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.

Remember to save your receipts

Keep your sales slips for your Christmas shopping and add together to see what you need to save for next year.  Divide the total by 12 and save that much each month.  A payroll deduction that goes to a savings account is best (or easist).  Also, if you pay property taxes in December, add that amount in also.  Life is so much easier if you don't have to try to figure out where the money will come from. You'll breathe a lot easier next December. 

Do you have papers everywhere?

It is so confusing to find a paper that y ou need.  Most people file "last date on top" and end up with a whole pile of miscellaneous information.  A better way is to buy a box of manilla folders ($5-6) and make up file folders and store in a box, a filing cabinet, or a drawer.  Nothing is worse than needing a document and being faced with a huge stack of mismatched papers.  Here is a general outline for making up your files.  Use this list as a beginning and then add whatever your household needs to keep organized:

A General
     Address Lists
     Automobile -1
     Automobile -2
 B General
     Bank - Checking
     Bank - Savings
     Bank - Debit Card
     Bank - Credit Card (if at a bank)
     Birth Certificates
     Budget Plan/Finances planning
C General
     Child #1 _______
     Child #2 _______
     Child #3 _______
     Civic Association  
     Contributions
     Credit Card #1 ______
D General
     Doctor/Dental
E General
     Employment records #1 _____
     Employment records #2 _____
F General
G General
     Gift information (family and friends)
H General
     Home General
     Home - Appliances & Equipment Warranties
     Home - Small appliances, toys, etc. warranties
     Home - Gas
     Home - Electric
     Home - Telephone
     Home - Cell phones
     Home - Mortgage Company
     Home - Yard and Gardening
     Home - Previously sold properties
I General
     Immunization records
     Income Tax - previous years
     Income Tax - this year
     Insurance - Automobile
     Insurance - Home
     Insurance - Home contents (or renters insurance)
     Insurance - Life #1
     Insurance - Term
     Insurance - Medical
J General
K General
L General
M General
     Magazines, newspapers & Associations
N General
O General
P General
     Powers of attorney
Q General
R General
     Retirement information
S General
     Safe Deposit Box information
     School Information
     Social Security Information
     Stocks,  Bonds & Royalties
T General
     Travel
U & V General
     Veteranian
W General
     Wills (copy)
X - Y - Z General

Use whatever files benefit your home system  Add your own file needs to this list, cross off what you don't need and then assemble your own filing system. 

**  Another really important organizational item for me is to have a "bill box"  - a specific place where all important mail (bills, checks, short term special information) is put immediately upon entry to the house.  It should be an important hands-off location that no one messes with.  It saves so much time and anxiety when its time to pay the bill or execute the action.