It’s not even Thanksgiving yet, but the tax year is rapidly drawing to a close. In less than two months we’ll starting 2010 so if you’re planning on making some year-end tax moves, now is the time. Unfortunately, most people wait until their W-2s and 1099s start coming in before seriously thinking about taxes, but by then you’re left with very few options to correct the current tax year mistakes. By planning ahead you can get a jump on some things that could significantly improve your tax situation in just a few short months.

First-Time Homebuyer Tax Credit

This probably goes without saying, but if you bought a new home this year you’ll want to take a look at this generous tax credit. Originally, it was meant only for first-time buyers who haven’t owned a home in the past five years and closed on their purchase before December 1st. Those who qualified would receive a nice $8,000 credit. But Congress has extended and expanded this credit to include even more people, so you still may qualify for something even if you didn’t under the old plan.

The new rules took effect on Nov. 6. The provision is a true dollar-for-dollar tax credit of up to $8,000 for 10% of the cost of a home. The credit is also refundable, meaning that even if a buyer doesn’t owe $8,000 of tax, they can claim the full benefit and receive a refund check. The new law also authorizes a similar $6,500 credit for buyers who already own a home. It too is a refundable credit for 10% of the purchase price of a house costing no more than $800,000. To qualify the buyer has to have owned and lived in the same home for five of the eight years preceding the new home purchase, and the new home must become the buyer’s principal residence.

Now, don’t rush out and buy a home just for the sake of the credit, but think about any home purchase you already made this year or were planning on making. This is a huge opportunity if you happen to qualify and you want to make sure you’re getting everything available to you.

New Car Purchase Deduction

Did you know there’s also a tax deduction if you buy a new car before the end of 2009? It didn’t get as much attention as the homebuyer tax credit, but there’s still some money out there for you to take advantage of if you happened to buy a new car this year. Honestly, I think you can still save more money buying a used car vs. new, but this tax break can help take some of the bite out of that new car purchase. This allows you to deduct sales and excise taxes and other fees on as much as $49,500 of the purchase price.

Again, since we’re only talking about deducting the sales and excise taxes on the purchase don’t go and run out to buy a new car just to get the tax credit. But if you are already in the market for a car and planned on buying a new one anyway, just make sure you try and get it purchased before the end of the year so you can qualify for the tax break.

Charitable Gifts and Donations

If you haven’t given to charity yet this year you still have time. Remember that these gifts follow a calendar year so you need to make those donations before the January 1st. As the holidays approach it can be a crazy time and people often forget about making their donations until it’s too late. So, don’t wait, and start thinking about what you’ll donate this year. If you’ll be taking clothes or other items to a place like Goodwill or the Salvation Army, begin collecting those items now and take them in before the holiday rush. If you usually give money to one of the charities each year you should make a call and get the ball rolling on that to make sure it qualifies for this year’s taxes. As always, make sure you keep receipts for all of your donations!

Adjust Your Tax Withholding

Even though we only have a few weeks left in the year you can still make changes to your employer’s tax withholding. If you are in a situation where you’re expecting to owe the IRS money come April you still have some time to make a helpful change. You can change your W-4 exemptions and even opt to have additional taxes withheld between now and the end of the year. This added withholding could be enough to offset some of the taxes you’ll owe when it’s time to file. Not only that, but it’s a good idea to review your withholding and make sure you’re not having too much or not enough withheld for the coming year. No sense in giving Uncle Sam a free loan or putting added stress on you to come up with the money because you didn’t withhold enough.

Unemployment Benefits

If you’re like many Americans this year, you’ve been laid off or had a period of time where you received unemployment benefits. As you may know, these benefits are taxed. It stinks, I know, but there is some relief this year. Individuals are exempt up to the first $2,400 this year.

If you didn’t elect to have taxes withheld from your unemployment check you could be on the hook for making a payment to the IRS come spring. Even worse, if you have been collecting all year and haven’t been paying quarterly estimated taxes you may face an additional penalty. If you haven’t had taxes withheld from your unemployment checks you should use this time to calculate how much of that income is taxable and find out how much you might owe. Start saving that money in the coming months so that if you are hit with a tax bill in April it won’t come as a total shock.

Retirement Savings

Do you contribute to your company’s 401(k) plan? Great! You still have time to contribute even more to your plan before the year is up on a pre-tax basis. If you can afford to it might make sense to increase your deferrals for the remainder of the year to give you that extra boost. Not only does it save on taxes, but you’re doing yourself a favor by putting a little extra away for retirement as well.

Even if you don’t have a 401(k) there is still plenty of time to take advantage of some of the other retirement saving vehicles like IRAs. The best part is that you have until you file your taxes, up to April 15th, to make your IRA contributions for the tax year. That means you still have over five months to make these contributions! If you’re saving in a traditional IRA that gives you $5,000 (or $6,000 if age 50+) in a potential tax break if you make the full contribution.  For most people this equates to about $1,000 of tax savings. That’s nothing to sneeze at. And think about it, with so much time yet to make these contributions even if you haven’t contributed a dime yet this year you can still max out your IRA by saving $1,000 a month before the April deadline.

If you’re saving in a Roth IRA, you won’t be getting any tax break up front for your contributions, but you still have until April to get your 2009 contributions in. Remember, once that deadline passes you can’t go back in time and make contributions for that year. So, make sure you’re taking advantage of your IRA as much as possible. You’re retirement depends on it. If you haven’t even opened an IRA yet, don’t delay. You can open an account for free at any of the online brokerage companies like Zecco and TradeKing.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Start Making Year-End Tax Moves Now and Save Big Money

When it comes to making extra cash, the internet has a lot to offer its users.  Online auction sites provide members with a place to peddle goods and services and social media networks like Twitter and Facebook make it possible to self-promote with ease.  Those individuals with a knack for the written word can find legitimate, paid work-at-home opportunities online.  In fact, those writers wanting to gain exposure and line their pockets with cold hard cash may find the following five websites useful:

1. Demand Studios. Write instructional articles on a variety of topics including: Animals, Arts and Entertainment, Computers, Health and Fitness, Home and Gardening, Sports and Recreation, and Travel.  Paychecks are disbursed twice weekly to your PayPal account and top paying articles are worth $15 a piece.  You can also select revenue share articles which earn significantly more over the course of a year and pay out once monthly.
2. Textbroker. Anyone can write for Textbroker.  Search through their database of available topics and choose the one that best fits your interests and knowledge level.  Write the article, submit it, and elect a payout once your account has reached $10.  Payments occur bi-weekly and are sent to the PayPal account address registered on the site.
3. Quality Gal. Article topics are specific and require knowledge of hypertex, or linking back to educational and governmental websites.  Due to the amount of work involved, Quality Gal pays up to $12 for each article that is approved.  Once weekly, writers submit an invoice and QG submits payment via PayPal.
4. Content Current. Topics usually involve knowledge of Search Engine Optimization and require a specific word count.  Significantly lower in payment than other websites, Content Current offers writers routine work and the chance to participate in Forum Boosting.  Payments are received weekly through the writer’s PayPal account.
5. EDUBook. Unlike other websites, article topics are pre-assigned.  Each member receives four to five articles at a time.  Once that batch is completed, he or she can request additional assignments.  Pay is $5 an article or $25 a batch and compensation is received electronically through PayPal once a week.

Aspiring writers needn’t go broke pursuing their literary dreams. While companies like Demand Studios and Textbroker exist, they do not offer the big payout that feature writers are accustomed to.  They can, however, pay for groceries or generate enough extra money for a rainy day.  Whether you are looking for an additional source of income or researching opportunities to leave the rat race altogether, becoming an independent contractor and working for the aforementioned companies is a wise move in any economy.

Keep in mind that as you become a more established freelance writer you may find many writing opportunities by marketing your services directly on many of the blogging job boards or sites like Elance. But in order market your services you really need to have a solid portfolio of work to show prospective clients, so using the sites listed above are a great way to begin building your online writing portfolio.

Charissa Arsaoui is a freelance writer for ChickSpeak, Buzzine, DisFUNKshion Magazine, Student Stuff, and a guest contributor for Wisebread.  She loves thrift related topics and can spot a bargain a mile away.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

5 Freelance Writing Websites That Pay Frequently

Money trivia time. What was the highest value note ever printed by the U.S.? If you guessed $100,000, you’d be right, but not so fast. It wasn’t your typical bill. The highest-value bank note ever printed by the Bureau of Engraving and Printing was the $100,000 Gold Certificate, Series 1934. These notes were not circulated among the general public, but only issued for transactions between Federal Reserve banks and the U.S. Treasury.

A single note worth $100,000 seems like a lot, but do you know how much that was really worth back in 1934? You’d need to print a note today valued at nearly $1.6 million to match what $100,000 was worth in 1934. Wow! So, there’s a little trivia for you today. Now it’s time to increase your financial smarts by checking out these links from the past week.

Relocating To End Unemployment: Ten Things To Consider – Have you been laid off and can’t find work locally? You’re not alone. A lot of people have started looking elsewhere for work and that might mean relocation to a new area. Unfortunately, that’s a big decision that comes with a lot of financial issues to consider. Here’s what to keep in mind before making the leap.

Energy Gal’s Easy Homemade Hummus Recipe – Looking for a frugal and healthy snack recipe? Try hummus. Hummus is one of my absolute favorite snacks and this recipe is virtually identical to mine so I can vouch for its deliciousness.

Funding Your Child’s Post Secondary Education – With college costs continuing to rise how can a parent afford their child’s education? It might not be easy, but if you think ahead and take a few steps early you can put together a nice college fund.

How Our Consumer Debt Problems Got Out of Control – This whole financial crisis stems from people living beyond their means. Whether it was buying too much house or just racking up thousands in credit card debt, the inability to pay has led to a meltdown. So, just how did we get into this problem in the first place?

Should You Buy Life Insurance at an Early Age? – I get this question a lot, especially since I speak mostly to a younger generation. But at what age should you consider life insurance? It actually has less to do with age and more to do with who you have to support after you’re gone.

I-Bond Rate for November 2009 – May 2010 Is 3.36% – For a while there I-bonds weren’t even worth investing in with such low rates. Now, with the latest rate over 3% they have become an attractive alternative to CDs. Learn more about the current rates and how you can take advantage of them.

What is a Dividend Reinvestment Plan? – What is a dividend reinvestment plan (DRIP) and why would you want to use one? If you’re dealing with smaller amounts of money these can be a great way to invest in some companies. Learn more at My Dollar Plan.

College Savings Accounts for a Bad Economy – The economy still has a long ways to go before a full recovery, so what does that mean for college savings? Most people can hardly get by with their day-to-day expenses so saving for college seems impossible. Here are a few options that can lessen the burden.

First-Time Homebuyer Tax Credit Extended AND Expanded into 2010 – Good news about the extension and expansion of the homebuyer tax credit. The bad news is that we still got screwed. We just bought a house a little over a month ago and still won’t qualify for the first-time status or the existing and upgrade expansion. Thanks, government!

How Working Overseas Helps Your Career – Did you know that working overseas could help your career? I haven’t had a chance to work overseas, but I did spend a semester traveling Europe and studying over there in college. I must say, it was probably one of the best things I’ve ever done so I’m sure working overseas for a while could also have profound effects.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Friday Finance Findings for November 6th

In the discussion about income for life and annuities earlier this week a lot of interesting points were brought up. We all know that we need to save something for retirement, but just how much are people expecting to save? You hear all sorts of numbers thrown out there saying you need to have a million dollars by retirement, or save up ten times your annual pre-retirement income, and so on. But these are just broad assumptions and most people’s true needs are going to vary significantly.

So, have you thought about how much money you should have saved up by the time you retire? One way to figure this out is to work backwards. Instead of just shooting for a big number, start with the amount of income you’ll likely need to receive from your investments in retirement. From there, you can then calculate how much you need to have saved up so that you can sustain that income without depleting your nest egg. Here’s an interesting calculator that can do just that. It will take into account your age, expected retirement, expected rate of return and rate of inflation, and then ask you for how much money you’d like to receive each month from your investments. Then, it calculates how much you should try to save by retirement, both adjusted and non-adjusted for inflation.

According to my numbers, after factoring in inflation I need to save up between $5 and $6 million to reach my monthly income goal. Of course, this is based on an early retirement, assuming no pension, no Social Security, and high income since I plan on doing a lot of things in retirement that cost money instead of just sitting at home. It seems like a lot, but it could be doable. Granted, we’re not able to save enough each year to hit that target yet but it gives me a number to shoot for.

So, how much money do you need to retire? Were you shocked at the results?

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Poll: How Much Money Do You Feel You’ll Need to Save For Retirement?

It wasn’t long ago that employees were rewarded for their loyalty to a company with a pension. For you younger readers the word pension may seem like it’s from a foreign language. It’s true, and in recent years the classic pension plans have been dwindling. Pension plans had a very unique feature that most retirement plans today lack: income for life. That’s right, most pensions were set up to pay you each month for the rest of your life, regardless of how long you live.

That’s a great benefit, right? This feature is what made pensions so attractive. While the actual dollar amount might not be enough to enjoy a lifestyle of the rich and famous, the fact that you could depend on this check coming in the mail every single month for the rest of your life made up for that. For many retirees, after factoring in social security and pension payments there was little need for additional savings since these two gaurnteed monthly payments were sufficient for paying the bills. But with pensions going the way of the dinosaurs what options do younger generations have for creating income for life?

The Role of Annuities

You’re seeing more annuity advertisements these days targeting baby boomers. Insurance companies realize that especially in this economy many retiring baby boomers are wishing they had some form of guaranteed income if they don’t currently have a pension. While it’s true that annuities can in fact provide lifetime income it’s important to understand the different types of annuities, features, and drawbacks.

How Annuities Work

An annuity is a simple concept. Generally, you take a lump sum of money and deposit it into the annuity acount. Then, if you choose to annuitize it, you begin receiving a regular payment (monthly, quarterly, annually, etc) that continues for the rest of your life. As simple as that concept is to understand, these products are actually far more complex than this.

First, you have two different types of annuities: fixed and variable. A fixed annuity is pretty much just what it sounds like and it earns a fixed rate of interest. While the rate may be fixed, there are often situations where the rate can change. For instance, there may be a first year bonus rate that pays out higher interest, rates could change from year to year with a minimum or floor rate that it can’t go below, and so on. But what’s important to note is that this rate is really only important before you annuitize the money. That is, you can deposit the money into the annuity and it will sit there and earn tax-deferred interest at the specified rate. Once you annuitize it you lock in that guaranteed monthly/annual payment for life and the interest rate doesn’t matter. And typically, once you annuitize, there’s not backing out of that decision.

Next, you have the complicated variable annuity. Unlike a fixed annuity the variable annuity gives you different investment choices for your money prior to annuitizing. If you wanted, you could deposit money into the annuity and then invest it in any of the investment options available to you within the annuity. Think of it like a 401(k) plan where you have a handful of various mutual funds to choose from. The drawback here is that depending on how you invest your money you could experience a loss in value. This is why it’s called a variable annuity since the account value will vary depending on investment options and market conditions.

Fees and Riders

This is where annuities can end up hurting an investor. First, annuities aren’t free. You probably know by now that virtually any investment out there comes with some sort of fee. Some investments have low fees such as index funds and other funds may have front-end loads and high annual expenses of upwards of 2%. Annuities are no different. When it comes to fees the fixed annuity is the most transparent. You get a fixed rate of return on your money and that rate is already net of fees. The fees can easily be calculated with the documentation provided with the account.

When you start talking variable annuities there’s a potential to get raked over the coals with fees. First, you’re going to have the fee just for having the privelage of owning a variable annuity. This is the Mortality and Expense (M&E) fee that is charged annually. This fee pays for the insurance guarantee, commissions, selling, and administrative expenses of the contract. In general, these fees in a variable annuity will be charged as a percentage of the average value of the investment. The average M&E of a basic variable annuity contract is between 1-2%. On top of the M&E you also have your investment expenses. Since you’re typically investing in mutual funds you’ll also pay their annual expenses. These can often be between 1-2% as well. So, right out of the gate you could be paying upwards of 4% per year just for opening a variable  annuity!

We aren’t done with fees yet. Next, you have to worry about surrender fees. A surrender fee is a fee applied if you cash in before a set amount of time. In many cases the surrender period will be around seven years. What the annuity may do is charge you 1% for each year you take your money out early. So, if you withdraw the funds in the first year you’d be socked with a 7% penalty. Take it out after 6 years and still get hit with a 1% penalty. After holding the funds for 7 years you’d finally be free to take your money without paying a surrender fee. Surrender fees apply to both fixed and variable annuities.

You think we’re done with fees yet? Hardly. Now, we have to talk about riders. Riders are additional features that you can add to your annuity contract. Common riders can provide some additional guarantees. They might provide additional guaranteed income, protect against losses, increase payouts for inflation, or extend the death benefit. Obviously, these features cost extra. Riders often cost between 10 and 100 basis points (0.10% to 1.0%) per year. So, if you’re in a variable annuity already paying a 1.5% M&E, 1.5% fund expenses, and tack on riders that add 1% you’re paying 4% a year in fees.

Annuities Have Their Place

Annuities seem like a pretty bad deal after looking at all of the fees and restrictions discussed above, but they do have their place. For one, they really can provide guaranteed income for life. They are insurance contracts and once annuitiezed you’re going to get a payment for the rest of your life. For retirees who want this sort of safety they can be an attractive option.

But here’s the problem. Many so-called financial advisors and insurance agents sell annuities to people who still have many years before retirement. So, what happens is they convince someone to put their money into an annuity, either fixed or variable, and make a hard sell by promoting all of the guarantees. It’s one of the few instances in the world of finance where you can get away with offering a guarantee. So, they get someone who is say 50 years old to buy an annuity contract and then they spend the next 10 or 15 years paying these unnecessary fees before finally retiring.

There are very few reasons to invest in an annuity well before you’re thinking about annuitizing it. If it’s a fixed annuity, you’re playing the rate game. You might get a good rate right now, but how will that rate stack up in 5 years? And don’t forget, you have surrender charges to deal with that could prevent you from moving the money into something with a better rate. And if you’re looking at a variable annuity you’re subjecting yourself to high and unnecessary fees that can erode your earnings significantly in the years prior to annuitizing.

If you really do want a source of guaranteed income for life an annuity can do that, but you should consider an immediate annuity. This means you would only buy the annuity contract when you’re ready to start receiving those guaranteed payments immediately. This allows you to invest your money however you want in low-cost funds on your own and then when you need to begin receiving a fixed income from these investments you can immediately turn it into an annuity and make this happen. This way it doesn’t matter what the rate is on a fixed annuity or require you to negotiate high fees and poor investment options in a variable annuity.

Generating Your Own Income for Life

An annuity is just one way to generate income for life, but you can go about it on your own, too. As you approach retirement you’re probably starting to get a little more conservative with your investments. So, you’re investing more in things like bonds, CDs, and money market accounts. Essentially, after you’ve spent your working years accumulating that retirement nest egg you’re trying to preserve as much of that egg as possible while earning enough to at least keep pace with inflation.

Ideally, you will have created a portfolio large enough so that you can simply withdraw the interest generate each month, or at the very least, draw the interest and a small portion of your principal so that you won’t outlive your money. That is often easier said than done because it requires a few things to fall in place. First, you need to save enough during your working years to build up a portfolio large enough to sustain this withdrawal model. Second, you are at the mercy of the economy, interest rates, taxes, and investment performance. With so many unknowns it’s possible for even the best plan to be insufficient once retirement does arrive. But done right, you can create an investment portfolio that generates enough income that can provide you the money you need for the rest of your life.

That being said, annuities can still play an important role. Most of us, retirees included, will have some fixed expenses throughout our life. For some it’s a mortgage, and others it could be medical costs, groceries, or insurance premiums. Because there are some things that we’ll need to spend money on regardless one strategy is to use an annuity to take a portion of your nest egg and use that to generate some fixed income to cover the necessities while using the rest of your portfolio to tap into as needed to pay for the rest. This way you get some guarnteed income each month while still having control over the bulk of your money.

Start Planning For Income Now

Even if you have 30 years until retirement it’s a good idea to begin planning for how you’ll be generating income once you do retire. Sure, we have no idea what the future holds that far off, but begin thinking about your options and how important it is to have a guarnteed source of income. A lot of things will change, but if you’re aware of your options and know what to expect when it comes to generating income for life you can be better prepared to make the best decision with your money.

And finally, if you’re in you’re still a number of years away from retirement and are approached by someone trying to sell you an annuity just turn around. Tell them to give you a call when you’re 65 and actually getting ready to retire. Their sales pitch may sound great with all of the guarntees, but you know better. Annuitizing some of your money might make sense once you do retire, but until then, keep control of your investments and avoid making the insurance companies rich in the meantime.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

How to Earn Income for the Rest of Your Life: The Good, Bad, and Ugly of Annuities

Happy Halloween! Well, we technically still have one more day but it’s close enough. I’m not terribly excited about Halloween, but there is one thing happening this weekend that is going to be great, and that’s reverting from daylight saving time. You know why? It means one extra hour of sleep on Sunday! It’s a perfect time of year to squeeze in a little extra sleep too with it being so cold and dreary around these parts.

Unfortunately, there’s no sleeping when it comes to personal finance. Your bills don’t get put on hold and the stock market will continue to move whether you’re paying attention or not. So, this is no time to rest. You need to grab your finances by the horns and whip yourself into shape. Especially as we approach the holiday season it can be a stressful time when it comes to money in this recession. So here are some finance links that can help you improve your financial situation.

Take Advantage of Your Employer’s Open Enrollment Period – Fall is the typical open enrollment period for many employers. That means it’s time to decide on your various employer-provided benefits such as insurance. This isn’t a decision to take lightly, so make sure you make the most of this year’s open enrollment period.

Economically Shopping For Christmas Toys – It’s hard to get out of Christmas shopping, especially if you have kids. But even if you don’t have a lot of money this holiday season you don’t have to break the bank while trying to provide gifts to your children. Here are some tips to help you save on toys this year.

Money Management Software For The Desktop: YNAB 3 Review – Managing your money on the computer is pretty common these days. There are a number of different software platforms you can use, but an interesting product is You Need a Budget’s desktop edition. Here’s the skinny.

Should You Skip Your Required Minimum Distribution (RMD) in 2009? – Retirees have the option to skip their RMD this year. Even so, is that a good idea? Nickel breaks down the options.

What if You were Required to Share your Finances? – Think about that for a minute. What if you were required to share everything with the world about your finances? How would that change your behavior? What would it do to relationships?

What’s Your Currency? – Money is currency, right? Of course, but there’s more to it than that. Everyone feels a sense of accomplishment via different means. It’s not always about money for everyone. What’s your currency?

How to Keep a Customer Happy – How many times have you received poor customer service? Probably more times than you can count. It’s amazing how many businesses and sellers can upset a customer without even trying, but here are some ways you can keep a customer happy.

Earning Interest and Dividends on Someone Else’s Dime – When you deposit money in the bank you earn interest, right? Well, what if you could use someone else’s money and collect their interest? Learn how.

Understanding 1st Party and 3rd Party Collectors – Not all debt collectors are created equal. There are different types: 1st and 3rd party collectors. Learn what the differences are and what that means for you if someone is trying to collect a debt from you.

Is Ally Bank in Trouble? – Ally has some pretty good rates on online savings accounts and CDs right now. That alone isn’t a bad sign, but news came out about the financial woes of their parent company GMAC. Does this spell bad news for Ally Bank?

Variable Annuities Overview – I’ll be the first one to admit that I don’t like variable annuities. There are very few situations where a VA is a suitable investment yet they are sold to people every day. But don’t just take it from me. Here is a quick overview of how a variable annuity works. You can decide for yourself.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Friday Finance Findings for October 30th

Has your current financial situation got you tightening your belt and omitting things like gifts and entertainment from your budget?  Has your weekly trip to the movies been replaced by Netflix?  Do the books that you read primarily come from the library?  Do you find yourself wishing you had more money to buy the things that you enjoy most? Stop fretting and start typing!  By putting your good skills to use, you can acquire your fair share of blockbuster hits and bestsellers.  From writing book reviews to mystery shopping to peer-to-peer swapping, you can acquire an arsenal of reading material and DVDs galore with little to no effort.

Here’s a couple of ideas that will help you curb the urge to splurge but still provide you with all the loot you can handle:

Become a Book Reviewer

Being an ECW Press Shelf Monkey has its advantages.  You select the books that interest you the most by visiting http://www.ecwpress.com and create a list of titles that you would like to read and ECW Press puts your name into a drawing for free copies of their upcoming releases.  After reading the book, post your opinion on the publisher’s website and send them a link to your review on Facebook, MySpace, or Amazon.

Snag Advance Screening Tickets

Visit WildAboutMovies at http://www.wildaboutmovies.com and sign up for their newsletter.  Every time advance screenings of new films are available, you will be the first to learn about them.  Simply reserve your seats by selecting the city that you live in from the drop down menu.  Print tickets directly from your email after registering for the event.

Swap-o-rama

Register for a free account at PaperbackSwap located at http://www.paperbackswap.com and list titles from your library that you are no longer interested in.  You get a credit for each book that you give away and can use them to purchase titles from other members for the cost of postage.

Theatre Checks Anyone?

A number of legitimate secret shopping companies offer free admission to the latest flick in addition to armloads of refreshments free of charge.  Some also pay a set fee for completing the assignment.  Certified Reports, Inc., http://marketforce.com, is one company that conducts checks in a number of markets.  Registration on the site is fast and free—two words that make an impact in this economy.

Scavenger Hunting Fun

Set your books free by registering them on Book Crossing, http://www.bookcrossing.com, and seek out desirable titles by following the clues left by others on the site.  Half the fun of Book Crossing is hunting down the books that you want to read and passing on your good fortune to others.

Being budget conscious doesn’t have to be so dreary.  By “thinking outside the box” and making use of the resources available to you on the net, you can fill your empty bookshelves and squelch your need for films in a matter of minutes.

Charissa Arsaoui is a freelance writer for ChickSpeak, Buzzine, DisFUNKshion Magazine, Student Stuff, and a guest contributor for Wisebread.  She loves thrift related topics and can spot a bargain a mile away.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

How to Satisfy Your Need for Books and Movies Without Spending a Fortune

Do you want to become a millionaire? Stupid question, I know. Who wouldn’t want to be a millionaire? Well, I’ve shared my 5 steps on how to become a millionaire in the past, but there are a few unconventional methods as well. One of those is to win big on a game show — namely, the Who Wants to be a Millionaire show.  The clip below features a college student who would like to become a millionaire, but from the results you can see why he may want to rely on the basics such as spending less than you earn, avoiding debt and saving for retirement rather than count on his own intelligence. In fact, he might want to focus on studying a bit more while in college, getting some sleep, and not being hopped up on caffeine.

Want to become a millionaire? Step one: don’t be like this guy.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Want to Become a Millionaire? Don’t Be Like This Guy

Build Up Your Holiday Gift Budget in Just Two Short Months

Can you believe that Black Friday is just a month away? It’s the biggest shopping day of the year and there will be countless deals to take advantage of to ramp up for the holiday season. After that, you have just under a month until Christmas. How does your holiday budget look this year? Have you been saving money for the holidays throughout the year or are you just now starting to seriously think about it?

Either way, the last thing you want to do this year is rack up another credit card bill just to buy gifts and maybe pay for some travel. If you do, you’ll be like millions of other Americans who find themselves with a bad financial hangover come January. So, with just two short months until Christmas how can anyone save up enough money to pay for the holidays?

Save $50 a Week Starting Right Now

Starting today, put $50 in a savings account meant for holiday spending. Do it right now! If you already have a savings account you can just use that, but it’s even better if you create and designate a new account strictly for this purpose so that the money doesn’t mysteriously disappear as it gets spent on other things. A good way to start is to open up an online savings account.

What will $50 a week add up to by Christmas? About $400. How many presents does $400 buy? It depends on who you’re buying for, but that’s a good chunk of change that can put a dent in your holiday budget. If you have to travel to visit family that could even cover your airline ticket. Either way, by tucking away just $50 a week from now until Christmas you can have a nice cushion set aside to use as you begin buying gifts.

Want to do one better? If your spouse or partner also works have them save $50 each week. Now you’ve just created an automatic savings plan that will put $800 in your account by Christmas. That isn’t chump change and it can really make a difference this holiday season.

Yes, You Can Afford $50 a Week

I know what you’re saying. We’re in a recession, money is tight, and there’s just no way to squeeze $50 out of my budget each week. Unless you’re already the most frugal person in the world and there is literally not a single penny left to be saved, there are plenty of ways here and there you can come up with a few dollars a week over the next two months.

1. Ditch or reduce your TV services for two months.

Sure, you’ve heard this a million times. Cutting back on your TV costs can mean big savings. Well, the reason you keep hearing it is because it’s true. But let’s look at the next few months specifically. Usually November and December are very busy months for most people. With all of the holiday travel, entertaining, shopping, and things that go along with the holidays that means you’re spending less time at home to actually watch TV. So, if you won’t have much time to enjoy your premium cable or satellite TV services you might want to downgrade for just a few months. If you reduce your package by $25 a month or cut out a premium channel or two until January that might save another $15-$30 a month. Total savings for just two months of fewer TV options could amount to $10-$15/week.

2. Eliminate just one meal out each week.

Ok, if you already make every single meal at home and never eat out this might not apply to you, but for most of us we grab a meal out at least a few times a week even if it’s just a quick lunch. But this is one of the easiest ways to save some money. Even if you only spend $5 or $6 a few times a week for lunch if you were to cut just one of those out and bring leftovers or a snack from home you instantly save that money.

Even better, if you regularly go out for dinner a few nights a week you can realize even bigger savings. Even a $15 meal at a casual dining resturant can add up to over $20 after a tip and a drink other than water. By just staying home one night a week and fixing a meal yourself you can probably do it for a fraction of the cost yielding a total savings of $10-$15 each week. If you’re married, remember, your spouse has to eat too and if you’re going out you’re spending twice as much while cooking at home usually doesn’t mean double the price so it’s an even greater savings.

3. Entertain at home instead of going out.

Who doesn’t like to have a good time with friends and family? Well, who says entertainment has to mean going out to eat, catching a movie at the theater, or some other costly night on the town? For the next month or two try ditching the entertainment nights out and do some entertaining of your own. Like to catch a movie every once and a while? Invite some friends over, pop some popcorn and have guests bring snacks and you can have a group of people watch a movie for nearly the cost of a DVD rental.

If playing games is more your thing you can organize a game night. Maybe it’s cards, poker, or just board games, but it’s a lot of fun to get people over and have a good time playing games that don’t even cost anything. And if you tell everyone to bring a dish to pass you’ve just killed two birds with one stone! No money spent on cooking dinner or going out to eat and no money spent on entertainment. The savings from just having one entertainment night at home could easily be $50 or more. Do this a few times before Christmas and you’ll probably save $100.

4. Only buy things that are on sale.

When you go grocery shopping, try to buy only things that are on sale. If you’re stocking up on some meat for the week and you see that pork chops are on sale but chicken breasts are not, don’t buy the chicken anyway just because you felt like chicken. Stick to the pork and substitute it for chicken in a dish or simply make a dish that works with pork instead. Same thing goes for produce. If a certain type of apple is on sale versus another type you normally buy, give the one on sale a try. Or if Yukon gold potatoes are on sale instead of Russets you should opt for the Yukon. The savings realized on produce and meat products can easily amount to a few dollars per item when bought on sale. Not only that, but it’s a great way to try new foods and introduce you to different items if you stray from your standard fare and opt for whatever is on sale. The total savings from buying only sale items at the grocery store can easily amount to $10-$20 each week.

5. Saving on holiday items themselves.

While I’ve highlighted a few ideas to save money each week on regular expenses, let’s not ignore the money spent on the holiday items themselves. First, start shopping early. If you have a gift in mind already it might not make much sense to wait until Christmas gets closer. Keep your eye out for sales right now. If you can save 10% on something now and not have to hassle with fighting the crowds as the holidays draw closer it could be the best 10% you ever saved. Also, shop online. It’s a lot easier to shop from the comfort of your home on your own time rather than hitting the stores and searching for items. So, go online and start pricing out the gifts you’re looking to buy and find the best deals. You can then use this information to comparison shop if you do want to check out some of the regular stores.

Finally, don’t go overboard with wrapping the gifts. Guys, raise your hand if you’re lazy and pay for a gift box or wrapping service. I’ve been guilty of this in the past, but that’s what I get for waiting until the last minute to do my shopping. Instead of paying to have your items wrapped you can buy a roll of wrapping paper for a couple bucks and do it yourself. It might not look as nice, but come on, the paper is just going to get ripped off and thrown away anyway. This goes for buying all the fancy bows and ribbons and stuff as well. Some people can spend $50 or more just on gift wrapping supplies! You’ve spent money on the gift already, so don’t spend even more just to cover it up with some paper.

If you really want to get a head start on next Christmas be sure to hit the stores in the few days after and stock up on your wrapping paper and decorations. As soon as the holiday is over you’ll see stuff marked down 50% or more. Buy your wrapping paper, bows, tags, or other decorations you know you’ll need after Christmas and throw them in your attic or storage until next year to realize big savings.

Don’t Let the Savings Stop There

As you can see, it’s pretty easy to come up with an extra $50 each week by making a few small changes to your lifestyle. While this might work for a few months to help you build up that holiday spending money, don’t let it stop there. You’ll probably find that after making a few of these changes that it really isn’t much sacrifice. So, instead of reverting back to your old ways in January you should strive to keep these habits. Think about it this way — if you save $50 a week for the entire year you’ve set aside $2,600 just by making a few minor lifestyle changes. If your spouse does the same thing you’ve just saved over $5,000. That can go a long way in helping you build an emergency fund, invest in an IRA, or apply towards your child’s college fund.

These are just a few ideas and not everyone will be able to utilize them all. But what are some of your money saving tips that can add up without making a huge sacrifice on your lifestyle?

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

How to Save Money for Christmas in a Short Amount of Time

Ah, college. Some say it’s the best time of your life, and while I wouldn’t necessarily agree or disagree with that, there is one drawback about college: you’re usually on a pretty tight budget. As college becomes more and more expensive, and you have to take out more and more loans, there’s not a lot of extra cash to go around for you, which is why it becomes even more important to watch how you spend your money. Here are seven tips that might help you save a little bit of money:

1. Assess your goals

This one should start even before you get to college. For example, think about what you want to do with your career. Getting a degree is important, but paying the high price of a private college for a degree that has limited earning potential could prove to be a waste. This doesn’t mean that some degrees are bad, but you have to realistically look at the consequences. If you’re spending $30,000 a year on a degree that might only bring in $40,000 a year without a lot of upward potential you could be setting yourself up to be broke or in debt and trying to pay off student loans for the next ten years instead of really getting ahead financially. So, think about your situation and see if maybe attending a local or state university where tuition could be much cheaper might actually be a better financial move.

2. Save money on books

There are a variety of ways to do this. First, you can buy used books. Most times you’ll look to use the book for one semester and then sell it. Since you’re essentially just renting the book does it really matter if it’s new? Unless the class demands a new version that can only be had new there is almost never a reason to buy new over used. Other times you can buy the electronic version of the same book, so inquire to see if this is an option for any of your courses. Textbooks can be a silent budget killer as they add up fast. It’s not uncommon to spend $500 or more each semester on books that you’re only going to use for a few months.

3. Carpool

This will depend on whether or not you live on campus or commute to college, but we all know how much money you can save if you’re not using a lot of gas. If you live off campus with some roommates you should try to schedule times to get to and from campus as a group so that everyone isn’t driving to the same place at different times. Understandably, this isn’t always possible, but you should try to cut back on driving when you can to avoid buying gs, paying for parking, and the usual hassle of getting around campus.

4. Live in the dorms for a while

Don’t underestimate the benefits of living on campus. As a young adult there’s nothing more exciting than going out on your own and getting an apartment with some friends, but there are a lot of hidden costs associated with apartment living. You have higher transportation costs, utilities to pay, and your own meals to prepare. Except what usually happens is people get lazy or bogged down with classwork so you end up going out or ordering a lot of delivery food which can get real expensive. So, before making the jump off campus be sure you weigh the true cost compared to living in the dorm for another year.

5. Get a job

Your parents have probably been telling you this for years, but it’s true. Get a job and start making some money while taking classes. Will working eat up some of your free time? Sure. But it also brings in money that can help offset college costs and possibly even give you experience that will help you land a job when you graduate.

I’ve found on-campus jobs to be advantageous for a few reasons. One, since its on-campus it should be close to your classes. In some cases it might be within walking distance of your dorm, apartment, or your next class. Two, a lot of campus jobs are very homework friendly. That means you have a lot of idle time where you can get work done while on the job. Plus, they are very flexible in scheduling. Third, this gives you a chance to network with other students and possibly even faculty. Better connections could mean better job opportunities upon graduation.  Finally, depending on what type of financial aid you receive, you might even get Federal Work Study, in which case you don’t have to pay taxes on what you earn. What could be better than that?

6. Use school printers

Unless you have your own laser printer, chances are you’re going to burn through a lot of ink with your InkJet printer. You will be printing off thousands of pages in college and that ink and paper can be really expensive. In many instances colleges already charge you a certain amount for printing in the computer labs so make sure you take advantage of it.  When your professor wants you to read some 80 page research paper in a PDF he gave you do you really want to sit on the computer and read the whole thing? And do you want to waste your precious ink and paper to print it off? Use your school’s printers and have it printed for a fraction of the cost.

7. Don’t eat out so much

College students are notorious for eating out and ordering delivery food. Those late study sessions work up a big hunger and it’s easy to just call and order a pizza. Or, maybe you’re someone who likes to get work done in the coffee shop. Nothing wrong with that, but if you’re spending five or ten dollars every time you’re in there for a coffee and a snack it can really add up if you’re doing that five days a week. So, cut back on dining out. If you’re in the dorms and have a meal plan just make sure to do the bulk of your eating there. If you’re on your own for food just be sure to keep cost in mind and buy some staples to keep around the apartment so that you can make up a quick meal without spending a fortune.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

7 Easy Ways You Can Save Money in College