While I am definitely NOT one of those women who suggests you have a secret stash and hide money from your spouse, I also am not one of those women who suggests you merge every last thing and only have joint accounts. It is imperative that you maintain your own credit, even after marriage. If you become widowed, you may find that all that joint credit history disappears along with your husband. The article below details the story of woman who experienced just that.

http://www.nctimes.com/articles/2007/10/11/business/bahr/20_16_0010_10_07.txt

I urge everyone, male and female, to maintain some type of credit in solely their name. This can be as simple as maintaining a credit card you had before marriage or putting a future loan (such as an auto loan) in one name vs both. A little foresight can save you a lot of grief later.

Those who are self-employed or have small businesses have many choices for funding their retirement. Below I’ve highlighted some of the most popular.

• Self-employed (or solo) 401(k) – This is for individuals who are self-employed or business owners who have no employees. Just like a regular 401(k), your contributions reduce your taxable income. Salary deferral contributions are capped at $15,500 for 2008. However, those age 50 or older can contribute an additional $5000. In addition, business owners can make additional profit-sharing contributions of 25% of compensation, up to $46,000.

• SEP-IRA – Only the employer can make contributions to the SEP-IRA for him- or herself and on the behalf of the employees.Also, the percentage contributed must be the same for every employee. The annual contribution is the lesser of 25% of compensation or $46,000.While earnings grow tax-deferred until withdrawn, there are no loans allowed against the value of the SEP-IRA.

• Simple IRA – This is a relatively inexpensive plan to establish.The employer can contribute for himself as well as on the behalf of the employees.The annual limit on these contributions is $10,500 or 100% of compensation, whichever is less.No loans are allowed against the value of the Simple IRA.

Kill two birds with one stone.  Go green while saving green.  There are many ways to save money and the environment.

• Use CFLs (compact fluorescent lightbulbs) – While the initial cost is somewhat higher than standard bulbs, CFLs use less energy.  If you install CFLs in your most-used fixtures, you can easily recoup their initial cost.

• Bricks aren’t just for building – Consider putting a brick (or something similar in mass) in your toilet tank.  Because this displaces some of the water, each flush will use slightly less water.  You won’t notice a difference in your flushing but you will save water and money.

• Unplug unused appliances – Do you leave your hairdryer plugged in all the time?  Appliances draw power even when they’re not in use.  Unplug small appliances when you’re not using them.  You’ll soon see a difference in your power bill.

• Invest in power strips for items such as TVs and computers – One benefit is protecting your equipment from electrical surges.  Also, you can turn off the power strip (reducing energy usage) when you will be away from home for long periods of time.

• Use a rain barrels – Rain barrels can be purchased or constructed very cheaply.  By collecting rainwater to use for gardening or other outdoor need, you can reduce the amount of water that goes to waste as well as save on your water bill.

• Install an attic fan – If you live in a particularly warm climate, summer cooling bills can be high.  Attic fans draw out hot air which helps lower the ambient temperature in your home.  This decreases the load on your air conditioning unit, saving power and money.

Q:  What is the difference between investing in stocks and investing in mutual funds?

A:  When you invest in stock, you only have ownership in one company.  A mutual fund is a collective of various stocks that allows you to have ownership in several companies.  Because mutual funds are diverse, they are generally less risky than owning individual stocks.  For first-time or novice investors, mutual funds can be a safer alternative to stocks.

Q:  I sometimes sell items on eBay for extra money.  Do I have to pay taxes on this money?

A:  The answer is…it depends.  If you sell items for more than their original retail value (for example, vintage toys), you’re supposed to declare that income.  If you’re merely selling clothing or household items for less than what you paid for them, you’re in the clear.   While a lot of people don’t declare or underreport this type of income, it’s better to be safe than sorry.  If the IRS comes calling, more than just your current year’s income tax return will fall under scrutiny.

A lot of people make a big fuss about Valentine’s Day.  While I can definitely appreciate the sentiment, you don’t have to spend a lot of money to show someone you care.  Here’s my top five list of frugal, yet romantic, dates.

1. Instead of going out to dinner, cook dinner with your Valentine.  In addition to avoiding the crowds and saving money, you’ll have quality time together.

2. Make it a Blo.ckbuster night – Rent a movie and snuggle on the sofa together.  Bring your own popcorn and candy if you like.

3. Read poetry to each other.  If you’re a guy, you’ll definitely get bonus points for this romantic gesture.

4. Instead of giving a gift certificate to a spa, give her a massage instead.  Bring some body oils, candles and CDs and turn his or her room into a spa retreat.

5. Think outside the “romantic” box.  If you are both kids are heart, perhaps do something fun like go to the circus.  It won’t be as crowded as a “romantic” outing and it will definitely be a night to remember.

What are your plans for a frugal Valentine’s Day?

There are a number of changes in the tax code for 2007.  Below I’ve highlighted the ones that will affect the most people.

• AMT exemption – The amount for AMT exemption has been raised for one year only.  The new limits are $66,250 for married filing jointly, $33,125 for married filing separately and $44,350 for single and head of household.

• Charitable contributions – Now documentation is required for ALL donations, cash and non-cash.  This can be in the form of bank records or a receipt from the recepient organization.

• Mortgage forgiveness – Now, up to $2 million of debt on a primary residence can be forgiven ($1 million for married filing separately).  This is in effect for debt forgiven during 2007, 2008 or 2009.

• Personal exemptions – Exemptions have increased to $3400 for both the taxpayer and any qualified dependents.

• Private mortgage insurance (PMI) – PMI is now tax-deductible for mortgages originated or refinanced during 2007.  However, this does not apply for taxpayers with an AGI over $100,000 (or $50,000 if married filing separately).

• Saver’s credit – The income limit has been increased to adjust for inflation.

• Standard deduction – The standard deduction has increased to $10,700 for married filing jointly, $5350 for single and married filing separately, and $7850 for head of household.

• Standard mileage rates – The mileage rate for business use of a vehicle has increased to 48.5 cents per mile.  The mileage rate for medical reasons or a qualified move has increased to 20 cents per mile.

Five states, as well as the District of Columbia, now allow same-sex couples to file joint income tax returns.  Connecticut, Massachusetts and Vermont allowed for joint returns in previous years but 2007 is the first year it’s allowable in California, the District of Columbia and New Jersey.

However, the process can be a bit complicated.  Same-sex couples are not allowed to file joint federal returns.  Therefore, at a minimum, couples will need to file two federal forms in addition to the one state form.  Also, some states require couples to be registered as domestic partners before they can file jointly.

For more information, consult the tax department of your state -

California Franchise Tax Board

Connecticut Department of Services

District of Columbia Taxpayer Service Center

Massachusetts Department of Revenue

New Jersey Taxation

Vermont Department of Taxes

Wachovia Bank has instituted a new savings program. Every time you make a transaction (debit card purchase or online bill pay), $1 is transferred from your checking account into your Way2Save savings account. It’s definitely a painless way to save but I imagine it would make balancing your checkbook a little bit more difficult.

What’s nice about this program is that Wachovia will give you an annual bonus for the first three years your account is open. The first year, you get a 5% bonus. The second and third years, you get a 2% bonus. The bonus is limited to $300 in any given year though.

Click here for more information.