Friday, December 28, 2007

Last Minute Tax Moves for 2007/Retirement Resolutions

The year in nearly done but it isn’t too late to make several moves that can give you relief on your 2007 taxes. Leonard Wiener writes in U.S. News and World Report 6 Last-Minute Tax Moves for 2007. Most of them are doable regardless of what income bracket you fall under and all of them should at least be considered.

More New Year Resolutions

As if we didn’t have enough suggestions for New Year’s Resolutions Emily Brandon comes along with 10 Retirement Resolutions for 2008. I don’t really want to start thinking about retirement but I know that I need to plan for it. That’s why I’m so determined to have all of my debt paid off in the near future.

Thursday, December 27, 2007

Make 08 Financially Great!

I came across this tidbit written by Chuck Jaffe about getting ahead financially in 2008. In it he suggests that we should set goals instead of resolutions for the New Year when it comes to managing our money. He then gives nine financial goals to aim for in 08.

Here’s why this is a great idea, because we are lazy when it comes to money. I don’t know about you but if I have cash in my pocket then it is going to be spent and not saved. If I don’t pay my bills first then I’ll spend on things that most definitely aren’t priorities. I’ve said over and over again on this site that discipline in the key requirement for being debt free and building wealth. Setting attainable goals and then making a concentrated effort to reach them is a huge step in the right direction.

Good luck in 08!

Monday, December 17, 2007

Dos and Don’ts for Budgeting


I’ve mentioned the value of budgeting a few times here in this site and I can personally testify that living on a budget has allowed me to pay off thousands of dollars in debt. People often get frustrated with their budgets just because they don’t fully understand them and the discipline it takes to live on one. Here are a few dos and don’ts of finding your financial freedom by living on a budget.

Plan your budget together – Many marriages end over financial disagreements. Budgets require discipline and planning. If you fail to work as a team, with your spouse, then it literally could turn into a nightmare.

Define your financial goals – Are you looking to get out of debt or build wealth? Being debt free is the key to being wealthy so if you have any debt budget to take care of it first. Should you already be debt free, know that I’m jealous, plan to build up your wealth. If your goals aren’t clearly defined you’ll never reach them.

Don’t rush into a budget before you know how much you now spend for what – Know your spending patterns and habits are before you start allocating money for specific budget line items. For budgets to be successful they have to be carefully planned.

Do not think up countless budget headings – Budget for entertainment but don’t put subcategories with it. When planning out your budget don’t think of all the things that you could spend money on and focus on the things you need to spend money on.

Divvy up your dollars according to your family’s needs and wants – It should go without saying that needs come before wants. Take care of financially securing your needs first before budgeting for your wants.

Think first! When allocating, trimming, or adjusting budget amounts, do not jump to conclusions – Only make informed decisions when making adjustments to your budget. Guessing will only throw you off of your budget and put you behind.

Take all credit cards – except one for emergencies – out of your wallet – Credit cards will lead you further into debt! Keep only one and use it only if there is an emergency. If you have multiple credit card balances then budget to pay off the lowest one and then work your way up from there.

Plan for big expenses – You have to understand that financing expensive purchases adds to your debt and must be absorbed into your budget. Set financial goals and reach them before taking on any new debt and save up to make a sizeable down payment.

Do not cheat your budget – If you do it once it will become easier to do it again and again. Remember budgeting requires discipline but the payoff of financial freedom is worth it.

Don’t carry around too much cash because you will tend to spend it – You can’t save or allocate your money if you are carrying it in your pockets.

Thursday, December 6, 2007

PayPal’s Money Market Account


I have some business transactions that are done through PayPal and most bloggers do as well. Until recently I have withdrawn my money on a monthly basis to put it my bank’s savings account. That is until I enrolled in PayPal’s money market account! The last two months PayPal has more than doubled the interest that I am getting from my bank’s savings account and my PayPal account had less money in it.

I deposit a little money from each of my paychecks into my savings account to go towards my debt retirement and had been trying to use the money in my PayPal account to establish a savings account for emergencies, vacation or to buy something for the family later on down the road. The problem had been that when that money hit my savings account it became immediately accessible for whatever I wanted. This isn’t the case with PayPal. A withdrawal takes 3-4 days so I can’t immediately spend the PayPal money.

Currently the PayPal money market account has a 4.70% yield. My goal now is to keep that account growing by not withdrawing unless absolutely necessary. I usually have between $50 and $200 a month deposited into my PayPal account so my goal is simply to see how much money I can build up in the next sixth months. I’ll decide what to do with it over the summer.