Crackerjack Greenback Prudent Advice for a Prosperous Future

January 8, 2009

Simple Ways to Keep More of Your Money in 2009

Filed under: Budgeting,Insurance,Retirement Planning,Saving Money,Taxes — Paul Williams @ Crackerjack Greenback @ 4:00 am

This is a guest post from Trisha Wagner. Please take a minute to check out her bio at the end of this article.

       Did the state of the economy last year leave you wondering what 2009 might have in store for your finances? Are you, like the rest of the world, resolved to make some changes to keep more money safely in your pocket or at least your savings account this year? Here are a few simple, yet successful ways to cut your expenses and save more money in the months ahead.

  • File a new W-4 Form – Are you anticipating a tax refund for 2008? If so, it is time to adjust your withholding to match your tax liability. While it is a natural reaction to look forward to that “lump sum” payment from Uncle Sam, couldn’t you make better use of your money EACH month throughout the year? Locate a withholding calculator online to calculate the correct amount of withholding, and file a new W-4 today.
  • Bump up your retirement contributions – Don’t let the recent months deter you from continuing to contribute to your 401(k) or other tax favorable retirement accounts. 2009 brings increased limits for 401(k) contributions allowing up to $16,500 with an additional $5,500 permitted if you are or will be 50 or older by the end of the year. If you can’t or don’t want to contribute the maximum amount you should contribute at least enough to kick in the employer match.
  • Open an online savings account – With so many banking options available to you today, take a few moments and research the options available online. In some cases you can open a savings account with just $1 with no monthly fees or minimum balance requirements. While you are at it, set up a direct transfer from your checking account so that you don’t even have to “think” about saving money since it will be automatically deducted into your savings account. Remember, if you do an automatic transfer from your bank account you will need to mark the deductions accordingly to avoid mistakes that can lead to costly overdraft fees.
  • Raise your insurance deductibles – This tip is fairly straight forward—raise your deductibles on your auto and home owners insurance and see a reduction in your yearly premium putting money back in your pocket. [Paul says: This is a great tip, but make sure you have enough in savings to cover the increased deductible.]
  • Get a grip on your spending – If you still do not have a budget in place for your household finances, you really have to get on the ball to see savings in the new year. This advice has been told over and over again from all financial mediums, yet I’ve spoken to people who really don’t have any idea how much money they have or where it is going. You simply cannot cut costs if you don’t know where your dollars are going in the first place. Fortunately there are many online tools available that can calculate your spending for you making it easier to see where you can begin to cut back to save some cash.
  • Ditch your debt – This is great advice any time of year, but especially important during a rough economy. Credit card companies are tightening the reins on available credit and increasing the penalties for any transgression such as going over your credit limit or paying late. If you have previously faltered on your goal to reduce your debt now is the time to re-focus and implement an aggressive plan to get out of debt.

Trisha Wagner is a freelance writer for DestroyDebt.com, a debt community featuring debt forums. Trisha writes regularly on the topics of getting out of debt and personal finance.

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