Small Rant

Excuse a disgruntled and jumbled up post. Apologies in advance. I'm really not having a bad day.

The brief before the rant: I am getting really, really tired hearing about how "we" get nothing education wise for our tax dollars and how "we" are doubly taxed. 1. Everyone pays taxes. 2. Private Schooling is actually a choice. 3. "We" actually do receive some services, although the amount varies by state and locale.

The Englewood and Teaneck school district just received approval for the funding of a Hebrew-immersion charter school program (which is prompting a number of news stories that I'm afraid I won't be keeping up with) and a local Rabbi went on record saying the following: "Part of what motivates this [hand ringing over tuition] is the reality that we are being doubly taxed. Our property taxes are paying for the maintenance of the public schools, and we're paying tuition for the private schools."

Let's get one thing straight. Everyone pays property tax, directly or indirectly. Everyone pays property tax and other taxes funding education including those who will never have kids and those who have no intention of ever using the public schools.

I've been paying property taxes (directly) for a long time now. Many of those years, I did not have children. Currently, our children are in private schools. My parents have been paying property taxes (directly) for at least a handful of decades now. They did not have children in public school for the first decade of paying property tax. They have not had a child in public school for over a decade. My grandparents a"h and great-aunts and uncles (may they continue to live and be well, until 120) have been paying property tax for 60 plus years. They have not had children in public schools for over 40 years.

Now, let's get another thing straight: sending to private school is a choice. And I believe that part of "solving" the tuition crisis is to start to view it as a choice, a valuable choice in many cases, but a choice nevertheless.

I think the view that private school is "mandatory" prompts an attitude of entitlement that is not healthy. Perhaps my "small rant" is becoming a "large rant." But the attitude that the schools should accommodate their family (according to what they want to pay/ability to pay) because there are "no choices" is very frustrating. Yes, if you want a religious education for your children you have limited choices. But, when you "throw up your hands" to the schools in negotiation after negotiation months into school, you are leaving those expected to pay their bills with less choices of their own.

But back to the initial subject at hand. . . . there are those who do live in states where private school students receive little in terms of public money for schooling. Perhaps schools receive a little bit here and there for textbooks and computers. And, of course, there are special education services available to those who need them.

But there are other areas of this country where private schools DO receive an incredible amount of services and it is trying to read all the complains about "getting nothing."

I caught this little story on the Lakewood Scoop. I am in disbelief that there are Federal Funds totalling $112,000 being used to pay for a Torah U'Mesorah Shabbaton Retreat for administrators. The funds are reportedly earmarked for remedial education, but can be used for professional development. I cannot tell if this money is for a new conference or the past conference (the Lakewood Board of Education was informed that no religious content will be included in the conference, so it couldn't possibly be the Presidents Conference in Miami that took place recently and for which a Guest Poster offered some comments on my blog, right?). Nonetheless, $112,000 plus busing plus all of the publicly funded special education services isn't "nothing", right?

Quite frankly, I think funding for (public) education has spun out of control. Certainly if Mayor Bloomberg can threaten 21,000 teacher layoffs when NYC school district employs 75,000 teachers (that is a 28% staffing reduction folks), there is some room to cut back.

Nevertheless, I believe in the idea of publicly funded education for all Americans and I hope you won't find me complaining about being "double taxed" even if we never receive a dime in services from our own school district and even if our private school never receives a dime of public money. We're making a choice (better tell myself that now, because the tuition schedule is soon to arrive for 2011-12) and we have more dignity than to get bent out of shape over a choice we are making with complete free will. Better we make our choice b'simcha than fall into an angry and unproductive thought pattern.

New 1099 Rules for Landlords

In an attempt to keep readers current on tax law that might affect them, here is a new one which I would have missed had I tossed one of my recent accounting journals. Recently I alerted readers to the new 1099-MISC rules that were buried deep in the Healthcare Bill and that (should they not be repealed) take affect during 2012.

A new law that is likely to escape many a landlord is currently making its way into Accounting Publications (link: Journal of Accountancy) now and is effective NOW (2011!). Starting in January 2011, those who rent real property must start tracking payments to contractors.

It is January and there is no better time to have a plan if you are a landlord. It is always easier to get your paperwork in order in advance, rather than closing out the year in January only to find that you can't properly substantiate something later. As part of the Small Business Jobs Bill Act, taxpayers who own rental property must issue 1099-MISC forms at the end of the tax year (deadline: January 31, 2012) to service providers who provided a service of $600 or more during the course of the year.

Therefore, when you hire an accountant, plumber, electrician, contractor, or painter, you need to make sure you have the name, address, and taxpayer identification number or social security number on file. Be prepared to present your service provider with a W-9 when he or she walks through your door. Since no one wants a surprise, it is always a good idea to let service providers know right from the start that you will need their Tax Identification number. No need to end up in a sticky situation come January 2012 when you are trying to meet the 1099-MISC filing deadlines and you either can't find the contractor or they won't give you their identification number.

This new regulation is certain to surprise unsuspecting landlords (and their accountants too, no doubt). Filing that first 1099-MISC can be a bit of a mystery (the filing address is printed on the 1096 transmittal form, not on the large list of where to file on the IRS website).

There are a number of online softwares to file 1099-MISC forms. If you are only filing one or two 1099s, I believe this is the most cost effective way despite the slightly higher cost per form, as the packages in the big box office stores only come with 3 1096 transmittal forms in a package. The deadline to get the 1099-MISC to your service contractors is January 31. The IRS requires 1099-MISC be transmitted by February 28 (non-electronic) or March 31 (electronic).

Stepping Out, A Prime Example

Caught this article and news clip through VIN about a growing, profitable, multi-city company founded by a frum Jew which serves the general market (!). The food is *not* kosher and some commentors are clearly unable to get their head a Jew in the non-kosher food business. On top of that, it seems that few understand the prohibition of benefiting from mixing meat and milk. One would certainly need a lot of Rabbinic guidance to be in the non-kosher food business. But I perused the Fresh Diet website and it appears that the mixtures of meat and milk are from treif animals and therefore (according to my limited understanding of halacha) likely don't fall under the prohibition of benefiting. Like I always say, everyone is quick to scream dan l'chaf zechut for the sorid. But when it comes to a positive story, wow, does the criticism come quickly.

An eight part series interview at a business blog gives a lot of great insight into how the founder developed this successful business. My summary doesn't do justice, but I picked out some themes that I am taking notes on:

*Research and Understanding Markets: He had a business idea for a kosher zone diet delivery service. After some research which showed that no market existed in the Miami area, he quickly scrapped the idea of a kosher niche market and decided to pursue the general market. Even when he was running the business from home, cooking only kosher food, he avoided the label kosher to avoid limiting himself.

*Starting Small without Debt: The business started with the help of his wife. They prepared meals for 3 regular clients in the evenings and he delivered the meals daily before 7AM. After work, he stopped at the grocery store to do his shopping. He funded his business from the first 3 clients.

*Kept his Day Job: Until he had enough clientele and business was expanding, he did kept his day job.

* Flexibility and Knowing the Business: He has stayed ahead of the competition and even though he has taken on debt to expand the business, he has made changes to keep gross margins high and is now working on revenue deals to cover the big expenses (rents and salaries).


* Eye on Profitability: The founder has big goals in terms of profitability and gross margins.


The founder clearly has an entrepreneur's mindset. While he is not college educated, he has developed a wide variety of skills and a great database of information. He also has a tremendous drive, developed from a young age. He understands what is important to the business (technology, appropriate marketing, celebrities). He has also put himself out there, making TV appearances personally with his chef.


I love reading about different entrepreneurs and how they launched their businesses. As a bit of a non-consumer, it is hard for me to imagine spending this type of money. But the world is made up of all types and there are many niche markets out there.

Oh, and those profit margins. . . 5-10% (see the eight part of the series), although he plans to expand to 20% with economies of scale and revenue deals. As I pointed out in an earlier post, businesses are not generally rolling in dough and an owner has to be careful in order to maintain profitability and the margins needed keep the business in the black, as the owner has done each year.

Healthy, Easy TuBeshvat Breakfast

Last night I made a traditional Sephardic barley wheat bulgar dish for our little celebration. This morning I served it for breakfast and it occurred to me that I should really make this more often because it serves as a great breakfast food. Unlike oatmeal, it doesn't lose its appeal if prepared in advance. Unlike breakfast cereals, half of it doesn't end up on the kitchen floor. Nor did any child feel the need to take a ridiculous quantity. I love affordable.

Those who are interested, boil 4 cups of water and add 1 cup of bulgar (I like medium grain). Stir until most of the water is absorbed. Next, add sugar. The recipe calls for between 1/4 and 1/2 cup. I'd go with the 1/4. Add a good amount of cinnamon and finish cooking.

Can be served warm, room temperature, or cold with nuts and fruit. If you want to use dried fruit, add the dried fruit with some extra water at the beginning of the cooking process.

This is just like making oatmeal, but doesn't change texture as it cools and sits.

Bulgar can be found in the international section of the grocery or in ethnic stores. It can also be cooked up like rice and there are lots of sweet and savory dishes appropriate for chagim and Shabbat.

Guest Post: Employment Issues and Reliance on Community

A reader emailed me with some fantastic comments on my last Employment related post on the Emergency Parnasa Initiative Meeting as reported by Matzav for which I titled my post "And if we have to pay them more, they are worth every penny." I relate to his comments and I am placing them up as a quick Guest Post. I'm hoping that this week, I will visit a few other employment related subjects because these are important issues and a lot of the information being disseminated and the culture issues surrounding it are (in my opinion and the opinion of others far more qualified to speak on the subject) are problematic.

Guest Post/Commentary follows (with minor edits):

Comments for this thread seems to have digressed towards what I consider to be the tangential issues or work ethic, religious accommodation in scheduling, and the job market for the “therapy professions”. Furthermore the forum covered in the Matzav.com piece seems to be ignoring a very important topic in any discussion of employment within the frum community. The premise of the initiative that was proposed in this gathering was that frum business owners should be more willing to hire frum employees. Another implicit antecedent for this front burner issue is the economy, job market, which has resulted in the current challenges in employment . But in reality, these challenges are somewhat independent of the current economy and job market, and more a function of the lack of education, training, and skills facing the frum community. Much of this has been self-inflicted by a movement towards insularity, an anti-college sentiment, and the social pressures to remain in Yeshiva through one’s 20’s. This shift is about 30 years in the making, and the chickens have come home to roost, only to be exacerbated by the current economy, but not a direct result of it per se.

Instead of restricting one’s aspiration and potential employability to working for frum employers, why aren’t frum people getting real college degrees that would allow them to compete for professional jobs in the general workplace? (This question is largely rhetorical in light of the self-inflicted points listed above.) Why do frum people, even Yeshivish, have to rely on the frum community to hire, train, and pay them? Are people so narrow-minded that they ignore that getting a degree, getting a professional job in the general workforce with potential growth and progressions—and yes, remaining Torah observant and maintaining sedarim in learning is quite do-able? After all, before 30 years ago, it was a model that happened and worked quite well. Frum Jews had great work ethic, employment stability and had opportunities to effect Kiddush Hashem in the general professional workplace.

Somehow, the challenges of a Torah observant person being employed in the general workplace have been overblown in recent years. Consequently, an underskilled and underemployed workforce has emerged, with limited options. Then, the law of labor supply and demand take over.

There is a legitimate sentiment among frum employers that they might be reluctant to hire someone whom they cannot fire. Let’s take an example. Let’s say a frum business owner (we'll call him Chaim) decides to be nice and considers hiring 29 year old Moishie, previously in Yeshiva in Kollel exclusively to work as a Manager in his medical supply warehouse. (Let’s ignore the fact that Moishie has never supervised anyone other than the busboys at Camp Nearim in 2003 and doesn’t know Accounts Payable from Camp Nearim canteen order form.) Let’s assume that Moishie’s wife is a Teachers Aide at the local Bais Yaakov and they have 4 kids. It just so happens that Chaim sits next to Moishie’s father at the same table in the shtiebel and they have invited each other to simchas over the past 10 years. Given Moishie’s limited experience, skill set, familiarity with technolony and no experience in managing others, there is a high probablility he will fail working as a Manager in Chaim's warehouse. While Moishie is failing, he is a headache for Chaim, and has decreased the morale of his workers, So, even after Chaim attends the Matzav asifa and guilt trip, why would he want to take a chance on hiring Moishie (and probably paying him far in excess of his relative market value) with all of this baggage?

I also think that there is a sense of entitlement today where the Moishies of the community feel entitled to being paid a living wage (defined as Moishie and his wife see it) once they leave Kollel. After all, they have followed “the script” to a ‘t’. Furthermore, it is presumptuous for the Moishies to ignore the level of risk that business owners are taking in their small companies, and the families that the Chaims of the world need to support as well. Back to our story, Moishie is now stuck, at age 29, with little probability that he can ever ultimately get a job outside of the benevolence of the frum community.

The current economic and employment situation should be a logical wake-up call to the Rabbanim seated on the dais at this gathering to promote those options for eduation and training which would ultimately open up more options for frum young people to enter the workforce and maintain stability there. There needs to be a shift away from badmouthing real college degrees (perhaps from commuter schools like Brooklyn and Queens, or Touro and YU), overrating the value of Yeshiva degrees, and overblowing the spiritual challenges of the workplace. Anyone with any intellectual honesty knows that many of these same challenges exist today, even if one is learning in Yeshiva full-time.

Many of the middle age employees who have worked exclusively within the frum community have not accrued the skills, current technology, experience, work habits, and self-presentation that would allow them to compete for professional jobs, of the likes that will provide them with not only better salaries, but deferred compensation and healthcare which are not necessarily provided by smaller Jewish-owned companies. Once again, that is a relatively new development.

Shall he make our sister like a harlot?"

Hat Tip: Two readers, one who referred me through VIN and one through Crown Heights Info. (I don't trust YNet in the least, but we have discussed other more serious proposals to marry young men off earlier in response to the "shidduch crisis" in the past. And I know enough "purists" who believe that our children should be marrying earlier, I'm not surprised by the endorsement of young teen marriage, although the reasoning is, frankly sickening.).

In perhaps the largest show of corrupt and perverse "lomdus", a Rabbi I have never heard of has apparently initiated a new bill to lower the marriage age in Israel to 15 (but probably even earlier if given the choice). The reasoning, which can only emanate from Chelm in conjunction with a view that women are mostly objects, includes:

• Girls are a Financial Burden to Their Parents. "Parents of large families who cannot financially support all their children would be able to marry off their daughter earlier so that she can move into her husband's house." In another quote, "Girls who do not want to study or work are a burden to the household," Oh, but don't expect the child-bride to be the breadwinner. Another purpose of changing the marriage age: "to change the hareidi view that has been prevailing in recent years, according to which girls must acquire an occupation before getting married." Burden if she doesn't want to work or study, but the truth comes out later: this group doesn't want educated women: "The key is to give them an opportunity to marry early and this way save them from the pressure and the feeling that they must pursue an academic track, because many are not interested in studies."
• The worst of aveirot can be solved. . . . "We will curtail rape cases and violation of the law by allowing marriage a year earlier." Later the Rabbi is quoted saying: "No one will oppose the halacha. The Knesset has witnessed the recent wave of crimes and sexual offenses in both secular and religious families with many children, and this will solve our problems." [Because the most severe averiot are solved by creating a different receptable. . . read on if you can]
• . . . . With increased (legal) access to a different receptacle "Sexual intercourse is forbidden until the age of 16, but after the age of 16 it is allowed if it is consensual, and we want it to be conducted in the framework of marriage. As soon as there is consent of the boys and the families, we don’t want to have any limitation." [underlining mine]

The "lomdus" is so perverse, but I think I'm hearing him loud and clear: he'd like to give those who lack sexual discipline (both those who just want to have relations, as well as those who dare commit the most serious of averiot) license to have free reign over the daughters of the poor.

And for which I say, this is an outrage and the words of Shimon and Levi come to mind: "Ha'ch'zona ya'aseh et achotaynu?"

While it is nice to see Shas MK quoted saying that even if the bill is passed: "I also don’t think parents are going to want their daughters to marry so young, except for special circumstances," and "furthermore, I believe that studies help strengthen the family," the problem is that those who are mentally unstable are certain to have "special circumstances." Let's hope this bill is DOA, dead on arrival. If not, watch the "special circumstances" bloom.

"And if we have to pay them more, they are worth every penny"

A wonderfully positive movement has sprung up in recent years in numerous communities which fulfills the highest level of tzedakah. Job placement initiatives, job seminars, and mentoring are such important programs.

That said, I want to offer some comments on some of the comments of a meeting of the EPI (Emergency Parnassah Initiative) as reported by Matzav. And I offer these comments to only be constructive as I can presently think of no better way to invest in a community than helping individuals help themselves and their families. But, I don't think it is helpful to misrepresent what life is like in the rat race, especially when businessmen, professionals, and rabbonim have an opportunity to meet and share ideas. (I do realize that accomplished businessmen are involved in the movement, but nevertheless, it seems there is some sugar coating and ignorance being perpetuated, which might not ultimately be helpful).

A subject at hand at the EPI meeting in Brooklyn was "chang[ing] the mindset of the frum Jewish community about hiring Jewish workers" and "[addressing reasons] as to why some are reluctant to hire Yidden " Let's cut to the chase with some of the reported comments.

***The alternative is seemingly cheaper. However, many of today’s job-seekers are so desperate that they will work for the same price. And if we have to pay them more, they are worth every penny, says Mr. Wolf.

I'm thinking back to some of my business and accounting classes in college. If anyone walked into class thinking that being in business is a quick way to success, that myth was soon dispelled as we learned about average profit margins in different industries.

Simply put, profit margins in industry can be quit thin. Labor is usually one of the largest items on the Income and Expense Statement. When a business owner is dealing with profit margins as low as 1-5%, it is not completely honest to say "and if we have to pay [a frum Jew] more, they are worth every penny." Lack of reserves because one is engaging in generosity, and a business can falter. One over budgeted expense, and an entire business can go under. Generosity is wonderful, when one can afford to be generous. But as one of my guest posters wrote, "Most frum entrepreneurs are not making it big. The vast majority struggle." (Do see the entire guest post). The notion that someone in business, or someone with investments, is flush with cash is one that needs to be dealt with. This myth holds back more sobering, yet ultimately more valuable, advice.

It is nice to hear that some are so "desperate" for work that they are willing to work for Fair Market Value. But I know of few employers who want to deal with employees that feel entitled without the record to back up their salary demands.

***Often, employers are nervous about all the Erev Shabbos, Erev Yom Tov and maternity leaves that women in the frum community require. That need not be such a concern. Our Bais Yaakovs produce such a fantastic product in terms of skills, attitude and middos, that when one girl is out, the others come in earlier and leave later to cover for her and be sure the work gets done.

I think the use of the word "girl" says it all! The world of employment has changed a great deal since a business owner had a staff of "girls" sitting around to do this or that.

(Skilled) Employees are generally not "interchangeable" even if they have the best attitude in the world. Productivity is key in business, as are the relationships that even lower level workers develop with clientele, vendors, suppliers, etc. It is simply untrue that if one "girl" need to run out early on Erev Yom Tov, another "girl" can just take over where the other left off with the same productivity (see the Jewish Worker's comments on this very subject). And where the work is more skilled and involves customer relationships, it can be a liability to just assign someone else, even if productivity were equal and there were no issues with learning curves.

While employee pay shows up as an expense on the Profit and Loss Statement, not on the Balance Sheet, employees are better described as assets (or liabilities). Employers invest a lot of time and resources into their employees. They expect a return on their investment and ROI is normally subject to time. Developing relationships with clientele takes time. Developing functioning relationships within the workplace takes time. Developing enough institutional memory to be able to add value for the customer takes time. Developing a trusting relationship with co-workers, superiors, and customers takes time and is key. It is hard to look the other way when it comes to maternity leave every 18 months, even if one is legally required to do so.

Technology has been a real game changer in the professional world. Most professionals that I know of handle a lot of their own administrative work, often with only a few clicks of the mouse. Think about how different the modern day doctor's office is from the one of the past. Today, doctors are showing up to appointments with laptop in hand and taking their own notes during the appointment. Gone are the days of sending dictation to the office staff. Gone are the days of plotting height and weight on the growth charts for further evaluation. And as I discovered recently, gone are the days when the doctor would either give you a written prescription or have a staff member call in the prescription for you. Now, with a few clicks of a button, the doctor herself can shoot a prescription off to the pharmacy before you can put your shoes back on. No middle "girl" needed!

***Another worry some have is that a Jewish worker will learn the business and become one’s competitor. To become a competitor, this worker must be extremely accomplished and capable. If he is that good, he’s probably worth the extra salary and bonuses to make it worth his while to stay with the company.

I think the validity of this concern varies from industry to industry, business model to business model (can the business be reasonably protected by non-compete clauses in the contract?). What is easier said than done is the 'pay him more aspect.' I think a bigger concern that potential employers who work within the community have is confidentiality.

***Yet a different concern people raise is that it’s hard to fire a Yid. EPI is ready to shoulder this burden. Any employee hired through EPI comes with an assurance that EPI will take care of the firing if the need arises. EPI will then try to find the employee another job.

It is hard to fire someone in the community! And is a very calculated risk with great potential to backfire. I have no idea how EPI plans to do the firing for the employer. I'm simply confounded.

I am humbled by those who go out of their way to help create greater economic prosperity. But I'm worried that the advice isn't particularly great advice.

Guest Post: Torah Umesorah Presidents Conference

Once again, I am thankful to readers who take their time to contribute to this forum. This morning a reader wrote me with some comments and observations on the Torah Umesorah Presidents Conference held in Miama over the past weekend. Guest post follows:

Hello, I thought that you might be interested in some observations on the Torah Umesorah Presidents conference held in Miami over the last weekend. The conference targets executive directors and lay leaders of day schools and focuses on non-curriculum issues.

Obviously the affordability issue was a point of discussion but apparently far less than last year where most schools were in real crisis positions. Most schools (that survived) seem to be in stable/manageable positions this year.

There were a few seminars on better business management of schools with a focus on leveraging the expertise of the community for purchasing, specialized services, etc and sharing of capital and service costs across institutions.

Although there was a lot of 'rah rah Torah!' rallying of the troops, here was also a small undercurrent of recognition that the current system is still unsustainable without some major changes.

There seems to be considerable optimism that the current political climate is as favorable as it has ever been for introduction of vouchers, tuition tax-deductibility or similar, and there was much discussion of the lobbying and political participation required to get there.

There were also a few (non-Torah Umesorah) invited speakers who proposed that the only real solution is for Jewish philanthropists who do not currently donate to Jewish causes to be convinced take up Jewish education as a cause. It was made clear that this would only be possible as a multi-denominational effort (i.e. the Orthodox movement would only have access to a significant donation from a Spielberg/Katzenberg/Zuckerberg-type as part of a 'movement' that would also be funding Solomon Shechter, community Hebrew schools, etc). A long the same lines, the successful low-pressure 'out-of town' Kiruv movement has developed somewhat of an uneasy natural alliance with the UJA and local Federations who need nominal Jews to remain slightly educated about their own religion in order to remain in the community another generation. There was was a presentation by the Kohelet Foundation, which funds non-Orthodox day school tuition on the condition of parental involvement in a special Partners in Torah program designed to increase parental valuation of traditional Jewish learning.

Disappointingly (to me), other than a few small-session questions, there was no discussion of the non-education lifestyle costs and opportunity costs in the Orthodox community and the resultant effect on the sustainability of schools. The biggest indicator of this was the food at the conference, which was ridiculous in its frequency, quantity and presentation (think New York wedding shmorg for every Shabbat and weekday meal including kiddush, breakfasts, afternoon snacks and a poolside melaveh malkah bbq). Although it's likely most of the costs were underwritten, the (at least) $150 over-spent on food for 400 participants could have provided full subsidy for 6 children or saved one school on the brink of bankruptcy. The menu at an education conference should at the very least be subject to the Agudah's wedding cost guidelines.

Over Analyzing and Dating

I am continually struck by the over-analyzing seen in the world of shidduchim and I think it works to the detriment of daters. This recent chat on YWN is yet another example of such. Perhaps the date lacked class. Perhaps the date was simply clueless. Perhaps he was inconsiderate or disrespectful. Perhaps he was "cheap". Perhaps his behavior was odd. Perhaps he was [fill in the blank]. Perhaps, perhaps, perhaps. There was only one date!

There is a very good chance that this man is "rough around the edges." But, I get the feeling that far too many daters spend too much time (over) analyzing the packaging of the date itself and all the odd behaviors displayed by the date that they don't actually get to the heart of the courting process, i.e. actually getting to know something more substantive about their date.

I find it a sad commentary that the inquiring poster mentioned all of the odd things her date did, but didn't say anything to say about who he is. The poster asks "is this cheap?" but fails to provide relevant information about what stage of life he is in. And it is a sadder commentary that chatters who seem to have the ability to be dan l'chaf zechut just about anything are willing to label a person with very powerful adjectives and labels after a description of a date that could simply have been ill-conceived. And perhaps the date was ill-conceived because he was trying to provide the "required" lounge date, but couldn't provide it in style. And, in a world where many consider it unseemly to meet for a cup of coffee where they might "be seen", I can understand how ill-conceived dates come to be.

Words to the wise:

*there are decent, good spouses that are rough around the edges.
*being an impressive dater does not always a good spouse make.
*it takes effort to get to know someone and if you spend your time analyzing this or that, you might whatever opportunities do present themselves to get to know one another.

Free Download and Kosher

A reader pointed out a get out of debt book that can be downloaded for free today only, Debt Free for Life by David Bach. There is a nice 10 point summary that meets my approval. So, if you think that this download could be of use for you or someone you know, take advantage of the free download at Wallet Pop.



Additionally, I received notification of a new website KosherKouponz.com. I was hoping to find coupons for kosher products like cheese and chicken, but alas this site isn't quite what I was expecting. Nonetheless, we all like to have a little fun in life. So, if you are looking for deals on "extras" like eating out, gym memberships, and dry cleaning, you might want to check out the site.

So far Kosher Kouponz only serves the New York and Northern Jersey regions.

Mental Tricks and Extra 2% in Your Pocket

The first paychecks of January 2011 should be arriving soon, and for those that fell behind with the news, a bill passed both houses which will put an additional 2% in your pocket. The social security withholding rate fell from 6.2% to 4.2%. Medicare withholding rates remain the same (1.45%), as do the employer's portion of withholding (7.65% total).

I was able to confirm that those of us who are not subject to withholding, but rather pay the Self-Employment Tax through Schedule SE will also see our rates fall 2%, from 15.3% to 13.3% (effective rate of 14.1% to 12.3%).

It is unfortunate that the taxpayers still have no real certainty, but the taxpayer should have more money in their pocket in 2011, up to $2136 per wage earner (Social Security Tax is paid on the first $106,800 of wages).

I believe that it is extremely important for individuals and families to understand the basics of tax. There is a lot of discussion out there if taxpayers will notice the extra money. Some experts believe that taxpayers will notice their paycheck is higher, but won't know why. And, not realizing that their "pay raise" is temporary, there is a real danger of spending the funds, or worse yet, making commitments that won't be so affordable come 2012.

Because the money is temporary, I think it is really important for individuals and families not to increase their consumption. I work with a variety of clients and the common thread I find amongst spenders/debtors is that new found money is already mentally spent before liabilities and savings are considered. Finally, I can get that new data plan! This 2% windfall will be a nice treat, but also has the potential to hurt the undisciplined or unaware.

Changing subjects slightly, a friend (hello to you!) sent me an article that starts with a mention of an MIT inventor that is attempting to create a prototype of a wallet that will become increasingly hard to open as one approaches the limits or exceeds their monthly budget. Cute! I love the idea.

The article goes on to discuss mental tricks people use to help "close the gap between good intentions and human nature."

I'd love to hear from my readers what mental tricks they use to control spending. The article mentions many of the usual mental tricks such as setting broad goals in terms of saving not budgeting (I think this becomes easier as a person realizes goals and starts to really see money and equity grow), making separate accounts and subaccounts (I love the setup at ING's online bank for this--highly recommended), paying yourself first through automatic withdrawals into savings, buying savings bonds through an employer and/or taking advantage of 401(k) accounts (all of the above is good advice).

I have a few mental tricks of my own in addition to those above. When we refinance our home loan around 18 months ago, we continued to make a similar mortgage payment. Besides paying off the mortgage quicker, this trick makes it easier to absorb future property tax increases. Another trick we have is not including interest income in the spending budget. We basically ignore that income until year end when we decide if we need to keep the income in the emergency fund or if we can put that money into a different type of investment vehicle.

Readers, please share any mental tricks you have and I will try to share in a future post. The more interesting the better! And if you don't mind sharing, what do you plan to do, or not to do, with that 2% savings in Social Security tax.

P.S. I have some posting ideas coming up, but I've hit another busy season here and due to the tax law changes, I have a bit of extra work cut out for this week. :)

Rabbinic Endorsements, Oy

Recently I saw an advertisement for one of these debt negotiation/settlement companies with a note that Rabbinic Endorsements were available on request. I've done no formal studies, but have noted increased advertisements in Jewish advertisement publications for this type of business in recent years. Other things I've noticed recently: sheitel companies advertising financing plans. Oh, and my favorite, a sterling silver company advertising financing available. Excuse the diversion. Back to the subject at hand.

Now I absolutely do think that a debtor should seek halachic advice from a qualified Rabbinic authority when they have hit a brick wall financially. In fact, it would be wonderful if more people would seek advice in this area far before they hit a brick wall. And, it would be even more wonderful if there was a culture that stressed the importance of living below your means so that fewer people were hitting the financial brick wall.

However, if I were a Rabbi (which I am not and cannot be) I would really want to steer clear from giving endorsement on particular businesses (at all). And especially a particular business within this particular industry.

This industry has (I'd say rightfully) come under a lot of fire recently for an entire host of issues, from faulty advice to faulty and fraudulent practices to questionable billing structures. While there are trade association and some regulation, the industry as a whole lacks the oversight that other professions are subject to.

I am certainly not accusing any company that advertises in any Jewish Ad Publication of behavior that is less than 100% yashar. However, if I was a member of a board employing a Rabbi that was offering "Rabbinic Endorsement" to one of these businesses, I'd be checking the liability policies!

I don't believe there are many accountants or lawyers out there that would be comfortable putting a stamp of approval on too many companies within the industry, at the risk of their own professional reputation (or worse yet, the reputation of their entire firm). And, forgive me for saying this, but I have no idea how a Rabbi can have enough information to endorse a business in this industry.

Also see the post Look Before You Leap: Debt Settlement