Money Mentoring Minutes with Ebong Eka, CPA

People are searching for more innovative ways to enjoy life during challenging economic times. In my last post, I wrote about vacationing on a budget and that post inspired me to continue with the "Budget" theme. Many people strongly dislike the "B-word" because it gives the impression of restraint and restriction but it doesn't have to be that way.

I was recently asked about giving tips for "Dating on a Budget" and I've pulled a list of potential date ideas for the economically conscious dater.

1. Coffee isn't Only for Mornings

Coffee can be a great way to spend time with a new love interest without breaking the bank. Many gourmet coffee shops offer specialty drinks for and treats for you to enjoy. For an average of $5 per drink, you can spend your time chatting and not your money while sipping your fancy beverage.

2. A Tisket, A Tasket, a Picnic in a Basket

One of the many great things about the Washington, DC area is the public parks. One thing that goes perfectly with a park is a picnic. The keys to a successful picnic outing are the food, beverages, and ambiance.

Food: Find out what your date's culinary preferences and dietary restrictions are. You wouldn't want to make a ham sandwich for a vegetarian. Make little tea sandwiches and cut into triangles for manageable bites. The best way to store them would be in tupperware or it's equivalent. Also consider bringing romantic fruit like strawberries, raspberries or grapes. These fruits are bite sized morsels and don't require utensils. Along with fruit, bring cheeses, crackers or a sample of your date's favorite foods as a surprise.

Beverages: Many parks prohibit the consumption of alcohol, so check with the park in advance before bringing your favorite alcoholic cocktail. Other alternatives, could be a fruit punch, sparkling water or something special.

Ambiance: Like food or beverages, the ambiance is just as important. Make a list of 2-3 parks that are within driving distance. In the event that one of the parks are occupied by large groups or a loud event, you want to have the option to go elsewhere. In addition, ambiance also includes the basket, cups, utensils and napkins. If you can't find a basket to carry your picnic, use one of the environmentally conscious tote bags. You can also find matching napkins and plastic utensils at stores like Target for next to nothing.

3. Guess Who's Coming to Dinner

Dinner at home is a great way to show off your cooking skills and save money in the process. Just like with the picnic, find out your date's culinary preferences and dietary restrictions in advance. If you're not as comfortable in the kitchen, consider cooking simple meals. There are many websites that offer free recipes for home cooked meals. I would also suggest making that particular dish in advance to ensure the result is as intended. Last thing you want to do is cook dinner at home and have the food taste so bad that you have to go out to eat!

4. After Hard Work Comes Your Just Desserts

Dessert can be a nice way to show your date a good time but at a reasonable price. Dessert only shops are popping up in the area and the cupcake craze has continued to fuel interest in sweet delicacies. For approximately $10, you an take your date to one of the many great cupcake places for a cupcake and a cup of coffee.

There are so many options to choose from when going on a date. It doesn't have to always cost you an "arm and a leg".

As always, please feel free to email me with questions or comments!

Ebong

info@ebongeka.com

A colleague recently asked me "What's there to do in DC........? for cheap". My colleague was asking on behalf of his parents, who were visiting him from out of town. The economy has forced many to creatively think of ways to save and spend their hard earned money. The question also got me thinking about vacationing on a budget in our fine city of Washington, DC.

Regardless of the current economic situation, most people love value and a good deal. With that said, I thought it would be interesting to give you all a list of economically friendly ways to vacation on a budget in DC.

1. Home is Where the Heart Is.

If you have out of town guests or even a love interest, consider cooking dinner at home and going out for dessert at many restaurants in the area. Some wonderful dessert places include Love Cafe on U st., NW, Georgetown Cupcakes in the heart of Georgetown or Ris in Washington, DC's West End neighborhood.

2. Anticipation for Your Destination

Washington.org is a wonderful website for all things Washington, DC. The site boasts hidden gems in the city for residents and visitors alike. Deals include discount hotel stays, detailed visitor's guides and restaurant listings. The site also has a "100 Free (or Nearly Free) Things to Do in DC which literally lists 100 free or nearly free things to do in DC. 

3. Malls Aren't Always for Shopping

The Smithsonian Institution is the world's largest museum complex and research organization composed of 19 museums and the National Zoo. The Mall has been made famous for a variety of reasons but the best thing about the museums that line the Mall is it's FREE.

Vacations don't always have to be expensive. DC is a city with tremendous heart, character and culture. The diversity of it's inhabitants contributes to the city's various happenings. Hopefully, the list can help you make the next vacation economically friendly.

As always, please email me with any questions: info@ebongeka.com

Money, money, money...so many want it and many hate parting with it.  The Internal Revenue Service (IRS) generally requires you to part with some of the money you earn. The process includes finding boxes of receipts and filling out tax forms. It can be a daunting process for the ill prepared but it doesn't have to be that way. Hopefully, you filed your tax returns with the IRS by April 15th, but if you didn't file your tax return on time you could have filed an extension. You can use Form 4868 if you need more time to file your tax returns. An extension gives you up to six months to file your tax return but it doesn't give you an extension to pay any tax due on April 15th.

If you haven't filed your return on time, don't panic. Per the IRS.gov website, filing a past due return may not be as difficult as you think. You should file all tax returns that are due, regardless of whether or not full payment can be made with the return. Depending on an your particular circumstances, you may qualify for a payment plan. Contrary to popular belief, there's no reason to fear the IRS. Tax issues are important and should be dealt with quickly so ask your tax preparer or CPA for guidance.

As always, please email me with any questions or comments.

Ebong Eka, CPA

info@ebongeka.com

Protecting cardholders from Misleading Terms

Many of us receive countless junk mail for low interest rate credit card offers. The marketing for these offers have become more creative with multicolored envelopes or authentic looking mail. Zero Interest on all balance transfers or introductory rates on all new credit cards are very appealing. There's a popular saying: The Devil's in the Details.  These teasers rates are just that....teasers. If you read the fine print, you'll see that the rates are only for a limited time. The fine print also has terms like "fixed rate" or "sub prime rate" but many know what that actually means. Many of the offers feature misleading and confusing terms. Credit card companies were hoping you skipped reading the fine print and signed up for a credit card anyway.

The new credit card bill sought to address these questionable practices by prohibiting credit card companies and banks from using terms such as "fixed rate" and "prime rate" in a misleading or deceptive manner by establishing single, set definitions of those terms. The bill also gives cardholders who get pre-approved for a card the right to reject that card up until the moment they activate it without having their credit adversely impacted.

Oddly enough, the new bill imposes a requirement that creditors have a minimum size font on their statements to improve readability of the terms for the credit card. No more "read the fine print" because no all the font is the same!

Hopefully you're working your way through your credit card debt and with more information, controlling your financial ship would be daunting. Tax time is about a week away and the next few posts will focus on preparing for paying the piper....or Uncle Sam.

As always, please email me with any questions or comments.

Ebong Eka, CPA

Protections against Random Interest Rate Increases

Paying off your credit card balance is hard enough as it is.  A random interest rate hike on your credit card balance makes paying off your credit card debt a heck of a lot harder.  Historically, credit card companies and banks had the freedom to raise your credit card interest rate without 'expressed written consent'. In other words, the purchase of your new clothes now just got a little more expensive.

Some of you have fixed interest rate credit cards, while some of the others have variable interest rate credit cards. Regardless of what type of credit card you have, we can all agree that a random interest rate increase is far from helpful. Congress also agreed that random interest rate hikes are far from helpful because the new credit card legislation was passed with bipartisan support.

Here's what you should remember about interest rate increases:

a. The credit card bill now requires credit card companies to give cardholders 45 days notice before increasing interest rates.
b. You have 3 billing cycles after the rate increase to agree or disagree with the new terms.
c. Lastly, cardholders now have the right to cancel their card and pay off their existing balance at the current interest rate if the bank or credit card
    company wants to raise your interest rate. 

All these new and old rules can be confusing to the average consumer. For too long, many of the banks and credit card companies hoped we weren't paying attention. These new laws are set to protect the consumer and with a little effort on our part we can grab a hold of our financial battleship. We're finishing the blog series on new credit card bill in the next post.

As always, please email me with any questions or comments.

Ebong Eka, CPA

info@ebongeka.com

College Bank Curtailment

In previous posts, I've addressed several important facts about the new credit card legislation and how it affects you. Prior to the new credit card bill, college students lined up to listen to fast talking salespeople. It seemed as if every college campus in the United States had Discover Card, Visa & Mastercard kiosks that offered credit cards to college students regardless of whether they can pay or not. Many of us learned about money and finance the hard way because it wasn't taught in most schools. The credit card companies and banks were fully aware of that fact when they started handing out credit cards to college students as if they were textbooks. They made getting a credit card easier. To further entice potential customers, the credit card companies and banks would offer free pizza, t-shirts and an assortment of other gifts. This behavior led many college students to financial ruin because absent responsibility, a credit card be extremely dangerous.

Congress agreed when they added the provision on the curtailment of banks on college campuses. Per the new legislation, credit card companies and banks are required to provide a reason for participating on college campuses and at university-themed events. Unfortunately, the legislation lacks what constitutes a "Reason".

The new credit card legislation also prohibits credit card companies and banks from giving gifts or any promotional items (such as coupons for free pizza) to entice college students to take on debt by signing with their credit cards.

Many of you already have credit cards and despite your best efforts, you still can't understand why your minimum payment went up this month. After reviewing your statement you notice the interest rate has increased without your knowledge. Come to think of it, that is unfair! Congress thought the same thing when they introduced "Protections against Random Interest Rate Increases". In the next post, I'll discuss how the new bill addresses interest rate increases.

As always, please email me if you have any questions or comments.

Ebong Eka, CPA
info@ebongeka.com

In reality, not all credit cards are bad....if you are responsible. Not all credit card companies are bad....if they are responsible. With Congress' recent credit card legislation, credit card companies have been given an opportunity to be more responsible. Remember the 'Free T-Shirt" offers for those who complete a credit card application? For years, credit card companies set up shop at sports arenas, spring break locations and wait for it.....college campuses. Many college students haphazardly filled out credit card application for cheap gifts or pizza while disregarding any ability to repay the debt. The gifts were short lived because these students were soon inundated with credit cards that had excessive fees and extremely high interest rates.

We've been hearing the ills & pitfalls of credit card debt for years. There have been horror stories of excessive over the limit fees bestowed upon unsuspecting consumers. Credit cards weren't always the problem; the debt associated with those credit cards & loan shark like interest rates was the problem. For many of you who have credit cards, Congress recently passed legislation requiring credit card companies to get their act together & exercise more responsibility.