Another reason not to drink and drive. From our partners at MainStreet.com.

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What A Fourth Of July DUI Could Cost You
By Juliana Bunim

The Fourth of July, in addition to being America’s birthday celebration, also happens to be the top U.S. holiday for beer sales.

But, before you crack open another bottle of Bud Light (BUD), if you also plan on getting behind the wheel, remember that the police are cracking down on drunk driving. Counties routinely boost highway patrol enforcement over holiday weekends, looking specifically for aggressive or impaired motorists and running screening checkpoints.

And, it doesn’t take much to send your blood alcohol level over the limit. If a 140- lb. driver imbibes four drinks over the course of a three hour barbeque, it’s enough to put him or her well over the .08 blood alcohol limit and behind bars. (One drink is considered to be 1¼ oz. of 80-proof liquor, 12 oz. of beer, or 4 oz. of wine – something to keep in mind if your bartender or host is heavy handed.)

It’s paramount to billboard that impaired driving costs lives. Something to be considered—on an infinitesimally more minor scale—is that DUI charges can also wreck havoc on your financial health, too. A court fine for a first offense typically ranges between $1,200 and $2,500, according to William C. Makler, a Santa Barbara, Calif. attorney specializing in DUIs. If police take your vehicle into custody, add impound and storage fees of around $1,500, along with a $115 booking fee. Getting your restricted license and, eventually, your permanent one, costs another $120 in reinstatement fees. Mandatory drug and alcohol assessment and counseling also costs about $600. Those are just some obvious costs. If your erratic driving required emergency response — the fire department or paramedics — there is a cost recovery statute that bills you for their efforts, which can run from $700 to $2,000. Already, we’re talking potentially $7,000.

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Okay, so I have my top financial goals in mind. How do I take action? How do I find the money to fund my goals?

(Can’t name your top three financial goals? Maybe you should review our “back to basics” series.)

Here are the top approaches you should use to find the “extra” money necessary:

Budget

No one likes the word, and fewer like the action. Luckily, you don’t have to be a perfectionist. Even a broad budget will help keep your spending in line. However, the more detailed your budget the more control you’ll have over your money and the more likely you’ll uncover more available cash. Geezeo’s budget tools include setting category-specific “spending targets”. Some set spending targets named “Savings” or “Investing” to stay on mission.

Tax Savings

Adjust your withholding to accurately reflect your tax obligation. Dump your fat yearly tax refund. Instead, take an increase in weekly pay. Put this money to work for you directly. It takes discipline but it can pay off because this money is earning interest for you year-round instead of returning to you interest free from Uncle Sam.

Cutting Expenses

Oh, no! No one likes this suggestion. But, cutting expenses can be the most effective strategy since many of us are prone to overspending. The trick with cutting expenses is to really cut them — and not use reduced spending in one area as an excuse to spend more in another category.

Look at your budget carefully and itemize all expenses. Evaluate each one as a necessity or indulgence and trim accordingly. One way to stay motivated is to take the money you “saved” and actually put it in a separate savings account or directly toward your goals. This habit makes the money “saved” more concrete.

Earn more

Obvious advice, no? Look for ways to increase your inflow with a second job or other income producing activity. Earmark this additional cash flow to put toward your financial goals. Separating it from your “regular” income or budget will help you from inadvertently spending it. Here are five ways to make an extra $1,500.

Our partner, MainStreet.com, interviews Maxim magazine founder Felix Dennis. He’s written a new book, How to Get Rich. Check it out.
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Maxim’s Felix Dennis Reveals How To Get Rich
By Jessica Wakeman (07/02/08)

In a time of recession when the government is mailing out $600 rebate checks to stimulate the economy, shouldn’t a smart businessman sell a book called How to Get Rich?

That businessman is Felix Dennis, the chairman of Dennis Publishing – better known as the man responsible for the lad mag Maxim. Dennis is an outspoken, colorful chap with a background in music who rose up to become one of the wealthiest men in Britain. An Americanized version of his 2006 book How to Get Rich debuted here June 12.

He stopped to talk to MainStreet about making money.

MainStreet: Why is How to Get Rich based on all of your failures?

Felix Dennis: Nobody wants to read some boring, fat, old fart going on about his or her wonderful successes. It’s far more interesting to read about failure. And here’s the second thing, this is more important: It’s far more instructive. Understanding how people who made a lot of money failed again and again is instructive, it means that if you fail, you’re going to do it again.

Is now really the best time to get rich?

This is the best time ever to be in a startup. There’s room for creativity and there’s room for maneuverability. When everybody’s doing well, the big guys will steamroll you to death…Now that the recession is beginning to be accepted as a fact of life — though not necessarily if you look at the Fox [NWS] network — there has never been a better time. Launching entrepreneurial activities in a recession is a slam dunk.

But isn’t what you’re saying about startups counter to conventional wisdom?

All of the money I ever made was acting counter to conventional wisdom. (laughs) I think conventional wisdom is wisdom of a kind. It’s better than nothing. But it isn’t anything that helps people get a lot of money. If everybody’s doing it, then why would you think that you’re going to make a lot of money?

What do you think of the way Americans run their companies?

[Americans] actually believe in hierarchies! People are actually immensely respectful to the person they’re reporting to. (laughs) I can tell you in Europe we cease to be respectful to the person we’re reporting to in about third grade. I’m like Rodney Dangerfield; I can’t get any respect at all for the people that work for me in England, India, in Australia. When I come here… in the office, people say, “Good morning, Mr. Dennis.” I’m thinking, ‘What? What?’ (laughs)

One of the themes in your book is being willing to sacrifice if you want to be financially wealthy. What did you personally sacrifice for your career?

I forgot to have many sensible relationships. Forgot to get married, forgot to have children…I would have preferred it the other way. But, I was spending all day every day doing what I was doing and I had no time to figure it out…This is a pretty lonely road, you know. And, I do say throughout the book, ‘Are you sure you want to do this? Are you sure you want to do this?’ If their answer is ‘Yeah, I want to do this,’ I say, ‘Yeah, here’s what we do’ and then start off saying, ‘Are you sure you really want to do this?’ (laughs)

Another point you make in the book is about intelligence and how surrounding yourself with smart people is integral to success.

It’s been my experience that the vast majority of entrepreneurs are really not that bright (laughs) and I include myself in there. I truly do employ, and have employed, hundreds of people who are smarter than me. You can get people that are much, much smarter than you to actually make you a hell of a lot of money by working for you, providing you treat them properly. That doesn’t mean spoiling them and turning them into prima donnas or over-compensating them. It just means you’ve got to understand how to choose these people and motivate them.

You sound to me like you have a strong sense of self.

Yeah, maybe. But, if I had to do it over, would I do it the same way? No.

Related
* The Secrets of the Millionaire Matchmaker – For Free!
* Let These Movers and Shakers Motivate You
* What Mariah Can Teach You About Career Longevity

Yesterday in our “back to basics” series we focused on how to gain an overview of your financial health. We also explored why knowing your top three financial goals is critical to your success. Today we climb the so-called “Risk Pyramid” and highlight five investment purposes.

Like the U.S.D.A.’s Food Pyramid, a personal finance “Risk Pyramid” is open to debate and interpretation. Still, it’s handy to know what the experts recommend. I take this overview from Paula Ann Monroe’s excellent book, “Left-Brain Finance for Right-Brain People”, (Chapter 6).

Here’s the structure of Monroe’s version of a Personal Finance Risk Pyramid:

Foundation - Shore Up The Basics:
Property, Casualty, Liability Insurance (to protect your assets)
Healthy and Disability Insurance (to protect your health and also your income-earning potential)
Life Insurance
Emergency Fund (I like to call this the “Emergency Prevention Fund”)
Personal Residence
Specific Savings Goal or College Fund
Retirement Plans

Income
Bonds and Government Securities
Income Mutual Funds and Blue Chip Stocks

Growth and Income
Rental Real Estate
Mutual Funds and Limited Partnerships

Growth
Common stocks and Growth Mutual Funds
Growth Limited Partnerships (e.g., movie rights, commercial real estate), Hard Assets, (e.g., works of art, precious metals) and Land (you know what land is…)

So, from bottom (basics) to top (growth) these are the financial components that make up your personal finance “risk pyramid”. As you move toward the top the investments have more associated risk.

Yes, owning empty land is one form of “risky”. This is one example where folks disagree on risk pyramid structure. Sure, they aren’t making more empty land. Unlike other investments, land value is associated with uncontrolled nearby conditions. In contrast, an asset on that land (like a home) could always be sold off or insured for financial protection against an unforeseen event.

How do you evaluate all these different investments? It breaks down like this: look at each asset in the pyramid on these criteria. Compare what you find to your goals, your tolerance for risk, and your specific situation. Here are the things to consider:

Safety
Liquidity
Income
Tax Advantages
Growth Potential

If you’re a beginner, focus on strengthening the base of your financial risk pyramid. Educate yourself and get professional opinions before attempting more sophisticated investment strategies. Use Geezeo’s tools and social resources to make more informed choices.

Finally, and the most important: finding purpose in your investments is a head and heart activity. Use your head to evaluate and implement your investment strategy. Use your heart to determine why you want to improve your financial situation. Incorporate giving to others as part of your strategy and you’ll find true purpose to stay financially fit.

Climb that pyramid!

Cash in the tooth fillings and the old wedding rings. Time to invest in gold.

Our friends at MainStreet profile five cool sites that are alternatives to shopping and selling your goods on E-Bay.

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Avoiding eBay? Here Are Five Sites You Need to Know About
By Jessica Wakeman and Kira Rose

Angry sellers loudly booed the bigwigs at the annual eBay (EBAY) conference last week over recent changes to the auction site.

Why are sellers so peeved? The company is offering a 5% discount to many of their so-called “power sellers,” who consistently generate a high volume of revenue. This is infuriating the typically smaller “mom-and-pop” online auctioneers, who also generate revenue but aren’t getting a discount.

Further drama took place at June 19 – 21’s “EBay Live!,” the first eBay conference since the company changed its feedback system and search processes last February. One of the biggest changes is that now only shoppers rate their experiences with sellers, which The Wall Street Journal [NWS] reports is ticking sellers off.

The reason for the change? Shoppers were supposedly leaving the site because of the “retaliatory feedback” from unhappy sellers. Now, according to published reports, only the positive feedback from purchase makers is permitted (what is considered “positive” will be determined by eBay itself).

Are you irked by eBay’s recent changes? Here are five alternate places where you can sell your junk, or your treasure, online:

Click here to find profiles of the five e-Bay alternatives

How do you check your financial health? Today we’ll continue our series on “the basics” and discuss what you need to do to get an overview of your “financial fitness”.

Why Should I Take a Financial Inventory?

Let’s face it: motivation is key. If you are vague about your starting point (e.g., “I know I’m in debt, but God knows how much!”), it is highly unlikely you’ll swiftly reach any financial goal — even a small one.

Think about your top three financial goals. Can you name them right now? If not, chances are good you’re not maximizing your resources. As a result you might never reach your financial goals.

Here’s a personal example. My top three financial goals were: paying off my college loans, saving for retirement, and purchasing my first home. Once I was able to passionately get behind all three “end game” goals I could find the discipline to save and invest accordingly. I’m happy to report that I’ve purchased my first home and am now re-adjusting my “top three” goals. That’s the power of taking and monitoring a financial inventory.

How Do I Figure Out My Financial Inventory?

First, you must answer these three questions.
1 - How much do I earn?
2 - How much do I spend?
3 - What do I own, versus what do I owe?

Next, you’ll use two tools - they are power tools that don’t require protective gear.
1 - A cash flow statement
2 - A net worth statement
Don’t be scared!

Figuring out your Cash Flow. This compares the money you earn to the money you spend. The simplest way to do this is to make a list of every regular monthly expense you have. Yes, I know some expenses vary. Focus on the firm expenses first and then use a budget to determine your flexibility in areas that fluctuate.

Use Geezeo’s Budget tools to get an accurate look at your cash flow. Geezeo’s Spending Targets will change from green to yellow to red to let you know when you’re approaching trouble. On paper spend down your entire inflow of cash so you can direct your cash toward your top three goals.

Figuring out your Net Worth. You can do this the old-fashioned way by making a list with two columns. On one side list all of your assets. On the other list all your debts owed. Tally both columns and determine if your net worth is positive or negative. Or you can do this the hands-off way: you can see and track your net worth over time in your Geezeo Dashboard.

The point is: track your net worth because it keeps your “eye on the prize”. It’s motivation. Tomorrow we’ll discuss how to know what you want to achieve with your money. Good luck!

Related
* Stock Cash Flow 101
* Why the Statement of Cash Flow Matters
* Investing: Getting Started with Discounted Cash Flows

It’s a growing trend — letting the customer do their (own) thing.

MainStreet.com alerts us to a new tax law on the books for anyone dumping their American citizenship.

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There’s A Law That Takes Away Money If You Leave U.S. Citizenship?
By Terry Savage

A lot of people probably can’t understand why someone would voluntarily give up American citizenship — but if someone wanted to do that, they’d now incur financial penalties for it.

Congress just passed a new law that will stop your capital — or at least a good portion of it — at the border, should you decide not to be a U.S. citizen anymore. Is it, perhaps, in preparation for the possibility that Americans might rebel at the debt and taxes incurred by their government by leaving for lower-tax locales?

You probably didn’t notice this little provision inserted into the Heroes Act of 2008, passed by Congress on June 17. The headlines in the press release about the law were about the increased benefits for veterans and families of deceased military.

But Richard Kohan of Price WaterhouseCoopers drew my attention to one section of the act, which states that anyone voluntarily giving up his or her citizenship will be taxed on all of his assets as if he or she had sold them — paying capital gains on assets that have increased in value, even though they have not been sold.

Continue reading for more details.