due. "Always pay on time," warns Madden,
"whether it’s the phone company, the
electric company or your car payments
You don't want any bad ticks on your credit
» report, and you don't want to get into the
habit of financial irresponsibility."
CASE IN POINT
Barbara Palanczchick is a third grade
teacher in a Midwestern school distnct (she
asks that we not mention the town in which
she works) who has developed a reputation
among her friends and students for coming
up with creative ways to save money
■■; "It started when I told my class my habit
of emptying my pockets and purse of all
loose change at the end of the day " the 27
year-old Palanczchick remembers "I would
collect it all in one big iar and by the end
of the week I would usually have 10 to 15
dollars saved up By the end of the year that
came usually to 600 dollars or so "
Palanczchick split the cost of a car with
her roommate, an actress, when it dawned
on the two women that their driving needs
hardly overlapped "I would use the car dur
ing the week to get to work," Palanczchick
says, "and she would use it pretty much on
weekends when she had to appear out of
town It was a way for me to have full use of
a car to suit my needs, for only half the price."
With an $18,200 salary Palanczchick
finds she has to budget her take home pay
carefully She keeps a careful ledger of all
her expenses, down to the quarters that es
cape her change bottle for a candy or a
newspaper When she realized how much
money she was spending each week on
cigarettes ($750), she quit smoking, "It was
too expensive," she says
“I don't mean to sound cheap or that
I'm living any kind of hand to mouth
existence," Palanczchick explains. "It's just
that it makes sense to get the most mileage
out of your money If there's a way to save
even a few dollars over the course of a pay
period, then I think you should do it
Otherwise you're wasting money"
Palanczchick calls on professional
advice to help her save, but she finds a
bargain in this area as well-her brother-in
law serves as her accountant, her best
friend's husband handles legal matters, free
of charge "I have people helping me manage
my income and it's not costing me anything,"
she says "It's an ideal situation, but my
experience is you can always find someone
to help you out in all professions, whether
it's through a friend of a friend, or whatever"
Palanczchick says she returns the favors
wherever she can, by babysitting, running
errands, or referring new clients
Lately Palanczchick has been living on
her own, but she is looking for a new
roommate to help defray costs. "It's amazing
how much cheaper it is for two people to live
than one," she man/els. "Even your food
bills are cheaper"
Her attention to detail is so far paying
off "I've had an IRA for three years now. my
school district covers all medical expenses
When I had car insurance to worry about. I
only paid half, and I don’t carry too much in
the way of a homeowner’s policy because I
rent and I don’t own many things
"I think maybe I’m a little extreme to
hold up as an example, but I would tell people
just starting out to err on the side of caution,
rather than spend recklessly I know too many
people who get out of school and look at
their first pay check, however small, and say
Wow1 Look at all this money!’ The thing is.
it’s not all that much money it never is, and if
you want to stay afloat on most salaries,
you ve got to be careful It pays to be careful"
TAXES
"Let mm Ml you how H will bm,
There's onm for you, nineteen for me
O*or9« Harrison
“Taxman"
Death and taxes have everything
else beat when it comes to sure
things, and since there's hardly a
thing you can do about the former, you may
as well do what you can about the latter
For most of you, taxes-federal, state,
local and social security-will be assessed
automatically against your weekly salary,
and deducted from your paycheck by your
employer This is neither a good thing nor a
bad thing, just something you should be
well aware of before going to your first job
Most of you. then, will simply be tying
up loose ends with the Internal Revenue
Service at income tax time, assuming the
bulk of your income comes from your one
salaried source If you're like most tax
paying Americans, the end of the tax year
will signal a recounting ot all ol your
expenses and deductions in a frantic effort
to regain your hard earned dollars in the
form of a tax refund
To this end. you might want to consider
the services of an accountant or an income
tax preparation consultant A tax consultant
will assist you solely in the preparation of
your tax forms, for a modest fee There are
several national tax consulting franchises
that offer one-time preparation assistance
on a while-you-wait basis
An accountant's services go beyond
tax preparation "An accountant can almost
always save you money," says Jeffrey A
Stern, author of the just-published How To
Become Financially Independent Before
K>u're 35 "You might think if you're single,
with only one source of income, you don't
need an accountant's services But an
accountant is more familiar with the tax
laws than a lay person could ever be "
In most cases you'll find an account
ant’s fee will not exceed a few hundred
dollars (it's also tax deductible). and a smart
professional will probably save you enough
to cover the payment
Below, Stern offers his guidelines on
what to look for, and what steps to follow in
selecting an accountant:
1. Start looking long bcfort tax time.
“The only way an accountant can
really help you is if he has enough
time to devote to your needs,” Stem
says.
2. Look for someone with good judg
ment; often, it's smart to rely on the
recommendation ot friends in as
sessing the character of a potential
accountant. "Honesty and good,
sound Judgment are Important,"
Stern says. “Remember, if there’s a
problem with your taxes, It’s you who
gets nailed by the I.R.S., not him.”
3. Find someone who’s creative, yet