This year, I will keep more cash

With the recent turmoil in financial markets and the prospects for continued economic recession in 2009 could be the year you finally make good on your determination to start an emergency fund, repayment of credit card debt or beef your retirement kitty. Our guiding principles for cutting your costs and save on taxes is guaranteed to put money in your pocket - and your savings accounts.

1. Get your expenses under control with the help of free online budgeting site like Mint.com. This is a secure site tracks your checking, credit cards and investment accounts and proposals for money-saving tips, such as where you can cut costs or better rate on your credit card. Other free sites, including Wesabe and Geezeo, offer a similar budget, and pay more attention to their online communities where users share strategies.

With meat and potatoes of your finances outlined, it would be easier to see where you can cut the fat. For example, assuming that you and your significant other pay on average $ 33 per person for meals at the restaurant (according to a recent survey Zagat) and 7 dollars for a ticket to the cinema, one less than the date of the night a month will save a total of $ 960 per year.

2. Installation of flexible spending account to help pay for medical expenses. If your employer offers this benefit, you can save pretax dollars in the account and use the money to pay from their own bills, including doctor co-payments, prescription drugs, eyeglasses, and braces for children's teeth. You can even spend the money on more-prescription medications such as antacids and more relievers.

Flex account, you can save hundreds of dollars in federal, Social Security, and in most states, state income taxes. For example, if you have a 25% tax bracket and you put $ 1450 in your account - the average premium for the year 2007 - you need to save $ 546 per year, with 5% of tax revenue the state and 7.65% for FICA tax. Plus, you can use the full amount at any time, even if you have contributed only a few months.

When using it or lose-it rule, you can lose money left in the account at the end of 2009. But many companies now offer a grace period until 15 March next year. In fact, if you have money left over from 2008, regarded it as a bonus to help pay for basic expenses at the beginning of 2009.

3. File a new Form W-4. If you receive a tax refund for 2008, setting retention will fatten your salary for 2009. The average refund of about $ 2400, you may be entitled to three additional benefits. In the 25% tax bracket, that could increase your hands on to pay $ 2625 a year.

4. Raise your insurance deductibles. The increase in car insurance deductible from $ 250 to $ 1000, you can save up to 15% on insurance premiums - or about $ 125 a year on average, $ 829 prize. Upping the franchise for the homeowners' policies can slice your rate by about 25%, or $ 191 on average, $ 764 prize.

5. Cut the cost of credit. If you tend to carry a monthly credit card balance to low interest rates, maps, such as Wells Fargo Prime Rate card with 5% interest rate, a $ 19 annual fee. For gasoline or travel benefits, try BP Visa card or> Simmons First Visa Platinum Travel Rewards Card.

If you want to pocket cash rebates, to consider the American Express Blue Cash card. You get 1% rebates on gas, food and drugstore purchases, and you will get 0.5% back on everything else. Big spenders can Bump they pay up to 5% and 1.5%, respectively, after declining $ 6500 a year. Charge of $ 15,000 from everyday purchases to save $ 490.

6. Open an account online savings, such as the one at www.fnbodirect.com, which was recently paying 3.25%, or about $ 100 a year for $ 3000 deposit. You can open an account is only $ 1, but are no monthly fees or minimum balance requirements. To avoid the temptation to spend all the money that is lining the pockets through our first five councils, set up an automatic monthly transfer from your current account, or distribution of part of your salary deposited directly into a new rainy day fund.

7. Bump your 401 (K) contributions. Already have a stash of emergency? In the stock to sell, now a perfect time to build - or rebuild - your retirement kitty. In 2009, contributions to 401 (K) accounts rises to $ 16,500, and you can add another $ 5,500 if you are 50 or older by the end of this year. Contributions are not subject to federal or state taxes, so the load on the full $ 16,500 will save you $ 4950 in taxes for the year from 25% federal tax bracket and 5% of the state income tax.

Can not afford the maximum contribution or you want to use a portion of your savings for something else? Try to start, at least enough to capture any employer match.