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minimalism

Frugal Living, Lifestyle

A Year of Frugality — How It Changed Me and My Views about Money

Today we have a first on The Wealthy Accountant: our first guest post. Offers to guest post are common once you reach modest traffic levels. Most offers are junk as they are nothing more than thinly disguised advertisements for things I do not approve of. (Anyone want me to promote forex trading? Thought so.)

Then a young lady, Patricia Sanders, emailed asking kindly if she could write a post for me. I did a Google search of her work and found she has a modest online presence. She sounds young, but genuine. Her writing is basic, but I took a chance and invited her to send me an article.

When I write I always try to find something few people are writing about. It is all about value. If I can share an idea with my readers I can make a difference, especially if it hasn’t been written to death before. I talk basic, but usually within the framework of a more complex financial or tax issue. Two things I shy away from—brevity and simplicity—works against me at times. My preference is for storytelling when attempting to convey a message. And no one had ever accused me of being brief.

Then I read the submitted article from Patricia. Her message was brief and basic. This started me thinking. My readers need to hear the basics, too. Michael Jordan was not a superstar because he made three-point shots. He was a superstar because he made the free throws without thinking. He was a superstar because he made the layup without thinking. He was good because the basics became automatic. Patricia reminded me of this.

It is important to encourage young people starting their life journey. We learn far more teaching than being taught. Patricia has a story to tell. Not some long-winded diatribe I like to spew. No, she has a simple message only a young adult can tell. Sometimes our old eyes forget where we came from and how we got where we are. I am not such a fool as to ignore the legacy granted me. It is a pleasure to present you Patricia Sanders today. She has a bright future. Maybe we will cross paths at a financial conference in the near future. It would be an honor meeting her in the real world.Continue reading

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Lifestyle, Taxes and Investing

Never Miss a Charitable Deduction Again





The Wealthy Accountant is turning into a vibrant community. Readers share their stories helping me do my job of teaching you, kind readers, how to live a joyful life without money problems. Readers also do things your favorite accountant cannot. For example, you would never ask me anything about IT. On my best days I am dangerous when given the access codes to computer files in my office. Karen, my office manager, has a standing order with the IT firm managing all our information to never give me a pass code or access to any secure files. It’s better that way.

When it comes to taxes, the story is different. I immerse myself in taxes the way a college guy plays video games. Most tax questions are front brain answers to me and minor research for most of the rest. (Every now and again someone throws me a curve requiring serious research, but we will not talk about those times to protect the ego of the innocent accountant in the room.) Then a reader sends me a link for a website that blows my mind. John Haldi did just that.Continue reading

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Early Retirement, Frugal Living, Lifestyle

Tax Deductible, Low Cost, High Speed Internet You Can Take Anywhere

Internet service in the U.S. can be spotty for people living out in the boondocks, like your favorite accountant. Travelers need to hunt for an open Wi-Fi hotspot to stay in touch. Even worse, internet is frequently bundled with cable, forcing you to buy both or face wildly overpriced stand-alone internet service. They got you where they want you and your pocketbook is the victim. There has to be a better way. There is. And since I’m an accountant I want a big tax deduction too.

Internet service can cost $50 a month and more for high-speed broadband. (Please sit for this next part. I don’t want anyone falling and getting hurt.) How would you like fast internet (I’m talking 10 Mbps and higher with 10 people on at the same time) for $41.67 a month, paid annually? That works out to $500 per year. After the first year the cost drops to $400 per year or $33.33 per month. You can take this little gem with you on vacation, too. Your fast and low-cost internet is as small as a cell phone, has a 10 hour battery life and is very portable.

Okay, enough of the baiting. Time to get down to facts, get a tax deduction and details on obtaining this money-saving, tax deductible gem.

Continue reading

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Early Retirement, Frugal Living, Lifestyle

Kill the Economy and You Will Not Even Notice

It does not take long when you wander the blogs of the ‘retire early’ community before you hear the common refrain: If everybody did this stuff it would kill the economy. To which I promptly call bullshit.

Bill Gates and Warren Buffett managed to not spend over $100 billion of their money over the last few decades and the economy has done fine. In the 1950s the savings rate was much higher and the economy more vibrant. When the research is reviewed there is no doubt excessive debt, a low savings rate and excessive spending have more to do with an anemic economy than any responsible spending will do.

People look for any excuse they can to remain married to their poor habits and lack of self-control. It is easier to complain about successful people than it is to take responsibility for your own actions. Somehow these people have been bullshitted for so long they actually think poverty is the only way to keep the economy going. Really? They think the only way to survive is to spend every nickel they have. They think living on the financial edge of ruin from the first light breeze is what makes the economy purr and provides job security. Where does this nonsense come from?Continue reading

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Advantages of Living on the Road

rv_camper_at_north_toledo_bend_state_parkCome with me on a journey where taxes no longer apply.

Fifteen to twenty years ago I made it a mission to get people out of paying state taxes. Income taxes are the most obvious, but there are litanies of other taxes states levy against the people. Over the last few decades I estimate I cost the State of Wisconsin approximately $43 million in tax revenues. The richer you are the easier it is to avoid.

First I will tell a true story before I move to a tax strategy many of you early retirees will find very interesting.

Sometimes wealthy people wander into my office to pick my brain. This always amazes me because the pickings are rather slim at times. Still, it happens. On the particular day I have in mind one of the top people at a major financial firm stopped in. They were using a high powered firm in Chicago at the time so they thought an ‘ol farm boy from the sticks in Wisconsin could do better. And I did.

The issue revolved around retirement. They wanted to move to Wisconsin. When I reviewed their finances I explained why they did NOT want to move to Wisconsin. I showed them a number and they agreed. There was a solution, however.


Continue reading

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Frugal Living, Lifestyle

Wants Become Obligations




This is not the meaning of Christmas.

The holiday season is fast approaching and the best laid plans of financial independence and early retirement are left for discussion another day. Normally frugal people can lose their senses when the holidays roll around. One day they are giving thanks and the next they are trampling their neighbor to get a deal on a flat screen over at Wally World. And this is supposed to make us happy?

Wants are a harsh mistress. Once you satiate your wants, new wants fill the void. It is a forever hungry beast. Wants satisfied are not the end; they are the beginning of a long slog through financial hell. Once you buy something you need to take care of it. You need a place to store you newly owned junk, ah, I mean, stuff. You now must spend more to protect your pile of garbage.  A home or car needs insurance lest something happen which could cause you to lose your slavery, sorry, belongings. Room is made in the home or stuff is put into storage to make way for the new round of crap purchased on the credit card so you can keep wasting your hard earned money on interest. Once you own stuff, stuff owns you. It becomes an obligation and obligations cost money.Continue reading

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Lifestyle

A Walk Around the Farm

Each of us have a worldview built on our personal experiences. There is no right or wrong in anyone’s worldview. The differences are what make life worth living. It is why we communicate. Life is interesting because we have endless opportunities to grow as we travel through each day.

Some of my favorite comments are: You write different. You run a tax office different than any other I’ve seen. Working for you is different from previous jobs. Your ideas on growing a business are so different. The key word is different. When people say I am different it means I am doing something outside the mainstream. Perhaps I am blazing new roads. Doubtfully. What I am really doing is practicing a task in a manner that makes sense to me based on my worldview.

Anyone haunting these posts knows my disdain for formal traveling. That makes me different again. I am getting better. By writing out my thoughts and communicating with people I respect I am discovering ways I might enjoy time away from home. And good thing. Mrs. Accountant would enjoy traveling more. What she sacrifices to be with me is beyond comprehension. The plan for a long road trip is still on. Mrs. Accountant wants to see Hawaii so bad it hurts. I think next summer or autumn will be the time we take the leap.

Before I start that part of my life I want to invite you into my home. It is autumn here in NE Wisconsin. It is the prettiest time of year. Instead of showing you the building where I eat and sleep, I will give you a tour of my farm. It should help you understand why I like home so much. There are lots of pictures. Enjoy.


Continue reading

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Renting a Car is Cheaper

img_20161002_101217The debate rages on over renting versus buying a home. Location determines the correct course of action; buying in one city might be a wise financial move, whereas, renting could be better two states over or even across town. Within the same city the best financial course can be different over time.

The debate of buy versus rent is heavily discussed with home buying because of the huge investment. At the end of each discussion someone always says they prefer owning (or renting) so the “best” financial move is not always the course chosen.

What surprises me is how the discussion never moves to other major purchases. Automobiles, for example, are a major investment and are significantly worse expenditures because the car will go down in value, whereas, real estate tends to rise in value, following inflation trends.

Buying a new car might be a good idea with all the current incentives and, in some cases, massive tax credits for electric vehicles. In the cases involving vehicles with tax credits you need to consider your personal tax situation. Generally, tax credits of this kind are non-refundable, meaning you need a tax liability to reduce before the tax credit has value. State credits also play strongly into the decision. For the rest of us, purchasing a car should not be a simple “yes, I need one” decision.Continue reading

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