Spring into Action, and Save Some Green!
(2 votes, average: 4.5 out of 5)April 2, 2009 by Brandi Savitt and Stephanie Berenbaum
by the editors of Fabulous & Frugal
Spring has sprung, and it’s time for a fresh, take-charge outlook on life. Even in challenging economic times, you can shed layers of old habits and make positive changes to your life.
We know how bills, paperwork and budgets stack up. It’s easy to pretend bills are not there if they’re hiding under a stack of coupons or the recent PTA newsletter. But taking charge of your finances can actually be quick and painless, with a few tips from the editors of Fabulous & Frugal.
1. Clean Out the Clutter without Tossing Your Safety Net
Are you wondering when it is safe to throw away old bills, receipts and paperwork? When you start your spring cleaning this season, don’t neglect your finances! Here’s what you should remember:
Five years is the magic number to hold on to your tax returns and any other documentation that supports a deduction that you’ve made on a return. After the IRS has received your return, they have three years to conduct an audit. However, here’s the rub: The three-year rule is based on the IRS’ records of receiving your return, not the year for which the return was filed. So, if you happened to file late one year — even if you had a proper extension — it is much better to err on the side of caution and keep your paperwork on file a little longer.
If you are ever audited, remember: Just because you paid a bill doesn’t mean it was deductible. You must prove it by showing the actual bill or receipt — not just your credit card statement! As they say, the devil is in the details. By keeping your receipts and backing up paperwork so it’s organized and easy to find, you will go through a lot less agony if you are audited.
Twelve months is a safe amount of time to keep everyday bills on file. So once your April 2009 cable bill comes in, it’s OK to toss April 2008.
2. New Season, New Reason: Set Goals
When setting a long-term financial goal, whether that means starting a business or saving for a big purchase, write down your goals on paper! It sounds simple, but few people do it. Writing down goals helps you see your dreams and aspirations in black and white in front of you.
As you work toward attaining your goal, it’s important to keep your eye on the prize by setting smaller milestones for yourself along the way. Never forget that small actions translate into big change! Spring is a great time to clear the cobwebs from your mind, set your intentions for change and make things happen.
3. Tap Your Resources — Girlfriends!
We say create your own board of directors. So many women find themselves looking at a midlife career change or perhaps going back to work for the first time in years. We tend to overlook a wonderful resource — our talented friends, who often have excellent advice for us.
Utilize the professional women in your life as free resources by hosting a Fabulous & Frugal networking event right in your own home. Make sure your pals know the topic of discussion before you meet, so they can come prepared and stay focused.
Discussing goals and strategies with smart people who know you well can have many benefits. First, it helps you facilitate change and growth, which is the most important part of the evening. But there’s an added bonus: Because these ladies are also your friends, they will keep you focused on attaining your goals long after that first meeting.
4. Spring into Savings
Do you have big expenses looming over your head? Are you trying to save some extra cash, but don’t know where to cut down on your spending? Start by looking at your daily routine. We are not suggesting that you give up your well-deserved rituals, but we are asking you to explore them in a new light.
One woman we know calculated how much she spent at specialty coffee shops and the hair salon in a year. She was shocked to find that these seemingly little luxuries were costing her a whopping $4,000 a year! Just by making her own coffee and covering her gray roots at home with store-bought dye, she was able to save thousands of dollars a year to put toward her son’s college savings fund. It is important to remember that, often, seemingly small changes in our daily habits add up to big money down the road.
About Fabulous & Frugal (www.fabandfru.com)
Fabulous & Frugal is an e-zine dedicated to finance, fashion, design and entertaining. Editors-in-chief Brandi Savitt and Stephanie Berenbaum hope to dispel myths about finances and provide pointers for women who want to spend wisely.
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