by Joseph Kenny | 01/1/08

The beginning of a new year is the perfect time to re-evaluate one's financial situation, according to financial experts.  They say that the sooner you get your financial house in order, the better off you'll be in 2008.

The advice comes at a critical time.  The housing crisis has become so severe that it's touched off a worldwide credit crisis.  Home values are plummeting, foreclosures are skyrocketing, investors are reeling, homeowners are having a tough time selling their homes, and would-be homebuyers are having difficulty obtaining financing.

Still, there are some smart money strategies you can undertake in 2008.  One you might consider is putting your savings in an online savings account.  Some of these accounts may pay more than 5% in interest.  The accounts can usually be linked electronically to the checking account at your local bank, making it easy for you to perform electronic transfers.

Meanwhile, if you've become the victim of identity theft, you might want to consider freezing your credit files.  That way, no one will have access to your credit report.  As a result, no one should be able to obtain a credit account using your identity.  Experian, TransUnion, and Equifax have already agreed to provide credit freezes nationwide.  While invoking a credit freeze can be a hassle, it can be an important safeguard against identity theft.

In the meantime, if you're interested in getting a break on your taxes, you might consider deducting your private mortgage insurance payments.  These payments are generally required of homebuyers who have equity of less than 1/5 of the home's value.  Congress is permitting individuals with incomes of $100,000 or less to deduct such payments from their taxes.

Another smart money strategy is to take a close look at all your credit card accounts.  Determine exactly how much money you're paying in interest each month.  Then shop around for balance transfer deals offered by other credit card companies.  You may be amazed at how much money in interest you can save in a given year.