Change Counts

I know that most of you already know that leasing a car is not the smartest financial thing a person could do, but I was reading something the other day over at Edmunds.com that just made me laugh.  Apparently, the person who wrote the article, makes out on leased cars by just buying them at the end of the lease and reselling them for profit.  Who is he kidding?  I'd love to see the actual proof of this. Of course, there isn't enough information in the article to verify any of it.

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This is a question that is coming up frequently these days, due to the new deductions regarding Private Mortgage Insurance (PMI). The quick answer is NO, your homeowners insurance is usually not deductible. Be careful not to make that mistake when filling out your taxes this year. Be sure to take the PMI deduction, though, if you are qualified. See my post on that topic - New Tax Deduction For PMI.

There are some cases where your homeowners insurance may be deductible on your income taxes. These cases would be for either a rental property or using part of your home for business. Each of these cases would involve forms related to a Schedule C tax form. If you are a typical homeowner, not operating a business out of your home, then very likely your homeowners insurance premiums are not tax deductible. Sorry.

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Ok. You now realize you shouldn't have done that car lease. What can you do about it?

Well, there are a number of things. First of all, you need to identify what changed. Why do you want out? Did you come to your senses and realize that a car lease (or Fleece as Dave Ramsey calls it) is probably the worst financial move a person could make? An unevaluated life is not worth living. That is a quote I have heard, not sure who said it, but it is oh so true. When we make mistakes in life, we have to learn from them. Own up to them. Don't blame everybody else. So you learned your lesson. No more leasing!

Tags: advice by Mack
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If you have read much here at my site, you know I am a Christian and I believe in the 10-10-80 rule of investing. Simply put, it means you give 10% to God first, then 10% to savings (investing, retirement, etc) then you live on the remaining 80%. See my post about it to learn more.

This year, when you are filing your taxes for 2007, you need to be aware that the "proof" required for giving cash to a charitable organization has increased. We need to be sure we have this proof if asked. Your church or synagogue, needs to give you the correct document so we all stay out of trouble. I remember way back when, we didn't need a lot of proof, but now we need more . Here are some of the changes to the rules for 2007 tax year.

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If you have purchased a home in 2007, you may qualify for a new tax deduction. Many borrowers are required to purchase private mortgage insurance, or PMI, when they get a loan This insurance is required by the lender to assure that should the borrower default on the loan, and the lender has to sell the house to pay for the mortgage, that the difference in the selling price and the loan amount is covered by this insurance policy.. This makes the loan essentially no risk for the lender.

Tags: advice by Mack
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Is that true?  That is what I think I heard Dave Ramsey say on his show today. Three hundred and eighty-four dollars!  Wow.  I know some of you are not average, maybe you are even ABOVE average. (EDIT. March 10, 2008, I heard from a reliable source that the average car payment was up to $484.00.  I would think that is closer to the truth, it depends on where one is getting the data)

How much would that money be worth if you had a paid for car?

The mind set of borrowing money, and especially borrowing money to pay for things that decrease in value, like cars, is the mind-set that keeps so many people living from paycheck to paycheck and broke all their lives.

Tags: advice by Mack
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