So, it's tax time. The good news is refunds are about 6 percent over this time last year. So far, the IRS has processed refunds for nearly 39 million taxpayers to the tune of $102 billion dollars. That works out to an average of $2,650 per refund. Sounds like a bundle? Well, one thing you need to understand about tax refunds is that they're larger earlier in the season — that's because people who know they're getting money back have an incentive to file, rather than leaving their hard-earned cash in the coffers of Uncle Sam.

The big question is: What do you do with all that dough? My suggestion. Something good for yourself. Sure, you may feel a need (or at least a desire) to splurge a little bit. We'll talk more about that in a minute. But just take a look at the good you could do for your life, your finances, your psyche or all three by taking any of the following suggestions:

• Make an IRA contribution. For a while now, we've been telling people to file electronically and have their refunds direct deposited. This is the way to get money owed you back inside of two weeks. This year, for the first time, the IRS is allowing you to direct deposit your refund not just into a bank account, but into an IRA, a Roth IRA, a SEP IRA (for self-employed individuals), a health savings account or a Coverdell education savings account.
  
  You can also split the refund and deposit it in a couple of accounts at the same time. To do this, you'll need IRS form 8888, which is new, but like all forms available at IRS.gov. A couple of caveats. If you are using your refund to make your IRA contribution make sure you let the custodian of your account — the brokerage firm or bank -- know what year the contribution is for. And if you intend the contribution to be for the 2006 year, don't delay. If the refund doesn't arrive until after April 17, it will only be able to be counted for the 2007 year. I am a huge fan of this. And here's why:   
  
  EXAMPLE: A 30-year-old puts $2,650 in an IRA and invests it in stocks. The money grows at 8 percent a year. At age 65, it will be worth $43,175. Make the same contribution every year and you'll have $531,434 at retirement.

• Pay off debt. Think of it this way: When you use your refund to pay off debt at a particular rate — like 15 percent or 20 percent or 25 percent —and you get the equivalent of a 15 or 20 or 25 percent return on your money. The higher the interest rate you're paying on your debt, the more it makes sense to use the money to pay it down.
  
  EXAMPLE: Pay off $2,650 on a credit card charging 20 percent interest. Save $530 in interest a year. Start an emergency fund. An emergency cushion is KEY to staying out of debt. If you have savings you don't have to charge it if the transmission goes, if your roof leaks, or when your quarterly insurance premium is due.
  
  EXAMPLE: Put your $2,650 in a savings account earning 5.3 percent. Earn $140 in interest a year. Make an extra mortgage payment. Make one extra mortgage payment a year and you'll cut the term of a 30-year fixed rate mortgage to roughly 24 years. That's hugely helpful, particularly if you are going into retirement with a mortgage.
  
  EXAMPLE: $2,650 is the mortgage payment on a $442,000 30-year fixed rate loan at 6 percent. Over the loan, pay $512,000 in interest. Make one extra payment this year (once) and you'll save $12,000 over the life of your loan and shorten the term of your loan by five months. Make one extra payment EVERY year and you'll save $104,000 in interest over the life of your loan and shorten the term of your loan by five years.

• Do something for your psyche. $2,650 could pay for a course that refreshes your career skills, a year's membership at a great gym, 18 to 20 sessions with a life coach, or a basic estate plan (including wills, basic trusts, healthcare proxy, living will and a sizable term life insurance policy). Making a contribution to charity is also great for your soul —givers tend to be happier people overall, whether they are giving money, giving time or giving away old things. Just remember that this year items that you give away have to be in good enough condition that you'd be equally likely to hand them down to a family member or friend.

• Need a splurge? Split the difference.  If you're just dying for a few days on the beach, a spring wardrobe, a plasma television — well, chances are I'm not going to be able to talk you out of it. But maybe I can talk you into splitting the difference. $1,325 could: earn you $21,587 in an IRA by retirement save you $265 in credit card interest earn you $70 in a savings account and make you feel like you did something GOOD with your money.

• FINALLY. Change your withholding. This exercise is a lot of fun. But you'll put more money in your pocket over the long haul by NOT giving Uncle Sam an interest free loan to begin with. So, change your withholding and then start automatically funneling an equal amount into your choice of savings vehicle — or to pay down your debt or your mortgage throughout the year rather than once a year.

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit Christian Credit counseling   organization dedicated to helping consumers achieve financial wellness through Christian credit counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and Christian credit counseling.  Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show “The Money Mentor”, Greg McTaggart is a qualified Christian Credit Counselor to help you.

Click Here to Schedule an Online Consultation with a Trained Counselor

I completely understand that too many people today simply can't make ends meet with the salary they're earning. If that's the case, it's time to consider ways to grow your income.

Meet the Egglestons

Meet   Dan and Sally Eggleston. Dan and Sally are both elementary school teachers earning a combined income of $92,000, and live in Indiana, where they're raising three wonderful kids. When I first met them a year ago, they were $100,000 in debt and on the brink of bankruptcy.

Working together, we managed to find ways to cut back on about $500 of unnecessary expenses each month. That was a great start. But due to the huge amount of debt Dan and Sally had accumulated, they had to do more.

In order to make measurable progress toward paying down all their debt, they not only needed to seriously cut back on their expenses, they also required a solid plan to grow their income by at least 10 percent over the year. The Egglestons didn't just succeed -- they crushed my goal by growing their income by over 20 percent!

Grow Your Income, Not Your Lifestyle

I'm going to coach you through the same steps I used for the Egglestons, but first I want to stress an important point that can make or break your success.

Please read closely: Earning more money won't make a bit of difference if you don't save it or apply it to paying off your debt. Many people fall into the trap of "the more you make, the more you spend." It's a vicious cycle that will keep you living from paycheck to paycheck regardless of how high your salary is. The bottom line is that you've got to grow your income, but not your lifestyle if you want to make financial progress.

Now for the five steps the Egglestons followed to grow their income:

1. Change your thinking by asking better questions.

Often, when we're struggling financially we ask the wrong questions. Asking negative questions like why you're always broke or can't get a raise can lead to negative answers. If you believe you can't make more money and consequently do nothing to change, you'll prove yourself right. If you think it's just too hard, it will be.

But if, instead, you empower yourself by asking, "What can I do to make more?" then you'll change your life. I asked Dan and Sally, "What can you do to earn more money" They focused on the answer, and together we went to work on their plan.

It took a lot of work (theirs, not mine): Dan picked up an additional coaching job and grew his summer lawn-care business, while Sally picked up summer school teaching jobs and started a mini-eBay business. It wasn't easy for them, but they did it.

2. Start a side business.

Starting your own side business for extra money doesn't have to be complicated, nor does it have to take a lot of money.

For instance, a few years ago Dan started his own lawn-care service in the summer months with just a lawnmower. He created some flyers, knocked on a few doors in the neighborhood, and soon enough he was in business. Sally taught herself how to open an eBay seller's account and in a matter of hours started selling used clothing online.

Depending on your interests and abilities, there are all sorts of things you can do to develop an additional income stream. You can perform a service (like painting houses or editing resumes), make something and market it (like cookies or jewelry), and buy something and resell it (think eBay or Amazon.com).

You can even turn a hobby into a side business -- if you cook you can cater, and if you sew you can do tailoring. Be creative and see what else you can come up with.

3. Raise your rates.

If you have a business or service you offer right now, raise your rates. It's the fastest way I know to earn more money, and it helped Dan immediately.

He'd been running his lawn-care business for five years, and not once in that time had he raised his fee. I coached him on how to go about increasing his rates without losing business.

He started out by writing a letter to his customers, letting them know how much he appreciated their business and loyalty over the years. He simply shared with them that in order to keep up with the rising cost of gasoline and other expenses, he would be raising his rates by 10 percent this year.

Dan not only retained all of his current customers, but got a few new referrals as well. The business ended up pulling in an additional $2,000 in profits compared to the previous year.

It's time give yourself a raise. If you think your customers wouldn't stand for it, consider Dan's experience. Right now, someone somewhere is raising the price he charges for his services. Why aren't you?

4. Get extra work -- at work.

As I mentioned before, Sally and Dan are both teachers. Sally asked her district about teaching summer school and landed a position that earned her an extra $4,200. Dan signed up to coach his school's baseball team and earned another $4,900.

You don't have to be a teacher to find opportunities like these. Ask about overtime or additional projects that you might be considered for. Can you increase your hours or work an extra shift? You won't know until you ask.

5. Get a raise.

Unfortunately, if you work for a union or government agency, this advice might not apply.

But for everyone else, nothing will increase your income faster than getting a raise. Dan recently completed his bachelor's degree, which earned him a whopping 30 percent increase. While you may not have earned a new degree, getting a raise can still be as simple as asking for one.

Start by preparing yourself for a meeting with your boss. Know exactly how much you want to ask for, and consider putting it in percentage terms. A humble request for a 5 percent raise starting in the next 90 days may be easier for your boss to handle than a demand for $2,500 more per year -- even if both amount to the same thing.

Have confidence in yourself. After all, you're a hard-working, dedicated employee, right? Consider that it will probably cost your employer more to replace you than it would to give you the raise you deserve.

Share Your Story

The Egglestons' story has a happy ending. They managed to grow their income by $19,000 in 12 months, and they've paid off $26,000 in credit card debt so far and are well on their way to becoming millionaires. Dan and Sally took a seemingly hopeless situation and turned it into a true success story -- and you can too.

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit Christian Credit counseling   organization dedicated to helping consumers achieve financial wellness through Christian credit counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and Christian credit counseling.  Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show “The Money Mentor”, Greg McTaggart is a qualified Christian Credit Counselor to help you.

Click Here to Schedule an Online Consultation with a Trained Counselor

If you're one of millions of Americans who are on the other side of 40 and don't yet have a substantial retirement nest egg, don't despair. It's not too late, but time is of the essence.

1. Estimate roughly how much money you'll need to live on in retirement. Don't get bogged down by conflicting advice on how to calculate the amount. A ballpark figure is a good starting place, and you can use one of a number of good online retirement calculators to get an estimate.
2. Once you have an idea of how much you'll need for retirement, calculate what will be available from sources other than your savings. For example, what is your expected Social Security benefit at retirement age? Do you or your spouse have a pension from a previous or current employer? If you have a 401(k) plan, what is its expected value at your planned retirement age? Use a conservative rate of growth to avoid overestimating.
3. Set goals for reaching the amount you'll need to make up the difference between Social Security, pensions, and any other retirement funds you already have.
4. If your employer has a 401(k) or 403(b) or other voluntary contribution retirement plan, and you're not already participating, sign up today and try to contribute the maximum allowed by law.
5. Remember that the tax savings on your deductions will soften the blow. If you're in a combined federal and state income tax bracket of 35%, your contributions will only cost you 65 cents for every dollar you put into your account.
   The maximum contribution for 2006 is $15,000 for those under 50 years old and $20,000 for those over 50. If you're currently 45, you have 21 years until retirement. Your $15,000 a year contribution will grow to nearly three quarters of a million dollars (pre-tax) in 21 years at a seven percent rate of return. (This is a very rough estimation that depends on if you contribute the "catch-up" amounts each year and other unknown factors.)
   If your employer matches a percentage of your contribution, that's free money you should never pass up. Add your employer match to your own retirement contributions and you'll have a tidy additional sum of approximately $364,000, assuming a 50% employer match, for a total of well over one million dollars.
6. Go for the Roth. If you make under the income thresholds, you can contribute to a Roth IRA in addition to your 401(k) or 403(b) plan. The contribution is not tax deductible, but the earnings will be tax-free in retirement. The maximum contribution for a Roth IRA in 2006 if you're under 50 years old is $4,000 ($5,000 if you're over 50). $4,000 a year will grow to nearly $208,000 in 21 years at a 7% rate of return, and you will owe no taxes on any earnings in your Roth IRA.
7. Don't Be Too Conservative. Even at 45 or 50 years old, you have several decades for your retirement earnings to grow, so invest a large percentage in carefully researched, proven stocks, or better yet, mutual funds.
8. Consider relocating or downsizing. If you live in an area with a high cost of living, moving to a less expensive area and investing your savings for retirement could make a big difference in your ability to amass a nice nest egg.
   If your kids have left the nest and you're still living in a big house that has appreciated in value, consider selling it and buying a smaller, less expensive home. You'll save not only on your mortgage payment, but in less obvious places like the cost of heating, cooling, insuring, and repairing your home, property taxes, etc. You can sock all the savings away for retirement or use some of them to enjoy your life now.
9. If you're worried about ever being able to amass enough money to retire, consider taking on a second job and investing your earnings.
10. Play catch-up. The tax laws now allow those over 50 to contribute a little extra to 401(k)-type retirement plans and IRAs, so they can do a little catching up as they near retirement age. Take advantage of this if you're over 50.
11. Get out of debt. If you carry thousands of dollars of credit card balances and pay the minimum payments each month, your potential retirement savings is going directly to your credit card company in the form of interest. Paying only the minimum payment on credit cards is one of the worst financial mistakes you can make. Start applying as much as possible to your credit card balances and once they're paid off, resolve to pay the balance in full each month. You'll be amazed at how much money it frees up for retirement savings over time.

The older you are when you start seriously saving for retirement, the harder you'll have to work at it, but it can be done by following the advice above, so don't let doubt or discouragement keep you from starting right away, regardless of your age.

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit Christian Credit counseling   organization dedicated to helping consumers achieve financial wellness through Christian credit counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and Christian credit counseling.  Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show “The Money Mentor”, Greg McTaggart is a qualified Christian Credit Counselor to help you.

Click Here to Schedule an Online Consultation with a Trained Counselor

Often, when I'm out giving a speech, I'll ask people in the crowd about the excuses that are holding them back. Trust me, I've heard them all, but one of the most frequent answers is that people are just too disorganized to deal with their money.

It makes sense. Clutter makes us feel out of control. How can you confront your finances when you can't even find your bank and credit card statements amid the sea of paperwork in your home? How do you pay your bills on time when you can't locate them?

"I go into hundreds of houses, and the thing that constantly surprises me is the lack of awareness of the connection between the clutter that fills your home and the problems that you have with personal finances," said Peter Walsh, the organizer on TLC's Clean Sweep and author of

"It's All Too Much: An Easy Plan for Living a Richer Life with Less Stuff" (Free Press, 2006).

A lack of organization in your home can lead to higher interest rates, bad credit, costly late fees — the list goes on. It also costs us time spent searching for things we've misplaced or rearranging the piles on our desks.

So why not get organized, and eliminate this excuse right now? It can be a tough project to tackle, but as you begin to make progress, you'll find that you feel happier — both with your finances, and with your life.

Weed out junk mail. Call 888-5-OPT-OUT (888-567-8688) and remove yourself from the mailing lists of creditors. This phone number is run by the three major credit reporting companies — Experian, Equifax and Trans Union — and calling will give you the opportunity to get out of those unsolicited credit card offers you receive in the mail.

If you're a little skittish and think you might want offers in the future, only opt out for two years otherwise, you can delete your name from the list permanently. Note that the representative will ask for your social security number, and in this case, it's okay to give it out — you called them, and it's just for verification purposes.

Control what comes in. If you allow unnecessary mail, papers and magazines to cross the threshold and come into your house, the chance that you'll throw them away before they add to the mess is slim. So position a trash can in the garage and go straight from the mailbox to that can, tossing immediately anything superfluous.

Walsh also believes magazine subscriptions should be limited to three and that you should keep no more than two back issues at a time. If you haven't read it yet, chances are you're not going to.

Bank online. This is a no-brainer. Managing your money online will literally change your life. It will take some getting used to and a little bit of time to set up your account, but once you do it, you'll truly save time (about two hours a month) and money (not just stamps, but late fees as well). If you have bills that reflect set amounts each month (think your mortgage or gym payment) you can schedule payments to go out regularly with plenty of time to spare.

With variable bills, just log on and write out the check a week before it's due — the bank takes care of the rest. You can also keep track of your spending this way, so you know exactly how much money is going in, and more importantly, how much is going out so you can reduce debt.

Cut out the bargain shopping. We are a society that simply cannot resist a two-for-one deal, noted Walsh. "You can't buy and buy and buy, even if it's in little increments, and not erode the total amount of money you have. The concept of getting a deal is so eminent in this country that people just fill their homes with inexpensive stuff."

If you look around your apartment or house and see a lot of things but very little value, you're guilty of this. Its one thing to get a good deal on something you need, but quite another to buy something simply because it is a good deal. The key is recognizing a difference.

Launch a system. First, you should have a set place for your mail to hang out (for a day or two, no more!) until you get a chance to take care of it. Then, get yourself a twelve-month expandable file. Each month, file away bills after they're paid, said Walsh.

Keep your wallet and tote bag clear of clutter by saving receipts in a particular envelope or compartment, or even on an inexpensive accounting spike. At the end of the month, you can reconcile them with your bank or credit card statements and then — yes — throw them away.

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit Christian Credit counseling   organization dedicated to helping consumers achieve financial wellness through Christian credit counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and Christian credit counseling.  Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show “The Money Mentor”, Greg McTaggart is a qualified Christian Credit Counselor to help you.

Click Here to Schedule an Online Consultation with a Trained Counselor

Split your normal monthly amount to help save money. ‘Today’ financial editor Jean Chatzky explains how you can beat some finance charges. Tired of paying so much in finance charges to your credit card company each month? Here's a solution you may not have considered: Make biweekly payments.

This is how it works: If you're the sort of customer that carries a balance on your credit card (and these days, most customers do), card issuers typically charge you interest on a daily — that's right, daily — basis. Lowering your balance sooner rather than later, therefore, means that over time you pay less interest. Submitting half payments every two weeks rather than a bigger payment once a month will do the trick.

“The sooner your payment gets there, the sooner your average daily balance goes down and the less interest you will pay,” says credit card expert Gerri Detweiler, co-author of “Slash Your Debt: Save Money and Secure Your Future.”

There's another advantage to going biweekly as well. If you pay half of your monthly bill every 14 days, by the end of the year you will have made 26 payments — the equivalent of 13 monthly payments or one more than the 12 you would have made by sticking to the traditional bill schedule. (This is the same reason that making biweekly mortgage payments cuts a 30-year mortgage down to a 23-year mortgage).

Before you start mailing in additional checks, however, call your credit card company to make sure it allows you to submit your minimum payment in two separate payments. Catherine Williams, vice president of financial literacy at Consumer Credit Counseling, says that not all issuers will credit multiple payments to your monthly minimum. If you're going to make the effort, you want to be sure.
Once you get the go-ahead, here's what you need to know to plow ahead:

• No sign-up required. Unlike biweekly mortgages, you do not have to alert your credit card company that you're planning to do this, says Williams. There's no sign-up required and you will not receive a statement every two weeks. What that means is that you'll have to make some payments without a payment coupon. That is why the best way to pay the bill is online. This will prevent any confusion about which account gets credit for the check. Also, you can monitor your account online to make sure your issuer credits the payments. The law generally requires credit card companies to post a payment the day the issuer receives it.
  Note: If you avoid banking online because you worry someone will steal your identity, remember that research suggests you face a higher risk of identity theft offline through a paper trail than you do online. If you still wish to make payments through the mail, and you do not have a stub to enclose, Detweiler recommends writing your account number on the check and enclosing a short note with the account number as well. (Although I usually do not advocate writing your account number on your checks, credit card companies recommend it in this instance to make sure your payment is credited to the correct account.)
• Decide how much to pay. The biweekly method is most powerful when you pay every 14 days, and you continue to pay the same amount. So as you pay down your balance, do not begin making smaller payments. Pay half of today's minimum balance with each check until you completely pay off the card. For example, according to Detweiler, if you charged $5,000 on a card with a 17 percent interest rate, that makes your monthly payment at least $100. So if you pay $50 every two weeks, you will cut your interest by $8,149 and be debt free in six years and 14 weeks (that's 34 years faster than if you had simply paid the minimum monthly payment).
• Figure out if it's right for you. This method proves most effective with large balances on high interest rate cards. If you carry a smaller balance, biweekly payments won't make that much of a difference. You must also be committed to cutting your spending (or at least your charging). “If you are serious about getting out of debt and trying to save some money by using biweekly payments, hopefully you are not charging anymore,” advises Detweiler.
• Get organized. The method may prove difficult for the unorganized. One of the trickiest parts is sticking to the 14-day schedule. If you fall behind in payments, you will face late fees. Set up an electronic transfer every other Monday (especially if you get paid every other Friday) so that the bill automatically gets paid.
  Finally, remember as you try to get out of debt, this is but one of the tricks up your sleeve.
  Continue to pay as much as you possibly can toward your highest interest rate card. And track your spending to cut out frivolous costs you weren't even aware you were incurring.
• Have a back-up plan. And if you decide — at the end of the day — that you don't possess the organizational skills required to make biweekly payments, pay your monthly bill as soon as it arrives. That will also save your money. The earlier your payment arrives the sooner your daily balance goes down, and the less interest you will incur over time.

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit Christian Credit counseling   organization dedicated to helping consumers achieve financial wellness through Christian credit counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and Christian credit counseling.  Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show “The Money Mentor”, Greg McTaggart is a qualified Christian Credit Counselor to help you.

Click Here to Schedule an Online Consultation with a Trained Counselor

‘Today’ financial editor Jean Chatzky offers tips on how to live more simply, so you have extra money — and time — for other pursuits.

Think you can't kick your shopping addiction? You haven't met Mary Carlomagno, who says that until just a few years ago, shopping was her single biggest vice. Today? It isn't even on the list.

Carlomagno was 35 and stuck in a major rut. She had lived in the same apartment for 10 years — and hated it since the day she moved in — worked at the same job for eight years and in the same industry for 14 years. She wanted to shake things up, but didn't know how. And though the thought of moving to the woods to find herself had crossed her mind, she was too scared to do anything that major.

Instead, she settled on subtle changes. For a year, she decided to give up something different each month: alcohol, shopping, newspapers, cell phones, dining out, television, taxis, coffee, chocolate and — for good measure — cursing, elevators and multi-tasking.
She soon realized that as a result of all these small changes she was able to live better on less money, and saved thousands of dollars in the process.

“I cut my spending so much that my financial adviser called to ask what I was doing differently,” says Carlomagno, who describes her year in her new (and charming) book “Give It Up: My Year of Learning to Live Better With Less.” Carlomagno's response: “I quit buying shoes.”
At the end of each month of abstinence, Carlomagno went back to most of her old habits. Today, she takes taxis, eats chocolate and drinks caffeine (though not as voraciously as she did before.) The one category that did permanently change was shopping.

After many garage sales and donations, she pared down from three double closets and an armoire to one single closet. Shopping no longer consumes all her free time. Friendships do not revolve around it. She even started a company, Order, to help others simplify their lives, manage clutter control, and get over shopping addictions.

If you're suffering with the same, you may be able to benefit from her advice.

• Treat your closet like a store. If you truly love clothing and shopping, you should do the things retailers do, such as:
• Take inventory. That means, first off, knowing what you already own. Take mental notes, paying particular attention to what you have put on your body over the past few weeks. Those are the bones of your working wardrobe. Use the rest of what you have to accessorize.
• Display items with care. Retailers display their favorite products — you should, too. If you love hats, put them on a rack where you can see them. Keep in mind that stores do not give good real estate to unimpressive items. If you come across items that aren't nice enough to display, chances are they're not nice enough to be worn. Get rid of them. The upshot of this process: You'll know what you have in your current wardrobe and can begin to think of filling in any holes you find.
• Hit the stores with a list of exactly what you need.
• Adhere to the two-week rule. In her closet, Carlomagno dug up over $1,000 worth of clothes with their tags still hanging. So she created what she calls the two-week rule. "If you purchased an item and haven't worn it in two weeks, return it," she says. Two weeks is a long enough period to know that you either don't a) really love it or b) need it.
• Do not be sucked in by “good deals.” Everyone buckles every so often on a sale item. The problem is, sales aren't as few and far between as they used to be. “Now you can get everything cheap,” Carlomagno says. Note, however, that there is a difference between falling for a markdown on an item that you buy on impulse and earmarking an item at retail, then waiting for it to go on sale. The latter represents smart shopping behavior. Cultivate a relationship with a salesperson at your favorite store and make her your ally in this process.
• Seek support. If you're actively trying to curb your shopping, get your family and friends on your team. This can be tricky because, Carlomagno notes, you may have particular people in your circle who instigate shopping sprees. In their minds it may be a harmless pastime. But if you are racking up a lot of debt or spending every penny of your disposable income on clothes, it's harmful to you. You'll need to explain this — and to offer other, cheaper, ways to pass the hours.

“There are a lot of things you can do to appreciate fashion and clothing without shopping,” says Carlomagno. Visit a fashion or photography museum. Or simply grab a cup of coffee and perform your own impromptu Fashion Police. You just may find you can have an even better conversation over a cappuccino than over the Bloomingdale's rack.

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit Christian Credit counseling   organization dedicated to helping consumers achieve financial wellness through Christian credit counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and Christian credit counseling.  Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show “The Money Mentor”, Greg McTaggart is a qualified Christian Credit Counselor to help you.

Click Here to Schedule an Online Consultation with a Trained Counselor

Build Credit Slowly

Getting credit can be one of life’s Catch-22’s: it is hard to get credit if you don’t already have it, and if you already have it then you don’t need it. Young people and those who have never borrowed need to build credit over time so that they can qualify for larger loans when needed.

The Need to Build Credit
If you do not have a credit history, lenders do not know whether or not they should give you money. Without any credit history, they can’t tell if you are a responsible debt -payer or a bad risk. You need to build credit in order to prove your creditworthiness.

Who Needs to Build Credit?
Anybody without a history of using credit needs to build credit. You never know when the need for a loan will arise, and it is a lot easier to get a loan with a solid credit history.
Young adults who are just starting to learn about financial responsibilities need to build credit, and recent immigrants to the U.S. also find themselves without a credit history.

Ways to Build Credit
It is actually pretty easy to build credit. Try one of the following ideas:

• Ask your bank or credit union about a secured credit card. You can make a deposit to your account and have a credit limit in the amount of your deposit. The bank takes little risk and you build credit slowly.
• Use a co-signer on your first few credit accounts. Lenders will consider the co-signer’s existing credit. The co-signer essentially ‘vouches’ for you while you build credit. Note that this is a big responsibility – you can cause major headaches for the co-signer if you don’t pay as agreed.
• Use credit programs for modestly large purchases like furniture. For example, you may buy a television on the “$40/Month Payment Plan”. These programs can be easier to qualify for and they certainly help you build credit. Be sure that the retailer will report your loan to the major credit reporting companies.
• Get a credit card with any reputable institution that will give you one. Again, you have to make sure they’ll report your timely payments to the credit reporting companies. Of course, you have to always pay at least the minimum before the due date.

Risks of Building Credit

Remember that credit can be a useful tool, but it can also get you in trouble. After you build credit, you may be inundated with offers. Banks, credit card companies, and others will want to loan you money because they'll know you're a good borrower. Don't take them up on every offer -- only borrow money when it truly benefits you.

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit Christian Credit counseling   organization dedicated to helping consumers achieve financial wellness through Christian credit counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and Christian credit counseling.  Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show “The Money Mentor”, Greg McTaggart is a qualified Christian Credit Counselor to help you.

Click Here to Schedule an Online Consultation with a Trained Counselor

A budget is a guide that tells you whether you're going in the direction you want to be headed in financially. You may have goals and dreams but if you don't set up guidelines for reaching them and you don't measure your progress, you may end up going so far in the wrong direction you can never make it back. Can you imagine the government or a major corporation operating without a budget? No, and neither should you.

Why Budget? Here are twelve good reasons:

1. A budget lets you control your money instead of your money controlling you.
2. A budget will tell you if you're living within your means. Before the widespread use of credit cards, you could tell if you were living within your means because you had money left over after paying all your bills. The use of credit cards has made this much less obvious. Many people don't realize they're living far beyond their means until they're knee deep in debt.
3. A budget can help you meet your savings goals. It includes a mechanism for setting aside money for savings and investments.
4. Following a realistic budget frees up spare cash so you can use your money on the things that really matter to you instead of frittering it away on things you don't even remember buying.
5. A budget helps your entire family focus on common goals.
6. A budget helps you prepare for emergencies or large or unanticipated expenses that might otherwise knock you for a loop financially.
7. A budget can improve your marriage. A good budget is not just a spending plan it's a communication tool. Done right, a budget can bring the two of you closer together as you identify and work towards common goals and reduce arguments about money. That's got to be good for your sex life!
8. A budget reveals areas where you're spending too much money so you can refocus on your most important goals.
9. A budget can keep you out of debt or help you get out of debt.
10. A budget actually creates extra money for you to use on things that matter to you.
11. A budget helps you sleep better at night because you don't lie awake worrying about how you're going to make ends meet.

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit Christian Credit counseling   organization dedicated to helping consumers achieve financial wellness through Christian credit counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and Christian credit counseling.  Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show “The Money Mentor”, Greg McTaggart is a qualified Christian Credit Counselor to help you.

Click Here to Schedule an Online Consultation with a Trained Counselor

Whether you're single because you've never married, or are suddenly single due to divorce or death of a spouse, money management and financial planning are critical. You have only yourself to depend on for income, goal-setting, decision-making, and retirement planning. Here are the issues that most need your attention:

Debt: Know exactly who you owe, how much you owe each creditor, and the interest rate on each account. Develop a plan to pay down your debt using a popular method that I call the Credit Crunch Method, described at the end of Get out of Debt.

Budget: You've heard the expression: "You can't get there from here," right? Well, whoever coined the phrase might very well have been talking about budgets. When it comes to meeting your financial goals, without a budget "you can't get there from here." A budget doesn't have to be financial handcuffs or a money diet.

Health insurance: It's common to feel invincible when you're young. Many young singles take a huge financial risk by going without health insurance because they believe their youth and good health makes insurance unnecessary. This is one of the biggest mistakes you can make as a single. You CAN become ill, regardless of your age. You could be in a car accident, hurt yourself skiing, tear a muscle lifting weights, fall on the ice, get mono or pneumonia, or incur any number of illnesses or injuries that would land you in the hospital and rack up large medical bills that may take you decades to pay off.

Don't be short-sighted. If you can't afford a good plan with a low deductible, at least protect yourself from catastrophic financial losses by purchasing a less expensive plan with a high deductible. You'll pay the small expenses yourself, but the large ones that could ruin your financial future will be covered by insurance.

COBRA: If you're covered under your employer's group health insurance plan and you're about to change jobs, check into COBRA coverage, which allows you to continue your coverage under the plan until you're covered under your new employer's plan, for up to 18 months after termination of employment. The cost to you is whatever your employer pays, plus a small administrative fee.

Disability insurance: Because you don't have a second family income, it's very important that you protect your income-generating power by buying long-term disability insurance, and if possible, short-term disability insurance. Disability insurance will pay a percentage of your income (usually 60%) if you're unable to work due to illness or accident. Again, don't let your feelings of invincibility prevent you from protecting yourself. These coverage’s are much more important to you than life insurance unless you have dependents. Many employers offer short- and long-term disability insurance free or at a substantial savings. Check with your Human Resources department.

Retirement Planning: If you're young, don't let your age fool you into thinking it's too early to save for retirement. The sooner you start saving, the less you'll need to save overall, due to the power of compounding, deferred taxes, and your employer's 401(k) match if you're lucky enough to have such a plan. Don't walk away from the free gift your employer offers via the 401(k) match. If you're not eligible for an employer's plan, set up an IRA. Avoid a big mistake many singles make: don't cash out your 401(k) account when you change jobs. Roll it over into an IRA or another employer plan instead. The cash is tempting, but spending your retirement money is short-sighted.

Medi-gap and Long-term Care Insurance: Singles over 65 should purchase a Medi-gap policy to cover medical expenses not covered by Medicare. Singles over 50 may want to consider a long-term care insurance policy, which covers the expenses of a nursing home or home health care if needed.

Your Home: If you're suddenly single due to divorce or death of a spouse, it may be necessary or prudent for you to move to a smaller home so you have a smaller mortgage. This will make it easier to make ends meet and may be the only way you'll be able to save towards retirement.

Wills: Wills are another item that many singles think are unnecessary. They're wrong. If you own anything of value (car, jewelry, house or condo, computer, savings account, etc.), you should have a will specifying who will get your belongings if you die. If you have children, a will is an absolute must, because it's the method for designating a guardian for them.

Living Will and Health Care Power of Attorney: If you become unable to make medical decisions for yourself, a living will and power of attorney will designate someone you trust to make those decisions for you or carry out the wishes you've indicated. See a lawyer or financial planner to draft these documents.

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit Christian Credit counseling   organization dedicated to helping consumers achieve financial wellness through Christian credit counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and Christian credit counseling.  Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show “The Money Mentor”, Greg McTaggart is a qualified Christian Credit Counselor to help you.

Click Here to Schedule an Online Consultation with a Trained Counselor

America—it is time to get rid of your debt! Financial experts David Bach, Jean Chatzky and Glinda Bridgforth offer their step-by-step action plan to help set you on the path to financial freedom.

PHASE 1
Give yourself one month to complete these steps—you can do one a week!

Step 1: How much debt do you really have?
It's time to get real about your debt. Do you know how much living with debt is costing you?

Step 2: Track you’re spending and find extra money to pay down debt
Time to cut back on the extras. Use David Bach's Latte Factor® calculator to find big savings where you least expect them! It is time to start paying you.

Step 3: Learn to play the credit card game
Think $10 a day won't make a big difference in your debt? Think again! With this plan you can pay off $8,000 in credit card debt in just 3 years.

Step 4: Stop spending
Making small changes can help in a big way. Use these tricks to help you spend less and save more.

PHASE 2
In the second phase of the Debt Diet, the steps become more detailed and have more long-term goals.

Step 5: Create a monthly spending plan
Use the monthly spending plan worksheet and calculator to create a budget that you can stick to—and save with—every paycheck.

Step 6: Take big steps to grow your income
Whether it is selling your assets or getting a second job, sometimes you have to make big choices to get out of debt.

Step 7: Prioritize your debts and raise your credit score
Confused about which debts to pay off first? Here's a plan to pay down your debt while actually improving your credit score!

Step 8: Understand your spending issues…and save!
Get to the heart of why you spend. Then, find out how to resist temptation and build an emergency fund.

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit Christian Credit counseling   organization dedicated to helping consumers achieve financial wellness through Christian credit counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and Christian credit counseling.  Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show “The Money Mentor”, Greg McTaggart is a qualified Christian Credit Counselor to help you.

Click Here to Schedule an Online Consultation with a Trained Counselor