It’s Tax Fact Tuesday!I
We would like to share with you some financial tips… some you may have never thought of……When is a good time to focus on your financial health? I am going to say… NOW
- Get paid what you’re worth and spend less than you earn. That may sound simple but some people struggle with this one. Make sure you know what your job is worth in the marketplace, by conducting an evaluation of your skills, productivity, job tasks, contribution to the company, and the going rate, both inside and outside the company, for what you do. No matter how much or how little you’re paid, you’ll never get ahead if you spend more than you earn. Often it’s easier to spend less than it is to earn more, and a little cost-cutting effort in a number of areas can result in savings. And, it doesn’t always have to involve making big sacrifices.
- Stick to a budget An important step to consider when trying to get ahead financially is budgeting. After all, how can you know where your money is going if you don’t budget? How can you set spending and saving goals if you don’t know where your money is going? You need to set up a budget whether you make thousands or hundreds of thousands of dollars a year.
- Pay off Credit Card DebtCredit card debt is the number one obstacle to getting ahead financially. Those little pieces of plastic are so convenient to use, and it’s so easy to forget that it’s real money we’re dealing with when we whip them out to pay for a purchase, large or small. Despite our good resolves to pay the balance off quickly, the reality is that we often don’t, and end up paying far more for things than we would have paid if we had used cash.
- Contribute to a Retirement Plan. If your employer offers a 401(k) plan (or another type of employer-sponsored retirement savings program), you should consider contributing to it if you can afford to. Often, with 401(k) plans, your employer will contribute the same amount that you put toward your account up to a certain percent. This is often referred to as an “employer match.” If your employer doesn’t offer a retirement plan, consider an IRA.
- Have a Savings PlanYou’ve heard it before: Pay yourself first. If you wait until you’ve met all of your other financial obligations before seeing what’s leftover for saving, chances are, you’ll never have a healthy savings account or investments. Resolve to set aside a minimum of 5% of your salary for savings before you start paying your bills. Better yet, have money automatically deducted from your paycheck and deposited into a separate account.
- Invest If you’re contributing to a retirement plan and a savings account and you can still manage to put some money into other investments, all the better.
- Maximize Your Employment BenefitsEmployment benefits like a 401(k) plan, flexible spending accounts, medical and dental insurance, etc., are worth big bucks. Make sure you’re maximizing yours and taking advantage of the ones that can save you money by reducing taxes or out-of-pocket expenses.
- Review Your Insurance CoverageToo many people are talked into paying too much for life and disability insurance, whether it’s by adding these coverages to car loans, buying whole-life insurance policies when term-life makes more sense, or buying life insurance when you have no dependents. On the other hand, it’s important that you have enough insurance to protect your dependents and your income in the case of death or disability.
- Update your Will In 2020, just 32% of Americans had a will. If you have dependents, no matter how little or how much you own, you need a will. To better protect your loved ones, consider writing a will.
- Keep Good Records If you aren’t careful about keeping thorough records, you’re probably not claiming all your allowable income tax deductions and credits. Set up a system now and use it all year. It’s much easier than scrambling to find everything at tax time, only to miss items that might have saved you money.
Come in and see us here at Red Rock Tax & Consulting! We are here to help you and your small business to financial freedom! From all of us here at Red Rock Tax & Consulting we hope everyone is staying safe, staying healthy and remember…. “The secret of change is to focus all of your energy, not on fighting the old, but on building the new.”
Have any questions, give us a call here at Red Rock Tax & Consulting. We are here to help you get through the stress of taxes! We offer a free 30-minute consultation so call us and let’s get your appointment set up 435-635-2494
From all of us here at Red Rock Tax & Consulting we hope you have a spectacular day!
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