Any hope many first-time home buyers had of receiving an $8,000 tax credit died along with the  jobs bill that was threatened with a filibuster in the senate last week by 40 Senate Republicans and one Democrat. Bill H.R. 4213 went down by a vote of 57 – 41 in the Senate, failing to reach the 60 votes required to end a filibuster. This effectively killed an amendment to the jobs bill that would have extended the first time homebuyer’s tax credit from its June 30th deadline to September 30th, for any pending sales now under contract. It also killed the extension of unemployment benefits, although lawmakers will probably revive that piece of the bill and attach it to another bill.

Thousands of houses contracted as “short sales” (where the buyer is selling the house for less than what he or she paid for it) and first time home buyer sales will likely fall apart, and no doubt the end of this tax credit will dampen any real estate recovery.  Writes the Associate Press:

The death of the measure meant that more than 200,000 people a week would lose their jobless benefits because they would be unable to reapply for additional tiers of benefits enacted since 2008. People seeking the popular homebuyer tax credit would be denied a paperwork extension approved by the Senate last week. And state and local governments would lose subsidies on bonds they issue to finance infrastructure projects.

If you aren’t buying a home, why should you care? Because the collapse of the housing bubble triggered the worst recession since the Great Depression (and it’s a depression to you if you’re out of a job)! Economists believe the best chance the economy has of turning around is for the real estate market to not only stabilize, but for housing prices to rise. And collapsed home sales mean more houses on the market and lower selling prices.

The Washington Post reports that most government benefits payments will be made by direct deposit by 2013 in a cost savings move.

Americans who enroll for benefits payments on or after March 1, 2011 will receive them by direct deposit or be enrolled in the government’s Direct Express Debit MasterCard program if they do not provide bank account information. Beneficiaries now receiving payments will switch to direct deposit or the debit card by March 1, 2013, after agencies inform them of the changes, according to the proposed rule change set for publication in Monday’s Federal Register. About one million Americans already receive benefit payments through the Direct Express card, according to the Office of Management and Budget.

Officials argue that direct deposits or the debit cards ensure the safe, quick delivery of funds…”

The government will save millions of dollars with this move. The unbanked who previously spent money and time cashing government checks will also benefit.

Isn’t it time you considered FREE direct deposit to a prepaid card?

Using prepaid cards to gamble on offshore Internet gambling websites is not allowed under new U.S. legal rules that went into effect June 1, 2010. It is now up to banks and prepaid card companies to enforce the law, known as the Unlawful Internet Gambling Enforcement Act (UIGEA). The law is specifies that card issuers must police “illegal online gambling” transactions, but the Off Shore Gaming Association points out that the government has not provided clear guidance about what that exactly means.

It is important to keep in mind that the UIGEA was not written to go after any player sending money offshore or receiving payouts from gaming companies. Instead, it enforces steep penalties on financial institutions for allowing ‘illegal Internet gambling’ transactions to occur.

Some further background from Wikipedia.

Flickr photo by Sunfrog1

Here at MiCash several of the staff sometimes bike to work. This is only possible because Washington DC and Northern Virginia have a robust network of dedicated bike paths. In urban areas with reliable and extensive public transportation, including bike paths, subways, and buses, now more than ever it is possible to consider eliminating the need for a car all together, or at the very least, downsizing from two cars to one.

We’re not suggesting everyone can do this, but with some lifestyle adjustments, eliminating a car in your life can benefit you financially.

Cost Savings without a Car

In 2010, The average cost for a typical auto insurance policy, including collision and comprehensive coverage, is $1,031, reports AAA. This figure compared average rates for the top five best selling vehicles averaged nationwide. Of course, insurance rates also depend on the driver’s age, driving record, miles driver per year, and location. Insurance his generally higher in the city and higher for younger drivers who can least afford the costs of a car.

When factoring in other costs, such as car payments, maintenance, and gas, AAA found that the average annual cost to own and operate a sedan is $8,487 . That comes out to $707 a month.  Of course, that number could be much less if you drive a beater, or you only drive a few miles a week.

Still, there’s no escaping the fact that having a car is one of the biggest expenses for an individual after housing and food.

I Can’t Ditch My Car Because…

• I need it to get to work.
• I need it to go grocery shopping.
• I need it to go out on dates.
• I need it on the weekends to run errands or take trips.
• I need it to feel good about myself.

What are the Alternatives?

• Ride a bicycle…use one month of car expenses to buy yourself a really nice bike. Did you know you can even order one on the Web and it will be delivered to your house? Check your local area for bicycling information. Here’s a good information website to get you started.
• If you are the adventurous type, consider a motorcycle or Vespa instead of a car. The insurance is cheaper and you’ll pay only a fraction in gas costs. Also your cool factor will go up. If you’re single, your date can ride behind you, or just use her/his car when going out. Don’t think this will work? Listen how actor LA-based Tim Coyne has adjusted to life without a car on the Hollywood Podcast.
• Rent a car (or pickup) those few times a year you really need one. Companies like Enterprise maintain rental locations all across America that are not confined to the area around your local airport but actually in neighborhoods. Increasingly in many cities, like Washington DC, San Francisco, and Montreal, bike rental companies let you rent bikes that you unlock from a public bike rack and re-lock when you arrive at your destination. The more extensive the fleet and pick up locations, the better this works. Montreal just rolled out a huge network of bike rental kiosks, and more and more people are getting by without a car.
• Modify your shopping behavior… some people, especially busy urbanites, swear by Peapod and other grocery delivery options. Instead of the big weekly excursion to the grocery story, shop farmer’s markets and buy a few items at a time on your way home from work. Shopping locally will likely prove healthier too.

So go ahead and give it a try. If it doesn’t work for you after a little while, you can always go out and get another car.

photo by Ryan Yessman

The cold winter months are finally over and its time to celebrate. For schools and universities across the country, the arrival of spring means it’s almost time for one of the most highly anticipated events in a college student’s life: Spring Break.

Before you spring for that all-inclusive hotel package or special Spring Break travel deal, plan ahead and look around at your options. One of the biggest party poopers is learning too late that you spent too much on a vacation that wasn’t worth the splurge. It takes a lot of diligence and discipline to save up your money. A post-break hangover is fine, but coming home flat broke is another matter entirely.

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Nothing can unleash your hidden creative and mushy tendencies more than Valentine’s Day. Every year, as the Day of Hearts draws near, you along with couples from all over the world start racking your brains for the perfect date ideas for you and your special someone. It would have to be romantic. There should be no slip-ups. And it should always end with the sweetheart more in love with you than ever. So you free up your schedule for the day and make a mental list of ideas. And then you hit a slump. The reality of the matter is that a budget must be allotted. Now the question is how can you plan the perfect Valentines date, without burning a hole in your wallet?

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It’s that time of the year again when merry-making is pretty much all around. We regularly find ourselves in a party hosted by our friends, our work colleagues or our relatives. Eventually, we may find ourselves in the nigh-inevitable position to host a party or two for them, and this year may not be an exception.

Hosting a party could be costly. However, you do not need to break the bank to host a great party that will make everyone talk about. You don’t even need to hire a professional party planner to throw a great party. All you need to do is use your imagination, creativity and good old common sense. After all, a great party need not be expensive; it just needs to be unforgettable and fun.

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For most couples, financial matters are an important topic. Happiness can be drawn from financial rewards that husbands and wives gain from their living. On the other hand, mismanaging the household’s finances can often to stress for couples.

Experts have found that the reason why some couples dispute over financial matters is the lack of openness on the subject. While it is true that it is less than appropriate to discuss money matters in public, the subject needs to be discussed openly and objectively at home with the clear goal of setting domestic policies on how to manage their finances. continue

What good is amassing wealth when one doesn’t get to enjoy it? We love the idea of being able to put money away for the future. The problem is that at one point or another we need to remember that we’re not money-hoarding automatons. We’re people, too, and we deserve to enjoy ourselves, enrich our lives and experience life. With these things in mind, travel remains one of the popular ways people enjoy their savings, and it can be a fun and exciting adventure to be had, so long as your bank accounts are still important to consider. continue

A T-shirt design circulating in blogs and e-mails has a fairly apt message: “I didn’t know what I did before the Internet.” The same is said about a lot of shopping taking place today – people are hitting the streets less, and punching in search engine queries more. They are able to find great bargains and choice finds online faster than ever, and even more telling, some people keep coming back to trusted sites as their “go-to guys” on an online run. People build communities around online shopping, with forums discussing new trends to social networks spreading the word and pushing people to new ideas. continue