Colorado Lawmakers Give Initial Approval to Suspend Tax Breaks: How it Affects You

You may have heard that Colorado lawmakers have given initial approval for the state to begin taxing online purchases, junk mail, candy and soft drinks among other consumer goods. Gov. Bill Ritter is hoping to find ways to trim another $50 million from the state budget. How does this affect you?

Ritter says the global recession is forcing the government to cut spending to save, but you should be sure you’re doing the same. For example, you can make a list of your expenses for the year and deduct it from your earnings. You should save a good portion of your earnings, and dedicate them to categories such as rainy day funds, leisure and savings. To save even more money, look at where you’re spending and see if you can cut expenses anywhere else.

A good way for you to earn on top of saving is by investing. If you’re not a seasoned investor, invest in a CD account. They are extremely low risk and give great returns that you won’t to stress about. The best and most simple secret to saving is to “set it and forget it.” If you’ve already invested a portion of your money in a CD, you no longer have to worry about saving enough for the future. Just make sure the amount is significant enough to earn some real interest. You can try to same approach with a savings account. Simply have a portion of your check deducted and put into a savings account. You can spend the rest without ever having to stress again.

To read more about Colorado’s suspension of various tax exemptions, click here.