDGET a ‘bad’ word in your vocabulary?

For most people, the word “budget” conjures up thoughts of penny-pinching and the unpleasant task of crunching numbers. This couldn’t be further from the truth. A budget is the cornerstone of a solid financial foundation, regardless of your situation, and it isn’t that hard to do.

What is a Budget?

A budget is nothing more than a breakdown and plan of how much money you have coming in and where it goes. Could you imagine a business becoming successful if it didn’t keep track of its income and expenses? The same holds true when it comes to your personal finances. If you don’t know how much money you have coming in and where it goes, your road to financial success will be a difficult one.

The biggest fear that most people have when creating a budget is that they will need to suddenly cut back on all of the fun spending — things like the occasional coffee or dinner out, movie night, or even the trip to grandma’s for the holidays. While you may find that you do need to cut some spending after putting together a budget, without actually sitting down and creating one, it is impossible to know what expenses need to be cut, if any.

Tracking Income

The first step in creating a budget is to determine how much income you have. This is quite easy and typically only requires you to take a look at your pay stub. Of course, if you’re married, be sure to include your spouse’s income as well. In addition to your regular pay, you’ll want to also include any other sources of income you may have, such as dividends, interest, a side business, and so on.

Tracking Expenses

Now that you know how much income you have coming in, it’s time to take a look at your monthly expenses. Start with the regular and fixed payments you have, such as your mortgage or rent, car payments, insurance, debt and taxes. For most people, these are going to be relatively fixed, meaning you can’t easily change the amount that is due each month.

After you’ve listed your fixed monthly expenses, it is time to dig deeper to find out where the rest of your money goes. Take out your checkbook or pull your latest bank statement to help you with this step. Jot down how much you spend on things like utilities, groceries, entertainment, subscriptions, and so on. This handy worksheet can help you with keeping track of expenses.

The Bottom Line

You should now have all of the information needed to help you create your budget. So, go ahead and total up your monthly income and all of your monthly expenses. Subtract your expense total from your income total and you’ll have either a positive or negative number. If you have a positive number, congratulations, you are spending less than you earn. Don’t worry if you have a negative number. The whole reason for creating a budget is to identify deficiencies and find out how to address them.

Now that you can visually see how much you fall short, you can adjust your spending or saving in certain areas to improve the situation. Oftentimes you’ll realize that by just making a few small adjustments to your spending habits, you can significantly improve your situation. Maybe this means cutting back on one of your magazine subscriptions, eating out one time less a month, or even just hitting the matinee instead of the prime time movie. Typically, just saving a few dollars here and there can be enough to not only make sure you spend less than you earn, but also apply a few extra dollars to things like high-interest credit card debt or your retirement savings.

 

 

Filed Under: 6 month money challenge, Asset Building, Budgeting, Family finances, Holidays and money, Southern Indiana Asset Building Coalition, Uncategorized

Holiday Networking Event benefiting SIABC

November 9, 2011 By Cricket

Purse Strings

A HOLIDAY NETWORKING EXPERIENCE BENEFITING  THE  SOUTHERN INDIANA ASSET BUILDING COALITION

sponsored by

Tuesday, December 6, 2011

6:00 p.m. – 8:00 p.m.

300 Spring

Jeffersonville, IN 47130

$10.00 Suggested Donation at the Door Benefiting SIABC

Music by Kitty Slickers* Hors d’oeuvres* Cash Bar* Door Prizes*Success Stories and Surprises

Come Shop the Handbag and Accessory Boutique Village with vendors like Jewelry Junkies and Strandz ‘n Threadz

We will be collecting new or gently used handbags to benefit the programs of Dress for Success Louisville, which proudly serves the women of Southern Indiana

PLEASE RSVP TO 812 206 7520 by November 21, 2011 if you would like to attend this event. You may also reply via email at cricket@allycommunications.com

Filed Under: Family finances, Financial challenges, financial literacy, Holidays and money, Southern Indiana Asset Building Coalition, Uncategorized

FALL into Financial Health

October 10, 2011 By Cricket

Just because it’s FALL, doesn’t mean you have to FALL behind in your finances!
Kick it into gear with the 6 MONTH MONEY CHALLENGE designed to help you examine your beliefs, feelings and attitudes about money as  well as evaluate your relationship with the almighty dollar!

By taking the challenge, you’ll  have access to the tools, information and resources you’ll need to help  you change your behavior and create habits that support your financial  goals.

We post topic-related challenges to the SIABC Facebook page to give you direction!Jump on in and let SIABC help you reach the finish line of a great financial future!

Make sure to sign up on our Facebook page to get the weekly challenges.

Monthly Challenge Topics:

1.  SPENDING

2.  BUDGETING

3.  DEBT

4.  CREDIT

5.  SAVINGS

6.  CONSUMER PROTECTION

Click here to Join us on Facebook!

Filed Under: 6 month money challenge, Asset Building, Financial challenges, financial literacy, Financial Stability, Southern Indiana Asset Building Coalition

The Truth about the “Almighty” Credit Score

September 20, 2011 By admin

SIABC is honored to have Brad Chaffee from Enemy of Debt as a guest blogger. Please take the time to subscribe to his blog and review his website. www.enemyofdebt.com

When you were young do you remember people telling you to “build your credit”?
“You’ve got to build your credit score”, they’d say. You can’t go to school without credit. You can’t get a good job without credit. You can’t buy a car without credit. And finally, perhaps the one that started it all, you can’t buy a house without credit.

Sound familiar? Kind of reminds me of the famous Henry Ford quote.
“Whether you think you can or think you can’t – you are right”

Once you are convinced that you cannot have something without going into debt to get it that will remain true until you no longer believe the lie.

Once the banks created credit as the standard to consider financial responsibility, it was just a matter of time before the mindset above became reality for most everyone. The reality that in order to do and have anything at all, you must go into debt so that you can build your credit score and at last become financially responsible.

The days of saving to acquire anything significant would become a thing of the past. The new badge of honor was obtained through debt servitude and has ruined more lives than it has helped.

Think about it.

You don’t have to be a genius to look around and figure out that this has not worked. What it has done though is put good people in debt – and lots of it! It’s not that people purposely go into debt with the idea that it never has to be paid back. It’s that they have been brainwashed into believing that it was the only way to have things, not realizing a key factor, which is that life happens!

That’s right! Life happens, and it will happen to you too. It doesn’t care if you have zero or a hundred thousand dollars of debt. It does not discriminate.

I reject everything I have been taught about credit, credit cards, and the “almighty” credit score.

A system designed to judge your financial responsibility on the irresponsible decision to borrow money for anything and everything is a disaster waiting to happen.

Nowadays, people borrow money for EVERYTHING, and do so because they believe that they have to in order to have a good credit score! It has literally changed how people manage their finances and that is NOT a good thing!

Instead of work hard and save, the mentality to work hard and play “because I deserve it” has become the status quo. If you aren’t out there sipping coffee and having fun on plastic you must be a stiff. Live a little right?
Wrong!
I’ve got news for you and it’s going to sound like Tyler Durden’s advice in the hit classic movie Fight Club.

YOU ARE NOT YOUR CREDIT SCORE!

I haven’t borrowed money since the end of 2007 when I suddenly acquired common financial sense, and believe it or not, I’m still alive. I still have a roof over my head and against all odds; I have two paid for cars. Some would call me a whack-job.

I’ve been told by many that it is impossible to live without credit cards, car payments, and a big fat mortgage.

I check my score annually just to make sure there is nothing fraudulent going on. I was surprised to find that my credit score was 701. That would seem impossible considering all the talk about how to build credit these days.

Here’s how my family manages our money.

Our credit score can be zero or it can be a million — we truly don’t care! Since the end of 2007 we decided at that moment that we would no longer be making any financial decisions based on a stupid credit score.

We make decisions for our family based on what’s best, not on what our credit score may or may not do.

People say, “Don’t close your credit cards – don’t pay off that credit card – don’t pay your house off early”! For what? You guessed it; because the “almighty” credit score will fall.

Has anyone ever questioned how smart it was to keep a paid off card you no longer need to simply keep your credit score from dropping? Does it make any sense at all not to pay off your mortgage early?

The only logical conclusion I can come to is that we’ve been fed this lie not to keep our score from dropping, but instead to keep our interest being paid from dropping. Somebody benefits every time you believe this lie. Making payments over time to increase your credit score is laughable, and trust me, someone IS laughing — all the way to the bank.


According to ZenDough, if you master the six principles that will impact your VantageScore, you will “likely” achieve your goals.

Those principles are more likely to contribute to you staying in debt if you were to base your financial life on using them.

Those aren’t principles in my book — they’re pitfalls disguised as principles.

My advice to you would be to do the right thing with your money regardless of whether or not your score will rise or fall. If you have to go into debt in order to keep your credit score from dropping then it might be time to re-evaluate the real purpose of that score.

Is it intended to help you financially, or is it more accurately a way for you to make someone else very, very wealthy? Do you really want payments for the rest of your life — all for a stupid score?

You have to decide. I already have. Good luck.

Filed Under: American Dream, credit score, Family finances, financial coaching Tagged With: ,

How long is long enough?

September 8, 2011 By Cricket

When it comes to keeping important papers like tax returns, bill payment records and bank statements, consumers often ask, ‘How long is long enough?’ We found some great advice from the folks at www.lifeorganizers.com with some great tips on just how to answer that question.

How Long Do I Really Need To Keep This?

by Maria Gracia – Get Organized Now!

Every year April 15 rolls around, and so many people ask me the infamous question, “How long do I need to keep all this stuff?!?!” And the answer generally is that if it has anything to do with your taxes, probably for a long time. But have no fear! The average family can keep it all organized with a good filing system throughout the year, and some catalog envelopes to store documents from past years.
So how long do you need to store these records you’ll probably never look at again? While you should always check with your accountant for your specific personal guidelines, according to www.bankrate.com, some of the basic records retention rules are as follows:
  • Audit Reports: Forever
  • Bank Deposit Slips and Statements: 6 Years
  • Brokerage Statements: Keep until you sell the security
    You need the purchase/sales slips from your brokerage or mutual fund to prove whether you have capital gains or losses at tax time.
  • Credit Card Receipts: Keep your original receipts until you get your monthly statement; toss the receipts if the two match up. Keep the statements for seven years if tax-related expenses are documented.
  • Current Contracts and Leases: Life of Contract, plus 3 Years
  • Housing Records: As long as you own the home, plus 6 years. Keep all records documenting the purchase price and the cost of all permanent improvements — such as remodeling, additions and installations. Keep records of expenses incurred in selling and buying the property, such as legal fees and your real estate agent’s commission, for six years after you sell your home.Holding on to these records is important because any improvements you make on your house, as well as expenses in selling it, are added to the original purchase price or cost basis. This adds up to a greater profit (also known as capital gains) when you sell your house. Therefore, you lower your capital gains tax.
  • Insurance Records: Life of the policy, plus 10 years.
  • Investment Records: 6 Years after sale of the investment. Discard your monthly statements once you receive the annual summary that reflects yearly activity.
  • IRA Contributions: Forever
    If you made a nondeductible contribution to an IRA, keep the records indefinitely to prove that you already paid tax on this money when the time comes to withdraw.
  • Legal Correspondence: (Marriage Certificates, Death Certificates, Divorce Papers, etc.): Forever
  • Paid Bills: 1 Year
    Go through your bills once a year. In most cases, when the canceled check from a paid bill has been returned, you can get rid of the bill.However, bills for big purchases — such as jewelry, rugs, appliances, antiques, cars, collectibles, furniture, computers, etc. — should be kept in an insurance file for proof of their value in the event of loss or damage.
  • Pay Check Stubs: 1 Year
    When you receive your annual W-2 form from your employer, make sure the information on your stubs matches. If it does, toss the stubs. If it doesn’t, request a corrected form, known as a W-2c.
  • Retirement and Savings Plans: From one year to permanently. Keep the quarterly statements from your 401(k) or other plans until you receive the annual summary; if everything matches up, then toss the quarterlies. Keep the annual summaries until you retire or close the account.
  • Tax Returns and Supporting Documentation: 7 Years The IRS has three years from your filing date to audit your return if it suspects good faith errors. The three-year deadline also applies if you discover a mistake in your return and decide to file an amended return to claim a refund. The IRS has six years to challenge your return if it thinks you underreported your gross income by 25 percent or more.There is no time limit if you failed to file your return or filed a fraudulent return.
  • Warranties/Guaranties: Life of the Product

 

Filed Under: 6 month money challenge, Asset Building, Financial challenges, Financial Stability, Southern Indiana Asset Building Coalition, Uncategorized

Bills taking over your desk?

September 6, 2011 By Cricket

Organization is key to keeping track of our bill paying!

Sometimes our bills pile up and become so overwhelming that it’s easy to want to throw in the towel! But taking a simple approach to organization is the first step in conquering that mountain! Our friends at www.realsimple.com are the experts at all things simplified and offer some great tips for getting on the right track!

 

1. Sort and corral unpaid bills

How To: Organize Bills Step 1Designate a box, basket, or folder specifically for bills. As soon as the mail comes, separate the bills from everything else and open them, throwing away the outer envelope and any inserts. Corral them in your designated spot until you’re ready to pay them. Tip: Instead of keeping bills in an office file, use a letter rack. As you open mail, stash the bills in order of their due dates. This way, you’ll have a visual reminder that they’re waiting to be paid.

How To: Organize Bills Step 2

2. File paid bills in an accordion file

Label a 13-pocket accordion file with tabs for each month of the year. Reserve the last slot for the year’s tax return. As you pay your monthly bills, file them under the appropriate month. Add bank statements and credit card receipts. When you complete your tax return, drop that in, too.
Aha! To streamline your bill-paying process, find out whether your bank offers online banking and whether your utility and service companies offer online and automated payment options.

Click here to watch a video demonstration!

Filed Under: 6 month money challenge, Asset Building, Family finances, Uncategorized

Do you know where YOUR DEBT is?

July 27, 2011 By Cricket

We can’t take credit for this video but we sure think it’s funny! How much do YOU know about YOUR debt?

Filed Under: Financial challenges, Financial Stability, Southern Indiana Asset Building Coalition

Let’s talk about DEBT, baby!

July 12, 2011 By Cricket

Once upon a time there was a frog. She was placed in a pot of boiling water. Upon feeling the pain from the heat, she leapt from the pot and escaped to safety. Several days later, the same frog was placed in a cool, soothing bath of fresh water. ‘Ooo…this is nice.’ She thought. Gradually the cool water turned warm. ‘Not bad.’ Thought the frog, enjoying her spa! The frog was lulled into a warm escape, hardly noticing the intensity of the heat which proved to be her demise. She was fooled into thinking this place of refreshment was a good experience when it actually proved fatal. Frog legs anyone?

This story is a great illustration of how we can find ourselves in financial ‘hot water’ without even knowing it. We become so numb to the situation around us that we fail to see the dire consequences just ahead. Debt has a subtle way of doing just that.  One credit card for emergencies leads to two. One purchase because it was a once in a lifetime deal, leads to grocery shopping on credit. One special occasion meal turns into lunch out every day. For big and little things; justified and unjustified purchases, consumers in the United States have $2.43 trillion worth of consumer debt, as of May 2011. The Federal Reserve also reports that the Nation’s revolving debt is close to $793.1 billion, 98 percent of which is made up of credit card debt. Even in the declining economy, with unemployment rising by 545,000 since March of 2011(Source: U.S. Dept. of Labor),consumer credit increased at an annual rate of 2-1/2 percent in May 2011. (Source: Federal Reserve’s G.19 report on consumer credit, released July 2011)

So what can you do if you find yourself in a pot of boiling DEBT? It’s true when they say asking for help is the first step!

 www.CNNMoney.com offered these 10 ‘Things to Know’ for dealing with your debt:

 1. Americans are loaded with credit-card debt.

The average American household with at least one credit card has nearly $10,700 in credit-card debt, according to CardWeb.com, and the average interest rate runs in the mid- to high teens at any given time.

2. Some debt is good.

Borrowing for a home or college usually makes good sense. Just make sure you don’t borrow more than you can afford to pay back, and shop around for the best rates.

3. Some debt is bad.

Don’t use a credit card to pay for things you consume quickly, such as meals and vacations, if you can’t afford to pay off your monthly bill in full in a month or two. There’s no faster way to fall into debt. Instead, put aside some cash each month for these items so you can pay the bill in full. If there’s something you really want, but it’s expensive, save for it over a period of weeks or months before charging it so that you can pay the balance when it’s due and avoid interest charges.

4. Get a handle on your spending.

Most people spend thousands of dollars without much thought to what they’re buying. Write down everything you spend for a month, cut back on things you don’t need, and start saving the money left over or use it to reduce your debt more quickly.

5. Pay off your highest-rate debts first.

The key to getting out of debt efficiently is first to pay down the balances of loans or credit cards that charge the most interest while paying at least the minimum due on all your other debt. Once the high-interest debt is paid down, tackle the next highest, and so on.

6. Don’t fall into the minimum trap.

If you just pay the minimum due on credit-card bills, you’ll barely cover the interest you owe, to say nothing of the principal. It will take you years to pay off your balance, and potentially you’ll end up spending thousands of dollars more than the original amount you charged.

7. Watch where you borrow.

It may be convenient to borrow against your home or your 401(k) to pay off debt, but it can be dangerous. You could lose your home or fall short of your investing goals at retirement.

8. Expect the unexpected.

Build a cash cushion worth three months to six months of living expenses in case of an emergency. If you don’t have an emergency fund, a broken furnace or damaged car can seriously upset your finances.

9. Don’t be so quick to pay down your mortgage.

Don’t pour all your cash into paying off a mortgage if you have other debt. Mortgages tend to have lower interest rates than other debt, and you may deduct the interest you pay on the first $1 million of a mortgage loan. (If your mortgage has a high rate and you want to lower your monthly payments, consider refinancing.)

10. Get help as soon as you need it.

If you have more debt than you can manage, get help before your debt breaks your back. There are reputable debt counseling agencies that may be able to consolidate your debt and assist you in better managing your finances. But there are also a lot of disreputable agencies out there.

 For more great resources for gaining control of your debt, visit http://money.cnn.com/magazines/moneymag/money101/ or call the SIABC office and take the first step toward financial freedom!

Filed Under: 6 month money challenge, Family finances, Financial challenges, financial counseling, Southern Indiana Asset Building Coalition
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