Doing this will accomplish two very important things:

1. Certified Mail (which costs $2.30) provides proof that return was mailed, and that it was mailed on time, on or before due date.

According to IRS, a paper return is filed on time if it is mailed in an envelope that is properly addressed and postmarked by due date. When you use Certified Mail, you will get a receipt postmarked by postal employee, and that date on receipt is postmark date.

So, should return get lost by IRS, or if IRS questions whether you mailed it on time, you will have written proof.

Plus, every piece of Certified Mail is assigned a tracking number which can then be traced by U.S. Postal Service should a problem arise.

2. Return Receipt provides another level of insurance. For an extra $1.75, when letter is delivered, IRS must sign or stamp a receipt that documents date of delivery. This receipt then gets mailed back to you, so that you now have written proof that IRS received it.

Technically, you only need to send return via Certified Mail to prove that it was indeed mailed on time. But I really like Return Receipt as well -- it gives you that extra "peace of mind" to know that IRS received it. And you'll know exactly what day it was received. This is proof of delivery.

So don't run risk of having your tax return get lost in mail.

And don't run risk of having your tax return get lost in piles and piles of paper that flood IRS each year.

Think about it. Well over 100 million personal income tax returns are filed with IRS every year, and majority of them are still prepared on paper and mailed by U.S. Postal Service.

The U.S. Postal Service and IRS are staffed by hard- working people who are only human. People make mistakes. To greatly reduce chance of a mistake being made with your return, don't you make mistake of just putting your tax return in mailbox.

Instead, e-file it, or take it to post office and send it Certified Mail, Return Receipt Requested. It could be best $4.05 you ever spent!

Whilst working with this formula with my clients, I found that people who live within their means tend to spend their money roughly within 40%-30%-20% rule. That is, their fixed costs are roughly 40%, their variable costs 30% and discretionary 20% of their net income. The more I worked with this formula more I realised it was an excellent way to achieve two things. First, it provides you with a simple effective method for planning and allocating your finances, and secondly, it is perfect method for getting you out of debt and into wealth. The most critical category is fixed costs. The fixed costs of people who are living comfortably within their means are generally around 40% of their income. People with fixed costs above this percentage, tend to lead lifestyles that cost them more than they can afford. The size and quality of their homes, cars, furniture and other items that they have borrowed for, have forced them into excessive debt. Because fixed costs are comprised of debt and committed payments, they are crucial in determining your ability to create wealth. If you want to be wealthy, you have to be committed to dropping these costs below 40%.

When clients first come to me, their fixed costs are often 50%, 60% or even 70% of their net income. The aim is to reduce that percentage to 40% or less, over time. Creating wealth is about building strong financial foundations that cannot be shattered regardless of what we may be faced with in future. Regrettable, strong foundations take a little time to build. People in severe financial hardship usually have fixed costs that are greater than 65% or 70% of their net income. This is usually due to excessive debt or insufficient income. People who are in financial crisis, where they tend to live from payday to payday and seem to be going from one financial problem to next, tend to have fixed costs between 45% to 60% of their income. If their fixed costs are approximately 40% of their income, they are living comfortably within their means, and if their fixed costs are below 40%, they usually have excess money that could easily be channelled into additional savings and investments. So key to good financial management is managing and controlling your fixed costs. Remember, it is all done by measuring your fixed costs: if your fixed costs are 40%, you are living within your means, if your fixed costs are above 40% you will be putting yourself under financial strain, and if they are below 40% you will be in a surplus position. Therefore, if you want to accelerate your wealth, keep your fixed costs well below 40% mark and invest surplus.

If excessive debt is keeping your fixed costs high, formulate a debt free plan and do not go deeper into debt. Learn to live with cash. It is far more finite and when cash runs out, you know you definitely cannot afford to buy those extra purchases. If low income is your problem, consider all alternatives to increasing your income. These may include: part-time work, turning hobbies or crafts into cash or investing in additional training to further your career prospects.

Also, to decrease your fixed costs you may have to make some difficult decisions about way you live. Is house you are living in far too costly for you? Are you running two cars when one could suffice? Can you downsize anything now, which is costing you far too much money? Are you trying to live well above your present means buying clothing, accessories or electronic gadgets that you cannot afford? Are you a shop-oholic, and can never resist a bargain - regardless of whether you need it or not? Are your credit cards always to maximum limit and you cannot afford to pay balance? These are often difficult choices to make, but well worth it in long run. Remind yourself that you can have bigger house, cars, toys, etc - later, when you can better afford them. If you get a bigger mortgage to upgrade your house or borrow for a better car, you will increase your fixed costs. By keeping your fixed costs as low as possible, you will accelerate your progress to becoming wealthy. Your plan should always aim at decreasing your fixed costs below 40% by either increasing your income or decreasing your debt, or both. Once you have achieved this, use extra money to add to your savings and investments. This is guaranteed way to accelerate your path to wealth. Copyright © Ann Marosy, 2002

The 40%-30%-20%-10% formula is featured in The Money Program: Managing 6 Stages of Wealth. Visit: www.moneta.com.au