Thursday, September 16, 2010

8 Great Money Moves

Assorted international currency notes.Image via Wikipedia
 
 
In today's economy confusion is the norm. So what's the right thing to do? Here are 10 positive suggestions of things to do with your money. 
 
1. Max out that 401(k) 
This is an easy one. Every dollar that you invest comes off your taxable income. Better yet if your company matches that's a 100% gain. 
 
2. Give up your vacation home. 
I know it's your favorite thing but it also is your most expensive financial burden. They cost big money to buy and we only use them only a few weekends a month. Don't forget the annual upkeep, maintenance, and taxes. 
 
3. Put $5000 into a IRA or Roth 
If you over 50 you can put $6000 and your spouse can do the same. A regular IRA cuts your taxable income and grows tax free, it's only taxable when you take it out. In a Roth, you contribute after-tax dollars, buy then it's tax free forever. 
 
4. Pay off your credit card debt. 
If your carrying a balance your paying high interest on somebody else's investment. Pocket that interest payment and stop helping credit card company's get rich. 
 
5. Fire your Banker. 
Most banks we use today have high fees. Dump them and find a nice local community bank that will look after your money for a lot less. 
 
6. Get your tax refund early. 
Make sure your withholding on your pay is correct so at tax time you don't get a big tax refund. Don't lend Uncle Sam your money interest free. 
 
7. Buy inflation-protected bonds. 
Treasury inflation-protected securities, or TIPS are boring and won't make you rich, but they are guaranteed. The U.S. Government and the coupons and principle is adjusted for rising inflation. Make sure they are in a tax-sheltered account because they are susceptible to taxes. 
 
8. Play tough with your Insurance company. 
Whether it s you car,home or boat call up your agent and ask for a reduction or shop around for better prices. Also raising your deductible can also save you money 
 
Try these money move and start saving money. 


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4 comments:

  1. Good tips. I don't have a vacation home, but I am not sure that now would be a good time to dump it. But then I am not sure anyone really knows when that best time is.

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  2. Good tips. I've done all but #2, but then I don't have a vacation house. :-)

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  3. Joe & Grouch, Maybe its a good time to buy that vacation home with todays prices dipping.

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  4. These are some excellent suggestions. I rather wish I had had access to these kinds of posts when I was younger. For people looking into modern options, you can also look at http://www.mutualfundstore.com/planning-and-retirement for more information to get you going.

    ReplyDelete

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