Freelancing offers many benefits, but it can also make your taxes more complicated. If you earn an income as a self-employed individual and work for clients on a contract by contract basis, it’s important that you file your taxes as a business owner. This is good news for freelancers looking to save some money at tax time by writing off expenses, but it also means paying some additional taxes. Planning ahead and staying organized are key to reducing your taxes and maintaining compliance with tax regulations. So here are some tips from HBS Financial Group to help you avoid headaches – and possibly an audit! View full post…
6 Benefits of Budgeting That Can Help You Live a Better Life
Okay, we know you hate to budget because you think it will be too hard to follow. Maybe, but if you create a realistic and workable budget with goals, it really isn’t hard at all. We’ll cover 6 primary benefits of budgeting to show you what the results can be.
More often than not, overspending is the result of impulse buying. This can, and usually does, lead to an increase in credit card debt. It’s a bad habit that can be hard to break, but it can be done, if you set your mind to it. To stop overspending, you must make a few changes in your lifestyle.
A part of the problem is the incessant advertising we see on television and even when browsing the internet. The temptation to buy a product that you don’t need can be hard to resist. This is especially true when the advertiser says View full post…
Posted: August 13, 2021 Under: Budgeting By: Gust Lenglet
If so, you may be surprised to know how much damage it can do to your marriage. The problem usually isn’t just short-term either…it can result in a lingering resentment. Couples that fight over money often times don’t have a money discussion before the marriage.
The American Institute of CPA’s conducted a study a few years back regarding this issue, and the results were eye-opening to say the least. They reported that View full post…
Posted: June 18, 2021 Under: Budgeting By: Gust Lenglet
3 Common Sense Tips to Help You Make Smart Financial Decisions
It’s no secret making the right choices with your money can pay off big time. The financial tips we offer will hopefully make it a little easier for you. It doesn’t matter how big or how small your financial decisions are, it will have an impact on your life.
Due to the coronavirus, high school and college commencements in general, are being held online. For the college Class of 2020, we have some financial advice to offer. Plus, we will expose the top 5 money myths that hopefully will get you started down the right path.
Based on personal experience, I’ve come across young graduates that are of the mind-set “let’s just kick back & be young for the time being and adulting will kick in when it’s ready.” As I look back now, this is not what I would recommend to 2020 grads or for any student.
My best recommendation to you is to get your finances in order as early as possible and don’t postpone it. The following are 5 money myths that really need to be debunked, once and for all.
Myth 1. To create a budget means you can only buy things you need, and not what you may want.
A part of these money myths is thinking that a budget is supposed to stop you from having any fun in life. Instead, think of it as one of the best ways to develop healthy financial habits. The key to this budget is to calculate your take home pay and work from there.
50% of that amount goes to cover rent or mortgage payment, utilities, transportation, insurance – essentially all of your basic needs. 30% is used for vacations, travel, clothing, other items that wouldn’t be covered by the 50% category.
The 50/30/20 budget, if followed carefully, will help you to develop good financial habits and eventually, debt free. Watch the charge cards. They can be too tempting for some individuals. If you can’t payoff the card balance in full each month, stay away from them.
Healthy financial habits also include setting a consistent amount aside from each paycheck.
Again, from experience, you’re never too young to start. The earlier that you begin to save for retirement, the more comfortable you will be in retirement. There are so many Americans who are ready for retirement and don’t have enough money saved. Some will be working until the day they die.
If you’re fortunate enough to be able to contribute to an employer sponsored 401(k) account or an IRA where the employer matches a certain percentage, take advantage of it. Put as much in that you can afford, to start, and increase the amount as you go along.
It didn’t take the current coronavirus long to hurt our economy. Many, many jobs were lost, some permanently. Many individuals getting near retirement will have to postpone that date, or simply cancel it as long as they are able to work.
As an example, take a person at age 25 who saves $1,000 a month for ten years using an investment rate of 7%. When he gets to be 65, he will have about $1.4 million. If another person started at age 35 with the same parameters, he would end up with about $700,000.
The amount that you save each month is important, but it doesn’t have to be a large sum. The most important thing is compounding. The longer your money is invested, the more that you will have and this is why you need to start at an early age. This alone should debunk the money myths.
It’s true that it can for some individuals, and that’s why you need to be responsible and need to build and maintain a good credit history. Building a good credit score now will benefit you in the future. Most individuals are familiar with the FICO score, but there are many more. The two most lenders use are FICO and VantageScore.
Your credit score is a three-digit number assigned to you by the credit scoring programs. It tells lenders how much of a risk they are taking by advancing you credit. The credit scoring programs vary in what they consider to be the most important factors, so we’ll use FICO, who is the most familiar.
This data at FICO is grouped into five categories: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%).
It’s important that you choose the right credit card when you begin. Some have annual fees and some have many other options. Read the fine print, review the fees and other charges, especially the interest rate.
To stay on track while you develop healthy financial habits, use the card for normal monthly expenses and pay it off before the end of the month. Don’t use the card for long term expenses such as financing something you bought on impulse.
Myth 4. Can I negotiate my salary for an entry-level job?
Recent graduates are of the opinion that they’re not experienced enough to be able to negotiate for more money when applying for a new job. Studies done show that only about 39% of new employees negotiated their salary. Another one of the money myths.
Just be careful and diplomatic when doing this. You don’t want to get passed over for the job for being too aggressive. Before considering negotiating, do some research. Find out what the industry’s pay on average is for your job.
Some of the factors used in doing this are experience, the job title, degrees required, industry, and especially the area of the country and/or city where you will work.
You’re probably aware of the current student loan crisis with so many of them in default for non-payment. Plus, the very high tuition costs have increased the average loan amounts quite a bit. It’s no wonder that many new graduates are concerned that they’ll be paying on these loans when they reach retirement.
Even with the government postponing payments and even forgiving some others, student loan borrowers need to cut expenses as much as possible and apply that extra money to the student loans.
One well known financial counselor, who shall remain nameless, has suggested moving back in with your parents to cut more costs. Sorry parents, but sometimes this is necessary. Especially for the graduates that have postponements and no job prospects.
There’s a lot of scary things happening in the world today, and being back in your parent’s home can be tough. It’s okay to treat yourself once in a while if you’re able to, but stick with your budget. One of the money myths again.
Posted: December 11, 2020 Under: Budgeting By: Gust Lenglet
If there is ever a time when the need to use cellular service is crucial, it is now. During this COVID-19 pandemic, family and friends try to connect with one another to maintain social distancing, get news update and reach out for medical supplies. Cost is also a factor for many when switching cell phone carriers.
As a result of the pandemic, people are looking for an opportunity to cut cost on wireless bills. If you’re tired of using an expensive cellular service, you should switch. But before you do, check if the following resonate with you in order to get View full post…
Posted: October 22, 2020 Under: Budgeting By: Gust Lenglet
Want to know how creating an emergency fund will help? Read these 6 Tips
Do you make it a point to pay all of your monthly bills early or on time, pay your credit card balances in full to avoid interest charges, and put money away for retirement? If you are, that’s terrific! But have you begun creating an emergency fund for yourself?
An emergency fund sometimes dubbed a ‘rainy day’ fund is a side reserve of finances intended for emergencies that seem to pop up at the worst possible time. If you do not have one, you must make the right moves to establish one.
Filing My Tax Return Online or Use a Tax Preparation Service?
I’ve asked this question a few times, and depending on the individual, I’ve received a different answer. Those who knew more about taxes said filing my tax return online is the way to go. A few others who may not have known much about taxes, but were turned off by high tax preparer fees, agreed with them.
Others who doubted their ability to file taxes online said they would use a professional tax preparer. Some others said that a family member would prepare their taxes for them. They didn’t want the hassle and possible liability of an incorrect return.
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