Blogging for a Better New Year

By Catherine Alford of Budget Blonde

Well, we’ve traded out the holiday season for tax season! (Wait, did that deserve an exclamation mark?) Let’s just say that if you aren’t excited about this seasonal change, at least we can be pumped that a fresh, new year means some fresh, new goals. One of the great ways you can impact your financial life this year and save money this tax season and next is to use IRAs. Pull up a chair, and let’s chat a little about the options.

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By Carrie Smith of Careful Cents

Are you finally serious about investing for your future? Is saving more money towards retirement one of your New Year’s resolutions?

Awesome! That’s a really smart goal. But have you thought about how you plan to achieve it? Maybe you’re too busy to stop and think about the future. Or maybe you’re too scared to even think about where to begin.

Not to worry, I’ve been in the same position. But I found an easy strategy that helped me build wealth without breaking a sweat.

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By Michael Dolen of Credit Card Forum

Did you know that more people search on Google for credit cards during January than any other month of the year? From my experience, most of these people are looking for new cards to apply for. But I say you should consider a contrarian mindset; now is a great time to take a look at the cards you already have and whether or not you should keep using them.

Why downsize?

As we all know, credit cards can either be a blessing or a curse. They’re good if you use them for cash back and reward programs, bad if you use them to carry debt and pay interest. However there’s another negative aspect about credit cards that many people don’t think about; using too many accounts at the same time can make it harder to tell how much you’re really spending.

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By Amanda of Green Bride Guide

Much like investing, maintaining a happy marriage is all about balance.

Unfortunately, the excitement and anticipation of planning a wedding can make you forget about the marriage and life together that is to come. It’s very easy to get caught up in the present and forget about future needs. That means spending way too much on the wedding and paying for it later.

The Green Bride Guide started out as a book to help people plan an eco-conscious wedding, but many of our readers have extended their sustainable habits to every aspect of their lives. Along with the obvious environmental benefits, the green lifestyle has added financial advantage.

Couples tying the knot this year should consider planning way beyond the wedding – to life in their early years to life in retirement.

Here are 5 ways to keep costs in check:

1. Think about the future.

Planning a green wedding means thinking about a sustainable future in its truest sense. While you focus on sustainable products for your big day, consider how that plays into your future marriage. You want to preserve your relationship so it can last for the rest of your life. Financial worries can cause cracks in even the strongest of couples. Being open about your money situation now, and making a financial plan for the future will help you lay the roots for a sustainable marriage.

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By John Frainee of The Christian Dollar

How many times that have you heard that you should start investing for retirement today? You’re told that you should start investing early, and often! But is that a realistic solution to get you out of your financial rut? Perhaps not. The truth is, you should start investing when the timing is right for you.

Carefully consider how you can use your time, talents, and money to best serve you and your family. With that as your starting point, you’ll be able to formulate a customized financial plan that will work better for your unique situation. Here are some factors you should consider before you start saving for retirement.

Do You Maintain a Budget?

Making and maintaining a budget is a vital part of transforming your finances for the better. It will also help you know how much money you can comfortably put toward retirement. Too much money and you might not eat. Too little money and you might not eat later. You get the picture!

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By Ben Edwards of Money Smart Life

Getting out of a large amount of debt is not easy but if you approach it as a journey it can make the job a little easier. 

Setting Expectations

One of the benefits of approaching debt-payoff as a journey is that you don’t expect immediate results.  You know on a journey that you have some good days when you make a lot of progress and some bad days where you make no progress or even lose ground. 

For example, you wouldn’t make a New Year’s resolution to pay off $50,000 debt and expect it to be gone by the middle of January.

If you’re aware of this upfront then you can prepare mentally for the ups and downs and will be more likely to stick with it when progress is slow.

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By Joe Udo of Retire By 40

Good News! The IRS raised the contribution limit for both the 401(k) plan and IRA by $500 this year. They also raised the income limit for the IRA so if you’re borderline, you should check with the IRS if you can contribute more this year. This increased limit is great because we can save more for retirement and I’m sure many of us made a New Year’s resolution to save more in 2013.

Roth IRA

The Roth IRA is a particularly good saving vehicle for workers who are already participating in their company’s 401(k) plan. For 2013, workers can contribute $5,500 to their Roth IRA. The great thing about the Roth IRA is once you satisfy the requirement, then you won’t have to pay any tax in that account. You can also withdraw your contribution without penalty at any time in case you need some money. The Roth IRA will give you more options to deal with taxation when it’s time to withdraw in retirement. Most of us have some retirement saving in a pre tax account like the 401(k) plan. When you withdraw the fund from the 401(k) plan in retirement, you will have to pay the regular income tax rate. If you have some savings in the Roth IRA, then you can minimize tax by mixing the withdrawal and avoiding the higher tax brackets.

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By Jason Price of One Money Design

Whether you believe in setting New Year’s resolutions or not, this is a great time to pause and consider what you need to do to improve your financial situation this year. And why not do that as a family?  If you’re married, partner with your spouse to manage the family finances.   It’s also important to bring kids along with you by teaching them how to manage money wisely.

Consider these 10 tips to focus on your family finances this year-

1.  Make Giving a Priority – Was money in the driver seat last year versus you and your spouse?  If so, the best way to keep money from controlling your life is to give it away.  Consider setting some giving aside each month for your church or local charity.  Involve the entire family in setting giving goals that you can be passionate about and know you’re making a difference.
2. Commit to a Financial Partnership – If you’re married, commit to a financial partnership with your spouse.  I’m a firm believer the finances become one when couples decide to become one in marriage.  Look to combine your money into one checking account and manage it together using a spending plan.

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By Paul Vachon of The Frugal Toad

Saving is an important goal because it allows us to meet financial obligations when it comes to unexpected emergencies and to prepare for a more comfortable retirement. Saving alone will not create wealth and that is why it is crucial to be disciplined in moving savings from your bank accounts to your investment accounts.

Set Realistic Spending Reduction Goals

Lets say you spent $250 dining out last month and have identified this as one of your budget items that you are determined to reduce. In order to be successful you want to set a realistic dollar amount to cut spending by. 10% is a great place to start and in this example would mean reducing the amount spent on dining out by $25 per month, an amount I think you’ll agree is obtainable without too much sacrifice. Now unless you are eating 4 meals each day, the money saved by cutting out one fast food meal will require you to eat at home so make sure that you account for that in your grocery budget.

Automate Monthly Savings Transfer

The single most important task in turning savings into wealth is to invest those dollars before you have a chance to spend them. Sounds simple doesn’t it? As we all know it is not that simple. Unless you keep your cash under your mattress, I hope you don’t, you can setup a monthly transfer from your checking into your savings. You can start small with a $25-$50 transfer each month and increase it down the road to match your savings goal. The important thing is to set a transfer amount that you can realistically meet each month and leave it alone.

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