Start by reviewing your 2009 income and expenses. Tools you can use include Mint.com, Quicken® or a simple spreadsheet. Go through your bank and credit card statements and categorize your sources of income and expense. Expense categories include things like mortgage, utilities, dining out, groceries, health care, beauty care, etc. Separate your expenses into needs and wants. Take a big picture look at your 2009 habits from this perspective. What do you see?
Next set your 2010 goals. Do you want to go on a summer vacation? Buy a new refrigerator? Pay for your grandchild’s private school? What is really important to you as your prioritize your money?
Prepare a budget for 2010. Start with your needs and add in your goals for 2010. If your expenses exceed your income first look for ways to eliminate unnecessary spending, like brown bagging your lunch instead of eating out. Next look for ways to reduce spending, for example, having your hair cut every six weeks instead of every four. Look at behaviors or habits that cause you to spend money. Do you consider shopping recreation? If so replace that habit with another such as a walk in the park, visit to the local library, game night with your friends.
Many people fail to build an emergency fund. We all need at least 90 days of spending stashed away in a savings or money market account for those unexpected rainy days. If you aren’t there yet, be sure your 2010 budget includes a line item for building your safety net.
Budgeting is essential to take charge of your financial life. If you budget, you are choosing what you want. You are rowing your own boat in the direction you want to go. If you failed to budget, you are leaving your goals to chance, going wherever the river will take you. You may get what you want and you may not. Empowered people budget and plan. Join the budget crew today and create the life you want.
As you plan, remember to think past 2010. A solid financial future is built by saving and increasing your net worth. Review your 401(k) or other employer plan and be sure you are participating at least a level to get the full match. If your budget allows, contribute more. Pay down your credit cards, starting with the smallest one first. Celebrate your victory (without using your credit card) and proceed to the card with the highest interest. Prepare a quarterly net worth statement and give yourself regular at a boy/girls for growing your wealth!
May prosperity be yours,
Mackey McNeill, CPA/PFS
President and CEO, Mackey Advisors
www.CultivatingProsperity.com
Mackey@CultivatingProsperity.com
Thursday, December 31, 2009
Wednesday, December 30, 2009
COBRA Premium Subsidy Program Extended
On December 19, 2009, President Obama signed into law the Department of Defense Appropriations Act, 2010 (DOD) which extends the 65% COBRA premium subsidy to February 28, 2010.
The American Recovery and Reinvestment Act of 2009 provided a government subsidy of 65% of the cost of COBRA coverage for employees (and their eligible family members) who lost their health insurance coverage due to involuntary termination of employment in 2009. The subsidy was to last for up to 9 months. The DOD extends the subsidy to 15 months and includes eligible employees (and their eligible family members) who lose their jobs in January or February of 2010.
The American Recovery and Reinvestment Act of 2009 provided a government subsidy of 65% of the cost of COBRA coverage for employees (and their eligible family members) who lost their health insurance coverage due to involuntary termination of employment in 2009. The subsidy was to last for up to 9 months. The DOD extends the subsidy to 15 months and includes eligible employees (and their eligible family members) who lose their jobs in January or February of 2010.
Monday, December 28, 2009
How to Stay Fit on a Budget
by: Sheryl Nance-Nash
The Faster Times
December 24, 2009
If you’re like many people, you vow to get in shape around this time every year- and find a way to break the vow somewhere between the Rose Bowl and Valentine’s Day. Well, make your own excuses. But after reading this, you’ll have to let go of the idea that working out is too expensive. Working out should shrink your waistline, not your wallet. Here’s how to do it on the cheap.
Cash in on broken promises
Idle workout equipment needn’t remind you of broken promises: it can look like a fresh start. If you have a bench or LifeCycle in your basement, treat it as a free starter kit: if you need to buy one, scoop somebody else’s discarded treadmill or rower on Craigslist or eBay. “If you make smart purchases, a basic home gym can be set up for under $100 and allow you to perform dozens of exercises,” says Brad Schoenfeld, author, Women’s Home Workout Bible.
Go for the video. For even lower expenses, buy about $60 worth of exercise DVDs- or pay nothing to borrow them from the library. “Get a group of friends together to swap tapes weekly to keep it interesting and your body guessing,” says Mackey McNeill, president of Mackey Advisors CPA’s & Wealth Advisors. You can use a video console to work out with friends. EA Sports Active is a $60 customizable, fitness video game created for the Wii that claims to get your heart pumping in just 20 minutes a day.
If you want to expend some shoe leather, you can probably find a free gym or track in your town- at the high school, perhaps, or in an apartment complex that hasn’t sold out its units. “Ask around town,” says Jenny Realo, executive vice president of CareOne Services, a debt relief services provider. You may also find walking or running groups. “Your chances of success are higher if you have someone keeping check on your workout goals,” adds Realo.
If you have your heart set on joining a gym, now is a good time to look for a membership as there are deals waiting on all those who are making the same resolution to get in shape. You can cut the cost of a personal trainer by sharing one. Ask around at clubs that offer personal training if they have small group arrangements. Be smart. Shop around. Don’t be afraid to negotiate. Gyms need members in a recession, as sorely as you need discipline.
Run baby run. Of course, exercise can be free. For little more than the price of running shoes you can run just about anywhere. If winter weather is an issue, you can always do brisk walks in a mall if you do so at hours where there isn’t likely to be a crowd. Just don’t stop to shop!
Find places to add extra walking time, whether it be the distance you park your car at the grocery store or the daily commute to work. “It can also be as easy as adding 10 to 15 minutes extra to the daily walk you have with your pet. A 30-minute walk can shed up to 200 calories,” says Realo.
Take the stairs at work and make it a challenge with your co-workers. “Who can take the stairs the most times in a week or a month?” says McNeill.
That’s right: fitness happens, in 2010, one step at a time. Good luck!
The Faster Times
December 24, 2009
If you’re like many people, you vow to get in shape around this time every year- and find a way to break the vow somewhere between the Rose Bowl and Valentine’s Day. Well, make your own excuses. But after reading this, you’ll have to let go of the idea that working out is too expensive. Working out should shrink your waistline, not your wallet. Here’s how to do it on the cheap.
Cash in on broken promises
Idle workout equipment needn’t remind you of broken promises: it can look like a fresh start. If you have a bench or LifeCycle in your basement, treat it as a free starter kit: if you need to buy one, scoop somebody else’s discarded treadmill or rower on Craigslist or eBay. “If you make smart purchases, a basic home gym can be set up for under $100 and allow you to perform dozens of exercises,” says Brad Schoenfeld, author, Women’s Home Workout Bible.
Go for the video. For even lower expenses, buy about $60 worth of exercise DVDs- or pay nothing to borrow them from the library. “Get a group of friends together to swap tapes weekly to keep it interesting and your body guessing,” says Mackey McNeill, president of Mackey Advisors CPA’s & Wealth Advisors. You can use a video console to work out with friends. EA Sports Active is a $60 customizable, fitness video game created for the Wii that claims to get your heart pumping in just 20 minutes a day.
If you want to expend some shoe leather, you can probably find a free gym or track in your town- at the high school, perhaps, or in an apartment complex that hasn’t sold out its units. “Ask around town,” says Jenny Realo, executive vice president of CareOne Services, a debt relief services provider. You may also find walking or running groups. “Your chances of success are higher if you have someone keeping check on your workout goals,” adds Realo.
If you have your heart set on joining a gym, now is a good time to look for a membership as there are deals waiting on all those who are making the same resolution to get in shape. You can cut the cost of a personal trainer by sharing one. Ask around at clubs that offer personal training if they have small group arrangements. Be smart. Shop around. Don’t be afraid to negotiate. Gyms need members in a recession, as sorely as you need discipline.
Run baby run. Of course, exercise can be free. For little more than the price of running shoes you can run just about anywhere. If winter weather is an issue, you can always do brisk walks in a mall if you do so at hours where there isn’t likely to be a crowd. Just don’t stop to shop!
Find places to add extra walking time, whether it be the distance you park your car at the grocery store or the daily commute to work. “It can also be as easy as adding 10 to 15 minutes extra to the daily walk you have with your pet. A 30-minute walk can shed up to 200 calories,” says Realo.
Take the stairs at work and make it a challenge with your co-workers. “Who can take the stairs the most times in a week or a month?” says McNeill.
That’s right: fitness happens, in 2010, one step at a time. Good luck!
Sunday, December 27, 2009
As we close 2009
At Mackey Advisors, Your Prosperity Partner it has been an exciting and challenging year. As we all know, a deep stock market decline began in earnest in October 2008 and continued into early 2009. As wealth advisors, we wish we could control the market, but instead have to rely on discipline and research to make our best judgments for our clients. We did a lot of listening and created many new venues for communication, including webinars, and this new blog.
Mackey Advisors had a few additions for 2009 including:
•The Prosperity Experience®, an integrated wealth advisory program for individuals and businesses that creates a lifelong process for prosperity. TPE was in the creational realm for 3 years. The Wisdom Link, Jon LoDuca, provided the spark to move us into the final phase of development and Mort Nicholson added his wisdom to help craft the final version and align the individual and business processes. Thank you Jon and Mort.
•New team members: Sarah Lee, Administrative Manager; Kathi Baker, CPA and Shared CFO; Katie Kreimer, Staff Accountant; and Grace Mohr, Marketing and Communications Coordinator.
•Many new business and individual clients thanks to our friends and clients who beat the drum and tell their friends and family about our services.
May prosperity be yours,
Mackey McNeill, CPA/PFS
Mackey Advisors, CPA
www.CultivatingProsperity.com
Mackey Advisors had a few additions for 2009 including:
•The Prosperity Experience®, an integrated wealth advisory program for individuals and businesses that creates a lifelong process for prosperity. TPE was in the creational realm for 3 years. The Wisdom Link, Jon LoDuca, provided the spark to move us into the final phase of development and Mort Nicholson added his wisdom to help craft the final version and align the individual and business processes. Thank you Jon and Mort.
•New team members: Sarah Lee, Administrative Manager; Kathi Baker, CPA and Shared CFO; Katie Kreimer, Staff Accountant; and Grace Mohr, Marketing and Communications Coordinator.
•Many new business and individual clients thanks to our friends and clients who beat the drum and tell their friends and family about our services.
May prosperity be yours,
Mackey McNeill, CPA/PFS
Mackey Advisors, CPA
www.CultivatingProsperity.com
Monday, December 21, 2009
4 Last Minute Holiday Money Tips!
by: Brian J. O'Connor
The Detroit News
The 2009 holiday shopping season has only four days left, but consumers still have time to take a minute to review how their spending is progressing. CPA Mackey McNeill, a member of the National CPA Financial Literacy Commission, offers these tips for a cost-effective holiday:
• Review your budget: Take a moment to review your holiday shopping list to see if your budget is still in check.
Ask yourself: Am I on target with my original budget for the season? Do I need to revise for whom I am buying or what I am buying for them? Do I have any last-minute gifts or people that I did not account for originally?
• In the spirit of giving: Consider making a donation in the name of a family member or friend to their favorite charity instead of, or including, a small gift.
The charity donation will help someone less fortunate during the holidays, and you can take a deduction on your 2009 taxes.
• Cost-efficient holiday ideas: Be creative in your gift giving. Frame a special photograph, for example. If you have a talent that lends itself to personal expression, like knitting or songwriting, make use of it. Gifts like these will have sentimental value and be memorable; not to mention less expensive.
• Do additional research: Once you have reviewed your shopping list, become an educated shopper and compare prices. You may be able to save a few dollars on each gift, which can add up and allow you to stretch your budget even further. Use coupons for additional discounts.
The Detroit News
The 2009 holiday shopping season has only four days left, but consumers still have time to take a minute to review how their spending is progressing. CPA Mackey McNeill, a member of the National CPA Financial Literacy Commission, offers these tips for a cost-effective holiday:
• Review your budget: Take a moment to review your holiday shopping list to see if your budget is still in check.
Ask yourself: Am I on target with my original budget for the season? Do I need to revise for whom I am buying or what I am buying for them? Do I have any last-minute gifts or people that I did not account for originally?
• In the spirit of giving: Consider making a donation in the name of a family member or friend to their favorite charity instead of, or including, a small gift.
The charity donation will help someone less fortunate during the holidays, and you can take a deduction on your 2009 taxes.
• Cost-efficient holiday ideas: Be creative in your gift giving. Frame a special photograph, for example. If you have a talent that lends itself to personal expression, like knitting or songwriting, make use of it. Gifts like these will have sentimental value and be memorable; not to mention less expensive.
• Do additional research: Once you have reviewed your shopping list, become an educated shopper and compare prices. You may be able to save a few dollars on each gift, which can add up and allow you to stretch your budget even further. Use coupons for additional discounts.
Sunday, December 20, 2009
Solstice Prosperity Lessons
What is often needed to create more prosperity in our lives is a change of perspective. Have you ever heard the saying, "It is darkest, just before dawn?"
When there is the least amount of sunlight every day, Winter Solstice, is the day when the earth begins to create more light. We may not notice the new light for several weeks or months, but none the less, it is happening little by little.
If you are in a dark moment of prosperity, remember this saying and hold it as comfort. The light is coming. You may not see it right away, but it is coming all the same.
This year Winter Solstice is December 21st. Why not use this day as a day of gratitude, for the darkness that teaches us about the light?
May prosperity be yours,
Mackey McNeill, CPA/PFS
CEO and President
Mackey Advisors
www.CultivatingProsperity.com
When there is the least amount of sunlight every day, Winter Solstice, is the day when the earth begins to create more light. We may not notice the new light for several weeks or months, but none the less, it is happening little by little.
If you are in a dark moment of prosperity, remember this saying and hold it as comfort. The light is coming. You may not see it right away, but it is coming all the same.
This year Winter Solstice is December 21st. Why not use this day as a day of gratitude, for the darkness that teaches us about the light?
May prosperity be yours,
Mackey McNeill, CPA/PFS
CEO and President
Mackey Advisors
www.CultivatingProsperity.com
Thursday, December 17, 2009
Quit Whining and Get Financially Healthy
Rarely does a week go by that I don't hear about some small business person who cannot get a loan. PLEASE! The main reason we are in the mess we are in now, is that access to credit was too easy. If you could fog a mirror you could get a loan.
Now you have to actually be credit worthy. For a small business owner, that involves going the right things financially, like building equity either from your personal funds or from retaining earnings in the business. It means managing your business. Treating it like a business and not just a job.
Today if you have a healthy balance sheet, you can access credit. If you don't, instead of complaining about it, why not just get busy doing what you need to do to make yourself credit worthy. Lower your debt. Build your equity. Manage your cash flow. Watch your numbers like a hawk. Grow your market share.
Quit whining and get busy!
Mackey McNeill, CPA/PFS
Mackey Advisors
www.CultivatingProsperity.com
Now you have to actually be credit worthy. For a small business owner, that involves going the right things financially, like building equity either from your personal funds or from retaining earnings in the business. It means managing your business. Treating it like a business and not just a job.
Today if you have a healthy balance sheet, you can access credit. If you don't, instead of complaining about it, why not just get busy doing what you need to do to make yourself credit worthy. Lower your debt. Build your equity. Manage your cash flow. Watch your numbers like a hawk. Grow your market share.
Quit whining and get busy!
Mackey McNeill, CPA/PFS
Mackey Advisors
www.CultivatingProsperity.com
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