Are you losing money trying to save?

You probably know this, but if you overwithhold income tax by claiming fewer dependents, you will get money back on your income tax check,.  Do you realize that you will have loned the US government your money and receive no interest for it.  You could have been making some interest if you would figure up the difference and have a payroll deduction for that amount sent directly to your savings account.  Your paycheck will look the same, and you will have capitalized on this savings opportunity.

Do you know the state of your "flocks and herds" (finances)?

Several years ago, I was reading Proverbs and the one Bible verse that began my quest to find how money works was Proverbs 27:23-24.  "Be thou diligent to know the state of thy flocks, and look well to thy herds.  For riches are not for ever: and doth the crown endure to every generation?" It is very important to understand your financial picture.  You will either control money or it will control you.

Do you know how much you actually owe on each credit card or account?  Most people are only aware of how much their monthly payment is and do not know the unpaid balance.  Also, pay attention to what percentage they are adding every month to your unpaid balance.  When you are "in the know" and have the right information, it will spur you on to pay off that debt as quickly as possible.

Dave Ramsey's Debt Snowball

If you have credit card debt, you will want to discharge it as quickly as possible.  Dave Ramsey's "Debt Snowball" plan is the best one I know to accomplish this.  The strategy is to list all of your consumer debts and the minimum payment for each - car, Sears, Pennys, etc. (not house payment).  Start with the one with the lowest balance (not interest rate) and throw everything you can against that bill until it is paid off.  You must keep on paying minimums on all of the other bills.  When you have paid off #1, then take the minimum payment for it and add it to the next lowest bill's minimum payment.  You will pay #2 off much quicker.  After #2 is finished, add #1 and #2 to #3's minimum payment each month until it is paid off too.  Continue dragging all of the minimum payments from #1, #2 and #3 to #4, etc.  By now the payment will be considerable and will bring down #4 quickly.  That is the meaning of "snow ball" - it gets larger with each attack.  You may be looking at 18 - 24 months to pay everything off, but think how long it would have taken you by paying only minimum payments and having the finance charge each month continually increase your bottom line.  IT'S A GREAT STRATEGY - be sure to use it ... make yourself use it.  You'll be glad you did.  Oh, and by the way - stop charging on credit.  Pay cash or wait until you can.

Some Financial Websites to consider

Better Homes and Gardens, February 2011, listed these websites to help you make the most of your money.  http://www.mint.com/, http://www.billshrink.com/, http://www.smartypig.com/, http://www.ebates.com/.  There is another banking website which helps you find online banks that pay higher savings accounts interest:  http://www.bankrate.com/.   Any of these are helpful to spur your interest for financial change.  Take a look and see what you think.  Also, let me know if you know of other websites.  Go to http://www.robinroost.blogspot.com/ for wonderful coupon information.

Did you keep track of Christmas spending?

Christmas is the most wonderful time of the year.  In addition to the celbration of the birth of Jesus - the Savior of the world, it's full of family, fun, and gift giving.  Add a little snow and it's thrilling for young and old alike. 

Without adequate planning for Christmas expenses and giving, January and February may be a rude awakening that you overspent.  There is a solution for next year!  Take the time now to add up your Christmas expenses.  Once you know what you spent, you must divide the amount by 12 and save one twelfth each month - you will enjoy the Christmas holidays so much more.  Rather than always thinking, "we can't afford to do that!", you will have the funds to do and give like you've always wanted to but couldn't.

Next December you will have two options:  Either have the money already, or go through another fiasco like this year.  Christmas is coming whether you plan for it or not.  Do yourself a favor - make some plans.