Debt Wrench » Saving

8 Tax Strategies to Consider Before 2010

Jake Green — Sat, 19 Dec 2009 00:12:35 +0000

Working to lower your tax liability should be part of your “get out of debt” and/or “be financially free” game plan. There are a lot things you can do to save on taxes. But remember always operate with in the law. The guys over at the IRS are the last people you want to make your enemies. I found this article on mint.com. It has some good ideas that you can still implement in the last few weeks of 2009 and you can even use them in 2010. We here at Debt Wrench believe that every little bit helps when your are trying to fix your finances.

Here is the link for the article:

8 Tax Strategies to Consider Before 2010

Money Saving Blogs, Forums, Resources and Ideas

Jake Green — Fri, 13 Nov 2009 19:45:49 +0000

Money Saving Blogs, Forums, Resources and Ideas

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10 Eccellent Money Saving Tips

Jake Green — Wed, 11 Nov 2009 05:36:50 +0000

Create A Reserve Cash Fund – The first thing you need to do is to set aside a few thousand dollars for emergencies. One of the most common reasons people go into debt is that something unforeseen happens. You could lose your job, your car could break down, or you might have to pay medical bills related to an illness or accident. With a good reserve of cash you will be force to put these expenses on a credit card. With fees and interest you could spend 30% or even more for these items. It is not difficult to build this fund. Try using a company bonus, a stimulus check from the government or set aside a little each month and in no time at all you will have several thousand saved and peace of mind.
Disciplined Spending by Avoid Impulse Buying – Never buy large ticket items until you have had at least 24 hours to think about it and talk about it with your spouse or a trusted friend or family member. Let the person you talk to know that you are trying to improve your financial situation. This will help you take the emotion out of the purchase. When grocery shopping, always use a list and get in and get out. Be a “hunter” not a “gatherer”. Don’t buy things that are on sale just because they are cheap. You don’t save anything on an item you don’t need. If its was half off of $100, you didn’t “save $50″, your spent $50!
Better Your Credit Score - When you have a higher credit scores you can lower interest rates on mortgages which can save you tens of thousands of dollars over the life of a loan. Always pay regularly and on time, get your debt under 30% of your available credit line, avoid closing older, more established accounts and have about four or five sources of credit that you pay on a regular basis. To get a ball park figure on your credit score try this calculator. Credit Score Estimator
Change Your Paycheck Tax Withholdings – You can increase your withholding allowances with your employer if you are getting a tax refund each year. Rather than give that money to the government interest-free for a year, you can receive that money now with each paycheck. Use the money to pay down high interest debt. Here is a calculator you can use to see if you should adjust your withholdings. Should I Adjust My Payroll Withholdings?
Sell Things That You Don’t Use – Get some extra cash by listing items that you haven’t used for over a year for sale on EBay or CraigsList. Then apply the proceeds from the sale towards your debt elimination plan. Garage sales can also help. You can also exchange items with friends and family for something that you would have spend money on. This will also free up some cash for an extra payment on a debt.
Find Your “Latte Factor” – David Bach, author of the Automatic millionaire call the idea of eliminating the small purchased that we make every can add up to big savings. If you kick a $5 a day gourmet coffee habit you can save $1,825 per year. That is an extra house payment. Maybe your Latte factor is smoking, soda, or going out to eat frequently. If you take the time to examine your spending habits you can find any extra $5 dollars a day. You might even see some health benefits. This extra money can used to help implement a biweekly payment schedule instead of monthly on your mortgage. Should I Convert to a Bi-Weekly Payment Schedule?
Find More Ways to Save – There are lots areas in your life you can find saving. You take a your own bag lunch to work, skip the morning Starbucks and brew your own, cancel a few magazine subscriptions, go longer between haircuts, give up the gym membership for free jogs in the park, shop less frequently or be more prudent where you shop, avoid vending machines and door-to-door solicitors, make birthday/christmas gifts rather than buy them, you get the idea. What Is The Value Of Reducing, Postponing or Foregoing Expenses?
Use Public Transportation – save hundreds of dollars a year by using public transportation rather than spending it on costly fuel and auto maintenance.
Save On Utilities – Try lowering your thermostat a little in the winter and raise it a few degrees in the summer. Take advantage of credits offered by local utility companies for increasing your insulation. When buying appliances buy more energy efficent appliances. Turn down the water heater. Turn off lights when not being used. Unplug appliances when not in use. Return the extra garbage can to the city if you are not filling it up each week.
Bundle Services and Shop around for Insurance – You will find that many companies allow you to bundle telephone, internet and TV services and realize significant savings. Or you could consider dropping the services that you do not really need. Insurance rates vary greatly from provider to provider. You should shop around for the best auto, home, and life insurance rates.

The National Debt Clock And Americans Poor Saving Habits

Jake Green — Sat, 31 Oct 2009 23:00:39 +0000

Just to underscore how big the problem of debt is in our country. Just take a look at the gross national debt and how fast it is growing.

The Gross National Debt:

It seems that the majority of U.S. citizens have followed suit. Here is some statistics. Even though this information is a few years old it will give you a good idea of what we as nation and as individuals are up against.

The state of the Union:

According to the Wall Street Journal nearly 70% of consumers live paycheck to paycheck
A Marist Institute poll published in the USA Today stated that 55% of Americans always or sometimes worry about their money
In the new millennium, the personal savings rate in America fell to -2% the lowest in 60 years, according to the Department of Commerce
According to Automatic Data Processing, Inc., 20% of workers would not be able to make a mortgage, utility, or credit card payment if they missed a paycheck
Money magazine states that 75% of families will have a major negative financial event ($10,000) in any ten-year period

How we as a nation save:

More than 40% save less than 5% of their annual household income
16% save between 5% – 10%
Only 9% save greater than 20% of their annual income

Among all workers, 45% have less than $25K in savings and investments (aside from equity in primary residences). 64% have less than $25k in savings (age group 25-34)
According to CNN, the average credit card debt per household reached a record $9,312 in 2004. That’s an increase of 116% over past 10 years
Approximately 35 million Americans pay only the required minimum (about 2%) of their balance each month

We here at Debt-Wrench.com think that even though the numbers look grim, we can overcome them one person at a time, one bit of financial education at a time, and one dollar at a time. So don’t be scared by the numbers. Don’t be intimidated by how bad your financial situation is. Let the numbers and statistics motivate you to take action now and learn more. As you learn more you can act fast and act correctly to eliminate your debt.

Debt Wrench » Saving

8 Tax Strategies to Consider Before 2010

Money Saving Blogs, Forums, Resources and Ideas

Money Saving Blogs, Forums, Resources and Ideas

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10 Eccellent Money Saving Tips

The National Debt Clock And Americans Poor Saving Habits