The Tax Cheapo

With extremely high gas prices straining consumers’ pockets in
recent months, it is only natural for people to wonder where all
the money they pay at the pump goes. Contrary to popular belief,
the price of gas is not solely reliant on the price of crude
oil. There are many parties involved in setting the price of the
gas you purchase at the pump, and below is a quick run-through
on who they are and what portion of the entire price they
require.

- Crude oil: Crude oil suppliers require the largest
share of the pie at about 45%. This share is determined by the
oil-exporting nations and the Organization of the Petroleum
Exporting Countries (OPEC) in particular. The price of one
barrel of crude oil depends on how much crude oil these
oil-exporting countries produce. Sometimes gas prices rise
despite the fact that there is enough crude oil to go around,
and this is because of a variety of other factors, one of which
is the quality of oil. Oil can be heavy or light, and sweet or
sour. These words only describe the quality, not the taste, of
oil. For example, light, sweet crude oil is cheaper and easier
to refine, but quantities of this kind of oil have been running
lower recently. However, there is still a lot of heavy, sour
oil, which means that refineries must spend more money refining
it.

- Taxes: Federal and local taxes take about 31% of the
price you pay at the pump. Federal excise taxes account for
about 18 cents per gallon, while state excise taxes require
about 20 cents per gallon. There might also be some additional
state sales taxes, along with local and city taxes.

- Refining costs: Refining crude oil makes up
approximately 13% of the price you pay at the gas pump.

- Distribution and marketing: The costs of transporting
and marketing gas make up about 13% of the price of gas. Crude
oil must be transported from oil-producing countries to
refineries, then the gasoline must be transported to
distribution points, and then lastly to the gas stations that
fill your tank. All of the costs of this shipping and
transportation are transferred to you, the end consumer. Along
with all this comes the marketing that is involved in increasing
a brand’s awareness and appeal, and these costs are also passed
on to the consumer.

- Gas station markups: There is no set percentage for
this number. Gas stations are at their own discretion as to how
much to add on to the price in order to actually make a profit
on the gas that they sell. Some stations (usually the larger
ones) will only tack on a couple cents, while others will add a
dime or even more. Some states have laws that prevent stations
from adding on less than a specified percentage over the price
that the wholesaler sets. These markups are also dependent on
the area where the station is located. Demographic information
such as median income and population affect the decisions that
stations make concerning the exact price they set for the
gasoline that they sell from their pumps.

Cars

Jewelry is the most romantic of all gifts. If romance is your
end, then jewelry is the means to achieve it. The gift of
jewelry speaks a thousand words: it talks about the seriousness
of a relationship, the seriousness of one’s intentions, and the
amount of thought and passion invested in a gift selection.

When it comes to jewelry there are five gift choices: a broach,
a pair of earrings, a bracelet, a necklace, and the ring.

1. The broach

A rule of thumb: jewelry items that are worn further away from
the ring finger are less intimate. Jewelry worn closer to the
ring finger are always more intimate, romantic and much more
serious. With this in mind, a broach is the ideal first-time
jewelry gift. It is a jewelry item that is classy, without being
misunderstood.

2. The earrings

Women have adorned themselves with earrings for thousands of
years. Even multiple ear piercings are not new; Egyptian women
loved wearing numerous earrings. As a gift, earrings can be
casual or formal, depending on your budget and the impression
you choose to make.

3. The bracelet

Bracelets are available in two kinds: wrist bracelets and ankle
bracelets. Wrist bracelets are more personal and intimate, while
ankle bracelets are more casual and fun. Ankle bracelets are
also deemed a sexy jewelry, so it all depends on what impression
you want to make.

4. The necklace

Necklaces, by virtue of being worn close to the heart, are
romantic and intimate gifts. Necklaces can be stylish and trendy
or classic and traditional. They can be short or long, they can
come with or without a pendant. Adding a pendant to a necklace
is an extra personal touch. Pendants can also be engraved with a
message.

5. The ring

Rings are the ultimate in romantic jewelry gifts and almost
always symbolize a new phase in a relationship. There are rings
to suit every budget, mood, and message. Rings can also be fun
and casual, but they are always intimate symbols of romance.

When property investing, pay the seller their asking price but negotiate the terms under which you can buy property. You’d be absolutely surprised when property investing at how many sellers will help fund you into their property. Basically, you’re receiving vendor finance from the seller.

Let’s take an example of a $300,000 house. The seller wants $300,000 for their property. When property investing what most people will do is they’ll negotiate all day long to get the price down from $300,000 to $270,000. Then when buyers have negotiated to get the house for $270,000 they’ll get a bank loan and have the liability of a loan. They’ll get a 30 year loan and after about 5 years of making payments they will probably owe about $260,000. Instead I’d like you to consider a different strategy when buying: get the seller to vendor finance you into their home.

You can say to the seller, “Listen Mr. Seller, I know you really want your $300,000 but let me do this: why don’t you let me make payments on your existing mortgage and in return I’ll give you the $300,000 you want and I’ll just pay you direct.” When property investing, I’ve always found that if you say to a seller, “I’ll give you your asking price of $300,000 if you let me make your payments on the property.” You will be surprised how many sellers will let you pay them direct if you’re not trying to negotiate them down on the price. This is one of my favorite ways to control property.

Now I know that if I’m paying a seller direct at $300,000 at $2,000 a month, in 5 years time I’ve only got a balance of $180,000 that I still owe the seller. So when the seller says to me, “I will do this but you’ve got to pay me off in 60 months.” That’s okay with me because I didn’t have to qualify for a bank loan. When property investing can you see how getting finance from the vendor can be beneficial for both parties?

When property investing and getting vendor finance from the seller, you as the buyer may pay a little bit more for the house but by making payments direct you will owe the seller $180,000 in 5 years time instead of $260,000. You’ve made a profit of $80,000 with out qualifying for a bank loan.

Rick Otton is the director of We Buy Houses Pty Ltd. He has been property investing full time for 14 years. Rick has completed over 351 property transactions in Australia and the United States.

Rick specialises in creating positive cash flow through a variety of strategies he perfected in the United States and adapted to Australian conditions. He sells home study courses on vendor finance, one year mentoring program as well as a yearly 3 day boot camp on the Gold Coast. Go to http://www.rickotton.com for more property investing information ring 1800 003 588 in Australia.

Many types of business valuation methods are appropriate when
estimating or defining a business value for certain kinds of
business evaluations and appraisals. The reason for the
evaluation determines which measure will be used. For example,
if the purpose is to borrow money, asset values will be key
because lenders will be interested in collateral. If the value
is based on the selling price of the business, then what the
business owns, what it earns, and what makes it unique will be
important. The following is a list of many different types of
business valuations that can be performed.

* Insurable value

* Book value

* Liquidation value

* Fair market / stock market value

* Replacement value

* Reproduction value

* Asset value

* Discounted future earnings value

* Capitalized earnings value

* Goodwill value

* Going concern value

* Cost savings value

* Expected return value

* Conditional value

* Market data value

This article discusses six of the more popular business
valuation methods: 1) Value based on assets, 2) Value based on
cash flow or net income, 3) Value based on the integrated
method, 4) Value based on net present value of future earnings,
5) Value based on the market data approach, and 6) Value based
on the replacement cost approach.

1. Value Based on Assets

Uses: Used most often as a minimum value because a business
should be worth at least the value of its assets. Exceptions
might occur when a company is losing money.

Steps: Determine the market value of the assets being sold. If
business is being sold, deduct the value of any liabilities
being assumed by the buyer.

2. Value Based on Cash Flow or Net Income

Uses: Used when a business has few assets, the cash flow being
the important thing considered here. The value is based on the
return on investment the cash flow represents.

Steps: Adjust the income statement to reflect the true expenses
of the business (for example, subtract personal items being paid
for by the business). Calculate the appropriate, adjusted type
of income to be capitalized: cash flow, net income before or
after taxes, etc.. Decide, based on risk and yields of other,
“comparable” investments, the desired rate of return or the
capitalization (cap) rate. Divide the income to be capitalized
(example, cash flow) by the cap rate.

3. Value Based on the Integrated Method

Uses: Used when a company has both assets and cash flow. This
method accounts for the value of the assets and then capitalizes
the cash flow, but only after reducing the cash flow by the cost
of carrying the assets.

Steps: Determine the market value of the assets. Multiply the
value of the assets by the interest rate the company pays to
borrow money to get the cost of carrying the assets. Adjust the
income statement to reflect the true expenses of the business.
Calculate the appropriate, adjusted type of income to be
capitalized: cash flow, net income before or after taxes, etc..
Subtract the cost of carrying the assets to get the excess
earnings. Decide, based on risk and yields of other,
“comparable” investments, the desired rate of return (the cap
rate). Divide the excess earnings by the cap rate to get the
value of the excess earnings. Add the value of the excess
earnings to the value of the assets and subtract the value of
any liabilities being assumed by the buyer if business is being
purchased.

4. Value Based on Net Present Value of Future Earnings

Uses: Used as a method to sell the value of a projected future
stream of earnings at a discount. Used mainly with larger,
well-documented companies for which the future is somewhat more
predictable.

Steps: Adjust the profit-and-loss statement to reflect the true
expenses of the business. Calculate the adjusted actual cash
flow. Based on supportable plans, project financial statements
for 5 years. Forecasting techniques could use moving averages,
trending, percentage increases/decreases, or multiple
regression. External factors such as industry outlook,
technological developments, and government regulation should be
considered. Determine cumulative cash flow for the 5 years and
discount it to establish the net present value. Each year may be
discounted separately to give a more precise value.

5. Value Based on the Market Data Approach Uses: Value
of the business (or other property) is estimated from
information on prices actually paid for other, similar,
businesses or properties. This the most direct valuation
approach and it is easily understood by laymen. However, it
requires a reasonably active market, the necessity of making
adjustment to actual selling prices in an attempt to compensate
for differences and it is generally not applicable to estimating
values of intangibles.

Steps: Identify other businesses or properties generally similar
to the one being appraised, that have actually been sold.
Determine the selling price, then compare each comparable sale
with the property/business being appraised, and adjust actual
selling price of each comparable property/business to compensate
for the significant differences between it and the subject
property/business. Use these adjusted selling prices of the
comparable properties/businesses as a basis for estimating, by
inference, the market value of the subject property/business.

6. Value Based on the Replacement Cost Approach

Uses: Value of the business is determined from the estimated
cost of replacing (duplicating) the business asset by asset and
liability by liability. Very accurate in valuing tangible assets
and reflects actual economic value. Used with asset-heavy
businesses such as hotels/motels and natural resources (mining)
businesses. Does not take into account the earning power of the
business which contributes to total value.

Steps: List all assets to be included in the valuation of the
business. Omit any surplus or idle assets that do not contribute
to the economic performance of the business. Also, list
liabilities, if applicable to appraisal. Estimate the current
cost to replace each asset with functionally equivalent
substitute; also estimate current value of each liability to be
included. Add the estimated costs to replace the individual
assets, thus determining the total estimated cost of replacing
all assets in aggregate. Subtract estimated current values of
liabilities, if applicable. Add the values (liquidation value,
wholesale market value, etc.) of any non-contributing assets
omitted in the first step.

Reconciling the Value Estimates & Determining the Final
Estimate of Value

* Compare the value of estimates resulting from the use of
different approaches

* Rank each by the relative degree of confidence

* Use judgment

* Test the final value estimate

* Round the final value

* No useful purpose is served by taking an average

Wreaths that welcome your guests with the wonderful scents of the season – a hint of the wonders inside as they step through your doorway –
a bit of spice, a touch of pine, and the gentle chime of tiny bells.
Naturally Christmas –
Using a grapevine wreath, a branch of pine with small pinecones, floral wire, a moss-covered branch, snow birds, tiny clay pot, dried berries, or artificial raspberries, cranberries, silk holly, a red bandana, tiny jingle bells, additional pinecones, dried bay leaves, spanish moss, miniature poinsettias, chenille wire, a bit of “snow” textured paint –
Decorate and add as much or as little as you like – give your entranceway a touch of the Season.
If you live in warmer climates, change the decor to suit the area you live in, or use the winter touches to add nostalgia and storybook touches to your door.
There is a White Christmas in the hearts of everyone!
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Goose Wreath:
grapevine wreath, sphagnum moss, a burgundy ribbed velvet ribbon, a tiny bird next and goose figurine, bracken ferns, white German statice, red berries, dried apple, orange, and lemon slices, cut in half.
This “nature” wreath emits a fragrance of fruit and spice – a wonderful combination for this time of year.
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Pumpkins still can highlight some of your Holiday decor –
Try a truly rustic pumpkin basket trio: Three pumpkins of varying size, hollowed out and cleaned of seeds and pulp.
Colros: bittersweet orange, black and trail tan and antiquing paint, an old toothbrush, grapevine, 2-guage wire.
Poke two small holes with a pick opposite each other near the top of the pumpkin, about 1 inch below the rim.
Cut three or four grapevine lengths, depending on the thickness of the vine for each pumpkin as a handle. Cut the grapevines 28″ for the large pumpkin, 20″ for the medium, and 16″ for the small. Cut two 12″ lengths of wire to attach to the handle. Run the end of one wire through a hole and center the wire in the hole. Gather the grapevine and place one side next to the outside of the basket with the ends hanging about 2″ below the hole. Tightly wrap the wire tails around the vine. Attach the other end of the handle in the same manner. Repeat for all your pumpkins.
Using the toothbrush, paint and decorate your pumpkins.
Fill with dips, salsas, and sour cream, etc. and surround the entire top with fresh parsley held in place with toothpicks. Use the largest for your chips.
Colorful, useful, and a “different” touch to your buffet table.
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Recall the scent of gingerbread and you have all kind of memories spilling over.
To make fragrant gingerboys that you can string on your tree, use in a wreath, or place in bowls of potpourris –
3-1/2 cups flour, 1 tsp. ginger, 1 tsp. cinnamon, 1/2 tsp. ground cloves, 1 tsp. baking soda, 1/2 cup sugar, 1/4 cut butter, softened, 1/2 cup molasses, 3/4 cup water
Combine dry ingredients. Cream in the butter and molasses, alternating with water. The dough will be very stiff. Roll out the dough to 1/4″ thickness or thinner. Cut out the cookies with a 2-1/4″ gingerbread cookie cutter. Bake on an ungreased baking sheet at 350 for 15-20 mins. This will overbake and dry the cookies. Paint with acrylic paint to decorate. Fragrant, very nostalgic, and perfect for your Holiday home decor.
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Just a few touches to add to your home to bring the very essence of the Season to those you love and care about.
ENJOY!
©Arleen M. Kaptur 2002 November

ABOUT THE AUTHOR

Arleen has written numerous books, articles, newsletters:
http://www.Arleens-RusticLiving.com
http://www.arleenssite.com

Even the youngest members of the family can help out around the house

There’s a pattern in American households that’s been emerging and it’s harmful for kids. Kids have essentially gone from being contributors to the household, to being waited on hand and foot. Too many moms see household duties as being outside the realm of their child’s responsibilities – and their ability. It’s not only sad, it’s also untrue.

In fact, if kids are fully capable of contributing to the mess of a house, why can’t they be expected to contribute to its cleaning? The problem rests with moms. As mothers we often look at housework as the old saw “if you want it done right, you’ll have to do it yourself.” But, that’s defeating for everybody.

Kids quickly learn that the “auto-mom” will handle all the messes, laundry, cooking, cleaning, and other household jobs if they can prove their incompetence. And Moms get something out of “being the only one” who cleans the toilet right, or folds the towels like they do in department stores. But this has to stop. Otherwise, trying to keep home and hearth together will be a 24-hour-a-day job and we’ll end up with children who’ll leave the home one day and not have the vaguest clue about how to handle household duties.

Have the expectation that kids will do the jobs you’ve assigned them
One of the things that can undermine the process of kids helping out around the house is a parent’s expectation that they won’t do it. Expect that they will do the jobs, check on their progress, and assign appropriate rewards and consequences to the job, and it’s amazing how well kids will perform.

Parents have to realign their minds that kids are fully capable — and often willing — to participate in the running of the household and the housekeeping that goes with it. As an example, if you asked your son to take out the trash before dinner, remove the videogame privilege until it’s done.

Yes, it is easier to just do it ourselves, but that’s not practical and it sets a bad example, showing kids that in the real world, there’s someone there to clean up after you. As anyone will tell you, the real world demands that you pick up after yourself. However, not all kids are ready for every household task.

Training kids to clean properly also relies on giving them age-appropriate jobs around the house — and not expecting perfection. That doesn’t mean they should be allowed to do a sloppy job, either.

As the Cleaning Editor of BellaOnline, I dig cleaning. That’s why I’m the editor of that site. But, I don’t expect my kids to have the same standards that I do. But, I expect them to be able to do an acceptable job appropriate to their age and abilities. When my kids do a poor job, I simply tell them the shirt needs to be refolded, for example, and have them correct the situation to the best of their abilities.

The whole family pitches in when we need to go somewhere and have to clean in a hurry or when we need to do a thorough cleaning. Having kids clean the house teaches them responsibility, appreciation and care for their surroundings, and self-pride in a job well done. That’s something every child should experience for themselves.

Housekeeping Chores and Duties for Children

Ages 3 to 5

* Help straighten a room

* Help make their bed

* Bring items from one room to another

* Help set or set the table

* Help clear or clear the table

* Bring towels to the laundry

* Swiffer

* Gather trash

Ages 6 to 10

* Sweep

* Make their bed every day

* Do dishes

* Straighten and pick up

* Load/unload dishwasher

* Vacuum

* Fold & put away laundry

* Dust

* Clean baseboards window sills

* Take out trash

Ages 11 to Until they’re out of the house

* Sweep, Vacuum

* Make their bed every day

* Straighten and pick up

* Operate Washer/Dryer; do laundry

* Clean bathrooms

* Dust

* Clean windows

* Do dishes/load and unload dishwasher

Kathryn Weber is the publisher of the Red Lotus Letter feng shui e-zine and is dedicated to helping her readers develop successful, prosperous, and supportive environments with feng shui. To subscribe, logon to www.redlotusletter.com and receive this special report Fr*ee “16 Feng Shui Secrets for Greater Prosperity.”

kweber@redlotusconsulting.com