Many of us have made New Year's resolutions to save more money, pay off debt, make more money as well as any number of variations on that theme – but truthfully, have you really developed a plan to achieve your objective? In making your new goals attainable, here are some areas and basic guidelines where most of your efforts should be focused. Emergency savings: Prepare for your future even if you aren't expecting any major financial challenges. The rule of thumb is put away enough each week to accumulate at least one year of your current income. Important note – this should be step one for …

Effective January 1, 2011, your W-2 gross income, less any flexible spending account deductions, will be calculated on a reduced Social Security payroll tax. Plainly speaking, your paycheck deduction for Social Security will be at 4.2 percent rather than 6.2 percent.  These taxes apply to your annual gross salary up to $106,800. As long as you make less than that amount, your salary will be based on a 4.2 percent payroll tax. If it is more than that, there are no tax savings on the amount over and above the threshold. So, just to help you get started on how the increase is going to affect you…

Recently, I noticed people are still spending a lot of money on playing Lotto hoping that this time it will be their ship coming into the harbor. So, I started wondering how much do people really did spend on Lotto and were they also putting something away in a saving program, just in case the ship never made it? My dad would spend lots of money every pay-day as a form of recreation and hoping he'd get rich. A few times, he won a prize in the thousands of dollars, however, nothing really significant. When he retired, he did so on Social Security and a pension; alas, no big lottery win. Pop …

Have you noticed any changes in a family member's ability to manage their money? For instance, your dad was very thrifty and kept the household budget and checkbook balanced, but, now, is losing money to schemes that don't pay off [1]? It is a very early and important sign of dementia or Alzheimer's when a person's ability to manage their personal finances becomes affected [2]. By the time it is diagnosed, it may have already affected their future. If you are a family caregiver, you may want to explore some ways to protect your loved ones from possible predators or just from themselves. …

With the holiday season coming, I thought I'd share a few tips to help you keep  financially fit. There are great deals to be had in the stores and online, and, with that in mind, there will also be others waiting for bargain hunters to take advantage of their quest. To enhance your holiday experience, even if you have a limited budget, you can get started now. Lots of stores are having Black Friday[1] sales on other days of the week to get shoppers in the doors. I used to shop during the season on Mondays and Tuesdays after work. The merchandise was always in the proper place and less people…

Today's common ideology surrounding retirement and social security is a bit different from that of the past and we need to think about what income will be available when we are ready to stop working full-time. What have you put in place to make sure you can at least live on what you make now? This system of welfare may not work for many of today's workers as it has for beneficiaries of social security in the last couple of generations.  The way benefits are calculated depends heavily upon workers who are in the system–the lower the amount of wages and less workers triggers more adjustments.  …

When it comes to the current economy, there is a lot of doom and gloom. However an exciting upside to this is the possibility of new career and investment opportunities.This is a great chance to discover hidden passions. Look for ways you can monetize your dream of owning your own business or doing something you really love. Maybe it is time to stop dragging yourself to a job you don't like for an income you can't live on. Your future product or service may be more affordable, but sometimes, price is not even the real issue. If you can deliver superb customer service, you can build a pretty …

The best thing to do to save money in this economy is to find out if you can qualify for a personal loan with a fixed rate. To the right are comparisons of how debt costs – interest rates – are calculated on either fixed period or revolving accounts. Revolving debt is based on the average daily balance over a 21 or 25 day month while fixed rate/period debt are based on an amortization period. Amortization is the repayments of the principal and interest on the borrowed amount on a specific term and interest rate. In both cases, interest rates are applied to the borrowed amounts and this is how…

Resist the temptation when retail cashiers offer you a decent discount at the register in exchange for taking out their store credit card. There are only a few pros to having a retail credit card and way more disadvantages. Pros: Easy to obtain Low or no fees Helps to build a credit history Disadvantages: High interest rates - this is the cost of borrowing for the purchase It is a "hard inquiry" on your credit history and could cause as much as a 20 point drop on your score Creates a longer span of time you have open credit balances on your credit history Low credit lines Even if retail …

Discussing ways you can keep the wolves at bay while you supplement your current income from your IRA's before retirement is important. There is a section in the IRS code that may give you and your family some budget relief using money you may have accumulated in an Individual Retirement Account. This section is referred to as Section 72t – Substantially Equal Periodic Payments also known as SEPPs. Have if you experienced: A sudden loss of income? Increased expenses due to debt, credit cards? Or is your current income not as much as your previous income? If so, taking SEPPs from one of your …

Both Smithtown East and West have a few great teachers who are working to help the next generation of investors and consumers undestand financial literacy. I am working with them on this mission because we need to help our children and young adults plan for a stable financial future, to encourage them to understand what they think makes the most sense now is not always wise for the future.  The House Committee on Financial Services published a report in 2008, with testimony by Dallas L. Salisbury, President and CEO of Employee Benefit Research Institute and Chairman, American Savings …

Insurance is a very important part of your personal finance plan. Unfortunately, most people have don't see the importance of why we should have coverage in certain areas. We have car insurance, generally, because we are required to legally. It is there to protect against loss in the event of an accident in a vehicle. You don't want to have to use it, but we definitely want it in case of an adverse event. We have health insurance so we can afford to get medical care if we need to protect our health. The rule works exactly the same in the case of a family's loss of income, credit or any wealth…

There's a lot of information and plenty of resources to research when you are trying to start getting control of your personal finances. Mostly, we want easy answers and quick results, but even on the web there isn't a truly easy solution. It is to our benefit that there are real people to whom you can turn for the solutions and results you want. Financial advisors may or may not be able to help you with anything outside of investing or tax planning, so you should interview them and find out whether they can help you in your goal of budget planning and debt freedom as well. Personal finance …

A FICO score is the numerical rating that indicates a borrower's creditworthiness. These days it has become more important than ever to know your FICO and to actively maintain the best possible score. FICO scores govern the price we pay for everything from loans to renting an apartment. But there has always been a big secret about the way different situations affect your credit and how the scores are computed. What exactly happens to the score when you are late on a payment, file for bankruptcy, max out a credit card or use one of those debt settlement companies? The scoring chart (below) …