When I prepare taxes for families and businesses throughout the Abington area, I usually take an in-depth look at the financial decisions they have made. Tax time can be scary if you have not saved enough to pay your taxes. Therefore it’s important to evaluate how much you are spending and how much you could be saving. It’s always a good time to look at your budget and get rid of any bad financial habits. In my years of practice, working with thousands of clients, I have developed this list of the worst financial habits and how you can turn them around.
- Not taking advantage of a 401(k). Saving for retirement is smart for many reasons. Your employer probably has a matching contribution plan AND the money you contribute to your 401(k) is usually tax deductible. Combine these two advantages and you will have more money and a lower tax bill. If you are a small business owner you can also set up a retirement savings plan. Come into our office in Willow Grove, PA and we will help you establish one.
- Spending money on dining out. While dining out is a fun treat, those people who need to save should view it as a luxury. That $3 coffee can easily add up to over $1,000 per year. Packing your own lunch rather than eating out every day can help you pocket $2,000 over the next twelve months.
- Not checking your deductions. The tax code has changed and you may be seeing more money in your paycheck in 2018. While this may be a good thing for your monthly budget, it can be a disaster at tax time. If you have questions about your deductions, contact us for advice.
- Not setting up an automatic savings plan. Technology can help you automatically transfer money into a savings account. Even if you start out saving just a bit, you will be amazed at how much money you can accumulate in the long run.
- Having no strategy to pay off debt. If you have student loan debt, a mortgage, and some credit cards, you might be paying out thousands of dollars a month. To successfully pay off debt you need a plan based on totals and interest rates as well as the other monthly bills and expenses on your plate.
At any time in our lives, we can make a significant difference and break a habit. If you are not happy with how your business or personal financial situation is currently structured, I can take a look and help you come up with a solid plan to get back on track.