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I'mgoingtoguess you've made a financial mistake or two in your life. Who hasn't? For some of us, it was more than an oc- casional late fee or ran- dom urge to over- spend that brought us to our financial knees. But I'm not talking about the kind of blunders that got us into trouble — we could list those in our sleep. In- stead, I want to focus on the mistakes people make while they're working their way back to financial health. Whether you're recov- ering from a season of un- employment or from a fi- nancial mess you created on your own, avoid these goofs and you'll get where you want to go much faster. 1. Not saving. You've heard this plenty, and here it comes again: Jump to the front of the line — ahead of your creditors — when you divvy up your paycheck. Get over feeling guilty about keeping money for yourself. You'll need enough in your fund to pay all your bills for at least six months. But don't let that big number discour- age you. Start by saving enough to live on for two weeks, then up it to one month, and so on until you reach goal. Put your savings on au- topilot — you won't miss what you don't see. Com- mit to saving 10 percent of every paycheck. If you can't start there, start with 2 percent. Then in a few weeks, change it to 5 per- cent, then 7 and so forth until you reach at least 10 percent. 2. Paying for college. If you must make a choice between adequately fund- ing your own retirement and paying for your kids' college education, put re- tirement first. The best gift you can give your kids is to make sure you won't become a financial bur- den to them in your sun- set years. Kids have far more op- tions for funding their col- lege education than you have for your retirement. They've got scholarships, grants, financial aid, stu- dent loans, work-study programs and the not-to- be-forgotten method of working their way through college. Once your own fu- ture is secure and you're out of debt, that's when you're in a position to help pay for education. 3. Paying off the mort- gage too soon. Paying ex- tra on your mortgage each month is laudable, but not if you time it badly. Your mortgage should be the last debt you pay off. Why? First, its interest rate is a lot lower than the interest you're paying on your other debts (credit cards, student loans). Sec- ond, mortgage interest on your primary residence is tax-deductible. While you're in debt, having that deduction helps to ease the pain by lowering your tax bill. Once you've built up a fat emergency fund and all of your high-in- terest, unsecured debts are paid in full — only then should you con- sider putting money to- ward paying off your mortgage. 4. Investing in the wrong thing. If there's one thing we've learned over the past year, it's that money invested in the stock market is at risk. You could lose it! Don't jeopardize any of your hard-earned money while you're carry- ing high-interest, unse- cured debt. Instead, in- vest in your debt — it's a much smarter move. Let me explain: If you have a $2,000 credit card bal- ance at 14.5 percent in- terest, you're paying $290 per year in interest, or $24.16 per month. In- stead of taking a $2,000 gamble on the stock mar- ket, put it toward re- ducing your credit card debt. Now each month, rather than paying that $24.16 interest to the credit card company, you get to keep it. That's a 14.5 percent return on your in- vestment. As long as you're car- rying unsecured debt, do everything you can to pay it down each month. You'll get a return equal to the amount of inter- est you would have paid to the credit card com- pany. MaryHuntisthefounder of www.DebtProofLiving. com, a personal finance member website. You can email her at mary@ everydaycheapskate.com, or write to Everyday Cheapskate, 12340 Seal Beach Blvd., Ste. B-416, Seal Beach, CA 90740. EVERYDAYCHEAPSKATE Four big money mistakes to avoid The Sacramento River Discovery Center summer day campers continued their explorations with the help from the US Fish & Wildlife Service and the California Department of Fish and Wildlife. The "Gills, Fins & Scales" camp was on fish and the students made a life-size green sturgeon along with shark jaws. Rolling Hills Foundation supported the camp, whcih included an opportunity to collect a number of creatures from the river and learn about the operation of the US- FWS rotary screw fish traps that are anchored to the Red Bluff Diversion Dam. Matt Johnson, from CDFW, talked to the campers of the impor- tance of reopening the streams for salmon mi- gration to breeding ar- eas. His presentation in- cluded the demolition of two different concrete structures along area streams and different ways of counting the fish as they leave fresh wa- ter to spend two to five years in the ocean and the numbers that actu- ally return to the area of their birth. The "Slithery, Slimy & Such" camp was supported by Pacific Gas & Electric and provided campers with the experience of see- ing both a very small and full grown rattlesnake up close. Cody Will provided some wonderful material to the campers, who had fun with turtle racing, frog jumping and gator tag games. Campers had an op- portunity to paint snakes and make toad houses as well as count the number of lizards living in the Red Bluff Recreation Area and Discovery Garden. Shasta Wildlife Rescue and Rehabilitation assisted the campers at the "Beaks, Wings & Feathers" camp by bringing a great horned owl and a grey fox for the campers to see. This camp had the students build- ing bird houses, bird feed- ers, bird nests and making quail calls. They explored the world of water birds and land birds while learn- ing to use binoculars. The sixth Summer Day Camp the week of July 20- 24 will be an exploration of all sorts of mammals. Some creatures live on land and some in water and some spend their hours awake in the sky at night. The week of camp will be supported by the Wulkan Foundation and product support is be- ing provided by the local Raley's supermarket. Zach Whitten, camp di- rector, is planning on some hair raising learning about various mammals. The campers will make use of the center's life-sized gi- raffe and dolphin mod- els created during past camps. They'll make a few more things of their own, including clay elephants, while they learn about the proposed Tembo Preserve west of Cottonwood. Lots of fun craft projects and physical activities for those youth ages 6 to 12. There are still spaces available for this camp. The cost is $60 or $50 with a center mem- bership. July 27-31 will be a fun week when some of the older students come back for the "Go With the Flow camp." This camp will al- low campers to learn boat- ing safety, how to operate a kayak, canoe and rowboat and how to safely navigate the river from Ide Adobe to the Red Bluff Recreation Area. This last camp is for those students 10 to 14. The camp fee is $100 to cover the cost of raft rental, sup- plies and insurance. For more information about all the center activi- ties, visit the center at 1000 Sale Lane. Camp sessions run from 8 a.m. to noon, so afternoon is the best time to visit, or call 527-1196. DISCOVERY CENTER Exploringnaturecontinuesatcamp COURTESYPHOTO Sacramento River Discovery Center summer day campers showing off their life-size green sturgeon and their shark jaws. By Jennifer Cooper Social Security manager in Redding Since your parents have done a lot for you over your lifetime, this is the perfect time of year to return the favor by helping them find their "Someday" at www. socialsecurity.gov/myac- count. In May, we honored mothers on Mother's Day and, in June, we thanked our fathers on Father's Day. In July, we get to show our appreciation for both. Par- ents' Day, celebrated on July 27, is a great time to make sure your parents take the necessary steps to have a bright and comfort- able "Someday" in retire- ment. Even if they're still young, it's never too early to help your parents start planning for their retire- ment or help them imag- ine what their "Someday" might look like. When you ask them about their re- tirement plans, encourage each of them to open their own secure my Social Se- curity accounts at www. socialsecurity.gov/myac- count. It's quick, easy, and free to do! They can even do it from the comfort of home. My Social Security fea- tures several tools avail- able to guide your parents through the retirement process, whether they're just starting to think about it or they're already re- tired. Before retiring, your parents can view their So- cial Security Statement to verify the accuracy of their earnings records and find out what benefits they can expect to receive at age 62, full retirement age, and at age 70. They can also get personalized benefit es- timates using the Retire- ment Estimator at www. socialsecurity.gov/estima- tor. The Estimator shows different scenarios, like how future wage changes or alternate retirement dates will affect their fu- ture benefits. Once your parents have retired and are receiving Social Security benefits, they can use their accounts to: check benefit informa- tion; get an instant letter with proof of their bene- fits; change their address and phone number; get a replacement SSA-1099; get a replacement Medicare card and start or change their direct deposit or elec- tronic payment method. Retirement is a big life change, so let your par- ents know you'll be there for them just as they've been there for you. When you help them sign up for my Social Security at www. socialsecurity/myaccount, you're showing that their "Someday" means some- thing to you. SOCIAL SECURITY Help your parents plan their 'someday' Mary Hunt Are you always being asked to take pictures at family events because of your passion for photog- raphy? Or do you earn a steady income collecting and selling stamps or base- ball memorabilia? Were you aware that there are tax implications when you earn money from a hobby? If not, or if you're unsure of all the rules, the California Society of CPAs provides these insights on why the distinctions be- tween hobbies and busi- nesses matter and what you need to know if your hobby becomes a business. Defineyourterms According to the Internal Revenue Service, a hobby is something you do for sport or recreation, not to make a profit. A business is something you do to make a profit. The IRS considers nine factors to help distin- guish between a business and a hobby. They include whether you carry on the activity "in a businesslike manner," whether the time and effort you put into the activity indicate you intend to make it profitable, and whether you depend on the income from the activity for your livelihood. In addition, the IRS con- siders factors such as your qualifications to carry on the activity as a successful business, whether you've made a profit at similar activities in the past, and whether the activity makes a profit and how much profit it makes. As a gen- eral rule, the IRS will con- sider your activity as a busi- ness if makes a profit in at least three of the last five tax years, including the cur- rent one. Hobby income Even if your endeavor meets the definition of hobby, you will have to pay taxes on any income it gen- erates. The good news is that, within certain lim- its, you can also deduct ex- penses from that income. Generally, they include costs that can be considered ordinary, meaning they are common and accepted for the hobby, and costs that are necessary, or appropri- ate for the activity. You can typically deduct hobby-related expenses up to the amount of your hobby income. If your expenses ex- ceed your income, the addi- tional costs would be con- sidered personal losses and would not be deductible. If you want to deduct hobby expenses, you will have to itemize; your CPA can help you with this. Becoming a business If your hobby has the po- tential to turn into a full- time occupation, you may find yourself considering turning it into a business. If you plan to be a sole pro- prietor, your business struc- ture and tax reporting can be relatively simple. You can even file for the protections offered by a limited liability company without excessive paperwork or costs. Your CPA can explain the choices and offer advice that can help you make the best choice for your circum- stances. As you make your de- cision, issues to consider include whether you will need to make an invest- ment-in new equipment, work space, marketing and more-to support new activ- ities. Will you realistically be able to generate the in- come necessary to justify that investment, support the business going for- ward and make a reason- able profit? Will you be able to run the business in your spare time if you plan to continue to work a regular job as well? If you expect to quit your job, will you earn enough in the early years to cover your living expenses? TAXES Tax implications: Business or hobby; the difference matters TEHAMA MINI STORAGE 22200SOLARROAD 1-MILE PAST HOSPITAL, THEN GO RIGHTAT MOOSE LODGE 10X10=$35/month 10 X 20 = $70/month VISA • M/C • DISCOVER • CHECK SAFE & SECURE ON-SITE MANAGER CALL: 530-527-5074 NO DEPOSIT 2 ND MONTH FREE!!!! Round Up Saloon Round Up Saloon 610WashingtonSt. (530) 527-9901 SupportingFarmersMarket with live music from LishaandFriends Datessheisplaying July 1st, 15th & 29th August 12th & 26th September 9th Servicingyourdisposalneedsin Tehama County, and the City of Red Bluff including Residential, Commercial, and Temporary bin services. GREEN WASTE OF TEHAMA A WASTE CONNECTIONS COMPANY 530-528-8500 1805 AIRPORT BLVD. RED BLUFF, CA GreenWasteisaproud supporter of local events. www.TehamaCountyRealEstate.com 530529-2700 314 Washington St, Red Bluff, CA (530) 529-1220 100 Jackson St. Red Bluff AquaAerobics Classes BeginJune1st Mon.,Wed.,Fri. 10 to 10:45am Mon., Wed. 5:30 to 6:15pm Monthly pool pass $25 adult $15 child Mel's Place • Lingerie • Airbrush Tanning • Swimwear 332OakStreet Red Bluff (530) 604-4182 ~~~~~~~~~~~~~~~~~~~~~~ LIFESTYLES » redbluffdailynews.com Friday, July 17, 2015 » MORE ATFACEBOOK.COM/RBDAILYNEWS AND TWITTER.COM/REDBLUFFNEWS A6