Many people believe that only those who are wealthy can afford to own a vacation home. While it’s true that owning a vacation home is an added expense, you don’t have to be a millionaire to enjoy this luxury.
There are many vacation home options. You could invest in a condominium, oceanfront cottage, mountain hideaway, mobile home, or manufactured house. Perhaps you would want to invest in vacation home located in a new community where you can obtain a home with no down payment and low interest rates. Maybe you would be more interested in a “fixer upper”, or a home that is in foreclosure. You can also find great deals on vacation homes through public auctions or homes for sale by owner.
When looking for a vacation home, the top priority is to find a home in an area where you enjoy vacationing. You might want a home that is located near water, in the mountains, or remote area where you can have plenty of peace and quiet. Perhaps you would prefer a vacation home in the city or popular vacation destination.
Investing in a vacation home can save you a considerable amount of money in the long run. Once your mortgage is paid in full, you can go on vacation whenever you want without spending a dime on accommodations. In the meantime, you can rent your vacation home when you are not using it and help offset expenses.
You can also use your vacation home as a home exchange. Europeans have used home exchange programs for more than 50 years. In recent years, home exchange programs have gained popularity in the United States, with more than one million people participating in these programs each year.
The concept is simple. You allow other people to stay in your vacation home, while you stay in theirs. These transactions typically take several months to organize. This allows you ample time to build a relationship with the individual(s) who will be staying in your vacation home and work out all the details. Obviously, there is some risk involved, so if you decide to use your vacation home in a home exchange program be certain to conduct research and work with a reputable home exchange company.
When you own a vacation home, you are allowed to take additional deductions when you file your tax return. You can deduct the interest and a percentage of repairs, etc. If you rent your vacation home, you will need to maintain accurate records and claim income gained from rental transactions.
Before you invest in a vacation home, you would be wise to invest time conducting research on the pros and cons. There are numerous resources available on the Internet. Visit your local library and check out books on real estate investing. You will also want to consult with a CPA or visit the Internal Revenue Service website at www.irs.gov to learn more about vacation home tax deductions.
Owning a vacation home provides you with the luxury of being able to get away from it all whenever you desire. It certainly beats having to pay for hotel accommodations and worrying about whether the place you have chosen is appropriate for your needs. And, the best part is you can rent it to others when you aren’t there and make a few extra bucks!
Mexicans have become a big part of America, illegal Mexicans. There have been so many headlines in the lime light with mixed information that’s left a lot of Americans with a bad taste in their mouth.
America’s national security is even more vulnerable now with increased threats from abroad and the U.S./Mexico border is an open portal for destruction. It seems foolish to say that the U.S. can’t do anything about people crossing the border illegally. Could Uncle Sam be hiding something?
Mexicans have been crossing over into the U.S. and working illegally even before the “Great Depression” in the 1930’s. The U.S. government has had ample time to resolve a lot of the issues that Americans face today. There’s a lot of misconceptions about the illegal Mexicans living in the country, but who is really at fault?
Mexico is an extremely poor country with few jobs and it’s no wonder Mexicans come to America in search of work. Mexicans contribute so much to the economy, even though they send money back to families abroad. Mexicans live in America which means they still shop with American retailers. Mexicans have by far earned a right to be in the U.S. and yet they are systematically denied like clock work.
Mexicans do jobs that Americans don’t want to do. Most are migrant workers making less than minimum wage, the farmers they work for often exploit them. It’s not uncommon to see an old mobile home on a farm housing 20-30 Mexicans and the farmer usually charges anywhere from $25-$50 per person. Most Mexicans work for wages Americans wouldn’t work for, the government is fully aware.
Mexicans are forced to use false documentation such as fake social securtiy numbers, green cards or driving licenses because they can’t be legally obtained. Since the IRS began the issuance of ITIN’s (Individual Tax Identification Numbers) some states will except the number along with proof of residency and a birth certificate to obtain a drivers license.
Before the issuance of ITIN’s, many illegals were forced to claim numerous dependants throughout the year to decrease the amount of taxes deducted from their paychecks. One very common misconception is that Mexicans rely on government programs and live on welfare. Applicants submit documents that are verified to recieve government assistance. Mexicans simply don’t have those types of documents and therefore can’t abuse the system.
Americans and Mexicans are both suffering in the midst of it all. At the same time that many Mexicans are exploited, abused and cheated in the U.S. there are others in a different boat. The lack of security at the border lets in the good and the bad. Mexicans are even on the FBI’s top ten most wanted list. How easy is it to catch someone who has no record of existance in a country?
Illegal Mexicans pay taxes in communities just like Americans, some own businesses and yet they literally have no rights.No matter what personal feeling people seem to have about the illegals, all angles of the equation agree on one thing; tighter security at the border, implementing rights for illegals residing in the U.S. and a form of documentation for illegals.
You can buy yourself a nice $30,000 RV, but that doesn’t make you a camper.
Camping is a country thing. Country people like to camp because they can set up a tent or a nice pop up and call it their summer home. City people don’t get that. City people like to spend as much money on a camper as you could spend on a nice double wide mobile home and still consider themselves campers.
Don’t get me wrong! You can still be a real camper no matter how nice your recreational vehicle is. It is neither the price nor the quality of your vehicle that makes you the camper (or the boater). That is just your shell. It is your behavior that determines how appropriately you fit into the category.
I only mention the country people vs. the city people for one reason. City people know nothing about country respect.
This brings me to the first piece of etiquette you must learn before you can consider yourself a boater or a camper. When somebody waves at you, wave back! You can also add in a nice “hello”… make small talk about the weather… but do not stare at them, wondering why they’re waving because you don’t think you’ve ever met that person before.
Some true campers would never consider anybody who sleeps in even a pop up to be a real camper. To some people, camping is about carrying a tent on your back. Camping is about the real outdoors, and not a social retreat into a semi-wooded campground.
But this particular rule is for those city snobs who want to show off how much money they have and blow over $20 grand on a nice camper or boat. When somebody waves, and you just stare at them, wondering why they are waving because you don’t recall having met that person… then you have much to learn before becoming a true camper or boater.
The people you offend don’t care how much money you have. In fact, the people you offend are the best type of friends there are, and you would be missing out to turn your nose at them!
Ignorance when Boating (down a river)
The second unspoken etiquette applies mainly to boaters. When you are travelling down a river, slow down! Too many boats (usually city drivers are the cause) are as reckless and rude as, well, city drivers.
When you are travelling down a river, notice all the houses that you are passing. Chances are high that 3 out of every 5 house has a large group of people, sitting by the river. They live there. That is their home. It may seem backwards to you but that river is viewed to those people as their front porch. You are crossing it, and so you owe those people the utmost respect as you pass.
Not only should you wave and say hi, you should not send large waves. This can tip over smaller boats that are resting by the shore, as well as cause damage to property. I can’t stress it enough… you are crossing their yard!
Cookouts, Grills, Barbecues, Picnics, Etc.
One of the best things about summer is the often weekly tradition of cooking outside, playing outside, and eating outside. Summer activities that involve food are often the most common place where unspoken etiquette is broken, because it takes place most often.
Bring a dish! Just because the host(s) didn’t ask you to bring a dish when they extended an invitation to you… does not mean it isn’t expected. It is the host(s) who sink a lot of money into hosting this summer get-together and it is up to you, the guests… to help out.
This is what you should always do when asked to attend a cook out.
1.) Ask “what should I bring?”
Asking this gives the host option to include “Oh yeah, I need hot dog buns” so you can pick them up on the way over. No host should have to run to the store for any forgotten food items.
2.) Make something!
You will rarely hear “Oh, can you make some macaroni salad?” Chances are, there will already be macaroni salad. Maybe not, because people these days have become so rude that it is nothing for over 75% of the guests to arrive empty handed. Either way, macaroni salad and potato salad are always the worst things you can bring… because you always want variety at a successful cookout.
It’s too easy for a cookout to include a menu of hamburgers, hot dogs, 5 versions of macaroni salad, 2 versions of potato salad, and 4 versions of fruit salad. Why don’t you look into some different recipes and make something new for everyone to try at the cook out?
Check the following for tasty recipes you can try!
3.) Stop at the store, grab a few other things to bring!
This includes: condiments (mustard, ketchup, etc.), chips and dip, pickles/olives, cheese & crackers, etc. Then beverages!!! Bring at least one of each of the following, especially if you know there will be lots of people at the cook out.
Soda (for adults not drinking alcohol) Juice (for the kids, even if you’re not bringing any kids) Beer (just goes without saying) Wine (because some adults may want something besides beer, and it is a party but that’s not a good reason to get slammed on whiskey at 2 in the afternoon on a Sunday!) Liquor (because it is a party. If it’s the right kind of group getting together on a Sunday afternoon, there’s nothing wrong with drinking a little whiskey! Just don’t get hammered if you are helping operate the grill!)
One more thing!
Now the following is for everybody. It’s summer. This means people wear much less clothes than any other season. We hear enough complaints about people who should wear more than they are. You know who you are. One person may look gorgeous in a tube top and mini skirt. That doesn’t mean you do.
But something needs to be said to those who do look gorgeous like that. Men with a 6 pack and a golden tan… it’s okay for you to take your shirt off! It’s hot… I don’t mind. Men with a full keg may try to copy you and give me nightmares, but it’s worth it. Just like females with the perfect body and want to show it off. Go for it. You know if I had it, I’d do it too!
But don’t catch an attitude when others are eyeballing you! If someone of the opposite sex catches a glimpse in their peripheral vision, they will break their necks to admire a better view. That’s human nature. It’s also human nature for their partner to look as well, searching for some flaw about you they can use to make themselves feel better.
What I’m trying to say is, don’t catch an attitude because someone is staring. And if you have an oversized nose, don’t show off your legs or a jealous girlfriend will point out your trunk.
(Weed–CA) “I couldn’t believe it. The President of the United States bought my humidifier!” That was Janis Malverne’s reaction when she received an e-mail from G.Bush@WhiteHouse.org. Ms. Malverne explained in a phone interview from her recently expanded mobile home. “Listen to this. ‘My fellow eBayer and American, I was just scanning my profile, and I noticed that you hadn’t yet recorded any feedback on our last exchange. Was my PayPal finger too slow? If so…sorry. I was at the G-8 for a while.’ And it was signed ‘George W. Bush–President.’”
Malverne then immediately called the White House because she “thought it was some Muslim kook.” To her surprise, the White House switchboard connected her directly to the Oval Office. The next voice she heard was the President’s. “He said: ‘MobileMalv’ (that’s my eBay handle), that humidifier’s got my nose slicker than a Florida Secretary of State at recount time. You think I can get that positive feedback now?’” Malverne thanked Bush for his compliment and asked why he was so concerned about feedback. His response: “I could say it’s a matter of national security, but I want that turquoise star.” Bush was referring to the eBay star rating system. A turquoise star represents a feedback of 100 or more.
Understanding the situation and not wanting to have her library account reviewed under the Patriot Act, Malverne promptly registered the feedback. “I gave him an ‘A+++, great eBayer, good communicator, all true.”
A call to White House Press Secretary, Tony Snow, confirmed Malverne’s story. “What can I add,” said Snow. “The President is a great eBayer, and he’s got the feedback rating to prove it.” He further went on to say that “the White House has nothing to hide. The records are all there. Just go to eBay and do a search for IMDPrezident.” However, Snow was quick to add that “like any member of the eBay community, certain bad feedback needs to be put in context. I would ask you to consider that when reviewing the negative feedback left by Shussein@aol.com, ‘No communication. No holding to terms. A real DUD.’ Please note this individual is no longer a registered user.”
With sales of new and existing homes slowing down in the wake of recent mortgage lender failures, the United States government has created a new and attractive program for first time home owners. The program involves providing a $7500 tax credit for purchasing any type of home. This means you can have up to $7,500 less to pay the government this year. For example, if you owe around $5,000 in taxes and you claimed the full credit, he would receive a refund of the $2500 remainder.
In order to qualify for the tax credit, the home must be purchased after April 9, 2008 and before July 1, 2009. The purchase date is considered the date when closing occurs. In order to be eligible for this program, one must have never owned a home within the past three years. This condition applies to married couples as well. If one member has owned a home within the past three years then the couple is not eligible. Ownership of a vacation or rental property not used as the principal residence does not disqualify a person from this credit.
In order to claim the tax credit one must complete a federal income tax return. Town homes, condominiums, houseboats, and mobile homes all qualify for this credit. It is important to note that this tax credit must be paid back the government within 15 years or when the home is sold. The homeowner does not have to start making repayments on the credit until two years after the credit is claimed. If the homeowner sells the home, and there is sufficient capital gain from the sale, the remaining credit amount would be due from the profit. If there is insufficient profit, then the remaining amount would be forgiven.
Since the funds must be repaid in full, this can be considered a traditional zero-interest loan. If we assume an interest rate of 7%, a homeowner would save up to $4200 in interest payments over a 15 year repayment period. If the $7,005 were financed through a 30 year mortgage with a 7% interest rate the homebuyer would save over $8,100 in interest payments. This program is considered a tax credit only because it operates through the tax code and is administered by the IRS. In addition it provides reduction in total tax liability in the year it is claimed.
Modular homes are becoming a very popular way of building homes. In the past, modular homes were considered low class. Today, modular homes are designed for all income levels, from lower middle class, to upper class. There are hundreds of floorplan options available with an ability to customize the home in many different ways. Essentially, your vision can be accommodated when building a modular home. Prices for a modular home range from $55 per square foot for a modest home to upwards of $280 per square foot for a luxury home. These prices do not include the land, electrical, foundation, plumbing and clearing of the land. Nonetheless, building a modular home after all of these expenses are incurred can still be a much better deal than a stick built home. Buying a modular home has a lot of benefits. Some of these benefits include:
You get a customizable home. When you build a modular home, you are involved in the process from the beginning. You can change the modular home floorplan, pick the floors, carpets, etc. You cannot get that level of control in a home that is already standing.
Modular homes are built in a climate controlled factory. Many of the problems with mold and mildew in traditional stick built homes occur in the transportation of the lumbar and construction of the home in the elements. The wood is transported, stored, and framed in a stick built house in the weather over months. Modular homes are built in pieces in a climate controlled factory, then transported to the building site. The wood is sealed from exposure to the elements in a modular home. The modular home, therefore, is completely free from mold and mildew when erected at the building site.
Modular homes can be built in 1/3 the time of traditional stick built homes. This is because building in the factory can be taking place at the same time the foundation is being poured, the site is being cleared, and the utilities are being installed. Once the site is ready for the home, the home can be installed usually in a matter of weeks. Sometimes it only takes a few days.
Modular homes are square and plumb. Being built in a controlled factory, the modular home is much less prone to mistakes that cannot be controlled on site. The walls, ceilings and floors are square due to the use of manufactured jigs when building a modular home. This usually does not happen in a stick built home. Extra straps brace the wall to the floor in a modular home. The interior walls are bolted to the exterior walls in a modular home.
Electrical boxes are very well insulated in modular homes.
A typical modular home is built with 20-30% more material than a stick built home. This is so the modular home withstands transport. The addition of the material makes the home extremely rigid and strong, allowing the modular home to withstand higher winds than a stick built home.
Modular homes are environmentally friendly. The amount of wood and construction material waste at a construction site is significant (about 8,000 pounds for a 2000 square foot home). When building a modular home, the wood is typically custom cut. Any of the material in building the modular home that is in excess for the design is recycled to save cost. Also, a wall in a modular home use a 2 by 6 framing, larger than a stick built home. More insulation is placed in the wall. This makes the homes very energy efficient in completion.
All in all, the benefits of modular homes are significant. If you are considering building your next home, you should consider building a modular home.
There are so many people that live in mobile and manufactured homes now a days, and most are not concerned about the actual age of their homes. This is something that now every one of these homeowners should think about.
When you buy a mobile home, you are probably looking for a home that you can get for a reduced price. This is the main reason that most people buy a mobile or manufactured home. My family currently resides in one of these kinds of homes and really enjoy it and the costs are really not bad while we are trying to make it though these trying times in the home market. What people might not realize is that there is an age limit on these homes that keeps them from being moved to a lot of mobile home parks. There are even people that are being kicked out of their homes because of the age of them.
You might ask how this is possible, and the simple answer is that they are evicted from the space that they are renting by the park. These parks often have an age range of homes that they will not allow in their parks. These can range from the 70’s mobile homes on up to the 80’s versions, depending on what they have for regulations. When this happens they are only given a short amount of time to move their home. Most can’t afford the costs of moving their home out of the park and very few parks will allow older homes to move in to the park that they own. That leaves the people that own the home to find a new place to live and to abandon the home that they may have worked hard to own. Many don’t have a lot of money and are not able to keep up with higher rent payments instead of their home payments.
When talking to mobile home park owners, they will tell you that they are getting rid of the older homes in order to make room for the new ones that are being built. Some parks actually do go with this plan, but a few will open the empty spaces to R.V’s instead. I think many of the homeowners that lose their mobile home are wondering how a Recreational Vehicle could make the park look better than their homes.
University students fed up with housing costs in East Lansing and other college cities might consider a cheap but unusual alternative: modular homes. Coeds annoyed by the ever-increasing rent in the city’s apartments, may find themselves right at home in a mobile home neighborhood just outside of town.
Sure, we’re all aware of the less-than-spectacular reputation and stereotypes out there for trailer parks, but don’t believe all of the hype. Many, if not most, manufactured housing communities are quiet, modest, clean, and vastly different from the media portrayal seen in the movies and on shows like Cops.
One main difference between renting an apartment and living in a modular home is that the occupants actually own the home, whereas a renter never owns the apartment. While brand new mobile homes sell for upwards of $40,000, older or used mobile homes are often easily purchased for under $10,000. A group of four college students could buy a home for less than $2,500 each and have something tangible to sell off after their college years. Rather than pay $300 (or often, far more) per month to an apartment complex, students could own a home, which in as little as eight months, has paid for itself.
A significant majority of the occupants in modular home neighborhoods, especially in the Lansing-metro area, are seniors. A typical day in one of the parks is filled with the sounds of golf carts whirring to and from the mail boxes, garden shears pruning the hedges, and neighborly conversations in low tones. The stereotypical screen doors slamming, couples arguing, and babies squalling are a far cry from the actual environment.
Not only are the neighbors often quiet in manufactured housing communities but they also interact with one another and connect often at much more time-intensive levels than in a regular neighborhood. For example, in Sycamore Village, a community located in Mason just 11 miles south of Lansing, a resident recently lost her trailer to a fire after lightning struck her electrical box. Several of the neighborhood men spent months helping to repair and restore not only the resident’s home that was in the fire, but also the surrounding trailers that had residual smoke or heat damage. Many times, community members pitch in to help out for much smaller tasks.
While the neighbors are helpful and considerate, for college students it is still nice to come home to a place all their own. Since a modular home is a separate, free-standing structure, there is no one on the other side of the wall to make noise, which is a frequent occurrence in apartments and dorms. Likewise, playing music or staying up late to study, as most university students frequently do, won’t disturb anyone.
One bonus to living in a mobile home rather than an apartment is that the occupants are free to personalize their living space and have pets. Unlike in an apartment, it is perfectly acceptable to paint the walls, hang picture frames, or put up shelving. It can also enhance the living quarters if shared with a loving animal companion, which is always acceptable in a home of your own but often restricted by breed or weight or prohibited entirely in apartments.
For far less than the monthly rent of an apartment, college students can have a spacious place of their own where they are free to live unrestricted while completing their studies. Even a single-wide trailer is larger in square footage and storage space than the average four-bedroom apartment and most have a convenient carport or attached garage. Why pay an additional fee for parking stickers or sheltered parking in an apartment complex?
Utilities make up a good deal of the small text in many apartment contracts. While a monthly rent might look cheap, it can become astronomical when factored in with heat, water, electricity, phone, cable, internet, and other bills each month. Sometimes these fees are even automatic and cannot be controlled by limiting consumption. Yet, in a modular home, residents can not only choose their utility companies and take advantage of sales or bundle service packs, but can also lower their bills when they aren’t required to pay complex fees.
Most mobile home communities do have a nominal lot fee, or land rent, that is paid for the land that the trailer is located on. These fees are typically small and generally much lower than a monthly apartment rent. Also, it is important to remember that the students can always sell the home (often to other students) once they graduate, and can come gain back much of their money in the process. For apartments, there is no such recourse; the money a student pays goes to the complex’s company and stays there.
So, when considering where to live for their university time, students in East Lansing and other college towns should definitely consider the purchase of a modular home. Cost-economical, clean, and convenient, trailers are certainly not the trashy stereotype seen on tv.
France is very open and accepting when it comes to topless beaches and naturist resorts. This combined with the warm sunny weather in the south of France you get a variety of naturist resorts available for vacationing at, it just depends on what you are looking for. Here you will discover some of the naturist resorts located in the south of France.
Belezy Belzy is situated in the hills above the town of Orange and at the base of Mont Ventoux. This mountain naturist resort offers bungalow and mobile home accommodation set in 25 secluded hectares of park land. It is in Provence, one of France’s sunniest regions and it is located near many points of interest such as Avignon, Aix en Provence, Mont Ventoux and Saint Remy. Belezy is a naturist resort designed to help you explore yourself by experiencing nature and participating in arts and crafts. Facilities include three swimming pools, one exclusively for small children, hydrotherapy and other spa treatments, sports such as volleyball, singing, music and other cultural activities. They also have a restaurant on site. Belezy naturist resort is very child friendly and has an educational farm for children and various entertainment to suit different age groups. Domaine d’Enriou This isolated naturist resort will really bring you in touch with nature. It is set in 150 hectares of beautiful nature, woodlands and mountains. It is located near the famous and stunning Gorges du Verdone. This naturist resort is mainly aimed at naturist campers, but it also has four simple bungalows for rent. Facilities include a shop, restaurant, excursions, swimming pools and electric connections for caravans. Domaine d’Enriou naturist resort is only open from May to October.
Les Lauzons This is a year round naturist resort with good facilities including eight bungalows and one hundred and fifty sites for camping and caravans. This is by no means a luxury naturist resort but you will find all the necessary facilities you need to have fun and enjoy the environment. On site there is a small shop, sauna, bar, restaurant, swimming pool and plenty of activities to entertain those of all ages.
Ile de Levant Situated off the coast of Provence in the Mediterranean is the naturist resort island of Ile de Levant. The entire island is naturist and it is a paradise waiting to be explored. The island was established in 1950 by a group of artists and nudists looking for a way they could get back to nature. There are a number of hotels, campsites and self-catering accommodations on this naturist resort island. You will find everything you need here including places to eat, shops, entertainment and loads of activities. Cap D’Agde This is probably a case for save the best for last. Cap D’Agde is the premier naturist resort. It is possible the best naturist resort in the world. The naturist resort is located in the department of Herault in Languedoc Roussialln. It is a completely self-contained city, sometimes referred to as the “Naked City”. The naturist resort has two miles of beautiful golden sandy beaches on the Mediterranean, amusement parks, nightly live entertainment, discos, plenty of restaurants, sporting activities, self-carting accommodation even pharmacies and doctors. It is this ultimate holiday destinations for naturists.
There are so many articles and blogs addressing the problems of the management of personal finances and provision for retirement, particularly for those living in difficult circumstances such as on a single income, through loss of job, health problems etc.
In regard to investment for retirement, there must be three keys:
decisions on your financial needs for retirement
your changing ability, over a lifetime, to meet those needs; and
the particular choices to be made regarding actual investment for retirement
Nearly all the advice in these types of articles concentrates on the different types and mixes of investments that might be appropriate.
More important perhaps, is the need for basic personal financial management to determine as time goes on, how much is available for investment for retirement; and the lifestyle changes that might be appropriate if these amounts are deemed insufficient.
Most financial management articles concentrate on potential changes to expenditure, all with a view to achieving a better overall balance between the increases and decreases. The only problem with this approach, so far as it goes, is that it is always difficult to keep track of the effects of each change and to be aware of how much of a difference each change makes in the bigger picture. The other thing is what is the best balance? How do you know if all the different aspects of financial responsibility are receiving the proper attention they deserve, not only now, but on a continuing, lifetime basis?
The answer surely is a more systematic approach. What we actually talking about is managing and controlling finances - of a particular type - our domestic or personal finances.
We all probably know that in business, the only way, indeed the legally required way, to manage finances is by the use of accounting. Accounting has evolved over hundreds of years with national and international supervisory authorities ensuring that it best meets the needs of the many different forms of business in place throughout the world.
Surely I am not suggesting that we should all start using accounting for managing home finances? Isn’t it much too difficult and time consuming; and help - I do not understand all the terms and techniques!
Well, yes, I am suggesting that we all start to use accounting for managing and controlling our finances, but not quite the sort of accounting that businesses use. The reason is that with appropriate modifications, domestic accounting can be made easy to understand, implement and use. Most important, it can actually produce the information we really need to manage and control our finances, on a continuing basis.
Now well retired, I decided to start using accounting along time ago to manage my own finances. I had learnt a little about accounting through a business correspondence course and much later, decided to try using it for my personal finances. I bought an off-the-shelf accounting package and set to work. I soon realised that it was all very difficult to do and that it didn’t actually help very much once I got it set-up. The problem was that the focus was all wrong and the reports didn’t relate to day-to-day personal financial transactions.
The business accounting focus, understandably, is all about profits and owner’s or shareholder’s value. The reports such as the Trading account and Profit & Loss account are designed to track and help maximise these values. Most personal accounting packages are based on business accounting with the problems I encountered, or only address simple features (all very useful as far as they go) such as bank statement reconciliation or budget lists.
Over many years, I evolved a new domestic accounting model. By this, I mean the set of reports and individual accounts needed to implement this new form of accounting, all with a new focus on what I called, Domestic Well-Being (DWB).
DWB Accounting is all about maximising the effect or balance of the decreases compared to the increases, in a way that ensures that appropriate emphasis is given to all of the different categories of each, corresponding to the nature of the financial transactions that characterize domestic life.
What this means is that we have a pre-defined DWB structure for domestic change (the increases and decreases) that goes into successively more detail down this hierarchical structure. From the top level of Basics, Discretionary and Others, the Basics are categorised at the next level in terms of Essentials, Responsibilities and Family Circumstances. Discretionary is sub-categorised as Nice-to-Have, Investment for the Future and Luxuries. At a lower level, Essentials include Utilities, Food and Drink, Clothing, Health and Transport, whilst Nice-to-Have includes Vacation, Leisure and Entertainment, Hobbies, Charities and Timeshare, Mobile home and Caravan, with more and more detail as needed, at successive lower levels.
The model facilitates the bookkeeping which is the means (using individual accounts and/or categories) to enter transactions from bank statements and credit card statements to match the DWB structure; often semi-automated, this typically takes only a couple of hours a month which is trivial compared to the benefits available. Other techniques include naming conventions for the accounts to make it all easy to understand what is going on, in terms of what I call, the Domestic Accounting Equation.
The main tool or benefit of the model is the Domestic Well-Being Statement (DWBS) which is a structured report showing from high, medium to low sub-category levels, the amounts of increases and decreases over any period - a week, month, quarter, year or whatever. From a management and control perspective, at the top level, you can see the proportions of total expenditure between the Basics, Nice-to-Have and Others. A first question is ‘are these proportions about right’? At a more detailed level, if the Basics are considered too high, you can then see at progressively lower levels in any of the areas, where there might be scope for planned reductions or increases in certain sub-categories, over future periods. It is all about searching for and achieving the best balance across the out-goings!
Of particular interest in this context is Investment for the Future (IFF); are the amounts sufficient and more important if they are not, where is the scope for increasing this amount? Where are the imbalances and which other subcategory amounts are potentially ripe for change?
The key is visibility. Suddenly, everything is exposed. You can see whether appropriate amounts are being put aside for the future; you can see where dangers might be lurking with potential debt problems; and for those with some existing debt, the management of its reduction is much easier to plan and execute.
Budgeting can set up to plan future expenditure with warnings triggered if spending over the next period approaches pre-set levels in whatever categories or sub-categories are being watched.
For the more adventurous, the model includes new domestic financial ratios for additional control capabilities, as well as numerous graphical displays (a picture speaks a thousand words!).
With a best possible financial balance achieved through maximizing Domestic Well-Being, provision for retirement will be at the fore. Decisions can be made on how best to provide the appropriate amounts for retirement investments and if necessary, change other lifestyle priorities to ensure that the required amounts are made available. Advice will still be needed on the choices and tailoring of investment plans but that is specialized and different from the basic personal financial management required to provide a rock-steady platform for all other financial decisions throughout life.
In the global financial turmoil today, everyone can take advantage of new ideas as a basis for starting to better manage and control their personal finances. DWB Accounting offers the potential for lifestyle improvements and goal achievement since good financial management can point to the need for many other initiatives such as job change, better qualifications, re-location and so on.
In summary, by using accounting for managing and controlling home and personal finances, based on the new Domestic Well-Being accounting model, you will always know in detail, the past and present state of your finances as a proper basis for comparison and control. You will be able to ensure that all aspects of your financial responsibilities are being met through achieving the best possible balance across all of your categories of increases and decreases, based on your own priorities and approach to indebtedness.
All that is demanded is an appropriate sense of responsibility from those in some form of family situation, be it a marriage or partnership, with or without children, or even just a single person. The sooner domestic accounting is underway, the greater the potential for lifetime and continuing benefit. It will take a few months to get things going and to accumulate sufficient figures to start seeing a meaningful basis for gaining and exercising control. Now is the time surely, to find out more about DWB Accounting.
