Do you have what it takes to buy a home? Consider this exhaustive guide from Kiplinger.

Tired of renting? It could be a great time to buy your first home. In many cities, home prices have bottomed, and rents have risen. Mortgage rates are still superlow. In fact, homes haven't been as affordable since 1971. On the downside, in many cities, buyers have fewer homes from which to choose and more competition for the best houses.

In Austin, TX, newlyweds Mark and Ariane Corcoran bought their first home in March. They were renting in a popular downtown neighborhood, where they paid $1,200 a month for a 500-square-foot loft apartment, when they inherited enough money for a down payment. When they began shopping, they expected to buy a classic 1930s Austin bungalow. They found lots of prospects online but drove by most of them. "Agents are really good at taking photos that exclude what they don't want you to see, like the used-car lot out back," says Mark.

They put in an offer on a $225,000, 800-square-foot home. But after the home inspection, they realized that it needed $20,000 to $30,000 in renovations and repairs and that they'd quickly outgrow it. They walked away during the state-mandated rescission period (during which a buyer can back out for any reason and get back any earnest money deposited).

Ariane identified their next prospect within an hour after the listing appeared online. It was a newly built, 1,600-square-foot home with three bedrooms, 2.5 baths, and a yard for the dogs. The builder asked $270,000, the couple offered $260,000, he countered, and they paid $268,000. They put down 20 percent to avoid private mortgage insurance and snagged a 30-year fixed rate of 3.75 percent from a credit union. Their monthly mortgage payment is $1,524.

Before you take the plunge, consider the answers to questions often posed by first-time buyers. Read on for what to ask yourself.

Becoming completely financially independent can be scary, but it's also very liberating. Kiplinger gives advice on how to establish your financial independence.

Not only is it difficult for us twentysomethings to wholeheartedly embrace adulthood, it's often also a challenge for our parents to let us go. Baby-boomer parents are generally known for mollycoddling their children, even after we move out of the house and into our own adult lives. Some parents have shown up for their kids' job interviews, and others have called up human resource departments at their adult kids' workplaces to complain about bad performance reviews or to negotiate salaries on behalf of their children.

They may mean well, but such extreme helicopter parents are actually hindering their children from growing into independent adults. "If a child is receiving too much help, then they have no incentive to succeed or become independent," says Erin Baehr, of the financial planning firm Baehr Family Financial, in Stroudsburg, Pa. "They may also be setting themselves up for some possible financial trouble down the road."

We certainly don't want that. At the same time, as young adults, we shouldn't be so dead set on finding our independence that we end up punishing ourselves by turning down valuable financial guidance and support from Mom and Dad.

So how about meeting in the middle? You can stay open to your parents' assistance but also set limits on how involved in your life you want them to be. For example, when it comes to parental career advice, Marty Martin, a financial psychologist at Aequus Wealth Management Resources, in Chicago, suggests you say, "Mom and Dad, I would really appreciate any advice you may have before I go to my job interview, and I will contact you after it happens. But I really need to do this on my own."

Read on for more.

Build up your emergency fund with these tips from Kiplinger.

You know you need an emergency fund — easily accessible cash to pay for unexpected expenses. Without one, you could find yourself looking around the house for valuables to pawn, racking up credit-card debt or maybe even considering a payday loan to cover the costs of an emergency.

But you may be wondering how you can find enough spare cash in your budget to set aside for a rainy day. If you’re living paycheck to paycheck, I’m sure the thought of saving up enough money to cover six months’ worth of expenses (as is usually recommended) is especially daunting. The good news is that you don’t have to stash that much cash at once.

The key is to start setting aside a little each month to build your emergency fund. And that doesn’t require a big salary. After all, saving is a function of discipline, not income.

Here are seven ways to find enough money — and motivation — to create an emergency fund.

Save — don’t spend — your tax refund. About 75% of taxpayers received a refund last year, and the average amount was $2,913. A refund of that size can get your emergency fund off to a great start. Open an interest-bearing savings account and have the money directly deposited into it so you won’t be tempted to use it.

Pay yourself first. Rather than wait until next year for another refund to stash in your emergency fund, adjust your tax withholding by filing a revised W-4 form with your employer (see How to Adjust Your Withholding). This will put more money in your paycheck each month, and you can set that amount aside in your savings account so it can earn interest and grow. (That money won’t be earning any interest during the year if you leave it with Uncle Sam.) If possible, have your employer deposit the designated amount directly into your savings account so you don’t see the money in your checking account and aren’t tempted to spend it.

Read on for more.

Now that you're done with taxes, it's time to do a little Spring cleaning with your financial documents. Kiplinger advises what to keep and what to toss.

It's smart to keep your tax returns indefinitely. Old returns can provide important background information in a variety of situations — for example, if you're applying for a mortgage, applying for disability insurance or trying to figure out the cost basis of investments. The pages from your return don't take up much space, and the records are easy to digitize, so you don't need to keep the paper versions of your old returns.

Also keep records of your home's purchase price and major home improvements for three years after you sell the home. Most people no longer need to pay taxes on their profits on a home sale: Single filers can exclude $250,000 in profits from income, and married couples filing jointly can exclude $500,000, as long as they've lived in their home for at least two of the past five years. But if you live in the house for less than two of the five years leading up to the sale, your gains may be taxable. In that case, your home-improvement records can substantiate an increase in your tax basis and a lower gain (the cost of basic repairs doesn't count). For more information, see IRS Publication 523 Selling Your Home.

It's a good idea to keep records of stock and mutual fund purchases made in taxable accounts for as long as you hold those investments. The records will come in handy when you sell the shares and must report the purchase price, date of purchase and number of shares involved. Also keep records of any stock or mutual fund dividends you've reinvested so you can avoid paying taxes on them again when you withdraw the money.

Read on for more.

Be savvy about your retirement. Kiplinger gives eight compelling reasons for getting a Roth IRA account now.

Smart young savers know to participate in their companies' 401(k)s as soon as they join the workforce to benefit from as many years of saving and compounding as possible (see Why You Need a 401(k) Right Away). But really smart young savers — including all of you who read Starting Out, obviously — should know to save via a Roth IRA, too.

In fact, the Roth IRA is such an important retirement investment tool that it now has its own holiday. On March 27, Jeff Rose, financial planner and GoodFinancialCents.com blogger, hosted an online event, the Roth IRA Movement, which he plans to make an annual celebration. He rallied 145 other personal-finance writers to spread the good word about the star savings account and inspire rookie investors to open their own accounts. "Overall, the turnout was awesome," says Rose. "Several people have already e-mailed me and said that someone they know opened a Roth IRA because of reading a post about it."

Here are some of our favorite lessons to take away from the inaugural Roth IRA Movement:

1. You can open a Roth no matter how young you are, as long as you have earned income. Peter Anderson points out in his Roth IRA Movement contribution, 10 Reasons Why I Love the Roth IRA (And Why You Should Too): "There isn't an age limit to have a Roth IRA, so even your children can have one!" They can, that is, as soon as they make money working, whether it be babysitting, lawn mowing, working retail or whatever.

And it's super-easy to open a Roth through your bank. Or you can try one of Kiplinger's favorite online brokers. TD Ameritrade requires no minimum initial investment and charges no maintenance fees. For your application, you'll just need your Social Security number, your employer's name and address, your checking or savings account number and bank routing number (if you want to fund the Roth IRA electronically), and your beneficiary's address and Social Security number.

Read on for more.

Tax Day is nearing and when you're rushing to file, don't forget these tax breaks cited by Kiplinger for a bigger tax refund.

With the tax-filing deadline coming up very soon, I'm still getting a lot of questions from people about potential tax breaks. Before you file, see if you’re eligible for the following deductions and tax credits.

Tax breaks for college costs. The American Opportunity tax credit can lower your tax bill by up to $2,500 if you spend at least $4,000 in tuition, required fees, books and course materials for the year. It applies to the first four years of postsecondary education. To qualify, your modified adjusted gross income must be less than $160,000 if you are married filing jointly, or $80,000 if you are single (the credit phases out completely at $180,000 for married couples, or $90,000 for single filers). The Lifetime Learning Credit applies to all years of postsecondary education (including graduate school) and can lower your tax bill by up to $2,000 per return. To qualify for the full credit, your modified adjusted gross income must be less than $100,000 if you are married filing jointly or $50,000 if you are single. The size of the credit phases out until your income reaches $120,000 if you are married filing jointly or $60,000 if single. See Tax Breaks and Credits For College Costs for more information.

Extra credit for saving. If you contributed to a traditional or Roth IRA, a 401(k) or another retirement savings plan, you may qualify for the retirement savers' tax credit, which can reduce your tax bill by up to $1,000 per person. To claim the savers' credit for 2011, your adjusted gross income must be $28,250 or less if you're single; $42,375 or less if you file your tax return as head of household; or $56,500 or less if you are married filing jointly. See A Tax Credit For Retirement Savers for more information.

Read on for more.

If you owe credit-card debt, educate yourself with these pointers from Kiplinger about how the whole collections process works and what your rights are.

Year after year, debt collection complaints rank among the most-common consumer grievances the Federal Trade Commission receives. In fact, reports of deceptive debt-collection tactics were the second-most common complaint (after identity theft) that the FTC received in 2011.

"Debt collection is complicated, and some collectors may push the boundaries of the regulations and law to get money out of you," says Bill Hardekopf, CEO of LowCards.com. In fact, JP Morgan Chase is being investigated by the government for improper credit-card collections, he says. If you're having trouble paying off your credit-card debt, you need to understand the collection process and know what your rights are.

You have at least 21 days after your credit-card statement date to make a minimum payment. If your payment is late, your card company will report it to the credit bureaus — but you may get up to 60 days if it's your first late payment and you're a good customer, Hardekopf says. That information will remain on your report seven years after the date you first missed the payment.

If your account is 60 days past due, the late payment is noted on your credit report and your credit-card company will turn over your account to its collections department.

If your account is 90 days past due, your card issuer will repeatedly call or send letters and will likely shut down your account.

Beyond the 90-day point, your card issuer will turn over your account to a collections agency or third-party debt collector, which will contact you through phone calls, e-mails and letters, Hardekopf says. The collector can sue you and send you a summons to appear in court. If you don't show up, the collector will automatically win the case and can seize your assets or garnish your wages to pay off the debt.

Read on to find out what you should do if the collectors are bugging you.

Many people pay a lot of money for medical expenses. Kiplinger shares a couple of ways to cut your health bills.

Spend less on drugs

Switching to generic drugs is one of the easiest ways to save — especially now that some big-name medications, such as Lipitor, have gone generic (see Brand-Name Lipitor at Generic Prices). Some brand-name drugs don’t have a generic clone but do have a therapeutic equivalent, which is in the same class of drugs but is a little different chemically. You can look up generics and therapeutic equivalents at www.drx.com (or through your insurer’s Web site) and also see how much you can save by using mail order. Ask your doctor about lower-cost alternatives.

Spend less at the hospital

Physicians often work at outpatient surgery centers as well as hospitals, and the cost of treatment can vary widely by location even though you’re getting care from the same doctor. Before scheduling a procedure, ask whether the doctor works at any other facilities. Then call the hospitals or outpatient centers to compare costs. Fees for the doctor and the anesthesiologist might be the same, but you’re likely to save on the facility fee.

Read on for more.

Does paying for college overwhelm you? Here's a helpful post from Kiplinger.

College students who borrow graduate with an average of $25,250 in debt. That's the equivalent of a new-car purchase or a down payment on a home. Even if some borrowing is inevitable for you, first explore other options to help you pay for college.

Coverdells, 529 plans and Roth IRAs come with tax advantages for college savers. Private scholarships are sources of free money. Custodial accounts offer investing flexibility. You just need a little lead time and some background on the alternatives.

We rounded up the best payment strategies, based on Kiplinger's extensive coverage of college values, college savings and student loans. We've highlighted the pros and cons of each option, as well as resources to help you get started. Check out our list of seven smart ways to pay for college.

529 Savings Plans

Pro: Tax breaks galore

Con: Portfolio limitations

Sponsored by 50 states and the District of Columbia, 529 plans let your savings grow tax-free, and the earnings escape federal tax completely if the withdrawals are used for qualified college expenses, including tuition, fees, and room and board. Two-thirds of states give residents a tax deduction or another tax break for contributions. You are permitted to invest in other states' 529 plans.

The appeal of 529 plans lies in their easy access as well as their tax benefits. The plans set no income limit and have a high limit on contributions. If your kid skips college, you can change the designation to a sibling without losing the tax break. But use the money for non-college expenses and you'll be on the hook for taxes and a penalty on earnings.

Another drawback of 529 plans: You lose direct control. After you pick a portfolio, usually from a limited pool of investment options, you must wait 12 months before you can change the mix or transfer the money to another plan. And a state-appointed firm manages the account, not you.

Read on for more.

We're thrilled to present this smart Kiplinger story here on Savvy!

Working in corporate America, you're bound to encounter a difficult communication situation or two with your manager — from asking for vacation time during a busy month to letting him know that you're considering jumping ship. Whether you're an entry-level worker or in a more senior position, having to address these types of issues is an inescapable part of office life.

Here are five common scenarios with advice on how to approach them without burning any bridges.

You're Being Recruited by Another Department Head

The situation: You like your current job, but it would be remiss of you not to keep your eyes and ears open for new opportunities that allow you to grow and learn new skills. A manager in another department has taken note of your stellar performance and makes it clear that she'd be more than happy to have you on her team. However, your boss isn't in the loop, and you don't want to offend or anger him. A week goes by, and the pursuing supervisor steps up the pressure: "I'd hire you tomorrow. Shall we talk specifics?" You're interested in listening to what she has to say, but you don't want to burn any bridges. How do you proceed?

What you should do: First, let the manager who's courting you know that you're flattered she's taken note of your work. Next, if you're seriously considering making the move, be very clear in letting this person know that you have an obligation to your current boss. Ask her how she wants to proceed with bringing your manager into the loop. They are peers, and it would be much better for the person pursuing one of his top performers to initiate the conversation.

Read on for more sticky situations.