Each year, students everywhere are required to put in a Free Application for Federal Student Aid in order to be considered for financial aide for college. Too expensive tuition and lowered incomes is making this a highly competitive process with more people seeking assistance. Without this yearly ritual, colleges and universities would not be able to ascertain the level of need for attending students. To get ahead of the pack, file early. While the federal deadline for the FAFSA is June 30th, the truth is that state deadlines differ and can be much earlier. Since the system is set up to be a “first come/first served” system, it’s best to get in your application as quickly after January 1st as possible.

Why You Should Apply Early

State deadlines can range between February 15th, in Connecticut, to July 1st, in Louisiana. In between, the average state deadline is closer to March 15th. Either way, you need to get a head start to get your FAFSA in early, if you want there to be sufficient funds if you have demonstrable need. Otherwise, if you file late, the funds may run out even if you qualified. Check the deadline for your state at the official FAFSA website. The sooner you file the better your changes of obtaining aide, if you qualify.

Why It’s Difficult To File Early

Federal regulations don’t actually require that your tax documents be delivered until the last day of January. That usually means people have to wait until February to file their taxes. If you or your parents are required to submit their income information on the FAFSA, it can be difficult to do so early. For that reason, you can estimate that information and file an amendment later. If you are an emancipated minor, you may not need to file your parents’ income information. If you are listed as a dependent, you will need to get that information ready to file as quickly as possible. You can start to complete your tax returns and wait for your W-2s to arrive to finish the process quickly in time to file the FAFSA early. If you wait until the last minute, you’ll only hurt your chances for getting financial aide, even if you qualified for it.

With rising mortgage rates and falling incomes, the recession has revived an interest in rooming together. When faced with foreclosure or a lack of income, renting a spare room is a quick way to make several hundred dollars extra a month. Home value predictions, 2009, showed declining prices in most markets, making the option of selling a home to downsize less likely. Yet, holding a home with an adjustable mortgage or with less income is problematic too. That’s why many people are opening their doors and taking in strangers in a bid to ride out this recession, and save their home from foreclosure, by renting out a room.

How to Advertise for A Roommate

If you’re not in college anymore, but seeking a roommate, your first question might be: “Where do I advertise?” Online bulletin boards like Craigslist are easy places to start, and they don’t cost anything to advertise. The heading is “rooms/shared” under your major city heading. Other places to advertise are in your local newspaper, and within roommate websites like Roommates.com. In some cases, you may have to pay a fee to advertise, and others will allow you a small period, like a week, to post for free.

Screen Your Potential Roommates

When you advertise, be sure to put in what you desire in a roommate. The best arrangements don’t just need your financial needs, but also take into account your chosen lifestyle. Someone who hates dogs, for instance, may not want to room with you if you have several dogs. The same is true for people who smoke, party, or even have differing religious or political viewpoints. The best match is someone who will appreciate your own lifestyle and endeavor to fit in as seamlessly as possible. The first way to attract such a roommate is to make it clear this is what you seek.

Avoid Being Scammed

Unfortunately, the ease of online communication in searching for a roommate has also led to scammers frequenting these areas, trying to scam you out of money. The paid sites, like Roommate.com, are not as open to such shenanigans, but one still has to be careful. The majority of scams are people who claim to be outside the local area and wanting to rent the room, sight unseen. This should be an immediate warning bell, as the minute they agree to send you money without even meeting you, you know they are setting you up for a scam. They will send out a bad check or money order and then renege on the arrangement, asking you to send them back good money instead.

Some unfortunate would-be renters have also been scammed when genuine advertisements and photos are hijacked and then priced significantly lower than the market price. The scammer hopes to obtain that money by eager renters so eager to score a deal, they will fail to realize they are being scammed. Sometimes, scammers have even cased a good rental, broken in, shown the home to a prospective target, and then taken off with the money. Later, the renters find out the home wasn’t even owned by the person who rented it. This is a good reason why you shouldn’t let people know when you will be home or not. Schedule all viewings only mentioning when it is most convenient to visit, not when you will not be around.

Renting A Room Takes Time

To do this right, expect to take a month or so in the screening process. There will be no-shows and obvious mismatches. Keep looking because eventually you will get someone who is a match. It’s up to you to decide whether you want to run a background or credit check, both of which can be easily done via services available through the Internet. Keep on doing screenings until you have money in your hand, because often people back out because they either find another room or they can’t come up with first and last month’s rent on time.

Get a template for a rental agreement so that your new renter knows their financial obligations and has it down in writing. Everyone should sign. Collect first and last month’s rent, so that your renter doesn’t get tempted to leave you in the lurch without proper notice. If no notice is given, you should make it clear the last month’s rent is non-refundable and only applied when a clear 30 days notice is given. This way, you will have plenty of time to locate your next roommate.

With unemployment higher than it’s been in years and current salaries on a down-turn, it has been harder and harder for people to make ends meet in this particular economic climate. Many are losing their homes to job loss and balloon payments on adjustable rate mortgages. So many others have gotten sick or injured and have had to turn to government assistance to get by. Most people think that Americans are greedy and only care about themselves, but there are good Samaritans out there who genuinely want to help others and will offer assistance when available. People like Bill Gates are in good economic shape and give millions away to charities across the world, but we don’t necessarily see many normal, average people helping others financially. In many instances, helping others is just not possible, but some do manage to pull it off without much fanfare.

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Even with new anti counterfeit measures put in place for U.S. legal tender, there’s always some enterprising criminal trying to cheat the system. Instead of copying an already established currency note, which might be hard to duplicate correctly, why not just create a new one? That must have been the thought behind a Lebanese man’s attempt to create new denominations for the United States dollar, ranging from $500 notes, a $100,000 note, and finally a $1 million dollar note. None of these currency note values are actually still within wide circulation, as the highest note currently in circulation is only $100.

Or, the man might have done some poor research and discovered that, in fact, there were denominations of $500 and $100,000 U.S. bills in existence. He just may have gotten the dates of their issue and circulation wrong. The last time $500 notes were printed legally was in 1945, and they there are few within mainstream circulation. There was also a special edition $100,000 note, created in 1924, but it is not in circulation either, making it very easy to spot an obvious fake for anyone in the financial industry.

Regardless, the enterprising criminal might have gotten away with the scheme except that his first act was to tip hotel staff in Kuala Lumpur, where he was staying, with a fake $500 note. The recipient of the note tried to exchange the note at a local moneychanger and was then informed that the bill was a fake. Malaysian police arrested the man who might face up to 10 years in jail. When they searched the man’s room, police found over $66 million dollars of counterfeit bills with the same denominations. The man already has a prior arrest record in connection with fraud over the sale of office supplies in 2005.

Whether your family budget is getting stretched a little too thin, or you want to teach your kids to not make the money mistakes that you did, odds are you’ll find yourself wanting to teach your kids about money. Regardless of the age of your kids, it is never really too early to start teaching them the proper way to manage money. Commonly one of the best times to start is when your kids are old enough to help out around the house. As they get older, the lessons should get tougher and should also be based on more real world situations. Here are some simple tips for teaching your kids about money so they will be prepared for any money situation that may arise.  (more…)

It’s unfortunate that some of the most under-reported financial crimes have nothing to do with banking, instead they have to do with romantic partners who cheat and steal from their partners. The embarrassment of having been taken by someone you loved or trusted is so over-powering that victims rarely report or prosecute people who steal from them. You may think you’re building a dream life together only to wake up and find out someone else has gotten a no credit check payday loan in your name, and you’re responsible for repayment. How can you protect yourself from this increasingly growing crime? Take note to maintain your privacy, and your wallet, as you engage others in intimate areas of your life. (more…)

You’ve worked all your life and now it’s time to sit back and enjoy your golden years. Unfortunately, the stock market has left your retirement savings in tatters, the housing market collapse has robbed you of your equity, and the rumor is that social security will not have a cost of living adjustment for the next few years. Can you still retire? While it may not be possible to fund the same retirement plan you created in the good years, you may still be able to salvage enough of your retirement plan to create a new strategy that can still leave you able to enjoy your golden years better. This new plan may include reducing your discretionary expenses, finding an affordable retirement city, and maybe even starting a home business or taking part-time employment to make ends meet. (more…)

According to a recent report on the legendary investor, Warren Buffet, it’s time to purchase stock in American companies. The method behind what might seem like a bout of madness for the aging investor is that when the total market value of US stocks drops to a level between 70%-80% of American Gross National Product, it’s time to buy. 

Buffet’s fantastic success as an investor is based, in part, on his practice of seeking out undervalued companies to invest in. He soon moved from turning over a profit through stocks in a company to purchasing undervalued companies and bringing the most-successful ones together into the Berkshire-Hathaway brand. But purchasing a struggling company is well out of the average investor’s financial reach. The only remaining option is to purchase a portion of that company as stock. 

It could well be said that nearly every company in the US that has the resources to continue operations is currently undervalued. With the total value of the stock market reaching the 76% mark at best, perhaps Buffet is right and its time to pull some money from under that mattress and invest it. 

Perhaps it comes down to a matter of faith. Once you decide whether or not you believe the economy will recover, the question of investing gains simplicity. If you cannot afford to lose a dime, then just like always, you should keep your money in a safe place and not worry about the stock market. However, if you have some cash on hand and want to research the possibility of creating genuine long-term wealth, it’s a great time to check out the stock market.  photo credit: ArtemFinland

photo credit: Here in Van Nuys

A recent study based on unpublished Internal Revenue Service (IRS) statists shows that the rich ($200,000+ annual income) cheat more on their taxes than any other income group. How do they do it? Simple: they understate their adjusted gross incomes by an average 21 percent, 13 percent more than those with incomes between $50,000 and $100,000 annually.

The study, which has not yet been officially endorsed by the IRS, was written by Joel Slemrod, an economy professor at the University of Michigan, and Andrew Johns, an IRS economist. The study reviewed 45,000 individual 2001 tax returns, and was the first such IRS study since 1988.

The study also found that the rich cheat more because a higher percentage of their income comes from sources easier to hide. Among these, self-employment, rental income, S corporations and capital gains. In fact, the IRS estimated that individuals underreported incomes by a whopping 43 percent in 2001, which adds up to a significant loss in federal tax income.

Of course, this doesn’t mean that the rich get away with cheating. The IRS has collected billions in back taxes over the years, and the biggest offenders are often slapped with extra fines and even jail time. If you ask me, that’s a hefty risk to run.

Unlike many countries, America’s higher education system almost requires students to go into debt… deep debt. And today, more than any time in the past, students are feeling the burden of huge student loans - fewer jobs and lower pay are tough to handle when student loan payments don’t get any smaller. In fact, recent studies show that two to four percent of student loan owners have left the country, and many see that as the only option to escape their debts.

Students are often first time borrowers, and may not know what they’re getting into. It’s easy to miscalculate or simply wishfully think it into a smaller number, but when graduation day is over, huge monthly payments may be staring you in the face. Right now, there is about $60 billion in defaulted student loan debt, and searching for debtors abroad is an expensive process that cuts into loan company’s profits.

If you or someone you know is having trouble paying off a student loan, there are several steps to take. Filing for economic hardship deferment or forbearance can either defer or eliminate your monthly payments. Under other circumstances, you may be able to talk with your company, and extend your loan term; though you’ll pay more in the long run, you’ll at least be able to meet your monthly minimums.