1. Review your health benefits. If you are covered by your employer, check whether you may contribute to a flexible spending plan. By using pre-tax dollars, you can reduce your tax burden. If you are self-employed, consider shopping around and keeping your deductibles high.

2. Review your premiums on your auto and homeowner's insurance. Check whether you have the proper coverage consistent with the risk you wish to manage. Consider higher deductibles if you are willing to pay for small items in return for a lower premium. Check whether the policy is consistent with the value of the assets covered and that any losses will be replaced at market value. Shop around for the best value.

3. Increase retirement savings. Put away the maximum allowable contribution to employer sponsored plans such as 401(k)s and 403(b)s. These plans are among the best tax shelters available. If you are self employed, consider accounts such as SEPs or Keoghs. If you are contributing the maximum to these accounts, consider after tax contributions to IRAs and/or annuities.

4. Check your withholding. You may be paying in too much. You may, in effect, be giving the government an interest free loan. If you consistently receive large tax refunds, consider adjusting your W 4 with your employer. The extra cash flow will help you to manage your monthly expenses more efficiently.

5. Consolidate debt. Convert high interest auto and other personal loans to a home equity loan, which is often at a lower rate and sometimes tax deductible. Transfer high interest credit cards to lower interest cards. Review all of your expenses with the thought of necessity, and minimize.

6. Review your life insurance policies. If you are single with no dependents, do not pay for life insurance that you may not need. Shop around for the best value in insurance coverage. Assess your needs carefully. You may have either too much or too little coverage. Check whether your policy is part of an investment that you may not know about.

7. Review any disability insurance Policies. You are much more likely to become disabled than to die before your actuarial life expectancy. Check if coverage is for all disabilities however they may occur, whether at work or at home. Consider extending the waiting periods to save on premiums if you can afford to support yourself during the waiting period.

8. Check your credit bureau file. There may be inaccuracies that affect your ability to obtain credit. Credit bureaus contain files on almost 90% of American adults, and the average person has two or three credit reports on file at different bureaus. Contact all 3 major credit bureaus: TRW: (800) 682 7654, Trans Union: (216) 779 7200 and Equifax: (800) 685 1111. You are entitled to a free copy of your report if you have been denied credit within the last 60 days.

9. Review Your estate plan. Check whether you have an updated will. Consider the necessary legal forms if you become incapacitated. Consider making gifts to reduce the size of your estate. You may give up to $10,000 to as many people as you like, tax free. This is a good method to keep your estate under $600,000, after which high estate tax rates may apply. Discuss the possibility of setting up a Trust with the assistance of a qualified attorney.

10. Review your emergency fund. Financial planning guidelines suggest having three to six months of living expenses set aside in a safe liquid account to have available for unexpected occurrences such as job loss, major car repair or legal fees. You may want to consider available credit as part of this fund.

11. Update financial documents to account for family chances. Check all trusts, wills, insurance policies and pension forms to ensure that all intended beneficiaries are listed. Put all financial paperwork in order and in a secure and easily accessible location.

12. Consider a Part time business. If there is an activity that you currently pursue as a hobby, consider turning it into a for profit activity, thereby creating tax deductions and potential extra income for yourself.