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We all know the huge ups and downs the economy in the past year. The stock market is about in the same place it was ten years ago. This is a time of year we are looking for ways to save on our taxes etc. There are 3 big ways to use our money more effectively in today’s market.

1. Saving is at an all time high. It’s easy to see what we have saved and wonder what to do with it. Really focus on consistent saving. Stay on track and don’t get tempted to buy something you may regret a year from now. Keep investing in your 401K even if your employer has stopped matching. An extra fifty or a hundred dollars a month can make a difference.

2. Pay all of your credit card debt. The credit card companies are going to implement the new rules. Just keep an eye out for new types of fees like non usage fees on cards you might have had for some time now. Don’t spend money you just don’t have. It will make the new purchase sweeter if you save to buy it, I know waiting is the pits but you will be better off for it.

3. Real estate market – is it the right time to buy? Record lows on loans, stimulus package for first time home buyer packages and more tax breaks might not be enough of a reason to buy. Buying real estate is always a risk. Houses have doubled in cost in the past ten years alone. If you can afford to put your own money in to remodel an new buy then do it. But to borrow more money to fix it up when it’s unclear what type of ROI you might get in the future is very risky. Really evaluate the neighborhood before you leap.

Share any new ideas you may have.