Tax Time – The Psychology of Taxes

Okay, so I have my MBA in finance and I know that we should have our tax withholdings set from each paycheck so that come April 15, we still owe $1,000 or more on taxes. My propblem is that I really like getting a tax refund. Financially I know that if we get a tax refund, we have just given the government an interest-free loan. We could have invested the money or paid off debt instead of having a “forced savings of 0%” by overpaying taxes.

If we owe money come tax time, I REALLY dread doing my taxes, put it off until the last minute, get moody and am generally no fun to be around. I feel that the government is taking way too much of my salary for taxes and look for every possible deduction that I can find.

 When I know that I’m getting money back on my taxes, I look forward to getting them done to see how much I get back. I’m in a much better mood and feel good that I’ve done my civic duty of paying taxes. I then put the money towards debt reduction, investing, savings or vacation. It is “guilt free” money that I feel good about spending.

Are a few dollars in interest (or more) worth the reduced stress come tax time? Financially and psychologically, I have two different answers. In this case, my mental soundness wins over my financials.

Hope you are, as well, on your way to a pain-free April 15th tax day.

A Jewel in the Rough

We found another mini-vacation site only 35 miles from where we live. It is the Ladora Bank Bistro, in no other place than Ladora, Iowa, population 286. Proprietors, Brad Erickson and Colleen Klainert purchased the 1920-built “jewel box” style bank and turned it into a bistro of fine wine, phenomenal food and an atmosphere that an old banker loves.

The structure maintains its marble teller windows and the iron teller cages, original wood floors and the two original vaults, now being used as a wine cellar and a kitchen storage closet. Engraved in the wall, next to the 24 foot high ceilings are four pillar statements that warm my heart:

“Frugality is the the Parent of Fortune”

“Integrity in the Companion of Success”

“Wealth is the Achievement of Thrift”

“Diligence is the Mother of Virtue”

On the outside of the bank, above the entrance etched in stone reads “The wealth of this community embodies the richness of her soil, the integrity, frugality and diligence of her people.” On the first visit, Kristy bought me their t-shirt with the sayings.

Colleen and Brad have a great menu of small plated appetizers meant to be shared. Our favorites are the Prosciutto, Maytag Blue Cheese, Stromboli and mini mushroom tart coupled with the California blend Snap Dragon. Colleen is a wine expert and pairs the wine with your taste and food to make the culinary experience extraordinary. We end on either the chocolate covered cherries or the Turtle Minis, both wonderful.

Chocolate, Red wine, a Fortress of old money….is this heaven?

If passing through Iowa or a nearby resident, we invite you can take an afternoon or evening mini vacation and experience the comfort and fun of the Ladora Bank Bistro. Check out the website for the story on the bank, Brad and Colleen, pictures, the menu and hours. Let us know what you think.

Save Energy -Save $$$

If you have a primary residence in Iowa and are served by MidAmerican Energy, then you are most likely eligible for a free energy inspection audit. We had our EnergyAdvantage® HomeCheck this past week. Not only was it FREE, but they made energy-saving improvements to our home during the audit. Outcome of the visit:

• A FREE report of the condition of our home's insulation, heating and cooling efficiency, water heating equipment and windows
• Replaced bulbs with FREE energy-efficient light bulbs
• Swapped out two FREE shower heads with energy-saving, massaging shower heads
• Installed a FREE energy-saving faucet aerator on the guest bathroom sink
• Provided us with a 70% rebate for additional insulation in the attic (value of $750!)

There were a number of other things that they would have done, had our home needed it (such as water pipe insulation, water heater insulation blankets and programmable thermostats).

Check with your energy provider to see if they are offering the same service. Not only were the upgrades free, but they will help us save money on our future energy bills, the updates conserve energy and reduce the demand on natural resources needed to produce energy, reducing our carbon footprint.

Rebalancing

It’s the end of the month and time to assess how we are tracking fiscally into the new year. As we continue to reassess our spending habits and values, we still crave for a more simplified lifestyle. Not so much about spending less time at work, we both love our careers. But we both feel the need to spend more time with our family, our extended family and our friends. We love meals at home, movie night with homemade pizza and popcorn, playing dominos, cards or watching the boys take on marathon nights in the game of Risk, soccer games and story-time with our grandchild. Those times are starting to seem more few and far between.

It is difficult to keep a healthy balance between work and time for family and friends. There is always one more report to write, another meeting to prepare for and another e-mail to answer. We have to consciously make family and friends a priority. We know that balance is important in reducing stress and maintaining our health. How convenient that doing the simple things at home with family and friends is also better on the budget and living within your means.

Triathlon

Staying healthy and fit is one of the best things you can do for your bottom line and your waist line. You get to that point where a little voice in your head starts to think that if you don’t get going, you’ll be too far gone to ever be fit again. How to get there? Aim high. Isn’t a triathlon on everyone’s bucket list? Are you in the Midwest? Check out the June 6th Pigman Sprint Triathlon in Palo Iowa. Not in the Midwest? Find a USA Triathlon sanctioned event near your hometown.

Yes, we are recruiting first-time participants, preferably over the age of 50. We like good company and would be thrilled to have some still with us at the finish line. This year, it’s all about finishing and all the endorphins between now and June in prepping for the big event.

A Phenomenal Alfredo

Yes, Bob did it again. You must try this! Friday night we had Chicken Alfredo for 4 for $12. (Cost of paired wine excluded).

We followed the Alfredo recipe from RecipeZaar with the addition of ½ cup of shredded Asiago cheese. This sauce went over a bed of thin egg noodles from Kalona and was topped with chicken (cubed) browned in olive oil and 1 cloves of garlic. For a wine, we paired it with Mayo 2008 Sauvignon Blanc. If you are a die-hard red fan, then a pinot noir will work very well. Mighty fine dining at a mighty fine value!

Linen Liners

Have you ever received a gift where the wrapping paper is so beautiful, you can’t bear to toss it? I love to upcycle beautiful gift wrapping as linen linings in my dresser drawers. A special treat is to sprinkle them with lavender oil. Even if the paper only stretches for one drawer, I love the mix and match of each drawer having it’s own characteristics. Seeing the lovely paper when I root to the bottom of the drawer reminds of the event's special celebration day.