Top 10 Smart Financial New Year’s Resolutions

Posts Tagged ‘Saving Money’

Top 10 Smart Financial New Year’s Resolutions

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Author: The Money Coach

By Lynnette Khalfani-Cox, The Money Coach

Eliminate credit card debt. Answer this question: Do you really want to be in debt year after year and living paycheck to paycheck? If you said “No,” then it’s time to get serious about managing your money and getting rid of excessive debt. You can do it – but you must have an action plan and you must stick to it. Get help from the National Foundation for Debt Management (www.NFDM.org), a reputable non-profit agency.
Slowly set aside 3 months’ savings. If an emergency happens – from a job loss to a car breakdown – your savings cushion will protect you from resorting to credit cards. Get free wealth-building tips and pointers on how to save more at www.AmericaSaves.org.
Prepare your taxes early. Get any tax form you need from the IRS at www.IRS.gov and file your taxes ASAP. You’ll avoid the procrastination and stress, as well as the hassles and long lines, at the Post Office on April 15th. Early filers also get faster refunds.
Make a financial plan. Start writing out your financial goals and what it will take to achieve them. Get help from the Financial Planning Association (www.FPAnet.org).
Create or update your will. Nobody likes to think about his or her own death. But you can’t ignore reality. Look at the Hurricane Katrina, 9/11 or the unfortunate, 150,000+ victims killed by the Tsunami that spread across Asia and Africa. Tomorrow isn’t promised. For a low-cost will, visit www.buildawill.com or www.legalzoom.com.
Fund a retirement plan. If you have a 401(k) or 403(b) plan at work, start contributing, or increase your contribution. Learn all about 401(k) plans at www.401k.org. No 401(k) plan or you’re not eligible for it? Then open an Individual Retirement Account.
Ask for a raise. List the ways you’ve contributed to your company’s prosperity or your department’s well being, and approach your boss for a raise. The Wall Street Journal’s Careers section has tips for getting a pay hike at www.wsj.com. If you work for yourself, give yourself a raise by raising your prices or offering higher-end products and services.
Get proper insurance. Get life insurance worth 5 to 10 times your salary, and adequate coverage for your valuables and property – home, car, etc. – too. If something goes wrong, you and your family will be so glad you did. Find quotes at www.insurance.com.
Share your knowledge. Mentor a young person, teach your children about “wants” vs. “needs,” or tell a friend about some smart financial tips you have learned.
Improve your financial record-keeping. Get your paperwork in order, and keep good records all year round. This will save money in the long run and reduce your aggravation come tax time. Try the free online budgeting and record-keeping tools at www.mint.com.

Flexible Spending Accounts About to Get Less Flexible

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Author: The Money Coach

Here is a great article from WalletPop on forthcoming changes to Flexible Spending Accounts.

Flexible Spending Accounts, which allow you to use pre-tax dollars to pay for dental and medical expenses that aren’t covered by insurance, have long been favored by budget conscious consumers. That’s because money that goes into these accounts escapes income, Social Security and Medicare taxes, reducing your overall costs for your eligible expenses by about 20%, according to estimates from consulting firm, Mercer Health and Benefits.

But these accounts, known for their extremely generous list of eligible expenses and utilized by one in three employees, are about to get a lot less flexible in 2011. With new restrictions, designed to raise additional tax revenue to offset the costs of the health care reform bill, going into effect on January 1, here’s what you need to do.

Read the rest of this article on WalletPop.

Rules for flexible spending accounts change Jan. 1 (usatoday.com)
Flexible spending account benefits (money.cnn.com)
FSAs: One of the Best-Kept Financial Secrets (askamoneyexpert.com)

Here are 5 Easy and Creative Ways to Save More Money

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Author: The Money Coach

During a recent interview on ABC News NOW, Lynnette Khalfani-Cox, The Money Coach gave viewers the following 5 easy to use tips to help them save more money.

Save on Your Car: Many people don’t realize that you can refinance your car loan just as you can refinance a mortgage. A car refinancing is faster, simpler to do and costs virtually nothing. Average savings: $1300 over the life of the loan.

Save on Utilities: You can save up to 10 percent on your energy bill just by unplugging appliances when they aren’t in use. So unplug that toaster, coffee pot, or any other small item that may be on your kitchen sink when it’s not being used.

Save on Everything Online: Hop on the Internet for the best money-saving deals. Not only can you comparison shop for everything from clothing to electronics, but you can also learn how to save from savings-oriented websites like EndangeredSavers.com.

Save on Medicine and Prescriptions: Just buying generics can save big bucks. The average name brand prescription costs $100. The generic version of the average pill/prescription usually costs just $30 – a 70% savings!

Save on Household Items: We all need toothpaste and deodorant, right? Save money by buying these products in the right form. For toothpastes, reach for the tubes, not the pumps. Tubes offer more bang for your buck. With deodorants, go for the stick or roll-ons, not aerosol cans, which get used up much faster and are less effective.

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You: Refinancing? Rates on auto loans are falling, too. (washingtonpost.com)
Weekend Project: Clean Your Refrigerator for More Efficiency (greenupgrader.com)
3 Tips to Start Saving for College (fool.com)

How did Lynnette Khalfani-Cox erase $100,000 in debt in 3 years?

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Author: The Money Coach

In my book, Zero Debt, I explain how I got into debt (mainly via overspending), and also what it took to get me out of debt. To pay off my credit card bills, I used the exact same strategies I outlined in my book – getting a budget together, cutting back on frivolous spending (like vacations & dinners out), refinancing my auto loan, negotiating with my creditors for lower interest rates, doubling and tripling up on the minimum payments I was making, and using “windfalls” or “extra” money, like income tax checks and year-end bonuses from my job to pay off debt, etc.

Making Tough Choices

I also made some tough choices, like taking my two older kids out of private school and putting them in a less expensive private school. (They’re actually now in public school, and doing just great). After nearly 3 years of all this, I’d paid off $70,000 in credit card debt. Then in early 2004, my ex-husband and I sold some land we owned and used $30,000 to pay off the last $30,000 of credit card debt we owed.

In your question, you mentioned joining a debt management plan and taking on a second job. I know those were tough steps for you to take. But congratulations for doing so, because they will definitely help you become debt free faster. Lastly, I don’t know if you have a copy of Zero Debt. (The original version came out in late 2004; the updated, second edition of the book came out in 2009). In any event, in Day 25/Chapter 25 of Zero Debt, I also explained three different debt pay-off strategies that you can use to knock out credit card debt. (In my case, I used Strategy #2). Good luck in eliminating those credit card bills!

Ask The Money Coach

Posts Tagged ‘Saving Money’