Personal financial management
December 10, 2007 
So lately I have become quite focused on managing finances. The Internet has, comparatively recently, become a much more helpful place when it comes to money advice.
I started delving deep after stumbling upon The Simple Dollar. I was looking for evaluations of open-source software, but found much more. Trent offers diverse, thoughtful, and engaging essays on many topics, directly as well as tangentally related to personal finance.
I also added Blogging Away Debt to my RSS reader. Tricia is a fellow Michigander and writes a very relatable account of getting her finances right-side-up.
Tricia pointed me to an article about Mint.com. I’m now an afficionado. 
Donations for Tax Deductions–Hooray!
December 6, 2007 
So my yard sale left me with far too many clothes items (both mine and other family members) from bygone years. After some research about the new tax laws, I decided to donate them all to Goodwill and take an itemized deduction. Why? Well, my used clothes have never sold terribly well on ebay, for one thing. The collective IQ there seems to have plummeted as well, so I spend my time fielding questions already answered in the listing, taking pointless complaints, and even (on one occasion) receiving negative feedback because the buyer didn’t understand the measurement units used in the listing! I chose Goodwill because 83% of donations go to the intended recipients, unlike many charities that pad their own pockets. Also, your donation to Goodwill helps in several ways: they employ individuals who would otherwise have trouble entering the workplace, plus the money raised from direct donations and from the sale of donated goods goes to help other people in need. Lastly, they are recognized by the IRS, so you don’t have to worry about your deduction being questioned later on, as long as you follow the rules.
I’m no tax advisor, but just so you know what I’m talking about, the rules are basically:
- This year, you need a receipt for all donations. In the past, you could claim up to $250 without a receipt.
- Many charitable organizations (including churches and non-profits) are recognized by the IRS, so that you can claim up to 50% of your income in donations to them. For the ones who don’t have this status with the IRS, you can claim 20% or 30%, depending.
- You cannot deduct donations to an individual. So you could give to your church, but not your minister, even if there was an occasion of special need.
- You can deduct certain expenses related to charitable giving. You’d best take a look-see here.
With Goodwill, you write up your receipt with what you think your donated items are worth, and then take it in to an attended donation center. If the attendant finds the items to be in “good, used condition” (his/her discretion, it seems), he or she will sign off on the receipt, and you’re merrily on your way. Today I spent all morning going through old clothes and writing up the “good condition ones.” It took all of 5 minutes to make the donation itself, and I walked away with a receipt for $300 to deduct on my taxes. Plus a clean closet. Yippee! I see they also take books, so I might have to make another trip this holiday season!
Bank of America Sucks
December 1, 2007 
When it comes to banks, bigger is not necessarily better. In fact, I’ve been a proud member of several credit unions since I was 18, and I truly believe CUs are simply a better business model.
I also knew Bank of America stood out from other banks as being one of the most, if not the most, evil and greedy and fee-mongering. And incompetent. And did I mention evil?
That said, I do have 2 credit cards with Bank of America (one of which is the result of them gobbling up a smaller company). I kept getting those mailings from them about consolidating loans with lower payments. During a month when my student loans had particularly hurt, finally, I bit.
I applied for the loan over the phone, and was patronized and then lied to by a girl with a southern accent. She made me feel as though I was shockingly in debt (I’m not) and earning little income (I make good money, but work part-time–by choice). Then she proceeded to lie to me about the interest rates that I am paying. Or, rather, she read off the rate I would pay for a cash advance, something that I have never and would never get. Then she said, “You’re never going to pay these off.”
So the offer was to consolidate the two balances at 15% interest and close the two credit accounts. I am no expert, but I’m no idiot either: why would I pay HIGHER interest to have LESS credit? Do I really want to chop dozens of points off my credit score?
Because I am non-confrontational, I say that I need time to think about it. I am told I only have til 10pm to change my mind (when the girl’s shift ends, evidently). She threatens that it will be recorded as a denial on my credit history if I don’t complete the application now. I hang up.
The next day, I get a call asking why I didn’t finish, and I tell the new person (who is significantly less bitchy) that I have decided that I will pursue consolidation with my local credit union.
“We can offer you 12%.”
Wait, what? I thought I was a poor, low-earning idiot paying sky-high interest rates? How did I suddenly qualify for a better offer (though still nowhere near the 7.9% mentioned in the solicitation letter)?
So I will be focusing on paying those balances off ASAP. I won’t close the accounts, so as to keep my available credit high, but Bank of America does not deserve me as a customer.
