Be a Savvy Shopper

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Be a Savvy Shopper

In today's economy, it's important to assess your needs versus wants before making a purchase. Is it something you really need or something you simply want to purchase? But remember, looking at needs versus wants alone may not be enough to keep your wallet happy and healthy. Here are some quick and easy shopping tips which may boost your savings at the end of the month:

• Beware of no interest or low monthly payment offers on large items. Missing a single payment could increase the interest rate and potentially wipe out any money saved by buying this item on sale.
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When comparison shopping, don't get distracted by how much an item has been marked down. Look at the current price and compare that with other similar items.

Considering a big ticket item? Remember to factor in additional expenses that may not be included in the ticket price, such as storage, transportation or an insurance increase.

Following these tips can help you shop smarter and save more. And always remember to contribute a portion of any savings to your retirement fund every month.

Supplementing Your Income

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Supplementing Your Income

If you've reduced your monthly expenses but still find it hard to save each month, consider additional sources of income—which doesn't always mean working a second job on the side. Look for income sources that are flexible, sustainable and enjoyable. Here are some ideas:

• Become a virtual assistant – Virtual assistants are individuals hired to perform duties online that don't require a physical presence, such as conducting research, designing websites, writing articles and making reservations.
• Start a home business – Turn your skills and hobbies into an additional income source. Home businesses are often inexpensive to start and easy to grow and promote via the Internet.
• Write a blog – Earning a little extra money can be as easy as blogging from your home. With free or low-cost blog publishing tools, you could turn a small time investment into extra savings.

There will always be opportunities to earn extra cash. Research these and other methods of earning supplemental income to help feed your emergency fund and retirement savings. Read more on keeping an emergency savings account.

Clean the Slate for a New Year

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Clean the Slate for a New Year

With the start of a new year comes the chance to leave behind any bad money habits from 2008 and start fresh with your financial goals. One of the most important things you can do to jumpstart the New Year is to take time to assess your finances. Here are some simple tips to set you on track for a financially successful year:

• If you can't afford it, don't buy it.
• Create a monthly budget and stick to it.
• Live within your means: evaluate your finances, and cut back on unnecessary expenditures. This can dramatically reduce your incurred debt.
• Keep up to date with your monthly payments, such as those for a student loan and mortgage. Missing a single month could cost you thousands of dollars in interest down the road.
• Reassess your life and car insurance policies. You could potentially save money by switching to a different company.

Commit to these and other positive financial behaviors. In one year from now, you'll look back and commend yourself for setting those goals for a successful financial future. For more information, read eight steps for rebuilding your finances.

2009 Tax Tips

2009 Tax Tips

With your 2008 tax return due just around the corner, it's time to brush up on those tax skills. Here are some helpful hints that may help you when filing your return:

• If you are self employed, open and fund an SEP-IRA before filing your tax return. You can claim the deduction in 2008, even if you make a contribution to the plan in 2009.
• If you don't normally itemize your deductions, consider "bunching" expenses every other year to exceed the standard deduction.
• Estimate your federal and state tax liabilities. If you didn't withhold enough, increase your withholding for this year's last few paychecks.
• To exempt yourself from any penalty for underestimating Federal or state taxes, it is critical is that your withholdings of federal or state taxes meet one of the following:
• at least equal to 90% of your tax liability for 2008
• at least the same as your 2007 tax liability.
• If you estimate you will owe state taxes, you can chose to prepay those before January 1, and increase your itemized deduction for 2008.

401K – 3 Things to do Before 2009

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401K – 3 Things to do Before 2009

No matter what the markets are doing, the end of the year is always a good time to assess your retirement plan. To ensure you don't miss out on retirement planning opportunities, review this year-end checklist and complete as many items as you can by December 31, 2008.

Update Your Beneficiary
Beneficiary designations are a guarantee that any benefits payable on your behalf after your death will be made to the individual of your choosing and in the manner you wish. To be certain that only your intended beneficiary does, in fact, receive your benefits in the event of your death, make sure to update your electronic beneficiary designation.

Increase Your Contribution Rate
The end of the year is a great time to increase your contribution rate – even by a small amount! Putting away a small percentage of your earnings now gives you a head start on your retirement savings.

2009 IRS Maximum Contributions
You can contribute up to $16,500 before taxes are deducted and an additional $5,500 catch up contribution if you will be age 50 or older in 2009.