OutOfYourRut FAITH FORUM



Should You Give Even If You’re In Debt?

By Kevin M

Is it OK to give money to charities and religious institutions if you owe money? This isn’t just a question for people of faith (which I am myself) but for anyone who gives charitably and is in debt at the same time.

I recognize that there are different kinds of debt, and even different types of giving, so it’s hard to be general with an answer to this question. But I think that—at a minimum—giving needs to be considered in light of the different types of debt.

Generally speaking, there are four different kinds of debt that may have an impact on our giving:

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Starbucks, Blockbuster and Friday Round Up June 25

IMG_1646 by whatleydude.

By Kevin M

Random musings from this week…

Free Wi-Fi at Starbucks but you have to sign up 6700 Starbucks coffee shops are rolling out free Wi-Fi beginning July 1st. Don’t tell anybody, but you can sign up right now and get the free service immediately. I took advantage of the change late last week, and though the service is free, you do have to go through a fairly cumbersome sign up process. You have to purchase a Starbucks gift card (minimum $5) to get the card number and activation code, which become part of your permanent entry codes. A pamphlet is available to walk you through the process, which is establishing a Wi-Fi account through AT&T. One tail though—the free service is limited to two hours per session, after which charges will apply. Still, that’s a minor limitation in exchange for having access to free internet at thousands of outlets.

Healthy snacks. When we take our family to the movies, we stop at a store and buy any candy that we want, since the same stuff they sell for $3.50 to $6.00 at the movies can easily be had for about a dollar a box on the outside. Walgreens is offering a new and healthy twist: right there with the movie sized candy boxes are snack sized boxes of dried fruit.

Wow, snacks that look almost like junk food but are actually good for you. On my last trip in a got a box of raisins for a dollar—and somehow it just tastes better coming out of one of those candy sized boxes. Whoodda thought? I guess someone did—brilliant idea!

Is alternative energy impossible? In light of BP’s Gulf oil crisis…we often hear that alternative energy is impractical, unworkable, too costly, and too far into the future to help us now. Yet Denmark has been making quiet but steady progress in generating electricity from windmills, most of them privately owned. Despite being oil rich, Denmark now generates nearly 20% of its electric power from windmills. It’s something to think about as crude gushes into the Gulf of Mexico or the next time oil/gasoline prices spike to uncomfortable levels…

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Ten Financial Mistakes You Can’t Afford to Make

By Kevin M

There are strategies we need to put in place that will help lead us where we want to be in life, but just as important is problem avoidance.

When making our plans, we can project working in a certain career, earning a certain income, investing and having X amount of money by age Y, living in a certain size home, and even planning out a career for our children. But few of us ever give serious practical consideration to the things we don’t want to do!

Two or three major mistakes can derail the most well intended plans so it’s best to play devils advocate from time to time and seriously consider the question “what can go wrong here?” It should be done with the same level of intensity that we give to the plans that we hope will move us forward.

Below is a list of ten financial mistakes I’ve culled over the years from my experience in public accounting, from working in the mortgage business and from a few dives into an empty pool I’ve taken on my own road of life.

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OutOfYourRut Friday Personal Finance Round Up #3

IMG_1646 by whatleydude.

By Kevin M

For only the third time (am I lazy or what???) in the brief history of OutOfYourRut, herewith is yet another attempt to capture some of the most inspiring posts from the personal finance blogosphere.

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OutOfYourRut Friday (but almost Saturday) Personal Finance Round Up

IMG_1646 by whatleydude.

By Kevin M

It’s been one of those long, involved weeks in my corner of the universe, and though I’ve been planning all week to post only the second Friday Round Up ever on this site, it’s taken me nearly the whole day to pull it off.

And I’m really glad I did because there’s some really incredible stuff out there that’s well worth the read. Below are some of the material I thought to be top notch this week.

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Why It Might Be Better to OWE on Your State Income Tax Return

By Kevin M

A disturbing report came out last week in an article on Yahoo Finance in regard to state income tax refunds being delayed. In Cash-Strapped States Delay Paying Income-Tax Refunds it was reported that several states will be delaying the issuance of refunds this year in response to budget issues.

The article said that the delays represent “…essentially an involuntary no interest loan from the taxpayer.”

Projections indicate that this is a trend will continue into the foreseeable future. The Christian Science Monitor reported in December that (What recovery? Budget deficits get worse for states) 48 states face budget deficits for fiscal 2010, and at least 41 are projected for 2011.

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OutOfYourRut’s First Ever Friday Personal Finance Round Up

By Kevin M

This week opens voting on the Plutus Awards in the personal finance blogging world, which makes it the perfect time to launch OutOfYourRut’s first ever Friday Round Up. There are some great sites out there, with many brilliant posts, but here are the ones that really caught my interest this week…

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7 Reasons Super Bowl Monday is THE Day to Start a Diet


By Kevin M

OK sports fans, The Big Game is over; it’s time to get down to real life. That means OUR lives, and not the ones of the stars on the field. Got a few pounds to lose? There’s no better day than today to get to it. Why?

I can think of seven reasons:

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Tax Benefits of Homeownership – Three Reasons Its Over-rated

By Kevin M                                                        

One of the most compelling reasons for owning a home is the heavily touted tax benefit owing to deductions for mortgage interest and property taxes. Real estate agents will play this benefit for all it’s worth in extolling the idea of homeownership for all.

However for three reasons, this benefit is not what it used to be: a generous standard deduction, low mortgage rates and low marginal tax rates.

The tax benefit of homeownership became an entrenched concept back in the 1970s and early 1980s and at that time it had overwhelming merit. Mortgage rates were in double digits most of the time, marginal tax rates ran as high as 70% and standard deductions were down in the low thousands. Owning a home made major sense even for moderate income earners and was an article of faith in the higher income brackets.

None of that is true today, yet the tax savings pitch remains. Standard deductions can exceed $11,000, interest rates are down around 5% and marginal tax rates cap out at 38% (but are substantially lower for the vast majority of households). Yet the notion of major tax savings remains almost unchallenged.

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Buying vs Renting a Home – Its Not All About Money

And other questions you should ask before buying a home!

By Kevin M

Many articles have been written on the buy-verses-rent question, but most of the analysis tends to center on the dollars and cents side of the question. We read about tax advantages, investment potential, home buyer tax credits, income ratios—all important considerations, but all essentially monetary in nature.

Rather than crunching numbers, I’d like to consider the question from a mostly non-monetary angle, and discuss factors which are of at least equal importance in making the decision to buy or rent a home. Most have to do with lifestyles, attitudes and future prospects.

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