New Year Open/Close

I went to the bank today to get some more check registers for my checkbooks.  At the beginning of every new year I like to start off with a new and fresh check register for the year.  I store the old ones for the prior year with my tax documents, as something might come up at a later date that could result in the need to search out a transaction.

I also start over with the recording of my transactions in an excel notebook spreadsheet.  There are many ways one can keep track of transactions.  Our bank has some awesome helps on the web attached to our accounts.  There are also great helps with microsoft money, quickbooks and a host of others.  I just like a simple excel spreadsheet using the notebook pages feature for each month of the year and then a summary page at the end.

However you decide to account for your spending over the year, the important thing is that you do something regularly.  I just set up some columns for wages and other receipts received over each month on the left.  Then a date column and an itemization column.  Then several columns to the right such as: auto, contributions, eating out, food, gifts, housing, medical, miscellaneous, phone, savings and transfers.  Then I use the 'sum' feature to total all the transactions for the month.

The important aspect of tracking financial transactions regularly is that you can see where the money goes each month and then through the year.  Financial summarizing is sometimes painful.  Looking over my records I see I spent too much money on our mountain house fixups.  So, I will need to cutback in 2014, or find some other ways to fund the fixups.  Also, the cell phone bill needs some attention.

Taking some time each month and then at the end of the year to see where the money is coming from and going to is very important to good financial health.  

Save For Future Expenses

My wife and I went to our bank the other day to open another savings account.  While we were working through the paper work, the representative noticed that we had several accounts.  I pointed to one account and said that is where we hold our money to pay our auto insurance.  She said, "I never thought of that."  She said, "That would probably save extra insurance fees included in monthly payments."  I agreed and said that each of our accounts has a purpose for payment of a future non-regular bill.  We transfer amounts each week to various accounts to save for a future expense.

One account I have transfers one dollar for each swipe of my debit card to a savings account.  We use that to pay for Christmas each year.  It is interesting that one dollar for each swipe of the debit card is enough to buy our Christmas presents and other costs related to Christmas.

I have another account that we use to save for the winter propane heat bills and the January property taxes.  Each week an amount is transferred to that account to be available to make those payments.  We pay recurring bills out of our main checking account. 

There is no limit to how one can use this plan.  Any lump-sum bill, or special purpose expense, can be met in the same way.  Modern banking accounts are so neat to set up the automatic transfers and just monitor them from time to time to see that everything is going according to plan.  A person does need to watch for bank fees with various accounts.  Only set up accounts that have no monthly fees.

Many years ago Larry Burkett taught an envelope system.  He encouraged people to put cash in various envelopes to meet goals, manage costs, and help isolate funds to pay future bills.  It helped me, but I think the opportunity now with computerized banking is better.  Also, not having a dresser-drawer with a lot of cash in it is less worrisome.

I wish computer banking could have been available to me several years ago.  It would have really helped.  But, I am glad it is available now to help with whatever expense or special item in which someone might need help to make future monies available.

College Education Plan

The other day I couldn't help but overhear someone distressed by their college debt.  I thought about my two sons and our plan to help them through college.

My wife and I didn't have the ability to pay their way through college.  So we implemented a plan that involved participation from them as well.

They attended a local university in our area, about 12 miles from our home.  They stayed at home rather than in a dorm or other housing arrangement.  Food and utilities were already a part of our household budget anyway, so no new increase with those items.

Then we required them to have a part-time job, working no more than 20 hours and mainly on weekends.  The money was to be used for their books and other needed items.

The first year of their schooling we paid for all their tuition for two semesters.  Then the second year we paid for two-thirds of their tuition and they paid the remaining one-third.  The third year we paid for one-third and they paid for two-thirds of the tuition.  The fourth year they paid for all their tuition.  This encouraged them to set up some savings from their work and budget for the future costs.

We expected them to work as much as they could during the summer months.  If they wanted to go to summer school, then that was their responsibility.

The plan worked well for us and our sons finished their undergraduate degrees with no debt.  My wife and I liked it when one had a part-time job at a movie theatre as they had a policy that parents of workers could get it free to the movies.

Some may say that living at college, or away from parents, is best to help students become themselves, or other such reasoning.  To us, completing college was the most important goal.  They had a church youth group that helped them with social development so the dorm or frat experience wasn't important at all.  During their fourth year they made the decision themselves to move out of our house and pay for their own housing because they had saved enough from having the part-time job.

Even though parents may not have the funds to pay for all of a child's college at the most expensive colleges available, there are ways to get a good education and not have the huge debt that so many college students take years to pay back.

Operation Christmas Child

     For the past six seasons I have made a commitment to help with Operation Christmas Child  sponsored by Samaritan's Purse.  You may know of it as the shoebox project.  Millions of shoe boxes filled with candy, toys, toiletries, and other fun things for children are shipped around the world. 
     To me it is the closest thing to Santa's Workshop that I know of.  I help in the data processing area. The floor area of the warehouse is filled with boxes, conveyor tables and workers.  It is a great thing to see all the young people, senior citizens, and other groups helping to make this project happen. 
     Thank you to all who have worked and given something to help someone.  Christmas is a wonderful time to reach out to others.
     Here is a link to learn more about Operation Christmas Child.  
                http://www.samaritanspurse.org/what-we-do/operation-christmas-child/

How To Make More Room In Your Closet By Double Racking

Made more space in this closet by double racking.

Have a lot of clothes and not much room in your closet?

Consider double racking your clothes closet.  It is probably a day project but it can be done with a little bit of ability for DIY.

What You Will Need

• Brackets
• Pipe/Closet Rod
• Drill
• Screwdriver
• Pencil
• Hacksaw (for cutting pipe to size). If you measure before you go, you may be able to ask a home center associate to cut it down for you.
• Shelving Boards (I used 1x12)

Brackets- 

• Try to use the brackets in the picture included in this blog.  In my opinion, these brackets look the best and they give great support for the weight of the clothes.   
• You will need about one support bracket for every 32" of length.  

  

  Suggested Brackets

Pipe & Shelving-

• I like to use 1" emt galvanized pipe, found in the electrical department of your home center.
• A wood closet rod is ok as long as it is well supported.  
• You need a drill and screwdriver, hacksaw for cutting metal rod.  
• Shelving is very helpful to store a few items on the top.

Get Started:

• Empty your closet.  
• Then measure up from the floor 42 1/2 inches and make a mark.  
• Then measure up from the floor 86" and make a mark.  
• These two marks are the locations of the top portion of the support brackets. 
• These measurements will work for an 8' closet ceiling or higher.

Adding Brackets:

• Attach the brackets to the wall studs by drilling a small hole for the screws.  
• I like to use #12 sheet metal screws about 2" long to attach the brackets to the studs.  
• A cordless screw drill works great here.  
• Then use a 4' or 6' level and make level marks at each wall stud.

Finish It Up:

• After finishing the placement of the brackets, put the closet rod in place. 
• To finish the project put 1x12 shelving boards on top of the brackets and you should be ready to put the clothes back in place.  
• Hopefully, you will have a lot more room for your clothes.

How to Install a Wall File

 

Have you ever wondered what you should do with those manuals you get with various appliances and other product information papers that you don't know what to do with, and then can't find them after you have put them somewhere?  Consider putting them in a handy location but up out of the way!  That way you can get to them when you need to.  This could also be used in a home office space for storing papers you want to keep nearby but off your desk space.

What you need: 

Supplies to gather.

Pick a Spot:
Consider putting a wall file on an inside wall of your clothes closet, or other closet that you may visit regularly.


Install Instructions:

• I bought a wall file from one of our nearby office supply stores.  The file cost me $12.  I think the price was high for that, but it is a metal file.  Anyway, you might be able to find one for less somewhere.
• I installed this in about ten minutes.
• I am placing my wall file on the inside of my clothes closet.  The top of the wall file is about 60" off the floor.  Then, I am placing it in the middle of the wall.  You can place it wherever is most convenient for you.
• Hanging Tip: When hanging things on sheetrock walls, I like to use the 'self-drilling drywall anchors' that are in the hardware section of most home centers.  I also like using a 4 in 1 screwdriver and a torpedo level to attach the file.

  

  "Self-drilling drywall anchors"

• After determining where you want the file, use the small phillips end of the screwdriver to punch a hole in the sheetrock wall.  
• Then using the larger phillips end, screw one of the drywall anchors into the sheetrock.  
• Next, get one of the screws that come with the drwall anchors and turn it nearly all the way into the anchor. 
• Place the wall file hole over the screw and tighten further. 
• Tip the other end of the wall file up and use the torpedo level to get the wall file level.  
• Mark the hole.  
• Use the small phillips end of the screwdriver to punch the second hole in the sheetrock. 
• Afterwards, insert another screw into the second anchor and then adjust as needed and give it the final tightening.

Make sure it's level!

My finished product!  Easy access yet out of the way!

Note: One thing of which to be aware, is when you poke a hole in the sheetrock, you may hit a stud.  This is not a bad thing.  Just find a different screw and screw the wall file to that stud.  It will be a tighter fit.  Should you move the hanger later on, you can simply remove the file and anchors and fill the hole with spackling. 

How To Replace a Hot Water Heater Yourself

    

For the past months we have noticed that our hot water was running out not long after turning on a faucet.  Since it has been on a well and about 25 years old, I decided to put in a new water heater.  Our water heater is a forty gallon electric heater.  I have some past experience putting in new water heaters.  I thought I could do this one as well.
     About three years ago I asked a plumber how much he would charge to put in a new forty gallon electric model.  He quickly replied, "$800.00".  With that in mind I went shopping for a water heater.  I found one I liked at one of the home centers in town.  It was a forty gallon electric model for $198.00.  I also bought some compression fittings for about $50.00.  So I had roughly $250.00 cost in heater and fittings.  I saved $550.00 off the plumbers quote.
     It took me a few hours to get everything, take the old heater out, and put the new one in place.  If you, or someone you know have a little bit of fix-it ability, replacing an electric water heater yourself might be something to consider.  A gas water heater is something I would NOT encourage people to replace themselves. 

Getting Started:
     The first thing I did was to turn off the electric breaker marked water heater.  Actually, I turned off all the double pole breakers just in case the breaker panel was marked wrong.  Then I turned off the main water supply which was inside the closet housing the water heater. 
     Because the old water lines were of a different configuration I had to cut some of them in order to put the new water heater in place.  I cut the copper lines using a copper pipe cutter.  This allowed some air to flow into the water and helped some with draining.  At the bottom of the water heater was a drain spout.  However, due to the well water sediment that had built up over the years it took a little longer to drain the water than I thought.  Also, it was heavier to get out.

  
Connecting With Compression Fittings:
   To connect the new water heater to the copper lines I used compression fittings.  Compression fittings are, in my mind at least, the way to go for any DIY person to use when working on copper, pex, or cpvc water lines.  Copper is the best pipe, but one must be competent in soldering to make the connections.  I do not do enough copper soldering to remain competent.  If someone doesn't do a good job on the soldering, they will likely have a leak in the fitting. 
     Compression fittings simply are pushed on to the pipe. Voila! They hold very well and the neat thing is that one can use a special 'removal tool' to take the fitting off the pipe if needed.  The next time you are in your local home center, go to the plumbing department and have them give you a demonstration as to how compression fittings work. 

Wrapping It Up:
     After I reconnected the water lines, I then reconnected the electric lines.  Then I opened some other faucets in the house to allow air in the lines to escape.  After all the water was in the tank and water was running out of the faucets well, I turned on the electric breakers.
     I have included a couple of pictures of my work.  Perhaps you can see the compression fittings.  So far no leaks and the water remains hot.
    
     
    

Housing Allowance for Ministers

     My thoughts for including this item in my 'faith economics blog' is that some smaller churches may not be aware that this allowance is available to them.  Or, you may know of a minister that may not be aware of this tax benefit.  Larger churches most likely have someone on staff to help keep the ministers up-to-date on this matter. 

     One aspect of my work as a business administrator was to help the church's employed ministers understand a tax break for them called 'housing allowance.'
    
     A minister's housing allowance, sometimes called a parsonage allowance or a rental allowance is excludable from gross income for income tax purposes, but not for self-employment tax purposes.

     A minister designates an amount with the church board by December 31 in order to get the full benefit of the tax deduction for the coming year. 

     Included with this article is a link to a free printable sample housing allowance worksheet that I gave to the ministers.  To view in Google Docs, click here.  They would work through the form and then we would submit it to the church board for inclusion in the minutes of a regular or a special board meeting.  Here are the IRS permissible items:

• the amount actually used to provide or rent a home;
• the fair market rental value of the home (including furnishings, utilities, garage, etc.);
• the amount officially designated (in advance of payment) as a rental or housing allowance, or
• an amount which represents reasonable pay for services;

The payments must be used in the year received.  They are not retroactive.  Although, the minister may begin the deduction on a future date going forward.
         For further information regarding ministers and the tax law see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. 

     A sample board resolution is as follows:

          Whereas Rev. Jim Smith is compensated by First Church for services as a minister
     of the gospel.  Be it resolved, that the designation of $20,000.00 be set as a housing
     allowance to apply to calendar year 2014 and all future years, unless otherwise amended
     by this church board.
          The resolution was approved unanimously.

     Encourage any minister, or future minister, you may know to take advantage of this legal
tax provision.