Looking for ways to free up some cash? Look no further than your driveway. As was pointed out in a recent MSN article, the average U.S. household spends a whopping $8,000 a year on transportation. That includes car payments, insurance, gas, repairs, and public transportation.
Matt's View
Breaking the cycle of financing cars is one of the wisest steps anyone can take toward wise money management. It might take a little while, but a great first step is deciding to keep your car as long as possible. You don't need to cross the million-mile threshold like a Wisconsin salesman did recently with his '89 Saab. But the U.S. Department of Transportation reports that the average life span of a vehicle is 12 years or 128,500 miles. That's a lot longer than the average person keeps their car (4 years/55,000 miles).
Once your car is paid off, take the amount you were sending to your finance company and send it to a money market fund. In three to four years you should have enough for a quality used car. And you'll have a sizable chunk of cash each month that you can put toward other goals.
Got junk mail? Everyone does - an average of nearly 11 pieces each week. Some of it can tempt us to buy more than we should. Some of it even puts us at risk of identity theft, such as credit card offers that fall into the wrong hands. Recent articles from Marketwatch and SmartMoney suggested opting out of credit card and insurance offers by going to OptOutPrescreen.com
. You'll have to give out your Social Security number, but the articles said it's completely confidential and safe. You can also get off direct mail marketers'
lists for five years for a $1 fee, stop getting so much e-mail spam
, and get off telemarketers' lists
.
Matt's View
Here's one more benefit of opting out from all those unwanted catalogs and credit card pitches. By one estimate, 11 pieces of junk mail each week is the equivalent of two trees per year. So, by getting off all those mailing lists you'll do more than just save money and protect your identity - you'll help save the planet.
Are you among the 75 percent of federal income tax filers who'll get a refund this year? If so, the government is making it easier to deposit the money straight into a savings account where you won't be tempted to spend it. According to a story on MSNBC, the refund can even be split and deposited into multiple accounts - some in an emergency fund, some in an IRA, for example. Just attach IRS Form 8888 to your tax return. To download the form, go to the IRS web site
and search for "form 8888."
Matt's View
If you plan to make a 2006 contribution to an IRA with your refund, just be sure to file your taxes well ahead of the filing deadline.
One other point: the average refund is over $2,000. Why wait a full year before adding that money to your savings account? There's no law that says you have to overpay on your taxes. If you're getting a sizeable refund this year, work with your benefits department to reduce how much is withheld from your paycheck. You can figure out how much you should be having withheld here
.
Technically, the Beatles had it right. But that doesn't stop us from spending a lot to demonstrate our love. According to the National Retail Federation, 63 percent of people are planning to celebrate Valentine's Day this year, and they'll do so to the tune of $120 each. Men tend to outspend women by a nearly two-to-one margin ($156 vs. $85).
Matt's View
Men may outspend women on Valentine's Day, but they sure don't out-plan them. At a recent dinner party, a sales rep for a major greeting card company pointed out that most of the cards for men are usually well picked over a couple of weeks before Valentine's Day. But the cards for women go largely untouched until about February 12th or 13th.
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