Looking for money management recommendations to improve your financial positions and to solve cash problems ? Many of people have tax-deferred investments like 401(k)s on which you pay no taxes until retirement—when tax brackets are assumed to be lower. But retirees are taxed on their retirement income when they start drawing money out of their 401(k)s and IRAs, and they can really take a bite from seniors living on fixed incomes. Warns financial advisor Saranovitz, “You must have a tax-efficient withdrawal strategy from your portfolio.” For example, you could move taxable stock investments into bonds before retiring; buying municipal bonds from your home state could help you avoid paying federal, state, and local taxes.
Separate Your Savings From Checking Account: You’d be surprised how many people do not do this. But a simple personal finance tip, move what you want to save to a separate account. Whether that is a savings account at the same bank or a different bank where you don’t touch the money unless for emergencies. I like the online savings builder account from CIT Bank. See additional info at Make Money.
It sounds simplistic, but many people struggle with this first basic rule. Make sure you know what your job is worth in the marketplace, by conducting an evaluation of your skills, productivity, job tasks, contribution to the company, and the going rate, both inside and outside the company, for what you do. Being underpaid even a thousand dollars a year can have a significant cumulative effect over the course of your working life. No matter how much or how little you’re paid, you’ll never get ahead if you spend more than you earn. Often it’s easier to spend less than it is to earn more, and a little cost-cutting effort in a number of areas can result in big savings. It doesn’t always have to involve making big sacrifices.
Communicate With Your Significant Other: Notice how I wrote significant other; this financial tip doesn’t just apply to married couples. Money fights can affect any relationship. The best way to avoid fighting about money with your S/O is to talk to them about it. Remember that you’re a team! You should be talking to each other about your financial goals, and you should set a date once a month to go over your finances together. I recently started doing a monthly money meeting with my girlfriend and it’s actually been pretty fun. We get to see where each other are at with our financial goals and we keep ourselves motivated to accomplish those goals. The bottom line? Don’t let money ruin a great relationship. Source: http://aspiretomoney.com/.