Guide to Finance

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Must Be Doing Something Right Music

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Having a should collection is a widespread and generally accepted form of mental clutter. But the good news is that if you choose not to accept the mental should clutter and instead set about decluttering it, you can liberate your own mind, freeing yourself up to lead a more fulfilling and successful life than the shoulds would ever allow you.



Your particular should pattern may involve telling yourself that there are belongings you should have, activities you should be engaged in or characteristics you should display. Quite possibly all of them. But where do the shoulds come from?

Although they're in your head, shoulds are actually externally generated. The media is keen to dictate how and who you should be, what's acceptable and what's not. Your parents will probably have exerted their influence through shoulds in the past too - maybe they still do. Then there's the whole list of teachers, preachers, acquaintances, ex-partners, current partners, relatives, colleagues, article-writers... And that's without even considering how professional advertisers set out to program your brain.

If you take all the shoulds on board plus you feel you should act on them, pretty quickly you'll find there's no space left for you. Living your life by the should book takes all the meaning and fun out of it, leaving it in a sadly lacklustre state. You lose your sense of self, and your chances of success on your own terms gradually erode away.

The rather obvious truth about the basic essence of a should is that it's something you don't want. Of course it's one of those glaringly obvious facts that you're not supposed to allude to. Like the emperor's new clothes.

One of the secrets to unloading your mental clutter is to stay on the alert for your shoulds. When you catch one (you'll probably be amazed how often the word comes out of your mouth once you start listening for it and noticing it), stop it in its tracks and ask yourself: "I'm telling myself that this is what I should do, but what do I actually want to do?"

Once you've identified the want as well as the should, you have a choice and you can change the way you think and talk about it. Instead of saying: "I should do this", you can experiment with:

- "I feel I should do this, but I don't want to, so I'm choosing to do something else instead."

- "This isn't something I particularly want to do, but I choose to do it anyway because..."

- "This isn't something I particularly want to do, so I choose to feel good about not doing it."

It's important not to let yourself be a victim or to blame your shoulds for controlling you. Although it's not quite as straightforward as always saying no to the shoulds - we all have to do things we don't want to do occasionally - the mental clarity you gain by taking responsibility and making a choice in these situations will help you to reduce your mental clutter and reclaim your life.
Must Be Doing Something Right Music
There are many reasons why people turn to family members for help when they are cash-strapped. Unlike banks and lending agencies, family members don't usually impose stringent rules upon each other. For starters, you don't really have to submit any documentation for you to qualify for the loan. Also, you are either charged a minimal interest rate or none at all.

But loaning money to family members actually needs serious thought and planning. There are tax implications that, if ignored, may very well mean costly consequences for you.

Charge Interest

It is understandable why a lot of people are reluctant to require relatives to pay interest on loans. You don't want to seem unsympathetic to their situation. But take note that even if you decide to overlook the interest, the IRS will not. There is such a thing called "imputed interest." This basically means that the IRS will assume that since this is a loan, it naturally must have interest. And that interest is taxable income. If you don't charge interest then you will end up paying taxes on income that you really didn't earn.

If you do not wish to charge your relative a rate that is too steep, you may opt for the applicable federal rate or AFR. The AFR is the minimum interest rate that the IRS imposes on family loans. The AFR changes accordingly with the Treasury bill rate.

Get It in Writing

Another way to make sure you do not get into trouble with the IRS is to record the transaction in detail. First, you must establish that the loan is indeed a loan. Include other details such as interest rates, agreed-upon payment schedules and so on. In addition to this, you need to certify that the borrower is solvent, meaning, he is capable of fulfilling his financial obligations. Have him write a letter that states this.

If you fail to do these, the IRS will treat the money that you loaned to your relative as a gift. Therefore, the rules on gift taxes will apply and the lender is usually the one required to pay these taxes.

Do Away with Imputed Interest

Now if you want to steer clear of imputed interests and gift taxes, there is a way around these rules. You can get away with not charging interest and do not have to pay gift taxes as long as the loan does not exceed $12,000. Furthermore, the loan must not be used for income-generating purposes such as bonds or stocks.

The second option is the $100,000 exception. Under this rule, the loan that you extend to your relative must not exceed $100,000. If your relative earns an annual net investment income of $1,000 or less, you will not be charged by the IRS. If the net investment income exceeds this limit, the imputed interest is applicable only to the actual investment income earned.

Helping out a family member during financial hardship is not discouraged. But it is vital to be aware of the possible risks that you may face so you can make informed decisions about what to do with your money.
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Both Mary Mcneil & Jamie Hanson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Mary Mcneil has sinced written about articles on various topics from Web Development, Stress Management and Internet Marketing. Mary McNeil of is a professional, ICF-certified life coach, natural born planner and declutterer extraordinaire! She works with her clients on a varie. Mary Mcneil's top article generates over 74000 views. to your Favourites.

Jamie Hanson has sinced written about articles on various topics from Home Management, Environment and Desserts. If you are facing financial difficulty Wilson Field can provide free on IVAs or Bankruptcy. If you have ever taken out PPI on a loan it may have been mis-s. Jamie Hanson's top article generates over 1500000 views. to your Favourites.
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