This Week In Your Wallet: Steve Martin Called About Your Taxes
Welcome to August, everyone. What is it about the dog days of summer (like those lingering months of winter) that brings scam artists out in droves? Boredom? The impression that our defenses are down, because we’ve had too much heat (or too much cold)? Maybe both. You’ll want to be on your guard, in particular, for calls from Steve Martin. This USA TODAY reporter received one, but it wasn’t the right wild and crazy guy she was hoping for. It turned out to be one of the many IRS scam calls people are picking up to this summer.
IRS-impersonation calls are nothing new, but there are some new tactics you need to know about. In addition to the robocall technology, the Internal Revenue Service reports con artists are now mailing and faxing falsified forms. These fake documents are meant to trick you into “verifying” your personal information. And if you do, your data could be used against you to file a fake tax return using your name and ID.
What’s more (and worse) is that these thieves are not only impersonating the IRS, but also the U.S. Treasury, local police and the Federal Trade Commission. For example, someone claiming to be from the FTC could call and say they’d like to help you recover your money that was stolen from a scammer. Don’t buy it. Instead, hang up and call the authorities. Remember, the IRS will not pick up the phone to call you. If you owe money, you’ll receive your bill in the mail. Before you pay it, verify it yourself by calling a) your tax preparer and b) the IRS at 800-829-1040. If you don’t owe anything, then report scammers to the Treasury Inspector General for Tax Administration at 800-366-4484.
Time Is Money
You know I love a good calculator (some of my favorites here), and now there’s one to help you calculate how much your time is worth. As The Wall Street Journal reports, ClearerThinking.org’s time-and-money calculator is designed to help you price an hour of your time so that you can better manage your life and money decisions. Should you get the additional, part-time job? And if so, at what rate? How long should you wait in line for that tantalizing freebie? (If it’s not worth the time it takes to stand there, the answer is: Not at all.) Should you take the cab to save time — and/or should you hire extra help (i.e. personal assistant, a laundry service, etc.)? The idea is that knowing precisely how much your time is worth will save you, well, time and money. (Note: If you’re not as calculator happy as I am, here’s a #mathhack you can use to shortcut your way to the same information. Take your annual salary, lop off the last three 00s and divide by 2. So, if you make $60,000 a year, that’s 60/2. Your hourly wage is approximately $30.)
Feeling Hangry Can Be Expensive
If you’ve ever resorted to a little retail therapy to lift your spirits, you’re certainly not alone. (I, for one, am guilty as charged.) More than 60% of women and roughly 40% of men spend money to improve their moods, according to research from Ebates, a website that offers cash back for online shopping. Does it work? Yes, but briefly. Once the high or a buzz wears off, the feelings you were trying to suppress resurface. There are emotions that influence your spending behavior, too. This week on Bankrate.com, I explain four: hunger, loneliness, anger and discontentment.
You’ve heard to avoid the grocery store when hungry, but hunger can influence spending on non food-related items, as well. The feeling of hunger is an anticipatory state that wants satisfaction, says April Benson, a New York-based psychologist who specializes in overshopping, and it can easily be confused by what will satisfy it. That means it’s possible to transfer the desire to feed yourself from food to “stuff” (e.g. the new shoes). The solution: Try to stay away from the stores (online, as well as brick and mortar) when you’re feeling off-kilter, emotionally. Funnel your energy into something more positive — a la exercise or making yourself a healthy meal or snack — instead.
Seamless Spending Adds Up
Speaking of food, the Department of Agriculture recently reported that the average family of four spends $563 to $1,300 a month on groceries. Save $100 this month by strolling the aisles with these savings tips (via DailyFinance) in mind. For example, buying prepared items (i.e. pre-cut produce) can save you time, but not necessarily money. (I guess this could change given your time-and-money calculator results.) Whole fruits and veggies are typically much less expensive. (In my experience, they also last longer). Also, don’t forget to shop your pantry (or freezer) before going to the store. Annually, you throw away 25% of the food you buy, which equates to nearly $2,300 total, or $200 a month, according to the National Resources Defense Council.
Another reason to shop the pantry — and cook at home — is to cut back on eating out. USA TODAY reports you could be spending upwards of $1,100 on takeout each year. The data from Butterball also shows 25% of people order food online each week. Ordering takeout may be seamless, but it adds up.
Have a great week,
Jean
