Octoberber 2009
Industry Article
Scrounging Up Cash When You Don't Have a Dime
By Dayana Yochim
Life happens. And not always right on schedule. Worse yet, sometimes it coughs up an expensive emergency.
If that happens, and you don't have an adequate emergency fund, there are other places to get the cash.
How to make the best of a bad borrowing situation
None of these options is great, or even good. But if you must, you must. Here's a general pecking order of places to get the cash:1. Call in those IOUs. Think about who owes you, and start at the office. If you have a flexible-spending account or have incurred reimbursable business expenses, submit your receipts. If you regularly get a tax refund, adjust your withholding. Doing so will immediately increase your take-home pay.
2. Sell stuff. You may be surprised how much you can make off of stuff that's just gathering dust. Clean house and hold a garage sale, or sell things on eBay or Craigslist.
3. Sell your subpar investments. Identify stocks and mutual funds (or even CDs or bonds) that you hold outside your regular retirement accounts. In tax terms, it's best to sell the ones that have lost you money. If you sell at a loss, you can offset other gains and pay less in taxes on those. But if you've made money, prepare to pay those capital-gains taxes come next April.
4. Put it on plastic. Credit card debt can be a slippery slope. If you have no choice but to run up your credit cards, come up with a payoff plan ASAP.
5. Borrow from your home very, very carefully. If you must, borrowing against your home equity will probably provide you the lowest rate, and the interest may be tax-deductible. That said, proceed with caution. You're risking the roof over your head (aka a secured asset) should you be unable to pay the money back.
6. Borrow from your future self. Here again, I urge caution. You pay a steep price -- both in taxes and lost future growth -- when you dip into your retirement accounts before age 59 1/2. Before that age, you'll generally pay a 10% penalty and ordinary income tax for money withdrawn from traditional IRAs and 401(k)s. (You may be able to get the penalty waived in some emergency medical circumstances, but check in with the IRS before you start spending that extra money.) Taking from a Roth IRA may be a better option. You can withdraw your contributions (though not your investment gains) at any time, without a tax penalty.
Scared into saving more? Good! Even if layoffs aren't looming and no other money maladies seem likely, an emergency stash of cash is what keeps you from painting yourself into a financial tight spot -- a corner you can easily avoid by making the right arrangements
Fall Health Tip
This Fall season follow this tip to help you and yours stay in top health and be your best during the seasonal and all year long:
Flu Shots - Check with your doctor or your local public health department to find out when the annual flu shot is available. If your doctor can give you the shot in the office combine it with a check-up. If your doctor does not give the shot check on local events for flu shot administration. You may also want to get a pneumonia shot also. Remember that the flu shot is recommended for all adults, especially those with a health condition such as diabetes or heart disease that makes them more at risk for the serious complications of the flu
FeatureRecipe For Paprika Chicken
Ingredients
1 (15 ounce) can pumpkin puree
4 eggs
1 cup vegetable oil
2/3 cup water
3 cups white sugar
3 1/2 cups all-purpose flour
2 teaspoons baking soda
1 1/2 teaspoons salt
1 teaspoon ground cinnamon
1 teaspoon ground nutmeg
1/2 teaspoon ground cloves
1/4 teaspoon ground ginger
Directions
Preheat oven to 350 degrees F (175 degrees C). Grease and flour three 7x3 inch loaf pans.
In a large bowl, mix together pumpkin puree, eggs, oil, water and sugar until well blended. In a separate bowl, whisk together the flour, baking soda, salt, cinnamon, nutmeg, cloves and ginger. Stir the dry ingredients into the pumpkin mixture until just blended. Pour into the prepared pans.
Bake for about 50 minutes in the preheated oven. Loaves are done when toothpick inserted in center comes out clean.
Special Days
October 12th Columbus Day
October 31st Halloween
Employee News
Congratulations to Lisa Vargas and her family on the purchase of their new home.
Horoscope
October is a strong month for you, dear Libra, in which your own personal needs, desires, and projects assume more importance. As you take a stronger, more assertive, and more independent stance, awareness of challenges from, and responsibilities to, a partner and family increase. In the next few years, you'll be especially aware of family dynamics--past and present--and how they are affecting your self-image today. Breaking free from past conditioning is a theme. The 3-4 brings possible relationship tests, but also rewards, and strengthening of ties on the 13-14. Towards the end of October, focus shifts to security, finances, and comfort matters.
