25 ways to waste money - by Erin Burt, Contributing Editor

From finace.yahoo.com web site, written by Erin Burt. Good summary and reminder.

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1. Carrying a balance. Debt is a shackle that holds you back. For instance, if you have a $1,000 balance on a credit card that charges an 18% rate, you blow $180 every year on interest. Get in the habit of paying off your balance in full each month.

2. Overspending on gas and oil for your car. There's no need to spring for premium fuel if the manufacturer says regular is just fine. You should also check to make sure your tires are optimally inflated to get the best gas mileage. And are you still paying for an oil change every 3,000 miles? Many models nowadays can last 5,000 to 7,000 miles between changes, and some even have built-in sensors to tell you when it's time to change the oil. Check your manual to find the best time for your car's routine maintenance.

[Click here to check savings products and rates in your area.]

3. Keeping unhealthy habits. Smoking costs a lot more than just what you pay for a pack of cigarettes. It significantly increases the cost of life and health insurance. And you'll pay more for homeowners and auto insurance. Add in various other expenses, and the true cost of smoking adds up dramatically over a lifetime -- $86,000 for a 24-year-old woman over a lifetime and $183,000 for a 24-year-old man over a lifetime, according to "The Price of Smoking" (The MIT Press).

Another habit to quit: indoor tanning. There is now a 10% tax on indoor tanning services. As with cigarettes, the true cost of tanning -- which the World Health Organization lists among the worst-known carcinogens -- is higher than just the price you pay each time you go to the salon.

4. Using a cell phone that doesn't fit. How many people do you know who have spent hundreds of dollars on fancy phones, and then pay hundreds of dollars every month for the privilege of using them? Your phone is not a status symbol. It is a way to communicate. Many people pay too much for cell phone contracts and don't use all their minutes. Go to BillShrink.com or Validas.com to evaluate your usage and see if you can find a plan that fits you better. Or consider a prepaid cell phone. Compare rates at MyRatePlan.com.

5. Buying brand-name instead of generic. From groceries to clothing to prescription drugs, you could save money by choosing the off-brand over the fancy label. And in many cases, you won't sacrifice much in quality. Clever advertising and fancy packaging don't make brand-name products better than lesser-known brands.

6. Keeping your mouth shut. No one wants to be a nuisance. But by simply asking, you may be able to snag a lower rate on your credit card.

When shopping, watch for price discrepancies at the cash register, and make a habit of asking, "Do you have a coupon for this?" You might even be able to haggle for a lower price, especially on seasonal or perishable items, floor models or big-ticket purchases. Many stores will also match or beat their competitors' prices if you speak up. And try asking for a discount if you pay cash or debit -- this saves the store the cut it has to pay the credit-card company, so it may be willing to give you a deal. It doesn't hurt to ask.

[How You Can Get Richer This Year]

7. Buying beverages one at a time. If you're in the habit of buying bottled water, coffee-by-the-cup or vending-machine soda, your budget has sprung a leak. Instead, drink tap water or use a water filter. Brew a homemade cuppa joe. Buy your soda in bulk and bring it to work. (Better yet, skip the soda in favor of something healthier.)

8. Paying for something you can get for free. There's a boatload of freebies for the taking, if you know where to look. Some of our favorites include restaurant meals for kids, credit reports, software programs, prescription drugs and tech support. You can also help yourself to all the books, music and movies your heart desires at your local library for free (or dirt cheap).

9. Stashing your money with Uncle Sam rather than in an interest-earning account. If you get a tax refund each April, you let the government take too much money in taxes from your paycheck all year long. Get that money back in your pocket this year -- and put it to work for you -- by adjusting your tax withholding. You can file a new Form W-4 with your employer at any time.

10. Being disorganized. It pays to get your financial house in order. Lost bills and receipts, forgotten tax deductions, and clueless spending can cost you hundreds of dollars each year. Start by setting up automatic bill payment online for your monthly bills to eliminate late fees and postage costs. Then get a handful of files to organize important receipts, insurance policies, tax documents and other statements.

Finally, consider using free budgeting software such as Mint.com to see exactly where your money goes, making it much harder for you to lose track of it.

11. Letting your money wallow in a low-interest account. You work hard for your money. Shouldn't it work hard for you too? If you're stashing your cash in a traditional savings account earning next-to-nothing, you're wasting it. Make sure you're getting the best return on your money. Search for the highest yields on CDs and money-market savings accounts. And consider using a free online checking account that pays interest, such as ones offered by Everbank and ING Direct.

Your stocks and mutual funds should be working hard for you, too. If they've been lagging behind their peers for too long, it could be time to say goodbye. Learn how to spot a wallowing fund or stock.

12. Paying late fees and missing deadlines. Return those library books and movie rentals on time. Mail in those rebates. Submit expense reports on time for reimbursement. And if you make a bad purchase, don't just stuff it in the back of the closet and hope it goes away. Get off your duff, return it and get your money back before you lose the receipt.

13. Paying ATM fees. Expect to throw away nearly $4 every time you use an ATM that isn't in your bank's network. That's because you'll pay an ATM surcharge, and your own bank will hit you with a non-network fee. Consider switching to a bank, such as Ally Bank, that doesn't charge ATM fees and reimburses you for fees other banks charge. Another way to avoid fees if there's not an ATM in your bank's network nearby is to get cash back when you make a purchase at the grocery store or drugstore.

14. Shopping at the grocery store without a calculator. Check how much an item costs per ounce, pound or other unit of measurement. When you comparison-shop by unit price, you save. For example, if a pack of 40 diapers costs $13, that's 33 cents per diaper. But if you buy a box of 144 diapers for $35, that's 24 cents per diaper. You save 27%! (Of course, buying more of something only saves money if you use it all. If you end up throwing much out, you wasted money.)

[6 Costs You Should Always Negotiate]

15. Paying for things you don't use. Do you watch all those cable channels? Do you need those extra features on your phone? Are you getting your money's worth out of your gym membership? Are you taking full advantage of your Netflix, TiVo and magazine subscriptions? Take a look at what your family actually uses, then trim accordingly.

16. Not reading the fine print. Thought you were being smart by transferring the balance on a high-rate credit card to a low-rate one? Did you read the fine print, though? Some credit-card companies now charge up to 5% for balance transfers. Also watch out for free checking accounts that aren't so free. Some banks are starting to charge fees unless you meet certain criteria.

17. Mismanaging your flexible spending account. For some people, that means failing to take advantage of their workplace FSA, which lets employees set aside pre-tax dollars for out-of-pocket medical costs. Other people fail to submit receipts on time. And the average worker leaves $86 behind in his or her use-it-or-lose-it FSA account each year, according to WageWorks, an employee benefits provider.

18. Being an inflexible traveler. You'll save a lot of money on travel if you're willing to be flexible. Consider traveling before or after peak season when prices are lower. Or search for flights over a range of dates to find the lowest fare. Booking at the last minute also can save you money because hotels and airlines slash prices to fill rooms and planes. And flexibility pays off at blind-booking sites, such as Priceline or Hotwire, which offer deep discounts if you're willing to book a room or flight without knowing which hotel or airline (or other details about the flight) you're getting until you pay.

19. Sticking with the same service plans and the same service providers year after year. Hey, we're all for loyalty to trusted service providers, such as your bank, insurer, credit-card company, mutual fund, phone plan or cable plan. But over time, as prices and your circumstances change, the status-quo may not be the best deal any more. Smart consumers are always on the lookout for bargains.

20. Making impulse purchases. When you buy before you think, you don't give yourself time to shop around for the best price. Take the time to compare prices online, read product reviews and look for coupons when appropriate.

Make it a policy to give yourself a cooling-off period in case you're ever tempted to make an impulse purchase. Go home and sleep on the decision. More often than not, you'll decide you don't need the item after all.

[14 Ways to Save Money on Groceries]

21. Dining out frequently. Spending $10, $20, $30 per person for dinner can be a huge drain on your wallet. Throw in a $6 sandwich for lunch every day and you've got quite a leak. Learning to cook and bringing your lunch from home can save a couple hundred bucks each month. When you do go out, consider getting carry-out instead of dining in (you'll save on the tip and drink), skip the overpriced appetizer and dessert, and search the Web for coupons ahead of time.

22. Trying to time the stock market. In trying to buy low and sell high, many people actually do the opposite. Instead, employ the simple strategy of "dollar-cost-averaging." By investing a fixed dollar amount at regular intervals, you smooth out the ups and downs of the market over time. If you take out the emotion and guesswork, investing can become less stressful, less wasteful and more successful.

23. Buying insurance you don't need. You only need life insurance if someone is financially dependent upon you, such as a child. That means most singles, seniors or kids don't need a policy. Other policies you can probably do without include credit-card insurance (better to use the premium to pay down your debt in the first place), rental-car insurance (most auto policies and credit cards carry some coverage), mortgage life insurance and accidental-death insurance (a regular term-life insurance policy will do the trick).

24. Buying new instead of used. Talk about a spending leak -- or, rather, a gush. Cars lose 20% of their value the moment they're driven off the lot and 65% in the first five years. Used models can be a real value because you can get a car that's still in fine working order for a fraction of the new-car price. And you'll pay less in collision insurance and taxes, too.

Cars aren't the only things worth buying used. Consider the savings on pre-owned books, toys, exercise equipment, children's clothing and furniture. (Of course, there are some things you're better off buying new, including mattresses, laptops, linens, shoes and safety equipment, such as car seats and bike helmets.)

25. Procrastinating. Time is an asset money can't buy. Start investing for retirement as soon as possible. For instance, if a 40-year-old saves $300 a month with an 8% return per year, he'll have $287,000 by age 65. If he had started saving 15 years earlier at age 25, he'd have more than $1 million.

Lessons From the Recession: 10 Things We Learned in 2010

http://www.walletpop.com/2010/12/28/lessons-from-the-recession-10-we-learned-in-2010/

Excellent article, all good common sense.

I'd add "Eat at home often", and "Maintain good health".

Unemployment rate remains unchanged

As of July 2010, nation-wide unemployment rate remains at 9.5%. Consumer Price Index (CPI) increased 0.3%.

Warranty Direct Top 100 Most Reliable Used Cars Of The Past Decade

1 Honda Accord 2 Subaru Forester 3 Mazda MX-5 4 Mitsubishi Carisma 5 Toyota Yaris
6 Honda Civic 7 Nissan Almera 8 Honda CR-V 9 Toyota RAV4 10 Nissan Micra

11 Lexus IS 200 12 Mazda 626 13 Jaguar X-Type 14 Toyota Landcruiser 15 Volvo S/V40
16 MINI (BMW) 17 Suzuki Vitara 18 Mazda 323 19 Toyota Carina E 20 Saab 9-5

21 Lexus LS400 22 Ford Ka 23 Rover 45 24 Hyundai Lantra 25 Mercedes SLK
26 Citroen Xsara 27 Ford Cougar 28 Subaru Impreza 29 Skoda Octavia 30 Audi A4

31 Nissan Primera 32 Toyota Avensis 33 Volvo 850 34 Vauxhall Corsa 35 Seat Toledo
36 Volkswagen Golf 37 Daewoo Lanos 38 Fiat Brava 39 Hyundai Coupe 40 Mitsubishi Shogun

41 Rover 25 42 Mercedes CLK 43 Fiat Marea 44 Ford Focus 45 Peugeot 106
46 MG MG TF 47 BMW Z3 48 Hyundai Accent 49 Volkswagen Polo 50 Fiat Punto

51 Vauxhall Zafira 52 Mercedes C-class 53 Volvo S60 54 Toyota MR2 55 Mazda Xedos 6
56 Ford Puma 57 Vauxhall Astra 58 Vauxhall Omega 59 Chrysler Neon 60 Audi A2

61 Ford Fiesta 62 Ford Mondeo 63 Vauxhall Corsa 64 Citroen Saxo 65 BMW 3 Series
66 Vauxhall Vectra 67 Isuzu Trooper 68 Mercedes M-Class 69 Subaru Legacy 70 Rover 400

71 Fiat Ulysse 72 Mercedes E-Class 73 Renault Clio 74 Toyota Celica 75 Peugeot 306
76 Peugeot 406 77 Volvo S70 78 Rover 75 79 Daewoo Matiz 80 Peugeot 206

81 Mazda MX-3 82 Vauxhall Tigra 83 Seat Ibiza 84 Peugeot 106 85 Renault Megane
86 Peugeot 406 87 Saab 9-3 88 Audi A3 89 BMW X5 90 Mercedes S-class

91 Toyota Corolla 92 Seat Alhambra 93 BMW 5-series 94 Daewoo Nubira 95 Alfa Romeo 145
96 Saab 900 97 Mazda MX-6 98 Jaguar S-Type 99 Daewoo Leganza 100 Porsche Boxster

Haggling for used car buying - repost

Thanks to Tech Support Guy site, and Angelize56 for the posting - article dated back to 2002.

Negotiating for a Used Car

Negotiating.

The very word makes most people cringe. Add the words used cars, and some people run in terror. But negotiating doesn't have to be a grueling experience. With the right preparation and a few simple rules, negotiating can be fun and exciting. And if you make a good deal, it gives you a great sense of satisfaction.

There are different negotiating styles for different personalities. And if you use Edmunds.com True Market Value pricing, you can avoid much of the haggling. We'll address this point in more detail later.

Here are three simple rules that should carry you safely through the negotiating process:

Know the numbers before you begin negotiating
Always be ready to walk away from a deal you don't like
Make a low offer and sweeten the deal by small increments

Let's look at each step in more detail.

Rule 1: Know the Numbers

By now, you should know the approximate value of the used car you're considering. Just knowing this value will make you a better negotiator. After all, if you know the car is worth only $12,000 and the dealer is insisting it's worth $14,000, it will be difficult for him to convince you to buy it.

Rest assured that the dealer will give you all kinds of reasons to justify his price. The dealership's overhead is expensive, they had to clean or repair the car, your Internet figures are "way off," and the like. But if you have looked up the TMV of the car on Edmunds.com (and included all options and allowed for the mileage) you should be very close to the right price.

Before you leave for the car lot, you should print out Edmunds.com True Market Value page for the used car you want to buy. If you have been shopping for some time, you will have also gained first-hand knowledge of car prices in your area. Then when you spot the right car, at a good price, you can make a competitive offer.

Rule 2: Always Be Ready to Walk

If a dealer knows you are in love with the car you just test-drove, you will be in a weak position to negotiate. But if he thinks you might walk away without buying, he will treat you carefully. Open negotiations by saying, "I'm ready to buy today if we can reach an agreement on the price." With this phrase, you are striking just the right balance. Why? You are letting the dealer know that you're serious about buying a car, not just "kicking tires." A dealer is more apt to give you his best price if he feels he might have a solid sale right then and there, as opposed to throwing a higher price out to someone whom he feels is just wasting the dealership's time.

There are people who say that the best way to get a good deal on a used car is to walk out three times. We don't believe the process has to be that drawn out. And it doesn't have to be confrontational either. But you do need to let the dealer know that you will walk out if you don't get the price you want.

Jumping ahead a little, here's a simple tip. After you've made your offer to the salesperson, and he's taking your offer to his manager, get up and leave the sales room. It shows that you don't feel under obligation to remain under their control. Go look at the cars in the show room. Or go to the restroom. Or tell them you need to get something out of your car. It's a little show of force that will help you make a good deal.

Rule 3: Make a Low Offer and Sweeten the Deal Slowly

The best way to explain this rule is to use some real numbers. Let's return to the car-buying exploits of Edmunds.com editors John DiPietro and Phil Reed.

John and Phil had located a 2000 Mazda 626 LX for $12,595. When Phil's financing was delayed, they continued shopping and spotted a newspaper ad for a 2000 Mitsubishi Galant ES, with 19,000 miles for $12,500. They were curious to see if they could get the Mitsubishi for a substantially lower price than the Mazda.

Phil called the number listed in the ad and learned the Mitsubishi was at an Acura dealership in Southern California. Although the price was listed as $12,500 he asked the dealer what it was selling for. "We have it listed for $12,995," the dealer said. When Phil said it was listed in the newspaper at $12,500, the dealer corrected himself. "We haven't got the new listings yet," he explained. "Anyway, it's the end of the month. And the car's been on the lot a long time. So come on down and take advantage of me."

Using "CarFax"

A valuable resource when used car shopping is the service known as CarFax. If you enter a car's Vehicle Identification Number (VIN number) you can obtain a report of the car's history. Most significantly, you will find if it has a "salvage title." This means an insurance company, probably because of an accident, considered it a total loss. But you may also learn if there were any recalls and how many owners the car has had.

The CarFax service costs $14.95 for a single car. But you can get an unlimited number of reports during a two-month period for $19.95. Our recommendation is that you initiate this service at the beginning of your car buying process and check every car before you seriously consider buying it.

Phil and John drove to the Acura dealership and test-drove the Mitsubishi. Together, they inspected the car as carefully as possible without taking it to a mechanic. (In part two, we explained that if a car is still under factory warranty, has been well-maintained and has a solid reliability record, it isn't essential to take it to a mechanic before buying it. However, if you have doubts about the car's mechanical condition or don't feel confident evaluating this yourself, have it inspected by a mechanic.)

Making an Opening Offer

When the salesman was out of earshot, Phil and John decided they would try to get the car for $11,800 and open by offering $11,500. When the salesman returned Phil told him he was ready to make an offer on the car. He explained that they had already made a deal on a Mazda 626 LX at another lot. The deal on the Mazda was for $12,595, and he really liked that car. But he said he also liked the Mitsubishi and would buy it if the price were an improvement over the Mazda. Therefore, he said, he was willing to pay $11,500.

The salesman received the offer with a puzzled frown. He asked if the offer was "out the door." Or was it before tax and license? "Before tax and license fees," Phil said. The salesman invited them inside, and they went into a sales room. The salesman pulled out a "four square" worksheet (used by car salesmen to negotiate) and asked a series of questions. Phil had already stated that he was a cash buyer, with no trade-in, so this step was simple.

The salesman began searching for a way to make the deal more attractive to the sales manager. Did Phil want to buy Lo Jack or an extended service warranty? He declined both of these offers.

Finally, John said, "We know this is below your asking price. But take it in to your boss and see what happens."

The salesman left. While he was gone John, a rabid car enthusiast, busily inspected the new models on the showroom floor. Phil went to his car to get his cellular phone.

The salesman returned moments later with the four square worksheet. Phil's offer of $11,500 was circled with a large question mark beside it. Apparently, this was the manager's way of saying that it was just too low to consider. The salesman once again began explaining that their initial asking price was $12,995. So for them to consider such a low offer was out of the question.

Phil countered by reminding the salesman that they were there because of the advertised price of $12,500. Furthermore, he said, the Mazda really was a great car at $12,595 and he was tempted to return and buy it. However, Phil admitted that the $11,500 offer on the Mitsubishi might have been low so he increased his offer to $11,800. The salesman left to take this new offer to his sales manager.

Don't Be Distracted When Negotiating

Moments later the salesman returned with the news that they would consider selling the car for $12,295 if Phil bought a Lo Jack contract or an extended service warranty. Phil said he wasn't interested in either of these extras and his offer was still $11,800. The salesman said without the extras, they wouldn't be making enough money on the deal to make it worthwhile to sell the Mitsubishi at that price.

So far, Phil and John had been in the salesroom for about 45 minutes. Phil began feeling that they weren't making enough progress on this deal. He said, "I think $11,800 is a realistic price for this car, but apparently I'm wrong. I want to apologize for wasting your time. I guess I'll have to go back and buy that Mazda."

The salesman said he felt they were actually very close to making a deal. They just needed to make the transaction more profitable for the dealership. He once again talked about the service warranty and the Lo Jack. Again, Phil said he didn't want either but he would make a final offer of $12,000. John, tiring of these tactics, nudged the salesman to take the offer to his boss by saying, "Try it out and see what he says."

Be Ready for the Closer

In some dealerships, a closer is brought in when the salesperson can't make a deal. Usually, the closer tries for a few hundred dollars extra in the deal. Or, he tries to get the customer to agree to the last offer by the dealership.

While the name "closer" sounds frightening, closers are often personable, skilled sales people. While some may apply pressure, most will attempt to make a deal by reasoning with a customer or cajoling them. In this case, the closer brought in a Kelley Blue Book print out showing how much the car was worth. He also explained that they wouldn't make much money if they sold the car for $12,000.

Phil was ready to come up another $200 but, unexpectedly, the closer agreed to the offer. Using a blue marker, he wrote on the four square, "My children will go shoeless and hungry, but you can have the car for $12,000." He added, "Sometimes I even draw in little tear drops."

Closing the Deal

At this point the salesperson will probably extend his or her hand and say, "Congratulations! We have a deal!" Shake hands and agree to the deal. But keep in mind that nothing is binding until you sign the contract.

Several things need to happen before the deal is finished. First, depending on your state laws, you may need to show proof of insurance. This can often be arranged in advance or on the spot, by calling your insurance agent (bring the number with you to the dealership). Then, you need to review and sign the contract and several related documents. Finally, you may have to deal with last-minute attempts to sell you extra services.

Some people like the peace of mind that an extended warranty provides. However, many used cars still have the factory warranty in effect. In the case of Phil's Mitsubishi, there was still a year and a half on the bumper-to-bumper warranty. Furthermore, a drivetrain warranty is in effect for an additional period. He felt there was no reason to buy an expensive extended warranty.

While Phil and John were waiting for the contracts to be prepared, the general manager of the dealership appeared. "So this is the John and Phil team," she said, laughing. "I just wanted to thank you for helping me lose money on this deal." This comment, and others, showed that the sales staff had negotiated in good humor and with a sense of fair play.

Finally, the paperwork was ready. Phil signed an agreement to furnish an insurance policy and a "Due Bill." The Due Bill would state what repairs, if any, the dealership had agreed to perform to the car during the negotiation process. In Phil's cases, no promises for further repairs were made.

Then Phil signed the actual sales contract. Here is a breakdown of the fees:


Sale price of the car $12,000.00
Documentation Fee $ 45.00
Smog Fee Paid to Seller $ 41.75
Smog Fee Certification $ 8.25
Sales Tax $ 966.94
License Fees $ 216.00


Total $13,277.94

Comparing the Real Market to Edmunds and Kelley Blue Book

How does the purchase price of $12,000 compare to the Edmunds.com TMV price? Edmunds' says the car could be sold by a dealer for a TMV price of $13,100 (clean condition) to $13,706 (outstanding condition). Why the disparity? First, we shopped around for two weeks and jumped on this car as soon as the ad ran. Second, the dealership was located near an affluent area -- not the kind of place a Mitsubishi Galant would be in high demand. And finally, it was late in January when many consumers are dealing with the aftershock of Christmas buying.

However, the Edmunds TMV was much closer to the mark than the Kelley Blue Book. The Blue Book dealer price was listed on their Web site as $16,005. If they tried to sell cars at those prices, Phil felt the salesman's children really would starve.

Use TMV to Avoid Negotiating

Many car buyers might not want to negotiate as actively as the Edmunds editors. In those cases, the process could be simplified by offering a dealer several hundred dollars below Edmunds TMV price. If the dealer refuses the offer, raise your price to the TMV and show the salesperson a printout of the TMV figure. Dealers have indicated that TMV is a fair price for both parties.

Truthfully, Phil would have paid the dealer's starting price of $12,500 for the Mitsubishi Galant, knowing that Edmunds' TMV price was $13,100. But with two hours' worth of negotiating, he saved $500 -- well worth the time invested.

Reviewing the Process

In retrospect, John and Phil were helped by several factors. In addition to the advice already offered, they felt it is important to give car shoppers the following tips:

Take a friend when you go car shopping. This not only gives you moral support in negotiating, but your friend might stop you from doing something stupid -- like paying too much or getting switched to a vehicle that isn't right for you.

Choose a good dealership. John and Phil wound up at the Acura dealership because when they called ahead and chatted with the sales manager, they felt comfortable with him. When it came time to negotiate, they felt they would be treated fairly, with no high-pressure tactics.

Have a back-up vehicle. Phil knew he could walk away from the Mitsubishi at any time and still have a good deal with the Mazda. Referring to this other car, at another dealership, helped him take a strong stance in negotiating. It also kept him from becoming emotionally dependent on making a deal on the Mitsubishi.

Buying Used Saves Money -- Big Time

Phil's Mitsubishi Galant was originally purchased in early 2000 for over $17,000. About 14 months later, Phil bought the car for $12,000 with 19,983 miles on it. The wear and tear to the car was almost imperceptible. True, there was no new car smell, but it looked and drove like a new car. And Phil was able to save roughly $5,000 -- that's nearly a 30 percent savings off the new car price.

For a small sacrifice in terms of "new car magic," a smart used car purchase will save you a lot of money. And, possibly, it will let you step up to a higher class of car than you could buy new. The next time you get the urge for a new car, consider buying used instead

CA unemployment rate grew to 12.5% in 01/2010

SACRAMENTO, Calif. – California's unemployment rate grew slightly to 12.5 percent in January, the state Employment Development Department reported Friday. But the state also revised its December job numbers to show that about 300,000 additional jobs were lost last month.

The state's unemployment rate in December was 12.3 percent. Officials had previously reported December's unemployment rate at 12.4 percent, but revised that figure Friday.

2010 tax law changes

New vehicle sales tax - Effective January 1, 2010, individuals will no longer be able to take the itemized deduction or increase in standard deduction for sales tax on the purchase of a new motor vehicle.

Sales tax – Individuals will no longer be able to take an itemized deduction for state and local sales tax.

Educator expenses – Teachers will no longer be allowed to deduct out of pocket expenses incurred for school supplies. In the past, a deduction from adjusted gross income of up to $250 was allowed.

Roth IRA conversion – There are no income limits in 2010 for individuals that would like to convert a traditional IRA to a Roth IRA. Also, for any conversions in 2010, the tax will be paid in 2011 and 2012.

Phase outs - In 2010, there will be no phase out of itemized deductions or personal exemptions. This change will greatly benefit high income earners.

Unemployment income – In 2009, those receiving unemployment benefits can exclude up to $2,400 from their taxable income. This tax benefit will no longer be available in 2010.

Charitable distributions / contributions – Charitable distributions made directly from an IRA account to a qualified charity will no longer be excluded from your income

Home buyers credit – If you got on the home buyers tax credit gravy train back in 2008, you are required to start paying the credit back in 2010.

Alternative Minimum Tax – The AMT exemption is scheduled to decrease to $33,750 for single filers and to $45,000 for those filing a married joint return.

Retirement contributions - There is no change in the maximum contribution and individual can make to a 401(k) plan in 2010. This remains at $16,500. The catch up contribution of $5,500 for individuals age 50 + also remains the same.

Mileage reimbursement rates – The updated mileage reimbursement rates effective for January 1, 2010 are $0.50, $0.165 and $0.14 for miles incurred for business purposes, medical purposes and charitable purposes, respectively.

2009 tax law changes - excluding uncommon items

Common changes are listed. More are at IRS web site.

Tax Credit of Up to $8,000 for First-time Home Buyers. If you purchased a primary residence in 2009 before December 1, 2009 and are a "first-time" home buyer, you can qualify for a tax credit equal to 10% of up to $80,000 of the purchase price. To be eligible, you must not have owned a residence in the U.S. in the previous three years. The credit phases out between $150,000 and $170,000 of adjusted gross income for joint filers and $75,000 to $95,000 for single filers.

Payroll Tax Credit.

For 2009 and 2010, Congress gave workers a credit of 6.2% of their earned income, capped at $400 for single filers and $800 for joint filers. For single filers, it starts phasing out at $75,000 of adjusted gross income and dries up at $95,000. The phaseout zone for couples is $150,000 to $190,000. Employees will get the credit in advance via lower income tax withholding in each paycheck, not as a rebate check.

Sales Tax Deduction for New Vehicles. Buyers of new vehicles can deduct the sales tax paid on the purchase, even if they don’t claim sales taxes as itemized deductions. They can add the tax they pay to their standard deduction. This break applies to new cars, motor homes, light trucks and motorcycles purchased after February 16, 2009 and before January 1, 2010. Sales tax paid on the first $49,500 of cost qualifies. The benefit begins phasing out for married couples with AGIs over $250,000 and singles with adjusted gross incomes over $125,000, and is completely gone for single filers with adjusted gross income of $135,000 or more or joint filers with AGI of at least $260,000.

Indexed Tax Brackets. Thanks to higher inflation in the past year, the 10%, 15%, 25%, 28%, 33% and 35% tax brackets all kick in at approximately 5% higher levels of income than in 2008.

Larger Personal Exemptions. For 2009, each personal exemption you can claim is worth $3,650, up by $150 from 2008.

Higher Standard Deductions. For 2009, the standard deduction for married couples filing a joint return rises to $11,400, up by $500 from 2008. For single filers, the amount increases to $5,700 in 2009, up by $250 over 2008. And heads of household can claim $8,350 in 2009, a jump of $350 from 2008. Non-itemizers who pay real estate taxes can claim even larger standard deductions. Joint filers can add in up to $1,000 of property taxes paid. Singles can add in up to $500 of real estate tax payments. Non-itemizers can also add any casualty losses that occurred in presidentially declared disaster areas.

Tax Credit for College Tuition. For 2009 and 2010, the Hope credit is replaced by a new credit of up to $2,500 per student a year for four years of college, not just the first two years. It now also covers the cost of books and begins to phase out at $80,000 of adjusted gross income for single filers and $160,000 for joint filers. If the credit is more than your income tax liability, 40% of it is refundable. Also, the full credit is allowed against the alternative minimum tax.

Child Tax Credit. If the credit exceeds the filer’s tax liability, all or part of the credit will be refunded if the filer earns more than $3,000 in 2009 and 2010, down from $12,550.

Earned Income Tax Credit. For families with three or more children, the maximum earned income tax credit for 2009 and 2010 rises by $628.50. And the phaseout of the credit for joint filers starts at higher income levels in 2009 and 2010, allowing more of them to claim the credit.

Unemployment income – In 2009, those receiving unemployment benefits can exclude up to $2,400 from their taxable income.

Oct unemployment rate, and Obama signed jobless benefit extension

President Obama said he signed into law Friday a bill to provide up to 20 additional weeks of jobless benefits to unemployed Americans and extend the $8,000 tax credit for new homebuyers into the middle of next year.

The signing came after the Labor Department reported that the unemployment rate spiked to a 26-year high of 10.2% in October, with 190,000 jobs lost in the month.

CCFSettlement Nov 2009 status

The Court has entered a Memorandum and Order, dated October 22, 2009, granting final approval of the settlement.

Q2 2009, number of problem banks reach 400

The number of institutions on the government's so-called "problem bank" list surpassed 400 in the latest quarter, climbing to its highest level in 15 years, according to a government report published Thursday.

July unemployment rate

U.S. July unemployment rate is 9.4%.

Job growth and decline

• Construction lost 110,000 jobs in January 2009, which put industry losses at over one million jobs since early 2007
• Manufacturing lost 207,000 jobs this past January, the largest one-month decline since 1982
• Retail lost 45,000 jobs,
• warehousing lost 44,000,
• and temporary work dropped nearly 80,000 positions, all in January
  Even finance lost 42,000 jobs

Two notable industries saw continued growth this past January:

• Health care employment rose by 19,000 jobs, slowing a little from it's 2008 average of 30,000 jobs a month
• Private education also saw a jump in employment of over 33,000 jobs

Source: Karl Fendelander's article on Yahoo education

Cash for clunkers

Congress passed the "cash for clunkers" measure late Thursday night as part of the $106 billion war spending bill. President Barack Obama plans to sign the bill into law.

Meanwhile, car dealers may honor rebates starting July 1. The federal agency needs the 30-day window to implement regulations to safeguard the program from fraud and abuse, Tyson said.

Among the issues regulators might address: Does the consumer hold a valid legal title to the car he is seeking to trade in? Will the clunker be appropriately disposed of so that it can't be cashed-in again?

The agency on Friday was scrambling to launch a Web site, www.cars.gov, to provide consumers with information about the program.

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Find more detail: http://nhtsa.gov/staticfiles/DOT/NHTSA/Rulemaking/Rules/Associated%20Files/CARS_1stDayNotice_06262009.pdf

Unemployment rate update, May 2009

The national unemployment rate rose to a 26-year high of 9.4% in May, up from 8.9% in April.

Top 5:

. Michigan: 14.1%
. Oregon: 12.4%
. South Carolina: 12.1%
. Rhode Island: 12.1%
. California: 11.5%

Buying your own health insurance

Source: CNN

People who don't have health insurance pay about $2, 260 in out of pocket costs per year -- that's twice as much as someone who is covered under an employer's plan according to Consumer Reports.

First, check out insurance comparison Web sites like eHealthinsurance.com. Use it to get a range of individual health insurance policies and to compare prices and benefit levels.

Next, go to your state insurance department's Web site. Here you may find companies selling individual coverage in your state. And the insurance department may also provide complaint records on individual insurance companies.

Finally, consider using a health care broker who knows your local market. Brokers can help you shop for price. They'll also know what company is more liable to accept you based on your health conditions. The best part is that you won't pay a dime out of pocket says Amir Mostafie at eHealthinsurance.com. They get a commission paid by the insurance company that you sign up with.

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You don't automatically qualify for Medicaid just because you have a low income. It also depends on your family status -- if you have kids etc.

To find out what eligibility requirements of health care programs like S-Chip or programs for the elderly, go to coverageforall.org.

Jobless rate: 9.4%, job cut rate slows down

Naitonwide jobless rate is at 9.4%.

In May/09, the number of job cuts is 345K, fewest since November 2008. In April/09, the number is at 600K.

Unemployment update

The unemployment rate declined in 21 states in April, compared with the month before, while 11 states had no rate change, according to federal data released Friday.

Still worst unemployment states are:
Michigan: 12.9%
Oregon: 12%
South Carolina: 11.5%
Rhode Island: 11.1%
California: 11%

IRS says audits will focus on wealthy

The average taxpayer has a 1% chance of being audited compared with a 5.5% chance among millionaires.

Auto repo

• Auto repo law is by state.
  

• First you are late for your payment. You'd receive a late payment warning by mail; (but not always as there is no law that requires this. Only if the credit contract says so, is the lender required to notify you in writing)
  
  
• You receive a follow up call to the above warning;
  
  
• You pass some predetermined grace period (look in your credit disclosure statement for the appropriate number of days)
  
  
• You may receive one more warning (usually by mail)
  
  
• The car is taken away. If you hide or move your car away, the finance company can get court order to ask you to turn in the car.
  

• You receive a notice that your car has been repossessed and what your rights are including how to get it back.
  
  
• If you can figure out a way to pay, you'll have to pay the repossession fees, towing charges, impound charges, storage fees and various other fees incurred by the company that repossessed the car. This can easily run several hundred dollars.
  
  
• If you cannot pay the repo fees, you'll lose the car completely! It's sold at auction and the proceeds are applied to the balance of your auto loan and the fees mentioned above. If the balance is not paid off you'll be informed of the balance and that you are still responsible for paying it off. If there is money left over after the car loan balance and all repossession fees are paid, don't expect to get any of the profit; the company can legally keep it.
  
  
• Your credit report is updated to reflect the account as a "repossession"