Real Resolutions For 2012

Image by ElvertBarnes via FlickrWith the Christmas season nearly over it's time to make some real resolutions for the coming year. I don't mean the typical resolutions to lose weight and eat better. Those are admirable things to aim for but usually fall along the wayside by the end of January. I want you to make some important resolutions that will put some money in your pocket and make life better.

Save more in 2012.

If your not saving enough or at all, it's time to do a better job. Next year the contribution limit for 401(k)s, 403(b)s, and the federal government's Thrift Savings Plan will increase by $500 in 2012, to $17,000. Here Uncle Sam is is allowing you to save $42 more per month in your retirement account. Take advantage of this and adjust you payroll deduction when you go back to work in 2012.

Low-income savers whose modified adjusted gross incomes are less than $28,750 for singles, $43,125 for heads of household, and $57,500 for married couples may also be able to claim the Saver's Credit, which is worth up to $1,000 for singles and $2,000 for couples.

If your putting money into a Roth Ira be sure you are putting in the max. Any other money you can save, outside of retirement accounts, can be put into a nice emergency fund.

Related post: Savings Plan Pays Off

Emergency Fund.

Is your emergency fund completed yet? If not why not address it this coming year. The key to staying out of debt is to have that rainy day fund ready. It's a vital part of a financial plan. It should be large enough to cover 3 to 6 months of your living expenses.

Related post: The 4 Ways to a Better Emergency Fund

Reduce Expenses.

It's a good time to go over your monthly expenses. Maybe you have some monthly subscriptions you are paying for that you no longer use. Cancel them.

Reduce your expenses of your cable bill, phone bill, or cell phone plan. Call your providers and see if there are any cheaper plans available. Every time I call my cell phone provider I learn of a reduced plan they are offering. They won't be calling you so it's your job to be proactive.

Are there any ways to reduce your utility cost? Find ways to use less water and electric. There are many new devices that can help you cut back without impacting your lifestyle.
Related post:  How To: Create A Budget

Insurance Bills.

Insurance companies are still competitive in there rates. I recently moved my car insurance to a new provider. I not only saving  $50 per month, I have the rate locked in for the next year. Even your home insurance can be reduced by evaluating the bill. Call your agent and see if you have coverage you may not need. I recently reduced my coverage on a detached storage shed on my property. By not insuring the shed I am reducing my costs by $40 per month.

Related post:  Car Insurance Discounts Are Waiting For You

Make Sure Your Will Is Up to Date.

If you have a will make sure it is up to date. If not then make any corrections needed. If you don't even have a will make it a priority to have it done in January. The best gift you can give your family after you die is an orderly transfer of your affairs.

Have Adequate Life Insurance.

Not everyone needs life insurance. The only reason to have life insurance is to fill a financial need if you die. It may be taking care of your young children, college costs, or paying of a mortgage among other things. Check to see if the benefit is an amount adequate to fill your purpose. 

Related post:  How Much Life Insurance Do I Need?

Make the coming year better than ever by getting you finances in order. Slowly the economy is getting better. Learn the lessons it has taught us and carry them on into 2012.

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Audible.com Giving Away A Free Book For The Holiday Season

Audible.com is the website that provides quality and timely audio books for you to listen to on your computer or portable device. I have been using Audible .com for the last couple of months and really like being able to enjoy many books that I really don't have the time to sit and read. Mostly while in the car or at work I have time to listen to a book per week. 

For the holidays Audible.com is giving away the audio book, "The Adventures of Sherlock Holmes" by Sir Arthur Conan Doyle, to new and existing members till Dec 23 at 11:59PM EST. Existing members just have to go to the website and download it. If you are new to Audible.com, now is the best time to join.

Member Benefits:

· 1 audiobook per month
· Members save 30% on additional purchases
· Free previews, chapters and excerpts
· Free digital subscription to the New York Times or Wall Street Journal
· Invitations to exclusive member-only special sales and promotions
· Free daily audio newspaper subscriptions
· Now Over 100,000 titles to choose from
· Compatible with iPod, iPhone, BlackBerry and over 500 mp3 devices


When you sign up for membership you receive your first audio book free during the 14 day trial period. If you decide to not join you still get to keep the free audio book of your choice. If you join before Dec 23 deadline you get to also download the free Sherlock Holmes book.

Try Audible Now and Get A FREE Audiobook!


Further Reading : 5 Reasons Reading Books Is Important To Your Well Being

Who Can See What Is In My Credit Report?

Image via WikipediaCredit reports contain a large amount of information about consumers. In them you will find Social Security numbers, date of birth, current and previous addresses, telephone number (including unlisted numbers), credit payment status, employment, even legal information.

Credit reporting agencies are in the business of collecting and sorting your financial information for the sole purpose of selling the information to companies that need to know your credit worthiness. Many types of companies and entities can have access to your information just for the asking. Anyone with a legitimate business need can seek access to your credit report. They include: 

• Those considering granting you credit.
• Landlords.
• Insurance companies.
• Employers and potential employers (but only with your consent).
• Companies with which you have a credit account for account monitoring purposes.
• Those considering your application for a government license or benefit if the agency is required to consider your financial status.
• A state or local child support enforcement agency.
• Any government agency (limited usually to your name, address, former addresses, current and former employers).

Usually a boss or future boss needs your permission to view it. Many potential creditors ask the permission of the client. But it is not required when companies wish to offer pre-approved credit.

Most people don't even know that they can see their own credit reports. But it is your right under state and federal law. It's always a good idea to check out your own credit report on a regular basis. Every year is an adequate time frame. You are able to view your report once a year from each credit reporting agency. All you have to do is ask. And it's free.

Your Rights under Law:

• Obtain a copy of your credit report. You now have a right to a free copy once a year.
• Know who has received a copy of your report.
• Dispute inaccurate information.
• Even if negative information is included, to explain the circumstances.
• "Opt-out" to prevent credit bureaus from using your information for marketing.
• Complain to the appropriate government agency or file a lawsuit.

To order your free reports, you can call the official toll-free number, (877) 322-8228. You can also go online to www.annualcreditreport.com where you can order your reports directly. Or you can print out the form and mail your request at, www.annualcreditreport.com/cra/requestformfinal.pdf, until sometime in 2012 when CoreLogic reports are available online. Free reports may be ordered by calling 877-532-8778.

You can also contact the 3 credit reporting agencies directly.

Equifax
(800) 685-1111
Web, www.equifax.com
Experian
(888) EXPERIAN
(888-397-3742)
Web, www.experian.com
Trans Union
(800) 888-4213
Web, www.transunion.com

Six Tax Breaks Expiring At The End of 2011

Image by 401K via FlickrBefore you know it the holidays will be over and tax time will be here. As this year comes to a close several tax breaks will be ending for good. Before 2012 arrives be sure to take advantage of them.

Listed below are the six tax breaks about to expire unless Congress extends them:

1. Expenses For Higher Education.

The deduction of up to $4,000 for qualified higher education expenses won't be available after 2011. It probably is smart to consider prepaying eligible expenses for 2012. The deduction applies to tuition and fees paid in connection with enrollment at an institution of higher education during 2011 or the first three months of 2012. The maximum deduction is available to taxpayers with adjusted gross incomes of up to $65,000 for singles and $130,000 for joint filers. A deduction of $2,000 is allowed for singles with adjusted gross incomes of up to $80,000, or joint filers with adjusted gross incomes up to $160,000.

2. Adoption Tax Credit.

The Adoption Credit and Adoption Assistance Program lets adoptive parents claim a credit against their federal tax of up to $13,360 for "qualified adoption expenses" for each adopted child. Though new access to the credit expires when the program ends on Jan. 1, the rules allowed the credit to be carried forward over five years.

3. Sales Tax.

If you don't pay state and local income taxes -- a common situation for retired public employees or those living in 'no-income-tax' states like Florida -- you have had the choice of using the optional sales tax deduction to cut your federal income tax. After 2011, that option goes away. So if you're planning to buy big-ticket items like a new car in the near future, you might want to push them up into 2011 to get those last deductions.

4. Mortgage Insurance Premiums.

As of 2012, you won't even be able to take the mortgage insurance premium deduction. 2011 is the last time homeowners with joint adjusted gross incomes of less than $109,000 will be able to deduct the cost of mortgage insurance on a first or second home.

5. Teachers' Classroom Materials.

For years, K-12 teachers, instructors, counselors, principals or aides who worked in a school for at least 900 hours during a school year could claim an "above the line" deduction for up to $250 of expenses incurred for books, supplies, computer equipment or supplementary materials used in the classroom. Shop now, teachers: Starting next year, that deduction will disappear like kids vanishing from the classroom when the bell rings.

6. Energy-Efficient Home Upgrades.

Making energy-saving improvements to your home not only cuts down on heating and cooling costs, it also earns you a tax credit. For example, if you add extra insulation in your attic, replace drafty old windows with modern thermal-pane models, or install an energy-efficient heater or air conditioner, you're eligible for a tax credit of 10% of the cost, up to $500. You don't have to attach the manufacturer's certification that the property meets the requirements for the credit to your tax return, but you must maintain records that establish your entitlement. However, if you've claimed this credit for upgrades in past years, you can't do it again: It's a one-time deal.

These tax breaks should all be considered with the help of a knowledgeable tax preparer.