I love them so much I usually grow tomatoes in my backyard every summer. Unfortunately for me, the pesky squirrels typically end up enjoying more of my homegrown tomatoes than I do.

Anyway, the other day I was picking up a bunch of fruits and vegetables at my local grocery store and, of course, tomatoes were on my list.

Grocery store tomatoes can be such a tease. I find the grocery store varieties to always be visually appealing, perfectly round with a nice red color; but every time I bite into one I am terribly disappointed by the lack of flavor. In fact, they’re practically tasteless — especially when compared to the home-grown ones.

The Organic Price Premium

For that reason — and with no home-grown tomatoes waiting for me at home — I briefly considered picking up some organic tomatoes. That is, until I noticed that the price premium being commanded by the organics was almost double the cost of the non-organic varieties.

Outrageous? I thought so; tomatoes are expensive enough without the added organic premium.

According to Mint, organic produce costs so much more because today’s large conventional farms enjoy economies of scale and subsidies that smaller organic farms can’t exploit.

So what’s driving the market? Well, when it comes to fruits and veggies most people buy organics to avoid pesticides that farmers use on their crops to increase yields. In the United States, any produce certified as “organic” must be grown without most synthetic pesticides and fertilizers.

The thing is, when it comes to tainted fruits and vegetables, not all conventionally-farmed produce is created equally. It turns out that many non-organic fruits and vegetables are grown with significantly lower pesticide loads than others, which suggests some organic fruits and vegetables may not be worth those steep price premiums.

So, which non-organic fruits and veggies are typically grown with the lowest pesticide loads?

The Cleanest Fruits & Vegetables

Well, every year a non-profit consumer organization known as the Environmental Working Group (EWG) analyzes pesticide test data gleaned from nearly 100,000 reports conducted by the US Department of Agriculture and the US Food and Drug Administration. From that data they identify the 15 cleanest fruits and vegetables, which they call the “Clean 15.” Here are the cleanest fruits and veggies in 2026:

1. Avocados
2. Sweet Corn
3. Pineapples
4. Onions
5. Papaya
6. Sweet Peas – Frozen
7. Asparagus
8. Cabbage
9. Watermelon
10. Cauliflower
11. Bananas
12. Mangoes
13. Carrots
14. Mushrooms
15. Kiwi

You can download their latest report here.

The take-away here is that for those who worry about pesticides on their fruits and veggies, but are trying to stay within the bounds of a tight grocery budget, it makes little sense to pay the extra money for the array of organically grown fruits and veggies listed above.

Instead, buy the conventionally grown varieties and make sure you wash them well. That will free up your money to buy organic produce in order to avoid those conventionally-grown fruits and veggies with the highest pesticide loads that EWG has identified from their “Dirty Dozen” list. Those 12 items in 2026 are, in order:

1. Strawberries
2. Spinach
3. Kale
4. Grapes
5. Nectarines
6. Peaches
7. Cherries
8. Apples
9. Blackberries
10. Pears
11. Potatoes
12. Blueberries

Thankfully, tomatoes didn’t make this year’s list, so I’m going to continue buying those beautiful-but-bland non-organic ones anyway to supplement my produce needs. Well … at least until those pesky squirrels pack up and move to another neighborhood.

Photo Credit: rick

The post Organic Fruits & Veggies: 15 That Aren’t Worth Paying More For appeared first on Len Penzo dot Com.

Debt can creep up slowly – or hit all at once. One month you’re managing minimum payments, and the next you’re juggling overdue bills, collection calls, and mounting stress. While many people view bankruptcy as a last resort, it can sometimes be a practical and strategic step toward regaining financial stability. Understanding when it makes sense – and what it actually involves – can help you make a more informed decision about your future.

When Life Events Push Finances to the Breaking Point

For many people, overwhelming debt isn’t the result of careless spending; it’s driven by major life disruptions. Events like the end of a marriage, unexpected health problems, or a sudden job loss can drastically reduce income or increase expenses overnight. In fact, research from the National Endowment for Financial Education shows that these three situations – divorce, medical challenges, and unemployment – are among the most common triggers that lead individuals to consider bankruptcy.

These circumstances often create a domino effect. Medical bills can pile up even with insurance, unemployment can drain savings quickly, and divorce can split one household into two, doubling living costs. When combined with existing financial obligations like credit cards, auto loans, or mortgages, the situation can become unmanageable fast.

If your debt is largely tied to one of these major life changes and you’re unable to keep up despite cutting expenses and exploring other options, bankruptcy may be worth evaluating. It’s not about failure—it’s about recognizing when your financial reality has fundamentally changed.

Understanding the Consequences of Falling Behind

Before deciding on bankruptcy, it’s important to understand what can happen if debts remain unpaid. One of the most serious consequences is wage garnishment. Depending on the type of debt and legal proceedings, creditors may be able to take a portion of your income directly from your paycheck.

In many cases, the law allows creditors to seize up to 25% of your earnings after standard deductions. That’s a significant cut. And it’s one that can make it even harder to cover essentials like rent, groceries, and utilities. For someone already struggling, this can deepen the financial crisis rather than resolve it.

Beyond garnishment, unpaid debts can also lead to lawsuits, damaged credit, and relentless collection efforts. If you’re facing these outcomes and see no realistic path to catching up, bankruptcy can provide protection. Filing may stop collection actions, including garnishments, through what’s known as an automatic stay. This pause can offer breathing room to reassess your finances and plan your next steps.

How Chapter 13 Bankruptcy Can Offer a Structured Path Forward

Not all bankruptcies are the same, and for individuals with a steady income, Chapter 13 is often a viable option. This type of bankruptcy focuses on reorganization rather than liquidation. Instead of wiping out debts immediately, it allows you to combine what you owe into a single repayment plan.

Under Chapter 13, you propose a structured plan to repay all or part of your debts over a period that typically lasts between three and five years. This approach can make monthly payments more manageable while allowing you to keep certain assets, such as your home or car, that might otherwise be at risk.

The process also creates a clear roadmap. Rather than juggling multiple creditors with different terms and deadlines, you make one consistent payment based on your income and financial situation. For many, this structure brings a sense of control and predictability that was previously missing.

That said, Chapter 13 isn’t a quick fix. It requires commitment, discipline, and court approval. But for those who are able to repay a portion of their debt over time, it can be a powerful tool for long-term recovery.

Deciding whether to file for bankruptcy is deeply personal and often difficult. It’s not a step anyone takes lightly—but it can be the right one under the right circumstances. If your financial struggles stem from major life events, if your income is at risk from garnishment, or if your debt has become unmanageable despite your best efforts, bankruptcy may offer a path forward.

The key is to view it not as an end, but as a reset. With the right approach, it can provide relief from immediate pressures and create a foundation for rebuilding your financial life.

Photo Credit: stock photo

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The Jump Start from the Jump Rope

K seemed to be discouraged for two or three lessons in a row, but I knew he had been trying hard. So I told him that he had counted the timing in one of his pieces so well that day that I wanted to give him a little prize, and I gave him a jump rope. (I probably gave him a choice; I kept a few things in the piano bench for times like this).

His mother called later that day and said that on the way over to the lesson, K had told her he wanted to quit lessons that day. But after he got the jump rope, he changed his mind and perked up about practicing and after that there was a noticeable difference in his lessons and his attitude. I learned from that experience, and have given prizes from time to time for very specific improvements in a weak area of a student’s progress. It’s the little things…

I’m so happy that I kept a notebook of these little stories and since packrats keep notebooks forever, it’s been possible to recall these little “you made my day!” stories which I had forgotten about, 20+ years later, and it’s been a sweet treat. These memories, touching and funny, help me to relive the rich experiences I’ve had teaching children. Other than also being a mom, being a teacher is the most rewarding and satisfying activity I can think of, and I’ve especially enjoyed teaching music because it is my number-one favorite pleasure of life – and what could be better than passing this love of music along to somebody else?

To be continued…

***

About the Author: RD Blakeslee (1931 – 2024) built his net worth by only investing in that which can be enjoyed during acquisition and throughout life, as opposed to papers in a drawer, like stocks and bonds. You can read more about him here.

Photos: Courtesy of the Blakeslee Family

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Choose the Right Loan

Whether you’re looking to settle down and buy a home in Chicago or Fresno, consider a Federal Housing Authority (FHA) loan; they’ll allow you to keep more money in the bank for repairs and other costs that you wouldn’t be responsible for when renting.

Unlike conventional loan providers, FHA loans offer:

• Flexible requirements for income
• Moderate credit expectations
• Small minimum down payment

Of course, not everyone who applies for FHA loans can qualify. Here’s how the FHA works in granting loans — and how you can simplify the complex process of a mortgage through FHA.

Understanding FHA Loans

The FHA is a part of the Housing and Urban Development (HUD) that primarily functions to insure loans so that you can get a better deal from your lender. When it comes to FHA mortgages, the money is not provided by the FHA directly to the borrower. Instead, the funds are provided to the borrower via an FHA-approved lender, and the loan is then guaranteed by the FHA.

Fixed vs. Adjustable Rates

A major decision that you need to make while applying for financing is whether to get a fixed- or an adjustable-rate mortgage. A fixed rate allows you to pay the same rate of interest for the life of the loan, while an adjustable rate typically changes over time; FHA loans are available for both types of rates.

Because fixed-rate FHA loans require you to pay the same rate of interest all through the repayment term, the monthly payments that you make will also remain the same, no matter how the economy changes. Many homeowners consider that predictability to be a huge advantage.

In the case of an adjustable rate FHA loan, repayment is at a fixed rate of interest for a few years, but then the interest rate is adjusted annually, fluctuating with rise and fall of the economy. The big advantage of adjustable rate mortgages is that they typically start at a lower interest rate, but you also run the risk of paying higher rates over time.

The Pre-Approval Process

During the pre-approval process for a new home, the lender will review your entire financial situation including debts, income, assets, credit score, and other factors in order to determine the maximum mortgage amount.

The lender will also provide you with a pre-approval letter that you can use while offering to purchase a house. This is important because the chances of a seller accepting your offer are higher if you have a pre-approval letter with you for the loan.

Final Thoughts

The FHA loan underwriting process offers a lot of flexibility in evaluating borrowers’ ability to pay back a mortgage. To find out if you get qualified for FHA financing, talk to an FHA-approved lender.

Photo Credit: Woodley Wonderworks

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If you’re looking for simple ways to not spend as much money, but still get your caffeine fix, here are a few ways you can still enjoy a nice cup of coffee without going broke:

Use cash instead of credit

Using money that is physically in your hand will allow you to realize exactly how much money you’re spending on coffee during any give week. When you use your card, you don’t get to see the money being taken directly out of your account. It’s easy not to think about how much that large caramel-macchiato with soy milk and whipped cream costs when you simply have to swipe a card. By using cash, you’ll have to force yourself to really think about how much money you’re spending on your cup of coffee.

Make sure you’re aware of your expenses

It can be hard to focus when you’re buying your first cup of coffee if your eyes are barely open, but it’s important to realize exactly how much you end up spending on coffee. Recent studies show that on average, Americans drink about 1.64 cups of coffee each day, but many people drink significantly more. While coffee may seem like a small expense at the time, think about how it relates to your other expenses. All of those coffee purchases add up; to prove it, simply calculate how much you spent on coffee during the previous two weeks.

Make your coffee at home

Yes, this may seem obvious. But even when people are fully capable of making a cup of coffee at home, they still choose not to. It’s important to have some self discipline and really think about how much money you could be saving if you made coffee at home. A bag of coffee and coffee filters will not only last longer, but they will cost less than buying a cup of coffee every day. It can also be helpful to make sure you’re making tasty coffee at home. It’s okay to splurge a little on your coffee grounds or beans, because it’s still going to cost less than buying a cup of coffee every day. And now that coffee pods have become ubiquitous, there’s really no excuse for not making your daily cup of joe at home.

It can be difficult to change a habit, especially one that you need to help you get through the work day. But in the long run, your bank account will thank you for making a few simple adjustments to reduce your coffee spending.

Photo Credit: stock photo

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Many years ago, I compiled a list of the 10 most underpaid jobs. The provocative list was a collection of occupations that I felt were grossly under-compensated considering their overall contribution to society; jobs like trauma scene clean-up workers and electrical linemen.

And I still continue to get the occasional nastygram from disgruntled people wondering how I could ever leave their job off my list.

With that in mind, I’ve compiled another list of jobs that aren’t usually well-compensated, but in many cases people sign-up for anyway — sometimes because it’s the only job available. Don’t laugh; this may be truer than ever now that the economy has taken a decided turn for the worse.

Of course, I’m sure many of you are eagerly waiting to see if your job made it here this time. So without further ado, here are ten more under-appreciated low-paying jobs, ranked by their median salary according to the latest US Bureau of Labor Statistics.

Roofers

Median salary: $50,970
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): It’s bad enough having to work high above the ground, on sloped and slippery surfaces, in all types of weather conditions, including the stifling heat of summer. Even worse, roofing is one of the most dangerous professions in America, with an annual fatality rate ten times greater than the overall workforce. For this, they get little more than $23 per hour.

School Bus Drivers

Median salary: $45,830
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): School bus drivers require a unique mix of incredible patience, concentration and driving skills. It can’t be easy driving a large clumsy school bus and maneuvering it into tight spaces with dozens of kids constantly screaming behind you. Considering all the responsibility that they have, school bus drivers perform their jobs admirably day-in and day-out for a relative pittance.

Slaughterers & Meat Packers

Median salary: $38,960
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): If it weren’t for these guys doing all the dirty work, I’d probably be a vegetarian. I suspect a large number of you reading this would be too.

Nursing Aids, Orderlies & Attendants

Median salary: $37,700
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): Being a nurse’s assistant often requires a cast-iron stomach and entails very long hours with sometimes-grumpy and uncooperative patients. Job duties include changing bedpans, inserting catheters, giving sponge baths, and providing other general care and comfort to the sick and injured on a daily basis. It’s one of the most under-appreciated jobs in the world.

Deep Sea Fishermen

Median salary: $35,520
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): Anybody who has watched the Deadliest Catch on Discovery knows how dangerous deep sea fishing is. In fact, it is by far the most dangerous job in America; 60 times deadlier compared to the overall workforce. Among other perils, fishermen risk being dragged overboard after being snagged by hooks, or swept out to sea in bad weather. Think about that next time you pop some fish sticks in the oven.

Couriers

Median salary: $35,000
Do I think they’re underpaid? No.
Why they’re underpaid (or not): My mother-in-law was a courier and I saw how it can be a demanding job — especially if you’re responsible for delivering time-sensitive material in large metropolitan areas with heavy traffic. And while professional drivers have the ninth most dangerous job in America, it’s hard to argue they’re underpaid when there are so many people willing and able to do the job. (Sorry, Mom.)

Telemarketers

Median salary: $34,480
Do I think they’re underpaid? No.
Why they’re underpaid (or not): Telemarketers; you either hate ’em … or don’t own a phone. In fact, I have yet to meet a person who has complained about not getting enough calls from telemarketers. I imagine most telemarketers get an earful several times a day from irate people who don’t appreciate being cold-called at dinner time — or any other time for that matter. Why anyone would be a telemarketer is a mystery to me. It certainly ain’t for the pay.

Childcare Workers

Median salary: $32,050
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): Despite the importance and responsibility tied to the job, a Wall Street Journal survey found that child care workers ranked 186th out of 200 professions based on income, working environment, stress, physical demands and job outlook. In fact, the median salary of the average childcare worker equates to an hourly rate that’s less than what many babysitters get paid.

Maids & Housekeepers

Median salary: $31,000
Do I think they’re underpaid? No.
Why they’re underpaid (or not): Most maid and housekeeper jobs are neither glamorous or lucrative, but it’s a noble profession. Unfortunately, because there is no shortage of people who are both willing and able to do the job – just as there is no shortage of pizza delivery drivers – housekeepers’ wages will always remain woefully depressed. That’s Economics 101.

Ambulance Drivers

Median salary: $29,600
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): Talk about a high-pressure job; ambulance drivers are almost always working in life-or-death situations. Many are trained as emergency medical technicians. The job is both physically and emotionally demanding, and usually requires an irregular work schedule. For $15 per hour it hardly seems worth it.

So that’s it, folks. And if I once again left your job off the list, don’t despair because, believe it or not … the grass usually isn’t greener on the other side of the fence.

Photo Credit: Bill Ward

The post 10 Thankless Jobs That People Accept Despite the Tiny Paycheck appeared first on Len Penzo dot Com.

Luckily, there are lots of creative ways to earn extra money during school. Here are seven examples:

Apply for Scholarships

Scholarships are the perfect way to earn extra funds for school because it’s basically free money. It’s important to look for and apply to scholarships year-round in order to avoid missing deadlines.

If you find yourself in a pinch, some organizations offer last-minute scholarships with deadlines just before the start of semesters — but keep a deadline calendar to help you stay on top of all the important scholarship due dates.

Find Odd Jobs

If you need extra cash quickly, pick up an odd job or two. Check sites like Craigslist for opportunities to help with one-time jobs like moving or yard work.

You could also put up flyers offering your lawn mowing, home repair, snow shoveling or other services.

Establish a Budget

Sometimes, by setting up a budget, you can find extra cash in your own bank account. To make a budget, just decide how much you will spend in a month on things like groceries, gas and non-necessities and then stick to that plan.

Obviously, it helps if you livefrugally. Only purchase things you really need and avoid the temptation to splurge. Shop at second-hand shops and cheaper grocery stores. Clip coupons and look for sales. Consider getting a cheaper apartment or a roommate or even move back home. Eating out less also creates additional savings over time.

Consider Loans

Oftentimes, college students need to take out loans to make it through college. To save money, look for ones with low interest rates and ones that are subsidized or need-based.

You can apply for loans from the federal government or private loans from your school, financial institutions or loan companies.

Find out what federal loans you’re eligible for by filling out the Free Application for Federal Student Aid (FAFSA). You may even get some grants, which you don’t have to pay back!

Some federal loans are subsidized, but others are not. The federal government will pay the interest on subsidized loans while you’re in school. And some federal and private loans can even be deferred until after you graduate.

Sell Your Old Stuff

If you’ve got stuff lying around that you don’t use anymore, you might as well turn it into cash by downsizing; use sites like eBay or Amazon, or get a spot at a local yard sale or flea market. And many book and record stores will buy your old media.

If you’re crafty, you could also make something cool or useful out of things you find lying around and sell it on Etsy, which is an online marketplace for homemade and vintage goods.

Try Crowdfunding

Crowdfunding is a growing trend among college students looking for new ways to pay for school. Crowdfunding involves setting up a campaign on a relevant website where you can ask for monetary contributions to a certain cause. Some crowdfunding sites can be used for any sort of campaign. Others are specifically geared toward education causes.

You can set up a campaign that’s purely donations based and depends on the generosity of family, friends and even strangers. Others require you to commit to paying contributors a percentage of your future earnings for a set period of time.

Become a Freelancer

If you have skills in a particular area, you could offer to use them for people on a freelance basis. Writing, web design, graphic design, computer repair and photography are all suitable areas for freelance work, but you can do almost anything that people are willing to pay for and that you can do well.

You could find freelancing opportunities among your friends and families or online on sites like Craigslist, Upwork, and Guru.

It’s no secret that most college students have trouble keeping up with their tuition payments and other education-related costs. The good news is that taking advantage of a multitude of unconventional and innovative ways to earn a little extra cash can go a long way toward making their dream of finishing college come true.

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About the Author: Ethan Butler has worked as a personal finance consultant and has two kids in college himself. He now writes about a wide range of money matters when it comes to spending and saving.

Photo Credit: Nurse Carla

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Most of the booming businesses around the world today had a capital problem. It takes resilience, determination, and focus to explore and gain from any fundraising strategies. As an entrepreneur, you know there is money calling your name out there and you need to go for it — but first, it’s down to the basics on capital.

Is Capital All About Money?

Capital comprises both financial assets and the monetary value of assets. Such assets include cash and tangible property such as buildings, machinery, and other infrastructure, but exclude materials used in the production process. Capital is long term and continues to generate income through investment.

Other than being a factor in the production process, renting out such resources or selling them creates more wealth. You need to think out of the box to reach your market or create one. Sometimes your idea could require unique marketing strategies. Promoting your company with a reputable site will help you stay ahead on the market, as the Corpina website does for Nootropics.

Debt Capital

If you can raise collateral, you can acquire debt capital by borrowing money from financial institutions, family, friends, public sources such as federal loan programs, and insurance companies.

When considering borrowing, see whether you can find an agency with tailor-made solutions for your business. Some companies fund startups while others would find such businesses too risky. Ensure too that you negotiate for a comfortable loan repayment plan to avoid losing your investment or ruining your credit ratings if you default on payments.

Equity Capital

With equity capital, you acquire resources you don’t need to repay don’t owe; this includes your private investment if you have been saving to start your business or stock you sold to finance a business venture.

You could also solicit donations through crowdfunding initiatives.

Although crowd funding organizations comprise top fundraisers for nonprofits, they offer the opportunity for you to raise capital for your business or project on their platforms. With such, you can raise money for various aspects of your enterprise such as legal fees, equipment, start-up costs, marketing expenses and supplies.

Venture Capital

If you don’t want to borrow money, you can pool resources with others who are interested in your idea. You become partners, negotiate, and draw up an agreement on sharing of profits. These Angel investors are wealthy individuals willing to invest in viable startups.

Although the aid comes by your offering them equity on your part, the venture capitalists can mentor you to meet your goals. For example, they can insist on you acquiring business management tools to manage your employees’ hours and the payroll.

Remember that employee salaries, research, business administration, and development are part of the investment. They reflect your projections and are a basis for judging your business ethic and performance.

Such online business management tools will give frequent updates on your daily business activities of your employees, even those on telecommute arrangements and leave you time to concentrate on other ways of growing your business.

Consult Other Entrepreneurs

Starting and managing a business comes with hidden costs. Ask other successful investors to about multiple and affordable ways of raising capital. Inadequate capital caused by underestimating expenses will cause your business to fail.

Remember, you are the primary resource of your enterprise — so ensure you get adequate skills on all the aspects of your business.

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About the Author: Jim Thompson is a super-connector who helps businesses find their audience online through outreach, partnerships, and networking. He is a professional writer who has been in the business for 12 years. He has hands on experience with cars, tech, and relationship advice, among other things. Because of how quickly he can turn articles around, he is able to take on multiple projects at once. His writing experience spans from SEO articles to technical guides and everything in between.

Photo Credit: stock photo

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If the IRS comes a-calling, demanding you fix the inconsistencies — hopefully without a full, nightmarish audit — then here’s what you need to do:

Stay Calm

Mistakes happen — even on taxes. Keep that in mind if the IRS flags your return. There’s no need to go ballistic on your preparer without the full details and an assessment of where things went wrong. This is especially important to remember if your tax preparer is not a certified accountant; if you had a friend or family member do your returns because they’re “good at math” and you wanted to save money, you only have yourself to blame.

Review Your Documents

Just as tax preparers are capable of making mistakes, so you are you. It’s possible the error doesn’t stem from an oversight of the preparer but, rather, from you.

“Countless times ‘mistakes’ result from the taxpayer not providing the tax preparer with adequate information,” says tax attorney Jon Biondo. “One of the most common mistakes is under-reporting income. Generally, this isn’t the preparer’s fault — it’s the taxpayer’s fault for not providing the 1099 they received. Preparers are humans, and mistakes happen, but both sides need to be reasonable in the amendment process.”

Contact the Preparer

If the mistake is big enough, it could draw the attention of tax inspectors. So to avoid an audit, contact your preparer as soon as you notice the mistake. They’ll be able to tell you how serious the mistake is and the best way to proceed.

“Often times, this means filing an amended tax return,” says tax attorney Sam Brotman. “File Form 1040X (Amended Tax Return) and any additional documents that illustrate or explain the mistake. If the mistake is big, it may require paying levies or filing a lawsuit. Be sure to refer to the statute of limitations for your particular situation. If you catch this error after a significant amount of time has passed, your options may become more limited.”

Amend the Return

If the problem stems from an error the accountant or tax preparer made, ask them to revisit the documents and figure out what went wrong. They have the most intimate relationship with these numbers at this point, and the error was likely their fault. As such, they also should cover the cost of the mistake.

“When a preparer makes a tax form mistake, the IRS or state tax authority will likely abate any penalty they impose on the taxpayer as long as the preparer owns up to it and amends the return,” says Biondo. “Amending the return should be a service the offending preparer does for free — and if the IRS does not abate, the preparer should pay the penalty.”

There is an exception to this rule, however.

“If the IRS charges interest,” Biondo adds, “it really isn’t the responsibility of the tax preparer, since the taxpayer had use of the money during the period interest accrued.”

Revisit Old Returns

If an error is found on your return, there’s a possibility that the same mistake was made on previous returns — especially if you’re using the same preparer. That’s not all bad news though. If you overpaid, there’s a three-year window from the return’s due date — or two years from the time the tax was paid — to file an amended return and claim a refund. If you underpaid, the IRS can’t collect additional tax if the original deadline or file date was three or more years ago. In all other cases, you could be liable for money owed.

Consider Litigation

Nobody likes going to court, but if your tax form mistake resulted in major penalties and your tax preparer won’t take responsibility for them, then you may want to consider filing suit. If you’re successful, you’ll generally be awarded with a judgment that allows you to recover penalties, fees you may have paid to other preparer’s to fix the original mistake. Depending on where you live, you may be entitled to interest charges too.

Photo Credit: Search Engine People Blog

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Of course, winter eventually arrives and the industrious ant finds himself well-fed and toasty-warm while the improvident grasshopper simply ends up as, well, toast.

The fable offers a terrific lesson for kids and adults on the importance of saving and hard work.

Why I’m Constantly Saving for Winter

Now, as an engineer, I occasionally have to endure business cycles where my employer has to layoff employees. It’s the nature of the industry and one that I have always taken very seriously, especially since I am the sole breadwinner for my family. Never mind that the threat of layoffs are even greater now that we’re in the midst of a very significant economic slowdown.

A layoff notice from my employer entitles me to five months of severance pay. Beyond that, I have to apply for unemployment benefits that are only a small fraction of our household expenses.

Don’t Panic! This Is Only a Drill

With that in mind, several years ago I decided to undergo a little layoff drill to try and ascertain exactly how much we’d have to cut back to make ends meet on unemployment benefits alone.

Luckily, the Honeybee and I have been using a spreadsheet to meticulously track our monthly expenses for 20 years, so we’ve also had an excellent handle on exactly where all our income is going.

Anyway, I asked her to propose what cuts she would make to our household budget in the event that I was laid off. Meanwhile, I independently made my proposed cuts.

You can see the results in the spreadsheet below. Now some of our expenses have changed since we originally did this — at the time, our average monthly expenses were $8100, which is slightly less than they are today in 2020 — but that doesn’t change the message.

As you can see, we disagree somewhat on the scope and magnitude of the cost cutting; she knocked down our budget by almost half, while I was a bit more draconian, slicing our spending plan by two-thirds.

Although we disagreed with our first pass on the size of the cuts, neither of us were able or willing to pare the budget to a degree that would allow us to live on unemployment benefits alone.

Back to the Ant and the Grasshopper

On the surface, it might seem like our family will be in a very tough predicament if I end up losing my job.

Fortunately, I’ve never forgotten about the ant and the grasshopper. As such, even though I am very well-paid, I’ve always tried to live well below my means and save up for that dreaded day when I may finally lose my job. As such, we try to always keep a cash cushion of at least $25,000 on hand.

For the sake of argument, let’s assume we agree to split the difference on our proposed budget cuts so that our monthly expenses top out at, say, $3500 per month. Add another $1250 per month to extend my health benefits through COBRA, and that brings our total monthly expenses to $4750. So in order to pay all the bills we would need to draw down our savings by $2750 per month, assuming unemployment benefits of $2000 per month. At that burn rate, we’d have at least a six-month cushion beyond the five months of severance pay I’d receive. That’s comforting to know.

The Moral of the Story

Don’t be a grasshopper and fool yourself into believing unemployment benefits will be sufficient to sustain you if you lose your job; for most households they won’t.

I can’t imagine the upheaval that our family would face if I was laid off and we didn’t have a healthy amount of cash saved up to get us through a financial “winter.”

Having a large savings cushion gives us the ability to postpone — if not outright avoid — the extremely tough decisions we’d have to make when living on unemployment benefits alone. And going through a layoff drill like this not only helps hone a plan of attack prior to facing a severe financial challenge like a layoff — it also shows how well you’re prepared should such a disaster strike right now.

Photo Credit: mickeymox

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