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.

Motivating Yourself to Save

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Oftentimes, learning new methods to reduce spending and save money are not enough to change habits by themselves, and you may find yourself reverting back to old behaviors before you know it. Motivating yourself to save requires setting goals and constant visual reminders of those goals. Here are some useful tips:

• Write down your financial goals and do research to find out what you need to do to get there. Set realistic timelines for achieving these goals.
• Don't be afraid to choose goals such as a new home or car. These big tickets items can stimulate your savings attitude and financial motivation.
• Create visual reminders of your goals and attach them to places such as the walls in your room, the dashboard of your car, or the background on your computer.

Along with continually learning of new ways to save, following these goal-setting tips will help you realize your dreams.

Frugal Gift Ideas

Looking for gifts that will show your appreciation but not empty your wallet? The holidays can sometimes set people off-track from meeting their goals for a successful financial future. But even small gifts can make a big impact, and with the money left over, you can make a healthy contribution to your savings. Here are some penny-pinching ideas:

• Handmade gifts are unique and easy to make. Consider creating personalized gifts such as: ornaments, tote bags, candy/cookie jars and gift baskets containing food and personal care items.
• Magazine subscriptions are gifts that give year-round. They are inexpensive and can be easily tailored to any person's interests. Search around and you may be able to find subscriptions for under $5.
• Give a recycled gift. Perhaps you have an old trinket that would make a perfect gift for someone else. These sentimental gifts can last a lifetime.

Being frugal and saving are gifts in themselves, ones that will pay off in the future. Share your holiday money-saving tips on the new Feed the Pig discussion forum, or read more on reducing your spending.

Setting Expectations During the Holidays

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Today's tough economy can provide a great opportunity for you to teach your children some powerful lessons about money and spending during the holidays. Help them learn the value of prioritizing by asking them to choose the top 3 items on their wish list. Doing so will help them identify the gifts they truly want. Remember too, when fulfilling a child's desire for gifts, it's easier to under-promise and over-deliver.

Families can steer away from pricey gifts by creating traditions such as cookie bake-offs, inexpensive family grab bags and pick-a-name gift exchanges.

For more information, read Teaching Your Child About Money.

Visit the new www.FeedthePig.org for more money-saving tips.

Safeguarding From a Closing Brokerage Firm

In light of the current economic crisis, it's important to educate yourself on the stability of your investments and where they will relocate if your
brokerage firm closed its doors for good.

In virtually all cases, when a brokerage firm ceases to operate, customer assets are safe and typically are transferred to another registered brokerage firm. Multiple layers of protection safeguard investor assets. Registered brokerage firms must keep their customers' securities and cash segregated from their own so that, even if a firm fails, its customers' assets will be safe.

Spending Less on Everyday Items

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Families often find themselves spending more than they realize but still find it hard to cut corners when trying to save. Here are some suggestions to help decrease your expenses and increase your savings:

• Forgo buying bottled water, get a water filter and drink tap water.

• Do without name brands and buy store brand
“generics” of the same thing.

• Skip the bakery goods and make your own breads and
cookies. Freeze extras.

Read more on How Your Family Can Spend Less.

Economic Stabilization Act of 2008

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The Emergency Economic Stabilization Act of 2008, commonly referred to as the 'bailout' or 'rescue' bill of the U.S. financial system, is a law authorizing the United States Secretary of the Treasury to spend up to $700 billion to purchase distressed assets from the nation's banks. The act is aimed at providing stability to and preventing disruption of the economy and financial system, and protecting taxpayers.

What this could mean for you and your savings: the new act contains many provisions which will offer tax breaks to individuals and businesses. Provisions include:

• Extension of mortgage forgiveness
• Application of tax relief to certain disaster areas
• Tax credit for electric vehicles
• Extension of deduction for state and local taxes
• Deduction for teacher's classroom expenses

The Emergency Economic Stabilization Act of 2008

On October 3, 2008, President Bush signed H.R. 1424, the Emergency Economic Stabilization Act of 2008 (the "Act"). The Act, often referred to in the media as the "bailout" or "rescue" bill, is a legislative package that is made up of the Troubled Assets Relief Program (TARP), the Energy Improvement and Extension Act, and the Tax Extenders and Alternative Minimum Tax Relief Act.

Financial Bailout Provisions

Authorization of government to purchase troubled assets: The Act creates a new Troubled Assets Relief Program (TARP), which authorizes the federal government to purchase "troubled assets" (which includes residential and commercial mortgages, and securities, obligations, or other instruments that are based on or related to such mortgages) from financial institutions either directly or through auctions.

Imposition of limits on executive compensation: In a case where the Treasury Department purchases troubled assets directly from a financial institution, the Act allows the Treasury to set compensation standards, prohibits golden parachutes, and allows the Treasury to recover "unearned" bonuses previously paid out. In cases where a financial institution sells more than $3 million through the TARP program, and participates in an auction purchase, the Act limits the annual deductible compensation to CEOs, CFOs, and other executives to $500,000, and limits golden parachutes.

Allowance of ordinary income tax treatment for Fannie Mae and Freddie Mac preferred stock losses: The Act allows specified financial institutions to treat losses incurred in the sale or exchange of preferred stock in Fannie Mae or Freddie Mac as ordinary losses. This treatment generally applies to the sale of preferred stock held on September 6, 2008, or sales or exchanges of preferred stock on or after January 1, 2008, and before September 7, 2008.

Extension of mortgage forgiveness exclusion: The tax code generally treats cancelled debt as taxable income. The Mortgage Forgiveness Debt Relief Act of 2007 excluded from gross income discharges of up to $2 million of indebtedness ($1 million if married filing separately) secured by a principal residence and incurred in the acquisition, construction or substantial improvement of the residence. The Act extends this exclusion from December 31, 2009, to December 31, 2012.

Temporary increase in FDIC insurance amount: The Act increases the FDIC and Credit Union Share Insurance Fund deposit insurance limit applicable to depository institutions and credit unions from $100,000 to $250,000. The increase will be in effect only until December 31, 2009.

AMT Relief

Another AMT "patch": The Act includes another AMT patch for the 2008 tax year. Consequently, for 2008 only, the AMT exemption amounts are $69,950 for married couples filing jointly and surviving spouses, $46,200 for single taxpayers and heads of household, and $34,975 for married couples filing separately. Further, for 2008, taxpayers can continue to apply nonrefundable personal tax credits to reduce AMT liability as well as regular federal tax liability. Additionally, the Act accelerates the application and refundability of unused long-term minimum tax credit, and provides specific relief for AMT liability that results from the exercise of incentive stock options (ISOs).

Extended Tax Breaks-Individuals

Extension of additional standard deduction: The Act extends a provision allowing an additional standard deduction for real property taxes paid by taxpayers who do not itemize that was enacted earlier this year by the Housing and Economic Recovery Act of 2008. The amount of the deduction is the lesser of the amount allowable as a deduction of state and local real property taxes, or $500 ($1,000 for married persons filing a joint return). The provision was set to expire at the end of 2008, but is now extended through 2009.

Extension of deduction for state and local taxes: The Act further extends a provision originally enacted as part of the American Jobs Creation Act of 2004, and extended through 2007 by the Tax Relief and Health Care Act of 2006, that allows individual taxpayers to elect to take an itemized deduction for state and local general sales taxes instead of the itemized deduction for state and local income taxes. The Act extends this provision through 2009.

Extension of deduction for qualified higher education expenses: The Act extends the above-the-line deduction for qualified tuition and related expenses through 2009. The maximum deduction is $4,000 for taxpayers with an adjusted gross income (AGI) of $65,000 ($130,000 for married persons filing jointly) or below, and $2,000 for taxpayers with an AGI of $80,000 ($160,000 for married persons filing jointly) or less. Taxpayers whose AGI exceeds those amounts are not entitled to a deduction.

Extension of deduction for teacher’s classroom expenses: There is an above-the-line deduction for up to $250 annually for classroom expenses paid for or incurred by an eligible educator for books, supplies, computer and other equipment, and other supplementary materials. The Act extends this deduction through 2009.

Extension of tax-free distributions from IRAs for charitable purposes: The Act permits taxpayers to make tax-free distributions of up to $100,000 from IRAs for charitable purposes through December 31, 2009. This provision had previously expired December 31, 2007.

Modification of refundable child tax credit: The Act lowers the 2008 earned income threshold for purposes of the refundable portion of the child tax credit to $8,500 (from $12,050).

Tax Provisions-Businesses

Extension and modification of R & D tax credit: The Act extends the research and development tax credit to cover expenses paid or incurred on or before December 31, 2009, and increases the alternative simplified credit from 12 percent to 14 percent of qualified research expenses that exceed 50 percent of the average qualified research expenses for the three preceding tax years.

Extension of renewable energy tax credit: The Act modifies the credit and extends the placed-in-service period through the end of 2009 for qualified wind facilities. The placed-in-service period for other energy sources such as geothermal, closed-loop biomass, hydropower, landfill gas, and trash combustion facilities is also extended through December 31, 2010. The Act also creates a new energy production category--marine renewable--which is energy derived from waves, tides, and currents.

Extension of FUTA surtax: The bill extends the Federal Unemployment Tax Act (FUTA) surtax of 0.2 percent through 2009.

Extensions of other business tax incentives: The Act extends though 2009 several business tax incentives including:

-Indian employment tax credit

-New market credit

-The 15-year straight-line cost recovery for qualified leasehold improvements and qualified restaurant property

-Deduction for charitable contributions of food inventory

-Deduction for charitable contributions of book inventory to public schools

-Deduction for corporate contributions of computer equipment for education purposes

-Qualified Zone Academy Bonds

-Rehabilitation tax credit for Gulf Opportunity (GO) Zone buildings

-Work opportunity tax credit for employers who hire employees who were affected by Hurricane Katrina is extended through August 28, 2009

Energy Incentives

Extension and modification of residential energy tax credits: The Act extends the tax credit for residential energy-efficient property from 2009 to 2016. The Act removes the $2,000 maximum limit on solar electric property. Further, the Act adds new types of equipment that qualify for the credit: (1) wind energy equipment, which qualifies for a tax credit of up to 30 percent of the cost, capped at $4,000, and (2) geothermal heat pumps, which qualify for a credit of up to 30 percent of the cost, capped at $2,000. Additionally, the residential energy conservation property credit, which provides a credit of up to $500 for purchasing energy-saving products, such as windows, insulation, and HVAC systems is extended through 2009. The Act adds two new types of improvements that qualify for the credit: (1) biomass fuel stoves with a thermal efficiency rating of 75 percent or more, and (2) asphalt roofs with cooling granules. The Act also clarifies that water heaters must have either an energy factor of at least 0.80 or a thermal efficiency rating of at least 90 percent to qualify for the credit. Note, however, that while the credit is worth up to $500 for various improvements, the credit is limited to $200 for windows and to $300 for biomass fuel stoves.

Creation of tax credit for electric vehicles: The Act creates a new tax credit of $2,500 to $7,500 for plug-in electric vehicles. The credit will start to phase-out after 250,000 qualifying electric vehicles are sold. Vehicles that qualify will need to be certified under the Clean Air Act and meet the California low-emission standards. Higher tax credits are also available for electric vehicles with gross vehicle weight ratings of more than 10,000 pounds.

Creation of tax-free fringe benefits for bicyclists: The Act provides a new tax break for people who commute by bicycle. Employers can provide a tax-free fringe benefit of up to $20 per month to cover "reasonable expenses incurred by the employee" for the purchase, improvement, repair, and storage of a bicycle that is regularly used to commute between the employee's home and office. This bicycle fringe benefit will begin in 2009.

Disaster Relief

Temporary tax relief for areas damaged by 2008 Midwestern severe storms, tornados, and floods: The Act applies and modifies certain GO Zone and Hurricane Katrina tax relief measures to the "Midwestern disaster area." The term "Midwestern disaster area" means: (1) an area declared a major disaster area by the President on or after May 20, 2008, and before August 1, 2008, by reason of severe storms, tornados, or flooding occurring in any of the States of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, and Wisconsin, and (2) determined by the President to warrant individual or individual and public assistance from the federal government for damages attributable to such severe storms, tornados, or flooding.

Courtesy of www.FeedthePig.org

Back to School And Back to Saving

With school starting, now is a good time to introduce your child to the benefits of saving. Here are some tips to help teach young children the importance of smart money habits:

Let your child set their own savings goals. Encourage your child to
divide up their money: some to put toward their goal, some
for charity and some to spend right away.

Offering them an allowance gives them their first taste of financial freedom. Experts recommend 50 cents to a dollar for each year of age.

Opening a bank account is a good way to introduce children to the concept of saving.

Saving vs. Investing

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Saving vs. Investing

If you've been following these weekly tips and saving a little each month, consider investing a portion of your savings and allow it to work for you. Short-term investing can be used for various reasons: preparing for an emergency, anticipating an upcoming expenditure, or waiting for better investment opportunities.

Long-term investing enables you to maximize your wealth by giving you the advantage of time and the power of compounding. For more information on long-term investing click here.

Cutting Costs When Grocery Shopping

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Cutting Costs When Grocery Shopping

The USDA expects food prices to rise another 4% to 5% this year alone! Even with the rapidly rising cost of food, you can cut costs on your grocery bill. Here are some thrifty ideas:

• Reviewing store circulars to identify sale items
  will help save you money.
• Making a list before you shop to ensure buying only what you and your family will eat before any fresh foods go bad.
• Buying locally grown produce generally costs less because the grower has a shorter distance to ship and their stock is usually in greater supply.
• Buying in bulk gives you the flexibility to buy the amount you need and reduces costs on money that would otherwise be spent for packaging and advertising. This means savings
  for you in the long run.

National Teach Children to Save Day

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National Teach Children to Save Day

Today is National "Teach Children to Save" Day, sponsored by the
American Banking Association. It is never too early to start teaching
your children about money and the importance of saving.

Begin by giving your young child a small weekly allowance and
explaining the concepts of saving, spending, and giving. Providing a monthly allowance to an older child is one way to teach budgeting
and money management.

National Car Care Month

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Here are some quick tips that will save you a lot of money!!!

In addition to being National Financial Literacy month, April is also National Car Care Month. Simple, at-home maintenance will save you money in the long run. With gas prices at record highs, every little bit counts. Consider these two tips that may improve your gas mileage and save you money!

1) Check your tire pressure. Most recommendations range from 27 to 32 psi; check your owner's manual to find out what is best for your car. 2) Check your air filters. Replacing a clogged air filter may improve your gas mileage by as much as 10 percent.

Why Eating In Is the Productive Choice...

You can move toward achieving many of your goals by Eating In rather than Eating Out! Last post we listed why Eating Out Is Counter Productive. This week let's look at why Eating In is the productive choice. This all starts with your goals and defining being productive as progressing in the direction of those goals. The most frequently seen personal goals related to this article are:

1. Lose Weight
2. Get Out of Debt
3. Save for something
4. Get in Shape
5. Reduce Stress
6. Eat Well

When eating in you have a much better chance of losing weight because you can make choices on what you ingest rather than eating what others put in the food that is put in front of you at a restaurant. Eating in and grabbing convenience foods or take out (for those of you defining eating in as eating anything at home) are bad choices. Having an abundance of healthy food is a good choice and easy at home. For those who don't have time to go shopping – you don't have to. Many grocery stores across the nation will deliver groceries including fresh produce right to your door.

In this era of shopping online it's a natural process. So, order your veggies, lean meats or fresh seafood, pasta, bread and fruit and eat well by Eating In.

Note: Beyond the convenience factor of having your groceries delivered to your home you avoid one of the biggest fat traps in the grocery store – the impulse buy. You eliminate the opportunity to buy that bag of fried food that is a great price and on the end cap attracting your appetite and wallet because you don't see it when you shop online.

Getting out of debt and save for something is also supported by Eating In. Eating In is far less expensive than eating out and the money you don't spend on eating out could go right into paying down your debt. Let's look at a bowl of soup for an example. Ordering a bowl of homemade-style split pea soup at a restaurant is going to cost you typically $4.50 plus a 15% tip results in a $5.17 bowl of soup. When you make a big batch of real homemade split pea soup at home, 6 servings will cost you somewhere near $8 ($1.25 per serving) to make. Savings: $3.93. Multiply that times just one meal per week and you're keeping $204.10 per year in your pocket.

You will create time to get in better shape by staying out of restaurants. Typical meals served by a waitress take an hour at least and up toward two hours for a leisurely meal. Eating in could take less than 30 minutes from prep to clean up. In our soup example that would be a meal where you made the soup on another day and heated it up today, sliced some wonderful crust bread that was delivered by your grocery store this morning, and throw the dirty dishes in the dishwasher when you're done. That time not spent in the restaurant could now be spent in the gym, on a walk, or other activity that keeps you moving.

Stress reduction from eating in could be the result of you not having to block such a big amount of time away from doing your other priorities. That is to say you will have more time to spend with your kids doing homework, taking care of yourself, getting a pet project completed, and doing something you enjoy like getting a massage to literally reduce your stress. As your humble author, I engage in stress reduction activities from biking to cooking rather than eating out often.

Why Eating Out is Counterproductive...

When time is short eating out seems to be the answer. But, eating out is counterproductive. That is to say that eating out is inhibiting you from attaining your goals rather than supporting you in reaching them. So, we should start with understanding what goals are being thwarted by eating out. Here are popular goals related to this article:

1. Losing weight (we're just 35 days from the infamous #1 New Year Resolution)
2. Building savings for anything from a vacation to buying a new vehicle to retirement
3. Eliminate debt
4. Get in shape
5. Eat Right
6. Reduce Stress

For lists of more goals see: USA.gov and RIS Media.

Linking each goal to the counterproductive impact eating out has looks like this:

1. Losing weight is foiled by eating out because restaurant food tends to emphasize the taste and not the nutrition. Hidden calories and irresistible temptations abound in restaurants. Additionally, people tend to drink weight-adding calories

1. while sitting in a restaurant for service.
2. Eating out at modest restaurants tends to cost twice to five times as much as eating a home. Although we love our coffee at the Productivity Cafe, this is vividly illustrated in a simple calculation on the cost of a cup of coffee at home vs out. Say a pound of good coffee (Starbucks Casi Cielo used in this example) costs $13 and you can make 35 cups from that pound. The cost per cup is: $0.34. Paying $1.50 for a cup out is $1.16 over making it at home or $312.50 per year. That is $4,119 every ten years. Go to the hugh's coffee calculator for your own savings. Now multiply one cup of coffee times multiple cups, full meals, soda, and other foods in your life.
3. In addition to point 2 above, these little expenses add up to money owed versus money saved or applied to reducing debt.
4. Getting in shape does not happen when eating out. Typically people spend just under an hour at restaurants during lunch hour and 1½ or more for dinners. That compares poorly to whipping up something in your kitchen for a fraction of the time (including shopping since you can shop for a week's worth of meals in one trip). So sitting around in a restaurant consumes loads of time diminishing your fitness and keeping you from activity which would enhance your fitness whether it's walking around the neighborhood or working out with your trainer.
5. Eating right or healthfully is tremendously difficult when eating out. First of all you don't know what is in the food so it could be good stuff or bad stuff. Secondly portions in America are geared to satisfy a 200+ lb. person so if you don't want to be 200+ pounds, you're getting served tpo much when you eat out and you're probably eating it. And eating at home you know clearly what ingredients are going into your recipes and can make healthful choices easily.
6. Eating out can increase your stress if you're busy because that becomes one more thing that you have to do. It's more time that evaporates rather than having a return on your investment of time.

For ways to make eating time less unproductive time, come back next Monday.

How can I reduce my auto insurance bill?

How can I reduce my auto insurance bill?

Answer:

Insurers usually base their auto insurance rates on criteria such as your age, driving record, and the type of car you drive. Rates vary from company to company, however, so a good way to save money is to shop around--you may find that another insurer offers the same coverage at a lower rate.

Some of your coverages may be subject to deductibles (money you must pay before your insurance kicks in). Raising your deductibles can also help you save money. For the most part, the higher your deductibles, the lower your premiums. Before you raise a deductible, though, you'll want to be sure you can cover the out-of-pocket expense should an accident occur. Are you more concerned with lower premiums or full insurance coverage?

Many insurance companies offer credits or discounts. For example, an insurer might provide discounts to those who have safe driving records or to those who insure more than one car with them. Check to see what types of credits and discounts your insurer offers.

To save money, you may also want to rethink your optional coverages. For example, if you have an older car in poor condition, it may make sense to drop your collision and comprehensive coverage if possible. A claim paid by your insurance company on such a car may be minimal and might not even exceed what you'd pay in premiums and deductibles.

Clean Your House For Less...

This is just a quick tip I thought I would share with you. Everyday, I use white vinegar for numerous things around the house. I clean counter tops with it, toilets, and add it to laundry to keep colors looking great! Try it, it is cheap and works just as great, if not better than any expensive cleaner I have used.

What is your "VICE?" What do you spend a lot of money on?

I love to spend money as much as the next person; however, there are my favorite things, which I refer to as "vices." My vices include skin care products, lip gloss, the latest jeans - clothes, and hair care products. Those are just a few of my favorite things. What are a few of your favorite things that you absolutely feel you must buy?

America Saves Week

During America Saves Week, February 24 - March 1, individuals are
encouraged to assess their savings progress and take action to develop and advance personal savings. If you only have a checking account, consider opening up a savings account this week. Saving a portion of
every paycheck? Review your finances and areas in which to reduce
spending to double the amount you save. The America Saves Web site is an excellent resource for additional tips and advice to help you set
aside more.

Does Money Burn a Hole in your Pocket?

Do you have an urge to splurge anytime you have some extra money?
Does your spouse or partner complain that you're spending too much money?
When your credit card bill arrives, are you surprised to you find that you charged more during the month than you thought?
Does your closet contain lots of shoes or clothes that you almost never wear?
Do you own every gadget known to man (or woman)?
Do you come home from the mall with items you had no intention of buying?
Do you spend money on things that you didn't realize you needed until you saw them on display in the store?

If you answered yes to one or more of these questions, you probably suffer from impulse spending. When people are unable to save money for the things that are really important to them, like a house, a new car, a vacation, or retirement, impulse spending is often the culprit.

If you don't have specific financial goals, it's more difficult to resist spending money on items that don't really have any meaning to you.

Once you're already saving regularly towards your most important financial goals, you may want to have a fund to use specifically for occasionally spending money on unplanned items. Then you can indulge in occasional impulse spending without jeopardizing your financial future.

Impulse spending, or recreational shopping, can put a strain on both your finances and your relationships. To overcome the urge to spend money, learn to recognize your needs from your wants. We're constantly bombarded with messages from advertisers who appeal to our psychological needs to tempt us into spending money on things we want but may not need. Allow a cooling-off period before spending money on anything you haven't planned for in advance.

One method of controlling your spending that works well is to carry an index card in your wallet. When you see something you want to buy, write it on the card. Force yourself to wait two weeks (or any other period of time you set for yourself, but at least a week) before spending the money on this item. During this cooling off period, if you see something else you want, add it to the card. However, you can never have more than three items on the card at any one time, so to add a fourth item, you have to remove one of the other items from the list. If you're an impulse spender, you'll find that you're frequently crossing items off to make room for the newest "must have" thing.

Another good rule to adopt is to pay cash whenever possible. When you go shopping, leave your credit cards at home. Most impulse spenders use credit cards more often than not. When you use credit cards, the reality of the amount of money you're spending and how you're going to come up with that money, is suppressed. When you pay with cash, it feels like you're spending "real" money.

Learn to recognize wants from needs, and practice controlling your impulses to spend your money on things you don't really need, and you'll be able to change your spending habits and end up far ahead financially.

Did you know???

Did you know that you can stretch your shampoo further??? If you mix your regular shampoo with organic apple vinegar cider, your shampoo will last longer, and you will have cleaner, shinier hair.

Did you know?

Did you know?

The U.S. Congress is currently reviewing a economic stimulus package that may provide tax payers a rebate of $300-$1200, depending on one's tax bracket and claimed dependents. While the package has not passed yet and the funds probably will not arrive for several months, the unexpected check from Uncle Sam may be your ticket to jumpstart
your savings.

Consider using unexpected income like a tax refund to pay off debt or increase your savings.

Snag Every Supermarket Bargain

To find offers that will shave big bucks off your next shopping trip: Log on to http://www.mygrocerydeals.com and type in your zip code for free access to local circulars. Then build a shopping list that includes the steals you cannot afford to miss!

Save MORE Money At The Gas Pump!

1) Keep your car in tune!
-It may seem like a nuisance to take your car in for a $50 tune-up twice a year, but regular maintenance will improve fuel efficiency, helping you save up to 20% at the pump.

2)Cut the idling!
-Letting your car idle for more than one minute, for instance, while waiting for the kids to get out of school, burns more gas than re-starting the car.

3)Go with cost-cutting tires!
-Need new tires? Opt for radials over traditional bias ply tires, and you will save up to 6% on fuel costs! Radial tires create less drag on the car, which means your car uses less gas.

Ten Ways to Save Money

Courtesy of: Money Instructor

You probably think that you can't possibly save any more money than you actually do. You live pretty much paycheck to paycheck, like the rest of us, and your meager savings is for emergencies only.

This article will provide you with a few tips to begin saving more than you thought possible, and the first trick is to rethink your spending habits!

In order to get a good idea about your spending habits compared to a society who was bent of frugality (out of necessity) you can go online and find out what saving during the depression and the war was like. Ever wonder why your Grandma saved aluminum foil and wrapped it back around the roll? My Grandmother rinsed out Ziploc baggies and turned them inside out, dried them in the dish drainer and reused them. Now I know why. Do a little research, and if you'd like, do a little research on how all the things we throw away (especially clothing) ends up in landfills and hurts the environment.

Okay, enough said about that. One of the best ways to save money is to never see it. That's where direct deposit comes in. when you sign up for direct deposit through your company, you can designate that some of your money go directly into your savings account. After working up a realistic budget, you can choose the amount and you don't have to think about it again.

Did you have a parent who threw all their change into a jar or tray each night? It's a great way to save up money. You can even get a cool, beautiful jar (at a garage sale, please, not Pier One) and make a game of filling it up. The Coinstar machines at your grocery store alleviate the need to roll your change before cashing it in, as well.

Did you know that when you over pay your taxes that you are in effect loaning the government your money-- tax-free? Just once, instead of doing your own taxes, take a tax company up on their offer to recheck past tax papers when you hire them to work out this years refund. And ask them for advice on how to save on taxes (legally).

If you raise the deductible on your insurance, your premiums will drop. Interest rates for home owners are low right now; maybe it's time to look into refinancing. Those are big expenses that you can save on. There are little expenses that chip away at money you could be saving, too. Late fees for movie rentals, ATM surcharges, That Latte you buy every morning along with your paper? Buy an espresso machine, and have the paper delivered and take them both with you out the door. You may have to get up a little earlier but that never hurt anyone. (Being caught in the rain because your car broke and you don't have bus money because you bought another latte is kind of a drag, though…)

One more:
Barter. If you like to paint and your neighbor spends a lot of time in her garden, exchange chores. Hire the neighbor boy to mow the grass, not some landscaping company! Okay, that was two, but you get the idea.

Get some cash for your used clothes...

Have you ever thought about selling the clothes that you no longer wear? Well, start thinking about it now!!! The consignment shop Plato's Closet will give you $$$cash$$$ for your gently used clothes. CLICK HERE to find the closest location to you!

Holiday Savings Accounts

As the holiday season comes to an end, are you looking at a pile of credit card receipts and wondering how to pay them off? It's never too early to start saving for next year so this does not happen to you.

Many banks offer special Holiday Savings Accounts that you can contribute to periodically or can set up to automatically withdraw funds from your paycheck. Or, when you plan your budget, be sure to include savings for next year's holiday season or any other event that you can anticipate (e.g. birthdays, anniversaries, etc).