Three Steps to Financial Fitness

We all know how important it is to maintain general good health and stay physically fit, but don’t neglect getting your finances in shape, also. These three steps can help you do just that.

1. Know where your money goes. Keep track of daily expenses for just one week, and you might be very surprised at how quickly unnecessary purchases can add up. Also, review monthly expenses for ways to cut back, eliminate high-interest debt, and ask service providers for a better deal to keep your business.

2. Check the progress of your long-term plans. Find out whether you’re still on track to reach your retirement goals. Contact Investor Services at 800-669-7400 or your local ICMA-RC representative for guidance.

3. Make the most of tax breaks. Take advantage of tax-advantaged savings plans. You can contribute up to $5,000 to an IRA in 2009 (or $6,000 if age 50 or older) and also contribute $16,500 to a 457 plan (or more if you qualify for catch-up contributions).

For help creating a budget, planning for retirement, and making other financial decisions, see the Planning & Tools section of our Web site.