Are you a SHOPAHOLIC?

Excerpted from http://recessionista.com    

Like any addiction expert will tell you, the first step to recovery is admitting that you have a problem. So, admit it: you're an overspender! Now here's how you can get it under control: 

You spend money when you're emotional. This doesn't just mean upset or angry (although who hasn't engaged in a little retail therapy?) but also when you're happy. No matter your mood, buying new things makes you feel better, and you can always find a way to justify your purchase. Much like people who eat to suppress or celebrate their feelings, those who spend when they're emotional are at risk for larger issues. Small frivolous purchases are one thing; but once you're hooked, you need larger and more expensive purchases to maintain that same shopping high.

And guess what? It's a vicious cycle, because those same feelings that you might be trying to suppress by spending often lead to additional feelings of stress and anxiety. Chances are that when you go on a spending binge, the results are more costly than you expected. With excessive spending comes debt; and with debt, comes phone calls from debtors, lowered credit scores, and in extreme cases, bankruptcy. If your spending habits result in temporary happiness only to be overcome by financial stress, repeat after us: you have a spending problem.

Read the entire article here.  

4 Smart Ways to Spend Your Tax Refund  

It's the time of year that many Americans look forward to: tax refund season!  The school of thought for most people is usually one of two theories on what to do with that money: use it to pay off credit cards, other expenses or put it in savings; or go wild, treat yourself to something nice like a vacation or shopping spree and enjoy it. 

Steve Siebold, author of the book How Rich People Think, says dumping the average refund of $3,000 into savings isn't going to make a significant impact in terms of the big picture, so look for ways to get a healthy return with your refund.

His four recommendations:

Personal and business development 

Formal education will make you a living; self-education will make you a fortune. There's a reason that very successful people are constantly attending business and personal development seminars. If you want to see a massive return on your tax refund, invest it in ways to better yourself such as self-improvement audio programs, business workshops and seminars or coaching and mentoring programs.  School is never out for the great ones.

Start a business 

There are 3 million millionaires in the U.S. and they are the largest buyer of personal services. It's a perfect time to use that refund to start a lawn care service, maid service, handyman business, pool cleaning company, grocery shopping service, etc.  Huge opportunities also exist for selling and brokering used goods like clothes, toys, computers and sporting goods. These items can be purchased at garage sales and resold on and offline.  

Get fit and healthy 

Taking control of your weight and overall health is the fastest way to ascend to world-class success in all areas of your life.  Use that tax refund to invest in exercise equipment or a gym membership.  Not only will you feel better, but that confidence will carry over into everything you do.  Your level of success in your career, relationships and everything else will drastically improve.

Take that vacation 

The reason: the most successful people know the enemy of creativity and clarity is excessive cognition. Cognitive overload will bring anyone down both personally and professionally, and it's why world-class performers take this time off to slow their thought process down, and elevate their consciousness to gain a fresh perspective.

Have a money saving tip that you'd like to share? Send it to us for possible publication in this newsletter at:

Did you know that in 2011 consumers in the U.S. spent at least one billion dollars per month more than they needed to on their wireless services?   And, consumers routinely pay up to $1,500 per year on their wireless bills?

"When people receive their wireless bill, they often feel that they are overpaying but feel helpless, they are not aware that they have options," said Ahmed Khattak, CEO of GSM Nation, a rapidly expanding wireless retail and services company. 

Here are Khattak's five steps to help consumers save over $1,000.

Avoid Contracts. Buy a contract-free phone 

Do not sign a two-year contract!  You will lose money, freedom and convenience. Wireless carriers lure consumers with a 'discounted' phone but make them sign overpriced and restrictive contracts that end up costing them more than $1,000 extra over the life of the contract. Insurance plans on contract-free phones are the same. It is true that when you buy a contract-free phone you have to pay full price rather than the subsidized rates that carriers offer for a locked phone on a contract.  However, that's the trick: those contract deals are deceptive because the consumer ends up paying more than what the phone is worth, and then some in fees.  In the long run, the contract-free phone equals great money savings to the consumer.  How? Monthly plans on contract free services are almost always much cheaper than comparable plans on contract. 

Use a Contract-Free monthly unlimited plan 

Instead of paying $100-$200 per month for your wireless plan, pay $40-$60 for an all-inclusive, unlimited plan -- voice, text, data, the works!  Contract free services are offered by some of the bigger contract-based carriers (like T-Mobile) and by carriers that solely offer service without a contract (like Simple Mobile, Boost Mobile, and h2O Wireless). Most of these smaller carriers are known as "Mobile Virtual Network Operators" or MVNO's. This is because rather than having their own network they actually use the network and wireless infrastructure owned by the four large carriers-Verizon, T-Mobile, AT&T, and Sprint. The advantage of this is that you get access to the reliable network coverage of a large carrier without getting stuck in an unfair and restrictive contract. A few "contract-free-only" carriers use their own network, such as Cricket Wireless.

Use GSM Nation's "Savings Calculator"

An easy-to-use comparison tool for people to see how much they can save per month by switching to a contract-free service.  People enter in how many minutes they use, their text and data plan and can instantly compare the prices of different carriers and see how much they can save with a MNVO.  

-Readers please understand that GSM earns fees if you sign up through its Web site-

LEARN ABOUT NON-APPLE PRODUCTS

Apple products are the crème-de-le-crème, but their marketing success has actually created an opportunity for consumers.  Other amazing similar high-end products had to dramatically lower prices to compete.  Visit objective information centers to talk about YOUR needs and pick the best product for YOU.  You can find world-class smart phones for under $150 and tablets for under $300. 

VISIT ONLINE DIGITAL LIFESTYLE COMMUNITIES

When choosing wireless products and services, consumers should visit online digital communities such as Engadget and Gismodo to see product reviews, forums and feedback from experts, other customers and objective parties.

Tax Credits in 2014

When the Affordable Care Act brings enrollments through Health Insurance Marketplaces starting in October 2013, you may be eligible for a new kind of tax credit you can use right away to lower what you pay for your monthly health plan premiums.

With most tax credits, you have to wait until you file your taxes to get the credit. But the new tax credit available through the Marketplace lets you reduce your costs right away.

People who qualify can take the tax credit in the form of advance payments to lower their monthly health plan premiums starting in 2014, which can help make insurance more affordable.

You'll see the amount of tax credit you're eligible for right after you submit your Marketplace application (coming in October 2013). Once you enroll in a qualified health plan, you can control how much of your tax credit you want to use to help pay your monthly health plan premiums.

The tax credit is sent directly to your insurance company and applied to your premium, so you pay less out of your own pocket.

The amount of tax credit you're eligible for depends on how much income your family expects to earn. When enrollment starts in October 2013, it will be important to double check your application to make sure everything is accurate. If the amount of income you report isn't accurate, you may not get the right amount of tax credit you're eligible for, and it could mean you have to pay back money at the end of the year.

What are the subsidies?

Subsidies will be determined on a sliding scale, based on income, so that individuals at the lower end of the income scale get the most help paying for their health insurance coverage.

So, based on your income compared to the Federal Poverty Level, the amount you'll be required to pay for your health insurance will be a percentage of your income.

The Federal Poverty Level in 2013 in the 48 contiguous states and District of Columbia for a family of 2 for example it is $15,510; and for a family of 4 it is $23,550. Hawaii and Alaska have slightly higher poverty levels.

The Affordable Care Act has these parameters currently set up to decide how much you'll pay: 

   Income                         Premium Limit

Up to 133% of FPL            2% of income 

All people who buy coverage through an exchange will have a cap on their total out of pocket spending including deductibles, co-pays and co-insurance.

As you can see, the more you earn the more you'll be required to pay for your Health Insurance coverage, but everyone will be expected to pay something, so all consumers need to understand the Affordable Care Act and be ready to cover some costs of their Health Insurance Coverage.