Don’t Get Audited: The IRS’s Dirty Dozen Red Flags (AOL DailyFinance).  I recently described generosity as An Irrational Financial Act.  Unfortunately, the IRS seems to agree.

Claiming an Adult Child as a Dependent on Your Taxes (USA TODAY).  Got an unemployed adult child living in your basement?  Here’s what you need to know about the tax implications.

Ensure Those References Help You Land a Job (MSNBC).  They’ve agreed to serve as a reference for you, but do you know what they’ll say?

When Is It Bad to Kill a Credit Card? (Bankrate.com).  There are a lot of misconceptions about the pros and cons of closing a credit card account.  This article does a good job of helping you make the right decision.

Retirement in America is “Endangered” (MarketWatch).  Not exactly a feel-good story, but perhaps a helpful wake-up call.

And from the blogosphere…

Kids & Money: Teach Your Kids About Credit Cards (Bargaineering). Better to have them learn how to use credit cards while they’re still at home than after they leave.

Focus on Reliability and Fuel Efficiency (The Simple Dollar).  Good advice for those in the market for a car.  For more help comparing the ongoing costs of cars, check out this True Cost to Own tool.

Future of Shopping (Wealth Informatics).  Interesting review of retail trends, some of which may actually benefit shoppers, not just the retailers!

5 Kids Expenses to Budget For – Apart From College (Parenting Family Money).  All the more reason to get in the habit of living well within your means before you have kids.

10 Ways to Protect Your Financial and Personal Information When Shopping Online (Bible Money Matters).  Great ideas for staying safe when traveling in cyberspace.

Got a question or a response to any of the above?  Be sure to leave a comment.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

Open Low Minimum Roth IRAs for Kids (Kiplinger’s).  Kids who contribute to a Roth IRA will head into adulthood with a great financial advantage.  Here are three companies with kid-friendly requirements.

How to Master the Art of Negotiation (US News).  It’s amazing what you can get if you just speak up.  We recently had a not-so-great hotel experience, so I brought it to the attention of the chain’s customer service department.  I didn’t even make a specific request, but they credited my loyalty account with 50,000 points!

5 Things I Look for In a Great Job Interview (Inc).  Words of wisdom from one who has interviewed lots of candidates.

Job Hunters Still Not Careful on Social Media: Study (MSNBC).  Your resume is a carefully crafted work of art, but what about your social media presence?

Tweet Your Way to a New Job: 8 Twitter Templates (CBS MoneyWatch).  Are you using Twitter as part of your job search?

And from the blogosphere…

What’s Next After Debt Freedom? (The Simple Dollar).  It’s always encouraging to hear about people gaining true financial freedom.  This post also reinforces the importance of Knowing the Why Behind Your Goals.

Financial Goals That Are Easy to Accomplish (Canadian Finance Blog). This list includes several important steps people often put off.  It’s well worth it to review this list and schedule these activities.

A Crash Course in Couponing 101 (One Money Design).  Good advice for getting value from using coupons without making it a second job.

The Ins and Outs of Getting and Using Your Free Credit Report (The Consumerist).  When was the last time you checked your credit reports?  Here’s how to do it and what to look for.

9 Healthy Habits to Help You Manage E-Mail Overload (Lifehack).  It’s so tempting to check e-mail throughout the day, but the advice in this post is consistent with that of other productivity experts.

Got a question or a response to any of the above?  Be sure to leave a comment.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

If you’re not familiar with a blog carnival, it’s a showcase of some of the best writing from throughout the blogosphere, with bloggers submitting one of their best recent posts.  This particular carnival, which features rotating hosts, has been in operation since the summer of 2005.

I thought it would be fitting to intersperse this week’s picks with quotes that feature additional words of wisdom or points to ponder.

Editor’s Picks

“The ancient Greek definition of happiness was the full use of your powers along lines of excellence.” – John F. Kennedy

There were lots of great entries in this week’s carnival, but I thought the following two were especially good.

Bob at ChristianPF shares an important idea he calls Get Your Financial Life on One Page, which recasts what can be a tiresome financial chore into an act of love.

Roshawn Watson at Watson Inc asks Do You Have the Courage to be Wealthy?, pointing to a key character trait that can either hold us back in so many areas of life or propel us forward.

Money Management

“Action expresses priorities.” –Mahatma Gandhi

Laura Edgar from NerdWallet offers some good guidance for Sticking to Your Resolutions, along with a quiz to see which of two approaches may be best for you.

SB at One Cent at a Time says resolutions aren’t enough; you need to become obsessed with what you want.  Read more at 5 Obsessions Towards Financial Freedom and Becoming Rich.

Sustainable PF offers rational ways for Beating Irrational Financial Behavior.

Jon the Saver from Free $ Wisdom shares 3 Financial Lessons I’ve Learned From Angry Birds.  Don’t worry, you don’t need to have played the game to get the lessons.

Jeffrey at Saving Advice provides Money Lessons Learned From “The Firm,” a movie that demonstrates in many ways the old adage: money changes people.

Investing

“October:  This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Diva at Diva in Debt covers the latest personal finance controversy with More Bad News for Suze Orman.

Div Guy at The Dividend Guy Blog helps clear the fog from our economic binoculars with If You Want to Know Where the Stock Market is Heading, Read the Following.

Philip at PT Money brings us up to date on 2012 Traditional and Roth IRA Contribution Limits.

FIRE Finance offers Three Good Habits of Successful Retirees, reviewing the traits of successful long-term investors.

Economy

“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” – Ronald Reagan

PK at Don’t Quit Your Day Job submitted Another Salary By Major Chart, which may help those headed for college choose a productive path.

Taxes

“Did you ever notice that when you put the words ‘The’ and ‘IRS’ together, it spells ‘THEIRS?’”  – Author Unknown

Glen Craig at Free From Broke encourages us not to pay more in taxes than we have to with 10 Common Overlooked Tax Deductions.

Career

“Work while you have the light. You are responsible for the talent that has been entrusted to you.” – Henri-Frederic Amiel

Mike at The Financial Blogger shows other bloggers what’s made a big difference in his success with This Image Will Make You a Believer.

For business owners, Peter at Bible Money Matters has a helpful reminder on How to Prepare and File A 1099 For Contract and Freelance Workers.

Credit

“Before borrowing money from a friend, decide which you need most.” – American Proverb

Erik at DollarVersity opens up a bit of a debate with Are Credit Scores Still Relevant?

Real Estate

“A man builds a fine house, and now he has a master, and a task for life.” – Ralph Waldo Emerson

Martin at Passive Income Now has advice for landlords in Maintaining Your Rental Property Once You Hand the Keys Over.

Frugality

“Economy is half the battle of life; it is not so hard to earn money as to spend it well.” – C.H. Spurgeon

Squirrelers offers 12 Expenses to Cut, reminding us of some discretionary spending that we may have re-categorized as essential.

Finance

“Money is better than poverty, if only for financial reasons.”  – Woody Allen

Roger Wohlner at Chicago Financial Planner offers The Similarities Between Buying Coffee and Choosing a Financial Planner.  A key to choosing well in both cases is knowing what you’re getting for your money.

Budgeting

“Planning is bringing the future into the present so that you can do something about it now.” –Alan Lakein

Dan Meyers from Your Life, Their Life explains Why We Use a Cash Budget, backing up lots of research that shows people tend to spend less when they pitch the plastic.

Saving

“In the old days a man who saved money was a miser; nowadays he’s a wonder.” –Author Unknown

Martin at Studenomics reminds us of a classic way to start building savings in What’s the Best Way to Start Saving Money Right Now?

Other

“Plans are worthless.  Planning is essential.” – Dwight D. Eisenhower

Money Beagle has ambitions to get lots of stuff done this year.  Hence, My List of 500 Things To Do This Year.  It may sound overwhelming, but when you break the idea down month by month, it may just help you stay organized, reduce clutter, and avoid buying things you don’t need.

Thanks to everyone who submitted posts for this week’s carnival.

Keeping Your Online Accounts Safe (CNNMoney).  Sure, it takes some extra work to follow these guidelines, but it’s wise to stay vigilant about online security.

Money Milestones: What Kids Should Know About Money and When (Time).  No, your three-year-old doesn’t need to know about Roth IRAs, but there are some things about money kids can learn at that age.  Here’s your guide.

401(k)’s Not Working for Gen Y (MSN). For young people, playing it too safe with your retirement savings is one of the riskiest things you can do.

The Best Ways to Teach Your Kids to Save (Main Street).  Interesting to see the not-so-obvious benefits of opening savings accounts for our kids.

Credit Information That’s Really 100% Free (MSNBC).  I agree with the author of this one – if you’re going to try one of the free credit score services, go with the one that doesn’t require your full Social Security number.

And from the blogosphere…

Five Resolutions for Aspiring Leaders (HBR Blog Network).  Good career management advice – whether you’re young or…more experienced.

How I Fed My Family for $100 a Week (LearnVest).  Proof that it’s possible to manage the grocery store tab without superhuman effort.

What Easter Island Can Teach Us About Money (Wise Bread).  No quick tips on how to save a buck or two in this post – just a great, thought provoking read about the dangers of short-term thinking.

8 Frugal and Fun Martin Luther King Day Activities for Kids (Money Crashers).  Make Monday more than a day off from school for the kids with these free or low-cost ideas for helping them understand what this important holiday is all about.

Frugality Advice From Millionaires (Get Rich Slowly).  I don’t really consider this to be frugality advice (you probably know I’m not crazy about the idea of frugality); it’s simply good solid money management advice.  Just as was shown in the book “The Millionaire Next Door,” most of the habits and practices of those who win with money are those that most of us can practice.

Got a question or a response to any of the above?  Be sure to leave a comment.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

Last-Minute Gift Doesn’t Have to Be Costly (USA TODAY).  Shopping in a hurry often leads to overspending, but not if you follow this advice.

5 Tips for Being a Fabulous Holiday Host (Main Street).  Got company staying with you over the holidays?  Here’s how to keep ‘em happy while keeping your sanity.

10 Myths About Job Hunting During a Recession (US News).  Feel like you’re fighting an uphill battle in your job search?  Don’t let these falsehoods hold you back.

Year-End Reality Check: 71 Percent of Americans Don’t Have a Retirement Plan (Financial Planning).  A good place to start is with this simple retirement calculator.

5 CD Dos and Don’ts (Bankrate).  I’d add one more “do” to this list: Do consider a credit union when shopping for a CD, including my long-time sponsor, Christian Community Credit Union, which offers better rates than I believe you’ll find anywhere else.

And from the blogosphere…

15 Dynamo DIY Projects That Cost Less Than $20 (Apartment Therapy).  Thanks to my wife, Jude, for bringing this one to my attention.  Some great, inexpensive ways to spruce up your home.  Rug painting, anyone?

The Top 10 Best and Worst Communicators of 2011 (Ragan’s HR Communication).  Great communication skills are essential for excelling on the job and in life.  There’s a lot to be learned in studying the best…and the worst.

Free Apps To Help You Recover a Lost Phone or Laptop (Clark Howard).  With so much important information stored on our digital devices, we can’t afford to lose them.  Here’s how to put them on an electronic leash.

25 Ways to Make This the Best Christmas Season Ever (Pick The Brain).  Hat tip to Trent at The Simple Dollar, where I saw a link to this post.  It’s not too late to incorporate some of these great ideas.  Or, if you read this after Christmas, there’s always next year.

A Peace That Transcends Understanding (Matt About Money).  As with last week’s roundup, I thought a post from the Christmas archives would be in order.  This one certainly speaks to me this year.  I hope it does to you as well.

Here’s wishing you a wonderful Christmas. And to my Jewish readers, Happy Hanukkah.

Got a question or a response to any of the above?  Be sure to leave a comment.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

The end of each year always puts me in a reflective mood.  As I’ve been taking stock of 2011, I reviewed the 131 posts I’ve written so far to see which ones did the best job of connecting with people.  Here are the top 10 – the ones that were shared the most on Facebook.

1. The Art of Simple Living.  Starting with the premise that simplicity is about so much more than uncluttered closets, this post looked at how we can develop both the heart and the habits of simpler, more joyful living.

2. Let’s Occupy Our Own Streets.  My take on the Occupy Wall Street Movement, encouraging all of us to look a little closer to home before blaming our country’s economic problems on someone else.

3. When Should You Let Your Kids Get a Cell Phone?  For parents, this is a tough question to answer.  This post teed up the most important factors to consider when making that call.

4. Money Lessons For New Grads. Advice for those in transition from college to career – from how much to spend on rent to an overall approach to money that tends to lead to a lot more happiness.

5. An Identity Theft Like No Other.  This one is central to all that I believe about money.  If we’re ever really going to get the money thing right, we have to know who we are.

6. Free Kindle eBook Hits a Nerve.  My most recent book, Money & Marriage, was released in March of 2011.  When the Kindle version was offered for free, that promotion got off to a controversial start.

7. A Love Letter Like No Other.  In honor of Valentine’s Day, I transcribed a powerful letter written from the battlefield during the Civil War, which served as a reminder of what really matters.

8. Which Way is the Financial Wind Blowing in Your Life?  Albert Einstein called it “the eighth wonder of the world.” It’s the most seemingly magical of all financial concepts, which is why you need the force to be with you, not against you.

9. Radical Ways to Accomplish Your Financial Goals.  Many are the people who say they can’t get out of debt, can’t save, can’t…  And then there are the few – the radical – who plow through financial obstacles in the most countercultural of ways.

10. A Call for Truly Radical Wealth Redistribution.  The second in a two-part series about Occupy Wall Street, this time calling for each of us to put a little personal wealth redistribution into practice before forcing it on others.

I added video to the blog this year, and, by far, the most viewed piece (with over 8,000 views) was an interview I did with Mint.com’s security architect, in which I asked a question that’s apparently on lots of prospective Mint users’ minds: How Safe is Mint.com?

Three other posts that I especially enjoyed writing in 2011 were:

The Case Against Frugality.  Frugality is all the rage these days, but here’s why I’ve never cared for the term.

I Want the Red One.  Of blue Hula-Hoops, red Hula-Hoops, and the problem of wanting what other people have.

Money Lessons From An Old Toy Fire Truck.  Sometimes, the most unexpected things remind us of the progress we’re making in the journeys of money and life.

Thank you for being part of the community here at Matt About Money.  Writing this blog is one of my great joys, and I consider it an honor that you are a subscriber.  Here’s looking forward to an even better 2012.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

Your Christmas Gift This Year: Free Job Advice (Main Street).  For many people, all they want for Christmas is a new job.  If that’s you, take advantage of this free help.

How to Get Your Dream Job in a Bad Economy (Time).  Any job might sound good to you if you’ve been out of work for some time, but this author suggests that you aim high.

Relationships, Realistic Expectations Temper Holiday Stress (USA TODAY).  Good advice for making sure you enjoy the holidays and not get all stressed out.  Along the same lines, read the results of this survey I conducted right after a past Christmas (click on Holiday Regrets) in which people were asked what they wish they had done more and less of during the holidays.  The answers will help you make the most of this year’s Christmas.

What Not to Buy Before Christmas (CNNMoney).  Among the many other things that go on deep discount after Christmas are gift baskets sold by many department stores.  They can make for nice New Year’s gifts.

Online Bargain Hunting: 6 Secrets to Saving Big (US News).  Here’s a 7^th secret: Amazon is offering users of its Price Check app an added discount on December 10.  While shopping in a retail store, just use the app to see if Amazon has a better price, and if you end up buying from Amazon, the company will add another discount.

And from the blogosphere…

5 Reasons to Put Your Retirement Plans Ahead of Your Children’s College (ChristianPF).  As a parent, I know how easy it is to get these priorities turned around.  This article clarifies why it’s important to put them in the right order.

5 Ways to Celebrate the Birth of Jesus (Bible Money Matters).  I love these ideas.  Your kids will benefit, and so will you.

5 Powerful Negotiation Strategies That Work Every Time (Wealth Pilgrim).  I would add a sixth strategy to this list: just ask.  It’s amazing what you can get if you just ask.

Daily Deal Sites Secondary Market (Bargaineering).  The popularity of daily deal sites has spawned several offshoots.  Recently I reported on daily deal site aggregators – services that sort through the deals from multiple deal sites and then send you one e-mail with all of the deals near you.  Now, it turns out, there’s an organized way to sell deals you bought that you’re not able to use, or to buy the deals other people aren’t able to use at an even greater discount.

Give a Gift That’ll Pay Lasting Dividends (Me!).  Yes, this is a link to a promotion I’m running for about another week.  If you have an engaged or newly married couple (a couple that’s been married for about 5 years or less – okay, maybe 10) on your gift list, I truly believe this book will be a blessing to them.  I wrote it because money messes with far too many people’s marriages and that bothers me.  A lot.  This book helps couples get the money thing right.

Got a question or a response to any of the above?  Be sure to leave a comment.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

Some Background on Sound Mind Investing

SMI Founder Austin Pryor, author of the well-regarded Sound Mind Investing Handbook,  is arguably the best-known Christian investing expert.  Describing him as a Christian investing expert isn’t to say that SMI chooses the mutual funds and exchange traded funds it recommends based on whether they adhere to biblical principles (more on that in the video); it’s that he is a Christian, has a great deal of experience and expertise in investing, and espouses a biblical approach to finances in general.

Perhaps most importantly to the investors that subscribe to the Sound Mind Investing newsletter, SMI has an impressive record of picking mutual funds and exchange-traded funds that consistently beat the market.

The Sound Mind Investing Process

SMI teaches a three-step investing process.

First, you discover your investment temperament by taking a short quiz.

Second, you figure out the most appropriate asset allocation for you – that is, what percentage of your portfolio should be in stock-based investments and what percentage in bond-based investments.  You arrive at the proper mix by using a season of life matrix that combines the number of years you have until your intended retirement with your investment temperament.

Third, you choose which of SMI’s two core strategies to follow.

Sound Mind Investing Strategies

SMI’s Just the Basics strategy is very simple.  It consists of three or four index funds that you hold for a year.  At the beginning of each year you rebalance your portfolio, making sure that your mix of stock- and bond-based investments is as it should be.  Then you sit tight for another year.

SMI’s other core strategy is called Fund Upgrading, which involves a more hands-on approach to investing.  Through its monthly newsletter, SMI regularly updates a list of four recommended funds within each of five fund categories, typically encouraging those who follow this strategy to change (“upgrade”) which funds they hold in each category about once every nine months.  As is explained more on the video, the recommended funds are selected through an analytic process known as momentum investing.

Sound Mind Investing Results

According to its December 2011 newsletter, the annual return of the U.S. stock market over the past 10 years was 4.7 percent.  That compares with 6.1 percent for SMI’s Just the Basics investment strategy and 8.6 percent for its Fund Upgrading Strategy.

How SMI has been able to consistently beat the market is the main topic I discussed with SMI executive editor Mark Biller in a recent interview that you can watch at the link above.

An online subscription to the Sound Mind Investing newsletter costs just under $120 per year.

(Note, I am an affiliate of Sound Mind Investing, so if you subscribe through the above link, I will receive a small commission.  I only use affiliate links for products or services I truly believe in.  While I am not currently following SMI’s strategies, I plan to begin using them with my retirement account within the next couple of months).

What are your thoughts or questions about SMI’s approach to investing?  Let me know by leaving a comment.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

Think Black Friday Has the Cheapest Prices?  Think Again (Time).  Worried that you might have missed something by not camping out in front of Wal-Mart after Thanksgiving dinner?  This will make you feel better.

Should I Hire a Financial Advisor or Go It Alone? (CNN Money).  Good guidance as to when you might want or need help with your investments.  I have some additional ideas on how to find a good advisor.

Credit Cards Make Shoppers Less Likely to Focus on What Items Cost (Main Street).  Just one more reason why we all need to follow the four essential rules to using credit cards wisely.

10 Ways to Stay Safe While Shopping Online (US News).  Do you know the difference between “http” and “https”?

Use or Lose Your Flexible Spending Account (Bankratre.com).  It’s tougher to use those FSA dollars for over-the-counter meds these days, but there are still plenty of healthcare expenses that qualify.

And from the blogosphere…

How Making a Gratitude List Can Change Your Life (LearnVest).  Sure, Thanksgiving is over, but now’s the perfect time to start stocking your blessing box.

The $50 Christmas Budget (One Money Design).  How to have a blast finding creative, meaningful gifts that don’t cost a ton.

The Best Way to Be Broke for Life (Bucksome Boomer).  A good reminder to choose wisely when buying a home.

7 Ways to Clear the Clutter and Find Your Life (Stepcase Lifehack).  I’m a firm believer that an organized life and wise money management go hand in hand.  If you’re buried in clutter (or just not as organized as you’d like to be), this article offers simple ideas for taking small steps in the right direction.

25 Ways to Communicate Better Today (Wise Bread).  No matter what you do for a living, a key to getting ahead is communicating well.  A 26^th tip is to ask questions.  This is a lost art.  If you cultivate it, people will enjoy being around you.

Got a question or a response to any of the above?  Be sure to leave a comment.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

80 May Be the New 65 for Retirement Age (CNN Money).  Lots of people are finally waking up to just how unprepared they are for retirement.  One simple yet incredibly helpful step to do a better job of preparing is to calculate our needs.

Your Grocery Bill is Getting Higher, and Higher (MSNBC).  What are you doing to fight food inflation?  Are you cherry picking?  Becoming a super couponer?

What Hiring Managers See When They Look at Your Resume (Main Street).  A good section-by-section review of what to include and what to leave off (MSNBC).

7 Biggest Holiday Money Wasters (MSN).  Tis the season for overspending, but not for you if you heed some of these warnings.

Social Experiment Tests How Far You’ll Go to Find $20 (US News).  Quirky experiment raises some interesting questions about how we think about money and the lengths we’ll go to get a little more.

And from the blogosphere…

The Blessing Box (Matt About Money).  With Thanksgiving approaching, I couldn’t resist including this post from my archives.  It contains one of the best holiday-related ideas I’ve ever heard – an idea shared with me by a very special couple.

Create Memories With 6 Inexpensive Experience Gifts (My Dollar Plan).  Great ideas for giving gifts that can’t be broken, won’t need to be exchanged, and are likely to be treasured long after they’re unwrapped.

The Best Free Apps For Black Friday (LearnVest).  I hate to participate in all the spending hype associated with the holidays, but some of these apps, like RedLaser, are helpful all year.

Four Ways to Include Your Spouse in Financial Planning (Five Cent Nickel).  Good reminders about how to do the whole money thing as a team.

The Three Best Financial Moves You Can Make For Your Child (Free From Broke).  I’m not sure I’d call these ideas the three best, but they’re good, and in the case of the credit score idea, creative.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.