Repair My Finances.com

With the New Year having past us by, many of us are starting to think now about our New Year’s financial resolutions, one of the major issues that most of us always promise to address it finances. Most of us find that we could make a number of improvements to our finances, whether it is in terms of managing our finances and budgeting more effectively or whether it is in terms of cutting back and streamlining our outgoings.

With 2008 well under way and our Christmas spending hitting home, now is the time to start thinking about improving our finances, so that we can look at starting the New Year on a more positive financial note. Below are some of the top ways in which you can improve your finances for 2008.

1. Streamline your outgoings

It is amazing just how much money we all waste each year, often without even realizing. If you go through your regular outgoings with a fine tooth comb you could well come across things such as unused subscriptions and useless memberships for services that you no longer really use, and you can cancel these and put the money to better use.

2. Cut back on non-necessities

Of course, we all love to splash out from time to time, but many of us tend to live a champagne lifestyle on beer money. Go through your monthly outgoings and try and make cutbacks wherever possible on non-necessities such as going out and spending on clothes. By spending a few extra nights in - perhaps cooking dinner at home for friends instead of going out for meals - and avoiding the temptation of too much retail therapy you could save a small fortune.

3. Take advantage of the sales

Although this may seem as though it is contradicting the above, you can be really thrifty by taking advantage of the sales. Watch out for them, as many shops have sales at different times of the year, and not just january. This doesn’t mean you should go out and spend on anything that looks like the price has been knocked down even if you don’t really want or need it. However, try and determine whether you will need things such as clothes for work or for the kids in the coming months, and get them during the sales when you can often get twice as much for your money.

4. Improve your financial management

If you are the type of person that hates to look at their bank balance and does nothing to monitor income and outgoings then now is the time to make a change. Keep a track on everything that goes in and out of your account, and check your balance regularly. This will help you to avoid everything from becoming the victim of fraud or theft to accruing costly bank charges for exceeding overdraft limits.

5. Review your debts

Most of us have a number of debts in one form or another, whether it is credit cards, stores cards, or loans. Take a look at how much you owe and see whether you could save yourself hassle and money each month by consolidating your debts - or in the case of just credit card debts by transferring them onto a 0% balance transfer card.

If you’re like many Americans, you face a variety of challenges every day. Most parents and some grandparents find themselves fighting a battle on two fronts: saving for retirement and college at the same time. This can be a tricky problem. Saving more money in one of the plans invariably leads to saving less in the other. Obviously you want to have enough savings to retire comfortably, but at the same time, to put your kids or grandkids through a quality college.

So where do you draw the line between taking from one to give to the other? And how do you plan successfully to find a proper balance that benefits both you and your children? That problem is highlighted by the question of whether or not you should withdraw from an IRA to help pay for college tuition. The general consensus seems to be: not if you can help it

Generally you want to have a successful enough college savings program that you don’t have to worry about finding alternative sources of money for tuition. But with sky-rocketing credit hour prices and housing costs on the rise, it’s a more difficult proposition than it was even a decade ago.

But while prices have been increasing, so have opportunities to save. Savings Accounts, Prepaid Savings Accounts, and Coverdell Accounts are just a few of the easy ways to save for college.

One advantage of an IRA withdrawal is that the money can be used for any qualifying educational expense. But, the disadvantages are obvious. You’re taking away from future retirement savings and you’re reducing the amount of earning power you previously held. You’re also faced with the fact that IRA annual contribution limits ($4,000 for 2007 and $5,000 for 2008) can make it hard to restore your previous savings level. But that doesn’t mean there aren’t ways to catch up. Currently, for people over 50, the law allows you to make extra contributions of up to $1,000 a year. While this isn’t much, it can at least help restore some of your withdrawal.

However, just as college savings opportunities have increased, so have retirement savings opportunities. Part of a comprehensive retirement plan includes investing in various types of retirement plans, including 401(k’s and private savings. In addition, your entire retirement shouldn’t be too heavily anchored in one savings vehicle, IRA or otherwise

No matter what you do, it’s usually wise to seek input from a financial professional. Withdrawing from an IRA to pay for college has a lot of unseen consequences that can harm your retirement plan and make  your golden years a bit leaner. One of your best bets is to plan carefully for college as soon as possible  for your children or grandchildren so you’re not forced to decide between retirement or college.