ReAnn Rothwell’s Money Saving Ideas, Tax & Organizing Tips

If you want to take control of your personal financial situation, you probably set a few of your New Year’s resolutions to the tune of 1) saving more money, 2) investing more wisely, or 3) creating a household budget that tracks every penny in and out of your household.

I was amazed to find that many of my friends consider balancing their checkbook to be keeping up with a ‘budget’. Wrong! (smiles)

If you really have the will to take control of your finances, and have written your financial resolutions down somewhere, how are you going to start? How are you going to measure success? What will be your milestones, and will they happen every month or quarter? Things like these are requirements to succeed in being financially secure over time.

Here are a few ideas to include as you form your plan. It is almost mid-January, you know.

• #1 Track every penny you spend — this is a requirement. If you are not detailed with every aspect of your finances, get that way or seek help from somewhere to do it. One of the best advices I can give you is to write a check for everything!! DO NOT PAY CASH for anything and then track your checks. (See my post on bookkeeping by box solutions.)
• Develop a budget — very easy to do on paper or in Excel on that family PC. Download Microsoft Office Accounting Express 2008 for free! List out income and expenses and see where to cut if cuts are needed. Too many Starbuck’s visits? This will tell you.
• Get out of debt — map out your debt and starting paying off the “worst” debt (highest interest) as soon as you can. This will take years for many of you. No worries — just start NOW! .
• Spend less than you earn — this goes without saying. A budget (referenced above) will set you straight on this one.
• Open a retirement account — fund it with the minimum required if needed; just start it and send in $25 a month until you can contribute more. Find out if your employer has a plan that will match your contribution
• Finally yet importantly — get educated. The internet is a free and readily available resource for most of us. Use it wisely. Read blogs like mine. Even a few simple Google searches could lead you into a wealth of excellent financial planning information.