Got $50 to spare? Thrifty advice from eight experts

[Johnny Rico]

http://www.denverpost.com/outwest/ci_19991006

Everyone knows the old adage, "You've got to spend money to make money." That's true to a point, but lately people are discovering that it is possible to make substantial improvements to their lives with a minimal investment.

A couple of years ago, for instance, a scrappy 17-year-old in California famously harnessed the swapping power of CraigsList to barter his way from a used phone to a Porsche. While some saw this achievement as a testament to the high-tech marketplace, it was really just a classic tale of someone doing the best with what he had.

But not everyone has the time or patience to peruse bartering forums for sweet deals. Some of us, however, might have a spare $50 — either by carving out a slice of our tax refund or raiding the proverbial penny jar. With this affordable starting point, eight experts in diverse fields weighed in on how they would use a spare $50 to get the best return on their investment.

(more at link, but here are the eight pieces of advice)

1. Home improvement — lower energy costs
2. Home improvement — plant a garden
3. Collectibles — coins
4. Collectibles — baseball cards
5. Collectibles — art
6. Car maintenance
7. Lower your debt
8. Lend a hand

Of these, I've taken #'s 1, 3, 6, and 7 to heart, with variations of #'s 4 & 5 (collectible guns and books in my case).

[CTyankee]

1. all the way with #s 1, 6 and 7.

We do have collectibles but hubby won't part with them. I can't tend a garden and be the primary caregiver to a disabled husband and I don't enjoy it anyway.

We really need to downsize, which is a big part of #1 and also just expenses. But that isn't going to happen right now with a husband unable to do much of anything regarding moving.

A point to consider: make a budget and stay on it. If one expense goes up, find a way in another category to make up for it. Lower heating bills in winter by driving less, consolidating routes. Ruthlessly cut grocery costs by shopping only sales, with coupons and cutting out "extras." Go longer between hair cuts (live with it). Look at ways to get cheaper car/home insurance.

There are ways...

[niyad]

2. let's see--renting, no garden, no car, no debt, no collectibles--and I already lend a hand.

[marybourg]

3. Gains on collectibles are taxed at

rate of 28% regardless of your regular tax rate. Newspapers and mags need to fill their space every edition ; not always (or even usually) a good source of reliable financial advice.

[Johnny Rico]

4. 28% is only 3% more than my marginal Federal tax rate...not a big deal.

In any case, I suspect most gains on collectibles aren't reported in the first place. How many people, upon selling some old baseball cards on Ebay for $500, are going to report it on their income tax? 10%?

Probably less.

[dems_rightnow]

5. That's just not true.

Collectibles are taxed at a MAXIMUM rate of 28%.

If your regular rate is lower, they are taxed at that rate.