20 Inflation-Busting Steps - Amazon S3Steps.pdf · 20 Inflation-Busting Steps INDEPENDENT LIVING 877-371-1807 4 5. Take a Daily Multivitamin Something that even many financially savvy

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20 Inflation-Busting Steps

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People who fail to anticipate higher expenses and fail to make any adjustments in their spending habits stand a good chance of being ruined by inflation.

The way to stay a step ahead of inflation is to lower your living expenses now, before

rising prices force you to make drastic changes in your lifestyle. Fortunately, there are ways to save money and score great deals without sacrificing your standard of living.

Most people throw away money every month on stuff that quickly disappears, while failing to invest in stuff that could pay off in a big way over time. After reading this report, you’ll be equipped to make better decisions as a consumer, save big money, and protect against the ravages of inflation.

1. Acquire Ample Food Reserves The first and most important strategy for beating rising food costs and possible shortages is to stock up on food! Own several months' worth of non-perishable foods. Having plenty of food stockpiled for your entire family is crucial in the event of supply disruptions or nationwide shortages. Stockpiling food just makes sense economically, even if there are never any shortages. Think about it: If food prices rise 6% annually and you buy enough food to last you a year, you’re effectively getting a 6% discount by the end of the year. Another way of thinking about it is that you’re effectively getting a 6% tax-free return on your initial investment. As long as the rate of food inflation exceeds the rate of return on a one-year CD at your local bank, stockpiling makes economic sense.

Many types of food, properly stored, can last several years. The “best by” labels printed on packaged foods can be misleading in that just because the date has passed doesn’t mean the food needs to be thrown out. Eventually, it will start to degrade, but only very slowly. Most foods will last much longer than the date stamped on them, even if they become slightly less than “best.”

If you keep your food away from high temperatures and keep any food that is not enclosed in an air-tight seal away from moisture and humidity, you can maximize its shelf life. Below is a list of the potential shelf life of a variety of foods if kept in a cool, dry place:

x Baking soda: 25 years x Beans (dried): 7 years x Carrots (dried): 7 years x Cocoa: 20 years x Cornmeal: 5 years x Freeze-dried fruits and vegetables: 8 years x Fruit (dried): 5 years


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x Milk (dried): 20 years x Pasta: 7 years x Potatoes (instant): 20 years x Rice: 7 years x Rolled Oats: 25 years x Salt: 25 years x Soup mix: 5 years x Sugar: 7 years x Wheat: 25 years x Most canned foods: 3 years

2. Buy Household Products in Bulk

Costs for most household products are rising and/or those products are being packaged in smaller and smaller quantities. Consider that popular brands of ice cream have moved away from half-gallon (2 quart) containers that were the standard a few years ago to 1.75 quarts and, more recently, to 1.5 quarts.

Spending the same and getting less than before vs. spending more and getting the same as before – what’s the difference? The difference is manufacturers are actually doing customers a disservice when they shrink product sizes. Packaging costs make up a greater proportion of the product’s overall cost. Smaller packages potentially also drive up costs for grocery stores, since they will now have to stock, scan, and bag a larger number of individual units to sell an identical amount of food as before.

Here’s one way savvy shoppers are coping with the new realities at grocery stores: going to warehouse retailers such as Sam’s Club and Costco to buy non-perishables. These clubs cater to people who want to buy in bulk. Even if your household is only two people and you think bulky sizes are not at all practical when it comes to food, consider the benefits of stocking up on non-food household items such as laundry detergent and paper towels.

Buying in bulk, with an eye toward meeting your needs for potentially months down

the road, not only gives you more product for your money; it also keeps you a step ahead of rising prices.

3. Grow Your Own Food There are a number of plants which can serve both as ornamental plants and food crops.

Going to the trouble of using these around your home will give you an added edge during any emergency in which food is scarce.

Some of the plants listed in this section won’t grow in all areas. So be sure to check before



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selecting any. Most gardening stores can help you select plants that will thrive in your area. Among the foods that can be grown on trees in many areas are figs (including the Celest,

Texas Everbearing, Brown Turkey varieties); pecans (Cheyenne, Choctaw, Native pecan); peaches (Sentinel, Loring, Red Glob, Ranger); walnuts (Black or English); pears (Orient, Sorsui, Moonglow); and persimmons (Tane-Nashi, Eureka, Tamopan, Hachiya).

Shrubs, bushes, and vines that provide food include the blueberry (Tiffblue, Woodard); pomegranate (Wonderful); bay laurel (Rosemary); blackberry (Brazos, Cherokee, Womack, Navaho); and grape (Seibel 9110, Flame, Himrod, Champanel). Some groundcovers can also be used for food; among these are strawberry, thyme, and mint (Corsican, Cuttingham, spearmint).

There are also a huge variety of herbs that can be grown in most areas including alliums, basil, chamomile, feverfew, dill, fennel, kale, lavender, oregano, parsley, rosemary, sage sorrel, thyme, and a large variety of pepper plants.

Some vegetables have an attractive appearance that makes them suitable for edible landscaping as well. Included in this group are asparagus, chard, the Jerusalem artichoke, cabbage, kale, kohlrabi, and lettuce. Additionally, tomatoes, onions, and other vegetables can be interspersed with marigolds or other flowering plants to camouflage them. This makes it possible to have a flower garden that also yields fruit, making it attractive as well as productive.

Window boxes, window mini-greenhouses, and gardens or full-scale backyard greenhouses are possibilities you may also consider depending, of course, on where you live and your level of interest and skill in gardening.

4. Keep a Well-stocked Medicine Cabinet Medical inflation is running rampant due to over-regulation and over-subsidization, which encourage waste. With the federal government facing trillions in unpayable Medicare obligations to millions of Baby Boomers in the years ahead, rationing may be the only viable solution for policymakers. Quality professional medical care may become impossible to obtain in the near future, or at the very least much more expensive. Even drugstore items will become costlier and could perhaps even get rationed. That’s why a well-stocked medicine cabinet is essential. In addition to having a good supply of any prescription drugs you need, keep plenty of pain relievers, cough medicine, anti-diarrheal medicine, and a fully stocked first-aid kit.

Go to your medicine cabinet and take note of everything that you’ve had to use at all in the past year or so. Then go out and stock up – now. Be sure to stock up on special medications needed for any member of your family. Rotate in medications, using the oldest containers first and replenishing with fresh supplies as needed.



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5. Take a Daily Multivitamin

Something that even many financially savvy gold bugs overlook when making preparations to cope with an inflationary spiral is medical costs and needs. The government continues to drive up the costs of healthcare services as it drives Medicare toward bankruptcy. The very best protection you can have during times of unaffordable or unavailable medical care is to not need it – i.e., to be healthy!

Any effort to become less reliant on doctors and drugs and more self-reliant when it comes to your health should start with the basis of diet and exercise and include some safe, inexpensive, over-the-counter supplements. Unless you eat nothing but health food every day, you should take a daily multivitamin.

The reason is that, as recent studies have shown, the vast majority of us get insufficient levels of key vitamins and minerals from our diets. Multivitamins aren’t a cure-all; they merely help compensate for the nutrient-depleting “junk” most of us put into our bodies to varying degrees of excess – including sugar (or more often these days, high-fructose corn syrup), caffeine, salt, alcohol, and unpronounceable chemical additives contained in pre-packaged foods.

A good multivitamin helps you avoid deficiencies in important vitamins and minerals. The consequences of deficiencies range from weakened immune systems to low bone density to diminished mental capacity – consequences with severe financial costs associated with them as well.

A daily multivitamin is an inexpensive way to help keep you healthy and lower your

exposure to medical inflation.

6. Lock in Today’s Prices for Gasoline

You should find some way of either owning extra supplies of gasoline or locking in the price you pay. You could put a storage tank on your property and have it refilled as needed by gasoline delivery trucks. If that’s not practical for you, consider signing up for a price-lock program.

If you own business vehicles, MoreGallons (888-320-7090; www.moregallons.com) enables you to buy hundreds of gallons of gasoline in advance at a fixed price. Your business can then effectively get gasoline at that price, regardless of what gas stations are charging. The downside to the service is that it levies a $79 membership fee and a small fee for each gallon of gasoline.

In an energy shortage, we’re sure to see people waiting in long lines for a few gallons of fuel. Fistfights among panicked people desperate to get to work, the grocery store, or the hospital. Flat-footed citizens taken utterly by surprise. You surely do not want to participate. To protect yourself, consider stockpiling a few weeks’ worth of gasoline and/or extra heating oil.



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For about $800 you can purchase a quality above-ground 300-gallon fuel storage tank.

Hand or small electrical pumps cost about $100. State and local regulations vary for fuel storage set-ups, so find out what you need to do to comply. Obviously, you need a safe and discreet area to place such a storage tank. But the benefits will become obvious when unleaded fuel prices are soaring daily and you have a couple of hundred gallons you snagged for far less.

7. Avoid that Daily Starbucks Fix (and Other Costly Beverage Habits)

David Bach, author of the popular book The Automatic Millionaire, introduced the

concept of the “latte factor,” in which he showed that if most people would just give up one unnecessary expense per day (such as a latte), they could become millionaires in their lifetimes.

For most people, drinks are a substantial expense that can add up at the end of the month

to a lot more than you might think. Is it really worth spending $3.50 at Starbucks every morning ($105.00/month)? Or $30.00 on cocktails when you go out every Friday evening ($1,560.00/year)?

Maybe it is for you. But it’s hard to determine until you add up the numbers and see

them for yourself. Take account of what you’re spending per month on drinks and make sure it’s an amount you can justify. Do the same for other regular “small” purchases.

8. Hone Your Negotiation Skills

When seeking opportunities to save money on purchases, remember that everything is negotiable. Always try to negotiate a better deal on big-ticket items such as automobiles, furniture, insurance policies, and even hotel rooms. It may be a waste of time to go through the Sunday paper looking for a coupon that might save you 30 cents on ketchup. But a little time spent negotiating directly with a salesperson can potentially save you real money – sometimes hundreds or even thousands of dollars on a single purchase. Don’t view the salesperson (or banker, agent, broker, etc.) as the enemy, even if you personally disdain him or her. Instead, view the person as a partner in a deal, because a deal is ultimately what you are trying to make. It’s not about winning or losing; it’s about finding common ground on which to meet. Amateur negotiators try to puff themselves up and go into battle mode aiming to destroy their opponent. This approach only hardens and emboldens the other party, making a compromise or agreement virtually impossible. Expert negotiators don’t even try to “win” a negotiation. Their secret to success is in employing a little psychology. In every negotiation, they try to convince their partners that they’ve won. Expert negotiators do this by starting from a position from which they can make concessions. Making concessions gives your partner the



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illusion that he’s doing well in the negotiation, even though you will have fully expected to make them from the outset. So don’t present your most generous offer from the beginning, hoping that it will set an amicable tone. The other side will then only want to push you further. Instead, present a serious but “ungenerous” offer at the beginning. Then let your partner push you. Offer some resistance, then give in a little. But not a lot. Make several very small concessions rather than one or two huge ones. After a few relatively minor concessions (always know what you’ll concede beforehand), you’ll be in a position to say, “That’s it. This is the best I can possibly do. My wife is going to kill me for accepting terms like these, but at this point I just want to get this deal done.” At this point, the other side will think he’s pushed you as far as he can. He’ll think he’s won. Let him think that.

9. Start a Home-Based Business

If, despite your best efforts to cut expenses, you find that you’re still living paycheck-to-paycheck with little or no money to set aside for investing, then what you need is a way to increase your income. Consider starting a home-based business.

You needn’t attend to it on a full-time basis. Even a business that you spend only a few

hours on one day a week (perhaps selling at the flea market, consulting, tutoring, or whatever you enjoy) can give you enough extra cash to put you over the top. Plus, with a business, you’ll get access to a tremendous amount of extra tax deductions that could actually lower your overall tax burden even as you’re bringing in more money. Wages rarely keep up with nasty inflation, but a growing business can.

10. Avoid Adjustable-Rate Debt

Debt isn’t inherently bad. But when taken on to excess, for the wrong reasons, or on the wrong terms, it can be ruinous. The key is to use credit prudently and avoid the types of high-cost debt (mainly revolving credit card debt) that can get you buried in interest payments.

It’s best to use debt to buy assets that will appreciate in value. Or for education or other

forms of self-improvement, which can help boost your career or our success at managing finances. Instead, most people want to buy more doodads, such as cars and designer shoes, with borrowed money. That’s where they get into trouble.

In an environment of rising inflation and rising interest rates, you want to avoid being

shackled with adjustable-rate debt. Carrying a credit card balance is especially risky. Credit



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card issuers can jack up rates faster than you can scrounge up the funds to make a payment. And since credit card interest is generally not tax deductible, using credit cards to try to leverage yourself up is generally a poor financial move.

11. Use Smart Debt to Your Advantage

For many people, immediately paying down all their debt would be impractical, if not impossible. Moreover, not all debt is bad. Debt can be beneficial.

If you currently have manageable fixed-rate debt issued at a low finance rate, then you might not need to be in much of a hurry to pay it off, especially in an inflationary environment. Remember that as inflation rises, the real interest rate on a fixed loan goes down. By way of example, a 5% interest rate coupled with 3% inflation means the real inflation-adjusted rate is 2%. If inflation rises to 5%, then a 5% interest rate is, economically speaking, a real rate of 0% – i.e., free money. Owning your home free and clear represents a feeling of security. But if you have a mortgage locked in at a low interest rate, it’s not necessarily to your financial advantage to try to pay down your mortgage any earlier than necessary. Mortgage interest is generally tax deductible. So rather than paying down principal and losing that tax deduction, you could take the extra money and invest it elsewhere, aiming for higher rates of return than the interest on your mortgage.

Locking in loans at long-term fixed rates is a great way to potentially benefit from inflation and rising interest rates. At some point you may be able to take the money you borrowed at 5% and put it into a safe, interest-bearing account yielding 8%, 9%, or more. In the meantime, you could try for even bigger gains by putting the borrowed money into high-flying assets such as emerging markets stocks or precious metals.

This strategy is not without risk, but if you are disciplined enough to keep your money invested, and savvy enough to invest profitably, such a strategy can help you build additional wealth over time while keeping your money liquid rather than locked up in your home – which has probably proven to be a depreciating asset for you.

Debt can be used to leverage huge gains when market conditions are favorable, but if you

wish to try for such outsized gains, do so only with discretionary money you can afford to lose.

12. Move to a Low-Tax, Low-Cost Area

Maine, New York, and Hawaii exact the highest average levels of taxation. Alaska, New Hampshire, and Delaware offer the lowest tax rates overall. For a comprehensive and up-to-date listing of the highest-tax and lowest-tax states for retirees, visit the web site of the Retirement Living Information Center (www.retirementliving.com).



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In high-tax, high-cost-of-living cities, wages are often higher as well. But in retirement,

Social Security and investment income are the same no matter where you live. Your dollars go much further in low-cost cities. According to a recent study, “The Most and Least Expensive Cities” are:

Most Expensive Least Expensive 1. New York, N.Y. 1. Wichita, Kan. 2. Boston, Mass. 2. Sioux Falls, S.D. 3. Los Angeles, Calif. 3. Billings, Mont. 4. Greenwich, Conn. 4. Fargo, N.D. 5. Engelwood, N.J. 5. Cheyenne, Wyo.

There are 12 states where you would owe no taxes on retirement income (Social Security,

public pension benefits, and private pension benefits/withdrawals). They are: x Alaska* x Florida* x Illinois x Mississippi x Nevada* x New Hampshire** x Pennsylvania x South Dakota* x Tennessee x Texas* x Washington* x Wyoming*

* Denotes states that have no income tax at all. ** The Granite State levies no taxes on earned income, but it does impose a 5% tax on dividends and interest.

Taxes aren’t the only consideration when deciding where to live, but they are a pretty

important one. Since there are tax-free jurisdictions in the North, South, East, and West, there are ample opportunities for most Americans to move within a desired region.

13. Drive a Fuel-Efficient Vehicle

Many energy analysts believe the world has reached “peak oil,” meaning that available conventional oil supplies will soon begin a long, terminal decline. Shale oil and other unconventional plays will keep us from going into shortages for the foreseeable future. But as extraction costs rise anddemand rises worldwide, so will prices.



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Instead of griping about surging prices at the pump, you can prepare for them ahead of

time. Trade in your sports car or SUV while you can still get a decent price for it and opt for a fuel-efficient car. Even if you’re not interested in a hybrid-electric car (which is still quite expensive relative to the fuel savings it delivers), you should consider fuel efficiency as one of your top criteria when shopping for a car. Don’t make the mistake of simply assuming today’s gasoline prices in estimating how much you’ll pay for fuel over the life of the vehicle. Per-gallon fuel costs could easily double or triple over the life of your next vehicle. Federal tax deductions are available to buyers of some hybrid models. But hybrids are still an expensive option, often valued more for their social or political status than their actual economic utility.

The economics of owning hybrid or electric vehicles have never been very favorable compared to conventional gasoline vehicles, even on paper. In real-world driving conditions, battery-powered vehicles may perform much worse than advertised, especially during hot summers and cold winters.

Popular models, including a 2013 Nissan Leaf and 2014 Ford Focus Electric, were put to the test. And the results are dismal. According to the AAA Automotive Research Center, the average range of an electric car drops by 33% when temperatures reach 95 degrees. Battery life drops by an alarming 57% in 20-degree weather.

Even AAA’s research team was taken aback. “We expected degradation in the range of vehicles in both cold and hot climates, but we did not expect the degradation we saw,” said Greg Brannon, director of automotive engineering for AAA.

The bottom line is that the electric vehicles currently on the market are poorly suited to meet your transportation needs in real-world driving conditions – unless you live in an area that experiences neither cold winters nor hot summers and only require a vehicle for short commutes. (Even under ideal conditions, the driving range for a full charge is only 105 miles – not much margin for safety on a round trip anywhere outside your zip code.)

If you want better fuel economy in your next vehicle without sacrificing performance, then consider opting for a diesel engine. Today’s diesel engines are quieter, cleaner, and more efficient than those of decades past. They deliver approximately 30% better fuel economy than their counterparts that run on unleaded gasoline and sacrifice nothing in power and performance.

It’s no wonder that diesel is making a comeback. U.S. automakers are rolling out ultra-low sulfur “clean diesels” that will be able to meet U.S. emissions standards that had previously curtailed automakers’ ability to sell diesels. The 2014 Chevrolet Cruze Diesel is GM’s first diesel passenger car to come out in 28 years. It gets 33 miles per gallon combined (27 mpg city; 46 highway). For 2015, Volkswagen fitted its Beetle, Golf, Jetta, and Passat sedans with turbodiesel engines that sport more power and better fuel economy.



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So if you’re thinking of buying a fuel-efficient car, you may want to skip the

electric/hybrids and the flimsy subcompacts and opt instead for a diesel.

14. Drive Smarter

Regular maintenance helps extend the life of your vehicle and improve gas mileage. Follow the maintenance schedule in your owner’s manual and attend quickly to any problems. Something as simple as dirty oil, a clogged air filter, or inadequately inflated tires can force your engine to work harder. These little problems can cost you up to a 10% loss in fuel efficiency.

Don’t use your trunk as a storage center. Any heavy items in the trunk that don’t need to

be there force your engine to haul that much more weight around.

Avoid spending extra on premium gasoline, which does virtually nothing for most cars, unless your owner’s manual specifically states that it is needed for your vehicle model.

15. Drive a Natural Gas Vehicle

In the event of an oil shock that sends gasoline prices through the roof, keep in mind that there is still plenty of natural gas available in the U.S.

One car that may be ahead of its time is the Honda Civic GX. It runs on compressed natural gas (CNG). You may be able to claim a federal and/or state tax credit for purchasing a new natural gas powered vehicle.

While CNG isn’t yet a practical fuel option in most parts of the country, CNG stations are plentiful in California (with nearly 500 in operation) and in some large metropolitan areas elsewhere in the U.S. You can find out if there are any CNG stations near you via a handy map-based web directory (www.cngprices.com).

If there aren’t, having your own personal natural gas fueling station installed in your garage may be an option – an expensive option, but one that will make all your neighbors envious in the event we see a return to shortages and waiting lines at conventional gasoline stations.

16. Power Your Home More Efficiently

When it comes to saving money on energy bills, it’s not remembering to flip lights off or to put your computer in sleep mode that will add up to big savings at the end of each month. It’s



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the air conditioning and/or heating costs where you will likely be able to make the biggest impact. Here are simple ways by which you can significantly lower your exposure to rising utility bills:

x Turn your thermostat down 8 degrees before you go to bed. Use heated mattress pads or heated blankets to keep yourself toasty while you sleep. This could easily yield savings of 10%.

x Turn your thermostat way down when no one is home. Yes, it will feel chilly for a

few minutes when you come back home, but avoiding all the wasted heat during the hours or days while you are gone will translate into big savings.

x Get an insulation jacket for your water heater (assuming it’s not recommended

against by the manufacturer of your particular model). By wrapping up your water heater, you can cut heat losses by 25% or more. A simple wrap kit from a home improvement store will pay for itself in less than a year.

x Turn the temperature on your water heater down to 120°F. Chances are yours is set

higher – likely as high as 145°, which is hotter than you need for most household washing and cleaning functions. Hold the temperature at 120° and enjoy savings of up to 10%.

17. Claim a Tax Credit for Energy-Related Home Upgrades By making your house more energy-efficient, you will not only help protect yourself from inflation; you will also enjoy a tax benefit. The federal government offers what it calls the Nonbusiness Energy Property Credit. Here’s how the IRS describes it:

A credit of 10 percent of the cost of qualified energy-efficient improvements. Qualified improvements include adding insulation, energy-efficient exterior windows and doors, and certain roofs. The cost of installing these items is not included in the credit calculation. Additionally, a credit is available, including the costs of installation, for certain high-efficiency heating and air-conditioning systems, as well as high-efficiency water heaters and stoves that burn biomass fuel. There is a lifetime limitation of $500, of which only $200 may be used for windows.



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18. Make Your Home More Energy Self-Sufficient The tax incentives get even better if you are willing to add “renewable energy” technology to your property. Through 2016, you can claim a Residential Energy Efficiency Property Credit. The government offers a renewable energy tax credit in the amount of 30% of such expenditures through 2016 – with no pre-set maximum limit on the total credit you can take! Qualifying renewable purchases include solar panels, windmills, geothermal wells, and, on a limited basis, hydrogen fuel cells. Installing a fully functional solar system capable of meeting most of your family’s daily electricity needs is an investment that could take several years to pay for itself, even with Uncle Sam’s help. “Solarizing” a typical home costs anywhere from $20,000 to $50,000.

However, many states offer rebates and/or tax credits of their own for purchasing solar technology. So don’t let the initial sticker shock dissuade you until you have factored in all the incentives. Keep in mind also that you may be able to sell any surplus electricity generated back to the power company, which means the financial benefits of your solar system may not be limited to just your own expected usage plus government giveaways. Consider inquiring with a local real estate agent or house appraiser about the home-equity boost you can expect from undertaking a solar project. It will vary from home to home and community to community. Getting an estimate could be important, especially if there’s a good chance you won’t live in the home long enough to recoup your investment in the form of energy savings.

Get More Information Online

Energy Efficiency and Renewable Energy (www.energysavers.gov)

Energy Star (www.energystar.gov)

Tax Incentives Assistance Project (www.energytaxincentives.org)

Database of State Incentives (www.dsireusa.org) Unfortunately, there is still considerable confusion about which specific types/brands/models of equipment qualify for the energy tax credits. Manufacturers and dealers may be of some help, as many are specifically trying to lure in customers with the promise of qualifying them for tax credits. You may wish to run your planned home upgrades by a tax professional before laying down any money – bearing in mind that no human being has a 100% accuracy rate in predicting how the IRS will ultimately interpret tax laws.



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19. Stop Giving the IRS an Interest-Free Loan Most people overpay their taxes throughout the year, even though they are not legally required to do so. The Internal Revenue Service calculates that more than 100 million taxpayers claim refunds on their tax returns. Far from being fortunate, these taxpayers are systematically overpaying their taxes.

The average refund check is close to $3,000. What is the consequence of letting the IRS hold on to $3,000 of your money all year and then giving it back sometime after you’ve filed? You lose to inflation. Remember, the IRS doesn’t pay interest on the money you “loan” it. You could have put that refund money into an interest-bearing account, into dividend-paying stocks, or into precious metals and had a chance of keeping pace with inflation instead of giving it to the government to hold onto on your behalf.

To stop overpaying your taxes, simply increase the number of exemptions you claim on

your W-4. You can change your withholding status at any time by filing a revised IRS W-4 form with your employer. Legally, you may claim additional withholding exemptions for any reason (even if you have no dependents) in order to make sure that the money siphoned from your paycheck isn’t more than what you’ll actually owe the government on April 15. The goal is to have your withholdings match your actual tax liability (if you under-withhold, you risk modest penalties for underpayment).

Yes, you may have to listen to some of your co-workers bragging about getting refund checks from the government as if they were gifts. But don’t be jealous of them. They had to wait over a year just to get back their tax overpayments. You, meanwhile, won’t have let the government take a penny more from you throughout the year than it actually collects at tax time. Over the years, you’ll be earning significant amounts of interest on tens of thousands of dollars that would have otherwise been held hostage by the IRS.

20. Lower Your Property Taxes

Governments are among the biggest beneficiaries of inflation. When government policies drive up fuel costs or artificially inflate housing values, governments gets a revenue boost.

Taxes are the single largest expense for many families. Most are probably overpaying!

More than half of taxable property in the United States gets over-assessed by tax collectors, according to studies conducted by the National Taxpayers Union. Yet most homeowners will never formally protest their assessments.

Property taxes are generally assessed by counties. A county appraiser will assess the value of a home or a piece of land, and bill the owner accordingly. Of course, any estimation of value is just someone’s opinion.



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Oftentimes, assessments are made by simply taking the initial selling price and then adding on to it the amount that the county claims similar properties have appreciated. But how much a home has actually appreciated (or depreciated) is dependent upon the circumstances unique to it.

Just because your neighbors’ homes have gone up in value doesn’t mean yours has. Perhaps you experienced severe flooding or a lightning strike. Perhaps new construction surrounding your home has ruined the great views, the quietness, and the privacy that you once enjoyed. Myriad factors may be relevant to your property’s actual value, and the county may have conveniently overlooked them.

Don’t take any “official” appraisal of your home as the final word. If you believe you have been over-assessed, you can appeal. The county assessor’s office will inform you of the process upon request. Substantiating your appeal may be as simple as printing out recent sale prices of similar properties in your area culled from a five-minute Internet search (www.zillow.com).

County bureaucrats may try to stonewall your appeal in the hopes that you’ll give it up. A potentially useful tactic is to threaten to take your appeal to the state agency governing tax assessments or to a court of law.

If the local tax collectors refuse to give any ground, your best bet may be to hire a private appraiser. There are also companies that specialize in helping individuals reduce their property taxes. Through a property-tax company, you might gather new evidence and employ additional tactics. You’ll hopefully end up with a tax reduction, and the property-tax company will get a portion of it as payment for their services. If worse comes to worst, you may need to hire a tax lawyer.

New services, sure to make tax collectors hopping mad, aim to assist homeowners in

determining their property’s value and (if warranted) filing requests for reductions in tax assessments. One of the leading property tax reduction services is EasyTaxFix (888-292-5050; www.easytaxfix.com).

Documents

20 Inflation-Busting Steps - Amazon S3Steps.pdf · 20 Inflation-Busting Steps INDEPENDENT LIVING 877-371-1807 4 5. Take a Daily Multivitamin Something that even many financially savvy