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Short on Cash? 
 
by Heleigh Bostwick May 19, 2005

3. Adjust Tax Withholding

The W-2 Form can be changed at almost any time during the year. Did you have any qualifying “life events” recently, such as marriage, divorce, birth of child, purchasing a home, take pay raise or pay cut? If so, any of these can affect the amount of withholding. Even if nothing in your life has changed, carefully look at your tax records. Wouldn’t you rather have that money in your pocket?

4. Transfer High Credit Card Balances

Many people automatically pay the minimum balance on their monthly statement without thinking about the interest rate. Maybe you toss those credit card “deals” because you don’t have time to sift through the junk mail in your mailbox. Sometimes it pays to look at those offers.

Some balance transfers have low interest rates and no transaction fees with rates that are good for the life of the transfer. Just be careful to read the fine print because transferring balances can easily backfire. If you need a “low-interest” loan in a pinch, this could be a smart move. If you have several offers, then spread the wealth. Credit bureaus look more favorably on lower debts spread over several cards rather than the maximum debt on a single card.

5. Evaluate Your Telephone Bills

With deregulation, you have more choices than ever. Local, regional and long distance service can be through different carriers. Or, you can choose the same carrier for all three. It depends on what your needs are.

The best thing to do is to evaluate your phone bills from the past three months and then find the best plan that fits your needs. Do you have a cell phone? You might want to use it to for all your long distance calls and only sign up for a local and regional calling plan through the local phone company.

The competition is fierce, especially for long distance calling, so it pays to shop around. The number of phone service providers for long distance landline phones is mind-boggling. Use the Internet to comparison shop, but always call in person to verify information.

Phone companies are always changing their calling plans and it pays to call them up periodically to ask about a better plan. Ask about freebie specials such as voicemail or call waiting when you sign up for a different plan--even if you already have service with them. Also, get rid of calling options you don’t need such as call waiting or wire maintenance.

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