I get fake/phishy emails to my inbox quite frequently. I received another today claiming it was from paypal.  I thought this was a good time to remind you not to click on links in emails that claim to be from your bank, paypal, Craigslist, etc. 

Even ones that look real, such as this one, are usually scams to get your info.  Take a look at the email I recently received.  It looks pretty legitimate.  It also contained two links within the email for me to use to sign in to my paypal account. 

Rather than clicking on the links, I opened a new window and typed in the paypal address myself.  Sure enough, there were no messages from paypal showing on my account.  Beware of this fradulent emails that are designed to steal your information and your money.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Notification of Limited Account Access RXI-992‏

Hello Karen Weideman,

As part of our security measures, we regularly screen activity in the PayPal
system. We recently contacted you after noticing an issue on your account.

We requested information from you for the following reason:

A recent review of your account determined that we require some additional
information from you in order to provide you with secure service.

Case ID Number: PP-758-524-697

This is a second reminder to log in to PayPal as soon as possible. Once you log
in, you will be provided with steps to restore your account access.

Be sure to log in securely by using the following link:
Click here to login and restore your account access

Once you log in, you will be provided with steps to restore your
account access. We appreciate your understanding as we work to ensure account
safety.

In accordance with PayPal’s User Agreement, your account access will remain
limited until the issue has been resolved. Unfortunately, if access to your
account remains limited for an extended period of time, it may result in further
limitations or eventual account closure. We encourage you to log in to your
PayPal account as soon as possible to help avoid this.

To review your account and some or all of the information that PayPal used to
make its decision to limit your account access, please visit the Resolution
Center. If, after reviewing your account information, you seek further
clarification regarding your account access, please contact PayPal by visiting
the Help Center and clicking “Contact Us”.

We thank you for your prompt attention to this matter. Please understand that
this is a security measure intended to help protect you and your account. We
apologize for any inconvenience.

Thanks,

PayPal Account Review Department

Please do not reply to this email. This mailbox is not monitored and you
will not receive a response. For assistance, log in to your PayPal account
and click the Help link in the top right corner of any PayPal page.

—————————————————————-
Copyright © 1999-2010 PayPal. All rights reserved.

PayPal Email ID PP522

It’s tax time and leave it to crooks to find an opportunity to take advantage of people.  I received this email today.  It’s even addressed from notification@irs.gov.

Dear Taxpayer!

You are encouraged to pay a penalty for the failure to file income tax returns prior to January 31, 2011.
Note, IRC [Section 6038(b)(1)]
provides for a monetary penalty of $10,000 for each [Form 5471]
that is filed after the due date of the income tax return or does not include the complete and accurate information described in [Section 6038(a)].

No penalty will be imposed if the company shows that the late filing was due to reasonable cause.

For more information please refer to attached file.

Thanks,
Internal Revenue Service United States Department of the Treasury.

Many times these emails will lure you into clicking on links or opening attachments.  These are ways to get your information or to give your computer a virus.

The IRS website has more information on suspicious emails.

Each year I procrastinate getting my taxes done.  All of the itemizations and deductions are confusing and many times overwhelming.  Thankfully, I have an established relationship with an accountant in our area.  She is so nice and doesn’t mind me emailing her with questions.  All of this craziness is making a flat tax sound all the more appealing.  Why do we all have to go through this each year?  But that’s another rant for another day. Back to this whole tax mess . . .

The adoption tax credit has changed, there are rules about purchasing a new home, selling a home, and what if you receive a monthly housing allowance? 

If you’re the common man (like me), this sounds like a foreign language to you.  Don’t give up just yet.  You want your taxes done correctly and you want to receive your money without delay.  Forms that are filed incorrectly can delay refunds.

All of these new  laws and extended tax credits make it really hard for a person to file their own taxes.  I am known for being a thrifty tightwad money saving cheapskate, but here’s one time I cringe and shell out the money to a professional.   

Of course, there are some ways to save money on your tax preparation expenses.  Have your papers organized and deductions itemized by category.  Don’t make the tax preparer search through your papers.  Since they usually charge by the hour, this will only cost them time which costs you money.

Remember that the IRS has set up a handy YouTube channel to help answer some of your questions.

Will you hire a professional this year?

image sxc by YM

There are many of you wondering if you should purchase the cell phone insurance.  Most financial advisors, such as Clark Howard, say that in most cases you should not get the insurance. 

If you have a regular cheapo cell phone (like me), then I wouldn’t recommend getting the insurance.  A simple math sentence of $5 x 12 months will tell you that it’s just not worth the money.  You can purchase the cheap phones on ebay or Craigslist usually for less than $50.  The ordinary phones with no bells or whistles are generally easy to come by and last a few years.  The problem with the expensive phones and Smartphones is that are known to have problems.

Take my husband’s phone(ssssss) for example.  He has had probably a DOZEN phones from Verizon.  He first started out with the Blackberry.  After getting about five Blackberry Storms and two Storm 2s, Verizon gave him a Droid. After having a few Droids, they told him the problems were from the things he had downloaded on to his phone and for him to take off all of the applications.  HUH?  What’s the point of having a data phone if you can’t have apps on it? 

All of the phones were sent back for issues such as locking up, not receiving data, the phone staying lit up, etc.  The problem is that when you send back your phone, you’re not getting a new phone; you’re getting a “refurbished” phone.  I have no clue what qualifies these phones as refurbished because they have many issues.  Just a few months ago, we dropped off another Verizon phone at a Charlotte, NC FedEx location to be shipped back and the representative at this location told my husband that they ship approximately 30 phones from that location each day!  Ok, ok, this is moving towards the craziness of Verizon so I’ll move on.

Basically, the advice is this:  If you have a regular cell phone, then the insurance probably isn’t worth the money.  If you have a more expensive phone, I’d strongly consider it.

Do you have insurance on your cell phone? What kind of experiences have you had?

Edited:  Be sure to read the fine print on cell phone insurance policies. Some charge a $35 deductible.

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I am a thrifty tightwad money saving bargain hunting cheapskate. It’s become second nature to me. In everything I purchase, I am looking for ways to save money.  Many times I don’t even realize I’m doing it and then it eventually becomes obvious to me when I see the things that others are purchasing. I realize that many of us are trying to live a more frugal lifestyle these days. Here are some reasons to save.

No regrets -  Have you ever purchased something and then later are left with buyer’s remorse?  It’s an awful feeling.  Or maybe you have been in a financial hard place and wish you had all the money back that you had frivilously spent. I’ve been there too. If only we could undo our mistakes.  Unfortunately, we can’t have a do-over but we can learn from our errors.

Debt free life -  Saving money allows you to have more money in your wallet.  This enables you to pay cash for your purchases, save for the future, and live a debt free life.  If you have high credit card payments, then you may not have the money to pay cash for every day purchases or you may not have saved for unexpected emergencies, so then you’ll end up charging those things you need.  It all a vicious cycle.

Save for other purchases - By saving money on everything I buy, I am able to put money into my savings account for future purchases.  Last year my husband and I purchased a new mattress set for our bedroom and put a down payment on our house.  This year we purchased a used mini van, upgraded my kitchen appliances to stainless, and purchased an HE washer and dryer.  All of these things were paid for with cash.  Trust me, it’s not because we are rich.  We are everyday people.  We just save money in every way we can, look for the best deals, weigh our options, and pay cash for purchases.

Helping the environment - People that are seeking to save money and live frugally are usually environmental friendly.  They spend less, consume less products, buy used, and try to use the things they already have.

Helping others - By living a thrifty lifestyle, I am able to help others in need.  It may be by giving food and toiletries that I have purchased for really cheap or free with sales and coupons.  It may be by using extra money that we have because we haven’t spent the money on extravagant items or car payments.

Why do you live a thrifty lifestyle?

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“This would be a much better world if more married couples were as deeply in love as they are in debt.” ~Earl Wilson

While traveling today, I was able to listen to part of the Clark Howard Show and a portion of the Dave Ramsey Show.  This is a rare occurrence for me, so I was thrilled to hear some financial advice.  It’s a shame I was driving, because there was plenty of information that I could have jotted down to share with you.  I do remember one particular bit about parenting and boundaries.

One of the callers on the Dave Ramsey Show said that her son had been living in her basement for two years, rent free.  She said that he worked full-time and whenever she asked him to help out with the bills, he said he couldn’t afford it.  The lady was seeking advice and basically, Dave Ramsey told her this:

1.  Immediately buy the book Boundaries.  Read it.  (Boundaries can be purchased through Amazon and through CBD, which also has a workbook.)

2.  Talk to your spouse and agree upon a plan.

3.  Sit down with your child and apologize.  Tell them you’re sorry that you have failed them and allowed them to live this way.  Let them know that you’re going to do the right thing and help them be responsible.

4.  Give your child 90 days to move out.  Have them sign a contract with the date to move out.

5.  As a gift, offer to pay for Financial Peace University Classes for your child.  (These are great classes!!!!) The caller said she had offered these to her son but he was not interested.

6.  Guide your child along the way, helping them to manage their money.  Do not pay their bills for them, but let them know you’ll be there for them if they’re hungry.

7.  If at the end of the 90 days your child has been working hard and you feel they need additional time, you can offer them an additional 30 days.

I think the reason that this story stood out to me so much is that I know of a few families that have been in this situation.  Let me just say, if your child is 25 or even 30 years old, works full-time, has lived at home for years and has NOTHING to show for it, there is a big problem!  I am not normally this direct and opinionated on my websites, but you are ENABLING your child to fail! You’re not doing them or yourself any favors.  We should be training our children to become adults, to be self-supporting, and successful in life.  Some people are more motivated than others.  Unmotivated children sometimes need a push in the right direction.  Paying their bills for them and not requiring anything of them is not doing anyone any favors.

The world is full of people that moved out at a young age, got married young, put themselves through college, or whatever the circumstance may be.  Many times success comes from having no other option but to succeed or fail.

Based upon the Amazon reviews of this book, it is also a good book for those that feel like they can’t say “no”, are a doormat, or those with problems parenting.  I have not read this book, but it has received positive reviews.

Do you know of a family that has failed to set up boundaries with their children?

As always, please use common sense with this approach. I don’t think this type of plan would apply to an 18 year old that just finished high school, a full-time college student, a child with medical bills, or someone going through a hardship.  This is for children whom are not in school and are unmotivated to move out of their parents’ home.

Image: CBD

When we think of teenagers and money, it usually brings thoughts of expensive name brand clothing, lattes, movie nights, accessories, and more. This is not the case for Lindsay Binegar of Ohio.

Lindsay has been saving her 4-H earnings since she was 4-years-old. Lindsay recently used her earnings from the past 15 years to pay cash for a house!

I hope Lindsay’s story inspires us all to realize that if we live beneath our means and save, we too can stay out of debt and have financial goals. Enjoy the story!

Join personal finance expert Suze Orman in an exclusive U-Stream live chat this Friday, April 9, 2010 at 4:00 PM EST.  This is Suze’s very first U-Stream chat and she wants you to be there to ask her questions!

Suze will be hosting on open forum where participants can ask questions on matters relating to children and personal finance.  This would be a great opportunity to ask questions about how to budget for your family, plan for your child’s college education and teach your children about finances from a young age.  She’ll also be talking about her recently updated and revised The Road To Wealth. This new edition includes an entire new section about changes to student financial aid.

Suze also will be discussing and taking questions about her brand new Protection Portfolio a state-of-the-art program gives you all the tools you need to protect your valuable documents, assets, and personal information.

When: Friday April 9, 2010 at 4:00PM EST
Where: http://www.ustream.tv/channel/suze-live

The next time someone asks you over to “share something” with you, to invite you into their newest opportunity, or to get rich quickly, you might want to remember this video from The Consumerist.