Seniors: Spend to Save

Dec 22nd, 2009 | By Dr Jerry D Elrod | Category: Senior Moments Blog

There are some situations in which you really can spend to save.  Check out the tax advantages before end of year.  You may likely be in a position to take some legitimate deductions.  By paying local property taxes you will be able to recognize significant savings.  If you are gifting funds, up to the legal limit, you will make members of your family happy as well as their not having to pay a tax on your gift, up to maximum limit.

Spending to Save is more than a gimmick chosen by department stores.  It can be a  wise means for protecting and using your assets.  Of course, there are some bargain considerations both before the big holiday and after.  The trick is to watch the deadlines and expiration dates.  For most tax advantages that may put you in a good position, December 31 is the cut off date.

Another wise move is to be conscientious about paying down all your credit cards before year end.  Eliminating the interest on your credit card will allow you to begin saving right away as the new year begins.  The caution in this is that you be very prudent in the use of your credit cards during the holiday.

Otherwise you will be adding an albatross around your neck as you move into the new year.  Many of your resolutions will be for naught, if you do not begin imposing disciplines before January 1. 

Careful management of your resources, limiting your generosity, explaining that you are not in a position to give as you have in the past and indicating that your giving will be with tomorrow in mind  given the economics affecting so many.  These very honestly sincere approaches will not elicit sympathy so much as respect. 

If, as some suggest, we are moving into a vastly different economic era, what better time to review how we manage our resources?  Next year may show improvement, but perhaps not.  If so, then imposed practices now that assist your own fiscal responsibility will simply add to  improved conditions.  If not, then you will have a leg up on addressing ways to keep yourself in a more protected and secure position. 

So, be prepared to spend to save.



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