* Charitable contributions
* Owning a clean-fuel vehicle
* Disaster relief contributions
* Prescription medicinces
* Stop-smoking programs
* Travel and transportation expenses
* Alimony

The rule of thumb on whether to itemize is simple: can you deduct more in mortgage interest, charitable contributions, state taxes, than the standard deduction? — $10,000 for married couples filing jointly and $5,000 for a single filer. Itemizing does take a little preplanning and organization in saving receipts and other paperwork documenting your expenditures.

If you are scrambling to retrieve those important papers that may be scattered hither and yon, consider investing in a spreadsheet, such as Quicken or Microsoft Money. Even if you aren’t tackling your own taxes this year, you could slash your tax-preparation fee in half. Microsoft.com says Microsoft Money 2006 can eliminate the paper chase, allowing you to sort out important tax information from day-to-day expenses, make educated tax investments and minimize capital gains taxes. Microsoft.com also recommends doing a little research on the front end to find out what can be deductible. The website suggests checking out MSN Money to learn about contributing to funds like IRA’s, ESPs, and OTPs, which may be tax deductible.

Here are a few deductions that www.msnbc.msn.com recommends you remember:

* Charitable contributions. If your donations are $250 or less, you do not need to include receipts. Any amount over that, however needs to be documented. According to the website, generally you can’t contribute more than 50 percent of your adjusted gross income, but under the Katrina Emergency Tax Relief Act of 2005, you can waive that restrictions for donations between Aug. 28 and Dec. 31. In addition, the IRS says you can also use a higher standard mileage rate and exclude mileage reimbursements from income.
* Education expenses that can range from saving for your kid’s college to paying off your own student loans.
* Home-office expenses if you work at home.
* Medical expenses if they exceed more than 7.5 percent of your adjusted gross income
* Miscellaneous deductions. According to the IRS, these can include depreciation on computers or cell phones, job search expenses, hobby expenses, military uniforms, safe deposit box rent, gambling losses, trustee’s administrative fees for IRA.

With a little research and organization, you can end up saving a lot of money by itemizing deductions. So throw away that shoebox you’ve used to store receipts. Its never too early to get organized.

The first step in creating a price chart is to go through your refrigerator and pantry and catalog the must haves the items you use at least once a month. Some staples in my pantry and refrigerator include onions, garlic, bananas, tomatoes, milk, cheese, orange juice, coffee beans, bread, olive oil, boneless, skinless chicken breasts and breakfast cereal.

After I compile a list of food items, I start recording the best prices I’ve found on the items, being sure to determine costs by size and packaging, as well. For instance, I know that I can find 6 oz cans of tomato paste, a staple in my Italian cooking, for $.25 apiece if I wait for a sale. That is about $.07 less than buying the cans in bulk at my local warehouse store. Because I almost always have the paste on hand so there is never an emergency situation, it is a better bargain for me to wait for a sale at my local market and bulk up then. However, nine times out of 10, it is a better deal to stock up on toilet paper at the warehouse store, where I can find a sturdy, good quality roll of 425 sheets for $.41 apiece. Keeping a price chart also allows you to quickly distinguish when a sale is really a sale.

I’ve found the simplest way to create a chart is on the computer and print it out. That way, my price chart ends up being a typed piece of paper that easily folds up and remains in my wallet where I can reference it at any time. In addition, having it on the computer means updates are simple. So the next time, you see a big sale on your favorite ice cream, you can quickly reference your price chart and determine that yes, it is worth hopping in the car and stockpiling a pint or two.

There is a psychological cost to owning too much stuff, as well. The more stuff you have the harder you have to work to keep it. The extreme of this is buying a giant house and expensive boat and then working 75 to 80 hours a week to pay for the slip in the harbor, the property taxes, the maid, the furniture to fill the massive space, and so on. When you are over-extended in this way, you have no time (or energy) to enjoy the house or boat.

On the whole, having less stuff is also conducive to clearer thinking. Have you ever noticed how simply cleaning your desk or office or living room promotes a feeling of calm and sense of clarity? Too much stuff is like static on the TV — you can’t really see the true picture in life. In the past two years, I have both borrowed and loaned maternity clothes. During my first pregnancy, during the summer in California, I only had to buy a handful of maternity clothes because most were loaned to me by a friend. After my second pregnancy, in Minnesota during the winter, I bought many winter and warmer items and have now passed them on to a sister-in-law who is pregnant.

Like the example above, sometimes it isn’t a clear-cut exchange. Maybe we won’t ever need something from that person who borrowed our cordless drill, but possibly they will loan someone else something someday. And sometimes the favor is returned in a different form. For instance, we’ve borrowed a ladder from a neighbor, and every time it snows, my husband takes his garage-sale bought snowblower and plows that neighbor’s sidewalk and driveway. Although I’m sure my husband would have done it anyway, it’s still an example how we each create a community when we reach out to others.

And by taking that step and knocking on a neighbor’s door, we also have a very good chance of striking up a new friendship, which is worth more than anything you can buy.

And according to a 2001 report on the NewsHour Extra by Jim Lehrer, by the end of 2000, Americans owed 7.2 trillion dollars in household debt. American families owed 100 percent of the money they earned from work.

Getting out from under that debt may seem insurmountable, but it is crucial to achieving financial freedom. The way to do this is to first take a month and log all your expenditures from that morning coffee to that monthly mortgage. Organize your expenditures in categories such as eating out, groceries, gas for car, entertainment, and so on.

After doing this, most people are astonished by how much of their income they are just piddling away with nothing to show for it. Then, carefully look at where you can cut. Depending on your motivation, you could shave tens or hundreds of dollars off that monthly amount. Whatever that savings amounts to, you need to allocate it to pay off your credit card with the highest interest rate. Keep making chunks of payments until it is paid off and then move onto your next debt until all you have left are low-interest rate student loans, a car loan and/or your mortgage.

Once you pay off all your other debt, then take that amount you spent on debt reduction each month and stick it in a money market account that will be readily accessible in case of emergency. When you have enough money in that account to pay for, say, six months of your living expenses, then it is time to start thinking about whether you’d like to start paying off your other debts: student and car loans and finally, a mortgage.

Some people are satisfied to stop right there, maybe keeping a mortgage for the tax write off and using the money they previously spent on debt for vacations or other treats. But there are some people who keep right on going until they are completely debt free and then invest their money and live on the returns. This is true financial freedom. It is tough, but it has been done. Those people who have accomplished this ultimate financial freedom, such as Vicki Robin and Joe Dominguez, the authors of Your Money or Your Life, claim to have found a richness to life that no money can buy.

If you start at age 25 and contribute the $14,000 maximum each year, you would have nearly $4 million by age 65, said John Demming, a spokesman for Vanguard in an article posted on www.kplctv.com, a Louisiana television station’s website. If you start saving in your 401K at age 40, you would have just over $1 million, he said in the article. Note: For 2006, the maximum was raised to $15,000.

A 401k retirement plan is basically a savings account financed by contributions out of your paycheck. The monies are contributed before taxes and then invested. The money is not taxed until you withdraw it from the account, ideally at retirement age. Early withdrawals are taxed and can incur a monetary penalty, except in a few special circumstances. If your employer offers a plan that matches your contribution, you can’t afford not to participate. That’s turning down free money.

According to Joshua Kennon’s “Your Guide to Investing for Beginners, there can be a big payoff from companies, such as Starbucks, which sweetens its recruitment pot with matching percentages for 401k contributions, He writes, an employee working at the coffee giant for over ten years earning $100,000 that contributed $4,000 to their 401(k) would receive a $6,000 deposit in the account directly from the company (150% match on $4,000 contribution.) Anything the employee deposited above the 4% threshold would not receive a match. According to kplctv.com, its worth checking out websites such as www.Smartmoney.com and www.morningstar.com that have online software and free calculators to help determine how much you should contribute to make your retirement goals.

So don’t walk, run to your HR department and get signed up. The sooner the better.

2. Create a list of all your monthly expenses. If an expense occurs less frequently, simply prorate it to fit a monthly format. Be sure to include such expenses as; housing, food, transportation, utilities, entertainment, etc. It is wise to track your spending for a full month during this stage of budgetary planning. Save your receipts and each evening write down your expenses for the day. This is the best way to gain an accurate reflection of actual expenses.

3. Determine if your income covers all of your current expenses. If the answer is no, then expenses need to be reduced.

4. Adjust expenses. This can be done in a variety of ways. Depending on the amount of the shortfall, it may be a simple matter of reducing some discretionary spending, such as entertainment, or food.(i.e. the number of times you eat out in a given month) If the deficit is larger then it may be a matter of downsizing your vehicle or your living arrangements. If your income covers all of your expenses then this is still a good opportunity to trim some of the fat off of your spending habits. This can help free up extra money for a variety of reasons ranging from, college educations for the kids, to a nice anniversary trip with your wife.

5. Add new categories if necessary. Three areas that are often overlooked are 1) debt reduction 2) retirement savings and 3) emergency savings. An emergency fund will ensure that there is an adequate amount available to cover an unforeseen even (i.e. the car breaks down) should it arise. This will prevent the use of credit which can quickly break a personal budget.

I love the Italian philosophy of La Bella Figura, which essentially boils down to always putting your best foot forward. For me, it doesn’t mean spending thousands of dollars on clothing, makeup and jewelry. What it does mean is being selective, purchasing timeless, classic styles and choosing quality over quantity.

Something you will hear from me again and again is the philosophy that “less is more” – a belief not very common in the American consumer society. But in some European countries that we admire for the pleasure they take in creating a quality life, it is par for the course. In the style bible, Simple Isn’t Easy, by Olivia Goldsmith and Amy Fine Collins, a famous French architect is quoted saying American closets shock me. So much, too much. No one can dress well with so many clothes.

In the same book, shoe designer Manolo Blahnik is quoted saying It is a question of selection, to choose less. That is something Americans do not understand. They think that more is better. So, yes, I have a gorgeous purse, but it’s the only designer bag I own and one of only three purses in my closet. Again: it’s a question of choosing less not more. (And in this case, a little bit of luck didn’t hurt: my mother spotted the bag at a garage sale and the owner sold it for a song to rid herself of memories of an ex-lover!)

For me less is more means I would rather scrimp and save my money to buy a beautifully cut pairs of jeans that flatter me and will give me years of wear. And sure living this way most likely means delaying instant gratification. Saving money to buy what you want is not something we are used to in these days of instant credit, mass mailing of credit card approvals and the ability to purchase almost anything we might desire online in the privacy of our own home.

What it will mean is an increased satisfaction and appreciation for the things we do own and the desire to care for them so they will last and give us as much pleasure for as long as possible.

Coupons are great! Look in your local papers and mailers such as Valpak. If there’s a restaurant you love, call them and ask if they have any coupons out. If your area has an Entertainment Book (www.entertainment.com) you can usually buy them for under $50 (sometimes well under) and save on not only meals, but movies, sporting events, family entertainment and many other events and services. Scan the book briefly before you purchase to make sure they are places you will go. Many times the coupons are BOGO (buy 1 get one) so savings add up fast! Also, if the book was purchased from a charitable organization you may be able to deduct its cost from your income taxes be sure to check. As these books are sold in many areas, if you are traveling they may be worth the purchase price for the city you are visiting.

Frequent diner discounts. See if your favorite spots offer any discounts for visiting often. Sometimes there is a discount card or special coupons for designed to build loyalty. Sometimes there’s a discount if you bring guests. As always, it pays to ask. Share and share alike. Sometimes portions sizes and prices prohibit you from enjoying dining out. Try sharing appetizers, desserts, even entrees. You’ll save a lot of money and a lot of calories. If you find a restaurant charges a fee to split the entree think about going some place else. Most restaurants are more than happy to do it. Off season deals. If you live in or travel to tourist areas take advantage of their slow season. Off season can be great in other ways as well. The service may be more personable and you’ll have fewer crowds to worry about. Act your age. Take advantage of senior discounts or student discounts. Start looking for them. Also it’s good to know that many restaurants will give you things on your birthday. Whether it’s a free drink or dessert don’t hesitate to ask.

Discounts on the web. Many cities have web sites where popular restaurants like to advertise. On these sites you’ll find printable coupons or discount codes to mention. There are also services like www.rewardsnetwork.com (formerly www.idine.com). If you dine out often this service offers discounts on 1000′s of restaurants around the country. There is a membership fee but then no coupons to carry as you register your credit cards and receive the discount automatically. Not for everyone, but a great savings to those it applies to. Take it home. Many restaurants (even fine ones) offer take out service. This is a great way to save. Bring your dinners home (or make a picnic) and save on drinks and tip! When in doubt, carry out! Do drink the water. Drinks can add up fast and for many it’s really no sacrifice to just ask for water. If you’re drinking alcohol don’t fall for the “premium” or “ultimate” drinks. These mixed cocktails using the top shelf liquor can be nearly twice as expensive as those made with “house” spirits. Unless you’re a connoisseur you won’t know the difference. Always ask for specials before you decide. Watch out for the pitch. Good waiters and waitresses are often highly skilled at suggestive selling. Before you know what’s hit you, you’ve ordered coffee and dessert or extras on your salad. Don’t fall for the sneaky up-grades. Decide what you want and stick with it, same for refills on drinks. You don’t want to spoil a nice meal by seeing a lot of unplanned for charges show up on your final bill.