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A debt-free holiday is within your grasp. It wasn't necessary to start saving last January. You don't have to give up the mall or make all your gifts. You may not even have to leave your credit cards at home.
There are at least 10 ways you can come up with the money to pay for your December celebrations without adding to your debt: 1. Adjust your withholding Most taxpayers get some kind of refund every year, and the average amount is well over $2,000. Chances are you could crank way back on your withholding for the rest of the year, seriously boosting your take-home pay, and you'd still wind up getting at least some money back in April. Kiplinger has an easy-to-use withholding calculator that shows how much more you could get in your paycheck throughout the year by claiming extra allowances; the Internal Revenue Service has a more detailed version that can help you fine-tune your withholding to maximize your December paychecks without risking having to pay on April 15. If you're going to do this, don't wait; you'll need to submit your new W-4 in time to adjust your remaining checks. Make a note to re-evaluate your withholding in January; you can switch back to your old habit of over-withholding, or you may decide to keep the extra money throughout the year rather than getting a refund. 2. Use your miles More than 120 million Americans participate in at least one frequent-flier program, according to Randy Petersen of WebFlyer. You typically can't turn miles into cash directly, but you have options beyond trying to use them to get a free flight. Many plans allow you redeem your miles for merchandise, for example. The exchange rate on these deals isn't all that great, but if you have a surfeit of miles, the miles are about to expire or you won't otherwise use them, it's certainly an option. Northwest Airlines allows you to redeem WorldPerks miles for magazine subscriptions, for example, while elite United Airlines mileage-program members can trade miles for portable DVD players and other electronics. Check your plans' Web sites for details. Article by msn |
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