Gotta Luv the Gift Cards

I, for one, love receiving gift cards. It is so great to be able to whip out a Dunkin' Donuts gift card instead of cash, when I have my window down on a cold day at the Drive-Thru window. It is a mini-feeling of being rich, where I just flash some plastic and I feel like no money has been exchanged.

My husband will find the first sentence of this post ironic. It has become kind of a running joke between us that you only give gift cards (and in his case, a gift certificate back in 2000) if you don't really care about the person. True, when he gave me a gift certificate for Bath & Body Works for my birthday when we were dating, I was disappointed. After all, aren't those products what you give a teacher or a mother? Where was my romantic, "we're in love" gift, I wondered. Granted, we had only been dating for a month so I suppose a teddy from Victoria' s Secret was not in the cards.

But I digress...nowadays, I appreciate when someone thinks of a fave place or somewhere I might like to go, and gets me a gift card. It doesn't matter the $ value -- sometimes it entices the recipient to shop there when they wouldn't normally. Or it can make things more convenient when they do go to their favorite haunt. You can find a ton of different gift cards on display for purchase in places like CVS or Wal-Mart (so now you don't have to drive to separate stores or restaurants for each card).

Gift cards for Christmas have two elements: practicality and thoughtfulness. Practical because they're like free money, and thoughtful because they involve thinking about the recipient's likes. They are small enough to fit into stockings, but you can wrap one in a box to become a present. Gotta love the gift cards! (Or if you don't, get some for someone who does, hint hint!)

How long to hold on to tax returns?

Although you probably don't want to think about doing your 2007 tax return now, I like the end of the year because it means I can wrap up my record-keeping for the year in preparation for a probable tax refund. Once I get the W-2 forms in January, I'm ready to send in my paperwork to my accountant and wait for good news. Generally we get notice of refunds by the first week of February (I've told you I'm not normal!).

I also love that I can throw away yet another year's return and file of paperwork. While 7 years seems to be the most common guideline we all hear as to how long to keep tax paperwork, my accountant said 3 years. Most clients don't trust that number so we operate with the 7-yr rule when purging, and I suggest that they consult with their accountant.

According to most online research on the topic, "there is a three year statute of limitations for the IRS to assess a tax and impose a penalty on the taxpayer. Once this three-year period has elapsed and the IRS is no longer permitted to examine your returns for a particular year, you can dispose of that year's records. You should note that the three years begins when the tax return is due; if you filed early, the due date is still the target date." Of course there are some situations that require holding on longer to pertinent paperwork, but for the typical consumer, this applies.

For a more specific explanation and all the exceptions, see the IRS section on this topic. This information may come in handy before April!

Frugal Christmas Gift Ideas

I wanted to share this interesting list for those of you stuck for gift ideas this holiday season. Always on the lookout for creative but not expensive ideas, I found this:

63 Gift Ideas for Under $ 10
by Michelle Jones

1. Gourmet coffees with a personal coffee cup
2. A pound of pistachios
3. Child's artwork, framed
4. Journal with special inscription inside
5. Teacup with box of herbal tea
6. Deck of cards and book of card game rules
7. Homemade cocoa mix in a pretty jar
8. Collage of special photos
9. Get pens and pretty stationary
10. Bottle of sparkling cider
11. Home baked bread, include recipe
12. Disposable camera or rolls of film
13. Basket filled with deli cheese and fruit
14. Craft supplies
15. Holiday serving bowl or platter
16. Pretty basket filled with special jams or mustards
17. Decorative napkins and napkin rings
18. Fancy chocolate bars tied with a ribbon
19. Gardening gloves with a plant or flower seeds
20. Photo album, hand decorated is even better
21. Makeup tote
22. Prepaid photo developing envelopes
23. Homemade cookie mix with instructions for baking
24. Variety of bread mixes
25. Special coffee cup filled with candy
26. Fancy magazines tied together with a pretty ribbon.
27. Gourmet popcorn and flavored oil
28. Locally made barbeque or steak sauce with basting brush
29. Pancake or waffle mix and a bottle of real maple syrup
30. Movie theater gift certificates
31. Board games
32. Jar of sourwood or pure honey with biscuit mix
33. Note cards and book of stamps
34. Picture frames, buy them on sale!
35. Specialty cookbook
36. Pretty glass jar filled with candy
37. Collectible sports cards
38. Muffin mixes with muffin pan
39. Books, there are still a few for under
$ 10.00.
40. Set of dish towels and dish cloths
41. Nail polish kit
42. Pretty night shirt
43. Basket filled with kitchen gadgets
44. Video rental gift certificates
45. Pepper mill and fresh peppercorns
46. Handwritten copies of your favorite recipes
47. For the pets, gourmet dog biscuits or cat treats
48. Baking pans and supplies
49. Prepaid long distance phone cards
50. Small clock or radio
51. Pretty box for keepsakes
52. Colorful Post-It notepads
53. Address book
54. Christmas ornaments
55. Puzzles
56. Blank video or cassette tapes
57. Sewing supplies
58. Flashlight with batteries
59. Favorite quote embroidered on a nice handkerchief
60. Makeup brush set
61. Expensive socks, still under $ 10
62. Special soaps and bath puff
63. and don't forget my absolute favorite...home baked cookies!

Copyright 2002 by Michelle Jones, founder of BetterBudgeting.com

Tame Catalog Chaos

As you may have noticed, there has been an influx of catalogs since Thanksgiving -- there are days I get a dozen of them. Hopefully, once Christmas comes and goes, the pile will begin to lessen in the mailbox. Until then, if you are having separation anxiety in trying to part from every catalog, here are some tips to handle all the tempting 'store magazines' you are getting.

RealSimple.com suggests "Separate these bulky items from your other mail before you even take off your coat. Put them in a designated basket or magazine tote so you can transport them easily from room to room for perusing, then to the recycling bin when you’re done. Pick a container that’s big enough to hold the month’s required reading but small enough to force you to purge the old issues to make room for the new." I tell clients to treat the catalogs like magazines or newspapers -- put them in a vertical magazine rack until you read them. The finite space will force you to be attentive to the contents and purge when there is no space left.

Keep in mind that 99% of the time there is a website address or phone number available on every page of a catalog -- you could pull out a page or pages that show items you plan to buy or consider and still have the needed information to place an order. Even if only the store name appears on the page(s) you ripped, you could search online. After pulling out the page(s), take a second to circle or mark the item you're considering so you avoid saying 'why did I want this?'

I do not recommend any fancy storage or filing system for this kind of stuff. Sometimes organizing tips will talk about filing catalogs, putting them into plastic sleeves in binders, etc., but I am not an advocate of that. To me, that is tantamount to ironing and folding underwear -- unnecessary.