About Financial Planning

First-Time Homebuyer Tax Credit Extended and Expanded

2009-11-12T19:03:06Z

You may have heard about the tax credit this year for first-time homebuyers, but that was slated to expire in less than a month. Well, here's some good news. Legislation was passed that extends the tax credit until next year. To make things even better, the tax credit has been expanded to include more homebuyers, not just first-time buyers. Now you may be able to qualify for a tax credit for buying a new home even if it isn't your first home. This can help a lot of people out and will hopefully stimulate the economy to help keep this recovery on track. Learn more about the details of this tax credit and see if you qualify.

First-Time Homebuyer Tax Credit Extended and Expanded originally appeared on About.com Financial Planning on Thursday, November 12th, 2009 at 19:03:06.

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Chronic Spending Problem? Debtors Anonymous Can Help

2009-11-10T20:40:24Z

Overspending and accumulating significant amounts of credit card debt isn't always easy to resolve. Over time, this problem can become an addiction that goes beyond simply affecting your finances. Just like any addiction, this behavior can negatively affect your performance at work, your relationships with friends and family, and even reduce your quality of life. If you or someone you know is in this situation, there is help available.

Debtors Anonymous is a nonprofit organization that provides free group meetings that are modeled after the Alcoholics Anonymous 12-step program. This type of group session and structure may be very well what is needed to finally break the spending habit. Learn more about Debtors Anonymous and how they can help.

Chronic Spending Problem? Debtors Anonymous Can Help originally appeared on About.com Financial Planning on Tuesday, November 10th, 2009 at 20:40:24.

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Credit and Debt Basics

2009-11-08T19:58:32Z

Borrowing money has become a part of life for most people. Unless you're sitting on a tremendous cash reserve, you'll need to borrow money to buy a home. If your car dies and you need a new replacement, you will probably finance some of the purchase. And with out of control college tuition costs a student loan might be the only option for getting an education. Taking on some debt isn't a bad thing as it's just a financial tool that helps you reach your goals. But like any tool, if it is misused you could find yourself doing more harm than good.

Understanding when borrowing money is appropriate, how your credit score is calculated, and where to go for help is important if you want to keep your money save. Here's a crash course that covers everything you need to know about credit and debt.

Credit and Debt Basics originally appeared on About.com Financial Planning on Sunday, November 8th, 2009 at 19:58:32.

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Is It Time to Refinance Your Mortgage?

2009-11-06T13:06:30Z

Mortgage rates have fallen quite a bit this year, so a common question is whether or not you should consider refinancing. The benefits are easy to understand. The lower the interest rate, the lower your monthly payment and total cost of buying a home. But before you rush into a refinance, there are some drawbacks to consider.

For starters, it costs money to refinance. In some cases, it can cost thousands of dollars. So, while you may be lowering your monthly payment, how long will it take to break even on the closing costs? Six months? A year? Three years or more? If you aren't sure whether you'll be in the house long enough to offset the cost, a refinance could end up costing you more.

Refinancing your mortgage can be a great way to save money, but make sure you consider all of the pros and cons before signing any papers. It is an important decision, and if you aren't careful, it could prove costly.

Is It Time to Refinance Your Mortgage? originally appeared on About.com Financial Planning on Friday, November 6th, 2009 at 13:06:30.

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Top 5 Money Mistakes College Students Make

2009-11-03T20:25:51Z

College is an exciting time for young adults, but with this comes a lot of financial responsibility. Between college tuition, room and board, spending money, and trying to have a good time, money can be pretty tight. Unfortunately, many college students fall into a few major money traps that can follow them around for more than a decade.

Just a few poor decisions in college can hurt your prospect of getting a car, finding a mortgage, or even landing that dream job. So, instead of getting caught off guard college students should be aware of some of the major money mistakes and make an effort to stay out of trouble. If you do, you'll be well ahead of your peers after graduation. Here are the top five money mistakes college students make.

Top 5 Money Mistakes College Students Make originally appeared on About.com Financial Planning on Tuesday, November 3rd, 2009 at 20:25:51.

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Tying the Financial Knot

2009-11-01T19:09:38Z

Combining finances can be very helpful for a new couple, but it can also be very stressful. Money is one of the top issues that create arguments in a relationship. Everyone has different priorities and values pertaining to money, so it is easy to see why money can be a hot button issue when couples don't see eye to eye.

Plan Ahead

The good news is that you can alleviate most of the problems with some planning. This means taking the time to talk about financial issues before getting married if possible. While you may currently maintain separate accounts, realize that it is important to think about what you're going to do in terms of bank accounts, saving money, paying off debt, and getting insurance before you're overwhelmed with all of these important decisions after you've tied the knot.

Communication is Important

While planning out your financial road map is important, maintaining an open and honest line of communication with your spouse is vital. One of the most damaging things you can do in a marriage is to hide and lie about money issues. Eventually, the truth will surface, and it will create an incredibly stressful and possibly harmful situation. If you are bringing debt into the relationship, be open about it. If you place importance on saving for retirement above all else, let that be known. The more open you are regarding your values and money situation, the less likely a problem will arise out of nowhere.

Additional reading:

Tying the Financial Knot originally appeared on About.com Financial Planning on Sunday, November 1st, 2009 at 19:09:38.

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Take Advantage of Your Employer's Open Enrollment Period

2009-10-30T10:35:34Z

For many employers, fall is the typical open enrollment period. It usually last a few weeks to a month and it's when you get to decide which benefits you want to enroll in or opt out of as well as how much coverage you want to pay for. This is an important time of year if you rely on your employer's benefits because once you make an election it's typically set in stone for the entire year until the next open enrollment period. If you were to make a poor choice or forget to enroll in a benefit altogether you could find yourself in quite a financial bind later in the year. Here's what to look for and how to make the most of this year's open enrollment period.

Take Advantage of Your Employer's Open Enrollment Period originally appeared on About.com Financial Planning on Friday, October 30th, 2009 at 10:35:34.

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Tips to Save Money on The Upcoming Holiday Season

2009-10-27T20:51:19Z

The holidays are rapidly approaching, and for many people, that means shopping and traveling. While this can be a hectic and expensive time of year, you can actually find ways to help reduce spending and stress. One of the best things to do is simply avoid waiting until the last minute to take care of your shopping and holiday plans. Use the next few weeks to slowly begin picking up gifts and other holiday items before it gets terribly busy in the stores. In addition to starting early, there are plenty of other ways you can save money this year.

Save money this holiday season:

Tips to Save Money on The Upcoming Holiday Season originally appeared on About.com Financial Planning on Tuesday, October 27th, 2009 at 20:51:19.

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Saving Money the Easy Way - Make It Automatic

2009-10-25T19:57:10Z

Many people think saving money is hard, but it doesn't have to be. The biggest problem is that most people treat savings as something that should be done after all of the necessities are paid. This usually means that by the time you pay all your bills, buy groceries, gas, and everything else, it feels like you have nothing left to save. That is the opposite of what you want to do. Think of your savings goal as a bill or expense -- whether it is $25 a month or $250 a month -- think of it as a bill that needs to be paid first.

One of the best ways to do this is by setting up an automatic savings plan. It doesn't matter if it is through your bank, brokerage, or retirement account, but you should be saving a portion of your income automatically. If you have to physically go to the bank and make a deposit, how likely are you to accomplish that? On the other hand, if you have $50 deducted from your paycheck every two weeks and have that money go into a savings account, how likely are you to miss it? When you don't see it, you don't miss it.

The Importance of saving and how to create an automatic savings plan:

Saving Money the Easy Way - Make It Automatic originally appeared on About.com Financial Planning on Sunday, October 25th, 2009 at 19:57:10.

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Calculating Your Tax-Equivalent Yield

2009-10-23T12:51:12Z

When comparing interest rates on things like savings accounts, CDs, and bonds, it's a pretty simple process - the higher the interest rate, the higher the return. While that is simple enough, most of the time these types of investments are taxable. That means any interest you earn is taxed, which means your actual rate of return is lower than the interest rate.

But what about tax-exempt investments like municipal bonds? In cases like this, the interest that's generated may be exempt from federal, and in some cases, state income taxes. This means the interest you earn goes entirely into your pocket without having taxes eat away at the returns. Because of this difference, you can't simply compare interest rates between taxable and tax-exempt investments. Instead, you need to calculate your tax-equivalent yield to determine your real rate of return.

Calculating Your Tax-Equivalent Yield originally appeared on About.com Financial Planning on Friday, October 23rd, 2009 at 12:51:12.

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