Some financial resolutions for a new year

The Christmas bills have started to roll in. Are you still paying off the debts of Christmases past?

If you've got a holiday debt hangover, it's time to take action. This year, vow to change how you think about your money.

First, set some short-term and long-term goals. Short-term goals could include saving up enough to pay down debt, starting a mutual fund, or even adding to your emergency fund. Long-term goals can include paying for college tuition, weddings, houses, and let's not forget the biggie – retirement!

Setting goals and thinking about them will help you save more and spend less. If you're thinking about how not spending will help grow the balance in your bank account, you'll be less tempted to buy something today. You might be willing to wait awhile to see if you really need the item.

There's only one way to get rich in this world: Spend less than you make every day. That's one New Year's resolution worth keeping.

The IRS opens for business next week

The IRS opens for business next week. Before you file your return, check to see if you're affected by any of the Tax Extenders legislation that President Bush signed into law during the last days of December.

According to the IRS, the Tax Extenders legislation was passed AFTER all of the 2006 tax forms had been printed. You won't find the changes clearly marked on your tax form.

For information on some of the tax changes passed at the end of December, log onto the IRS website at IRS.gov, and request Publication 600. You can also get up-to-the-minute information from a variety of links at the IRS.gov website. When you file, don't forget to ask that your check be direct deposited into your bank account.

But be aware, even if you your return next week, it will take the IRS longer to process any tax returns that claim any of the tax extender legislation. Expect those returns to be processed in February.

Does Your Credit Card Get a Passing Grade or Top Marks?

Even though the weather outside is frightful in January, it's still my favorite month. The New Year gives me the opportunity to start fresh, and figure out a way to make my money go farther.

One thing I always do is check on how my credit cards stack up against the current offerings. As regular listeners know, I never carry a balance on any of the credit cards I have. I always pay them off at the end of the month.

But each of my credit cards gives me something extra for my business. I don't pay anything for any of my cards, but most of them give me between 1 to 3 percent back in cash on various kinds of purchases. One card helps me build miles on my favorite airline.

Compare your credit card deals at cardweb.com and cardratings.com. And don't forget to pull a free copy of your credit report at annualcreditreport.com.

Traveling abroad on a weak dollar – or, how to go to take a vacation without going broke

My mother just got back from her annual trip to London. She goes every year with her theatre group, and they see 7 plays in 6 days in the week after Christmas through New Years.

This year, she called to say that everything was outrageously expensive. With the cost at two dollars per pound, a cup of coffee at her hotel cost $12.

That's pretty pricey. Although it's cheap to fly to Europe and parts of Asia right now during the January airfare sales, it's the rest of the trip that'll break the bank. So I started thinking about places to go on vacation where the dollar is relatively strong.

I discovered that you'll get the best deals by traveling to parts of South America, less popular parts of Asia, like Vietnam, and less expensive European countries, like Spain and Portugal. Look for all-inclusive hotels, check out deals on the web, and don't forget to ask for a discount if booking online with a chain.

More people are leasing cars

The numbers are in and according to Edmunds.com, the number of people leasing a car rose 21 percent last year.

If you're going to change cars every year or two, then leasing is certainly a better way to go. But if you're going to drive your car for at least 10 years, like I do, then buying is a smarter move.

If you are going to lease, be sure to limit your down payment and negotiate the mileage amount carefully. If you drive 12,000 miles per year, don't accept a lease that limits you to 10,000 miles per year.

Lease numbers are based on the cost of the car. So be sure you know what buying the car would cost and negotiate the lease based on that amount. Finally, shop around and be sure you're comparing lease deals on an apples-to-apples basis. Otherwise, it's easy to get the short end of the car leasing stick.