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  • How to manage money efficiently by simply avoiding these 5 money mistakes

    How to manage money efficiently by simply avoiding these 5 money mistakes

    Finance management is one of the things that we never learn from school; instead, we will have to explore with experience. There is no shortcut to becoming a pro in financial management. But there are some mistakes that can create a bad shape on your finances. What will happen if you know what these five mistakes are, and you can give a new turn to your financial future by simply avoiding them?

    Most of us are more curious to learn how to manage money efficiently. The good news is you can simply avoid these 5 financial mistakes mentioned below to have better savings, good financial management habits, smart spending habits, and a secured financial future.

    We share with you these 5 money mistakes that simply answer your query of how to manage money efficiently?

    5 Money mistakes to avoid

    #1. Avoid warehouse club-style shopping

    One of the biggest mistakes to avoid is doing warehouse club-style shopping as you might end-up be buying things that you might not need at all. According to a study, if you’re among those who shop at the wholesale clubs such as Sam’s Club, Costco or BJs then, you would be spending and eating more.

    Why should you avoid warehouse club-style shopping?

    • Hefty annual membership costs
    • The compulsion to buy everything in bulk (a few kinds of stuff get spoiled when kept beyond a period such as cheese, dairy products) You can’t buy everything in bulk.
    • The temptation to impulse buying

    Plan B:

    • Before you go shopping, make a list of things to buy and stick to it
    • Shop at local markets and grab the available coupons
    • Look for a weekly discount at nearby supermarkets

    #2. Avoid being blindfolded about your money

    Do you have a track of every penny you spend and where all your money goes at the end of the month? If not, then it’s high time you stop being blindfolded about your money.

    Plan B:

    Knowledge is power!

    One of the efficient ways to manage money is by talking about it. You can discuss your financial ups and downs with a group of like-minded people or your family and friends. This way, you can get new ideas on how other people tackle their problems or how to manage money in a better way. You can share your knowledge and learn from others on money management ideas.

    #3. Avoid going for the easy payment options

    Today, we all prefer a fast and easy process for everything so has retailers and payment systems have streamlined their process. With all the ease, you’re less likely to know how much you’re spending or over-spending. You need to know how much you pay for each item and if it is worth it. Every time you spend on an unnecessary thing, you’re losing what can be saved for the future.

    Plan B:

    Fix a budget for every week or month and keep the cash aside to spend.

    #4. Avoid saving money on what is left at the end of the month

    The ideal way to build your savings is by putting 10% of your income every month into your savings account. Saving should be your first thought and not what is left after spending.

    Plan B:

    • Add a category as “savings” in your monthly budget
    • Fix an amount to save each month
    • Switch to automatic transfer from checking to a savings account

    #5. Avoid your credit to be misused by someone

    You might be familiar with the Equifax data breach, where 145 million people’s personal and financial data was hacked. Before someone misuses your credit card, you can take preventive action.

    Plan B:

    Put a credit freeze on your credit reports. You can still use your existing credit, but no new lines of credit can be established. You might have to pay some amount to establish a credit freeze, and details are available on the Equifax website.

    Summing up:

    You would have understood how to manage money efficiently by simply avoiding these 5 money mistakes to have a financially secure future. However, the best results come only when you implement these at the earliest. Just knowing the hacks will not do good until you start applying those at your end. So, start evaluating your financial situation and review if you’re making or made these 5 money mistakes and how you can take counteraction to avoid it soon. It is important to know where you stand financially and track your progress every now and then. This will motivate you or even be a guide when you’re diverted from the path.

  • The A to Z of paying your taxes – An integral part of your personal finance management

    The A to Z of paying your taxes – An integral part of your personal finance management

    When thinking about your personal finances, paying your taxes is an obligation that everyone must ensure. Needless to say this is a part which is always neglected and which can result in serious crimes.

    From funding the development of public roads to building public infrastructures, and being used for the country’s defense, tax money does many things. This is why the authority is incredibly strict once it involves watching people’s tax reports.

    Once you are defendant of evading your tax obligations, the authority will scrutinize the minutest details of your personal life, or worse, take all your money from your checking account as the payment for your tax dues. This is the reason why focusing on your timely tax filing and payment is an integral part of your personal finance management.

    Evading tax is a crime

    The authority is very harsh in its judgments owing to the belief that every single person who misses a tax payment is purposefully avoiding their obligations. What your attorney has to do now could be to prove that you just did not mean to evade the taxes knowingly. You were just unable to satisfy your tax obligations because of money instability or bankruptcy, emotional instability or being unaware of the law, if the law was freshly amended.

    Of course, the authority will gather all the information about you to disprove your claims; however it is also your lawyer’s duty to ensure that no matter what is brought in court, it works in your favor rather than the opposite party’s.

    Why you should hire a professional?

    If your issues with taxes are already this serious, you need to undoubtedly search around for a decent professional who will defend your case. Most attorneys cannot get their client’s totally free of their penalties; they can only try for the penalties to be decreased. Hiring a professional to handle the proceedings of the audit will defend you from showing emotion in tight situations under pressure.

    With a professional taking care of everything for you, everything is settled accurately and rationally. The attorney will believe that you are less guilty of tax evasion than what the authority report says. Apart from that to pay taxes on time, you also need a professional to keep track and file your forms on time to avoid penalties.

    Prevention is better than cure

    You have to look for the assistance of a tax professional or a comptroller when you feel the situation is getting out of hand. You have to undoubtedly have a professional at your side to assist you with taxes if you own a business, as business tax is totally different from personal taxes. Albeit you may think that you apprehended everything there’s to understand regarding personal taxation, the nuances of business taxes would possibly rattle you.

    Also, tax policies carry on dynamically. It’s extremely troublesome for the normal individual to maintain track of those changes. If you hire a tax professional, you can still keep track of all the required updates needed.

    Choosing the appropriate professional

    Make sure you scour the Internet or the classifieds ads in the newspaper to hire the best. Referrals from friends or colleagues can give you information about the lawyer’s work ethics, their temperament, their rates and therefore the real deal behind his specialties. You can also refer to the testimonials from the lawyer’s websites to get an idea and make sure you are hiring the absolute best.

    You may have come across many ads and commercials for tax relief firms. Many tax relief firms boast of their services and make big promises but in reality they are nothing but frauds waiting to pay on desperate and innocent customers. They justify and proclaim themselves to be the best in business but it is on you to identify the right firm that will benefit you. There are many listed popular companies but are not trustworthy. But people generally realize this when they are duped out of their money.

    Unfortunately, this business has attracted many frauds that just wait to kill those that are weakened by the threat of tax penalties and problems. Even if you can’t stop these unscrupulous firms from succumbing to their greed, you can arm yourself with the tools necessary to defend against their cheating. It is crucial that you understand the different types of frauds that are trademarks of a fake.

    Avoid non-refundable direct payments

    The most common fraud that is seen among these firms is to charge direct payments that have absolutely no guarantees and are non-refundable in nature.  While they promise to yield result, they are very unpredictable and very difficult to achieve. That means there is high chance of loss of money and your personal finance management can take a hit. Committing a huge amount without any research and guarantees can be risky. These frauds are not concerned about your money or about your tax problems; they are just bent on making money by preying on you.

    Never judge the potential outcomes

    There are some aggressive companies that reel in the customers on their tax troubles and take advantage of their compromise settlements. The truth is that only a few taxpayers qualify for a compromise. Most of us don’t know this so the frauds just string us along and make us assume that our problem is being taken care of, when in reality, we didn’t even qualify for the compromise.

    There are many factors that are considered by IRS in compromise application like the taxpayer’s ability to pay, income, expenses and plus equity. Choose a relief firm that answers your queries and tells you from the start that a compromise is very difficult to obtain. The company should have your best interests in mind.

    Identify the real service providers

    There are some fraud companies that boast of their tax relief services, but are nothing but fakes. Such companies just make bi promises and then turn to other companies that provide the actual service. It is very important to stay away from such outright frauds. Often we are led to believe that the company we have hired is doing the entire job but the truth is they have hired other service providers for the job or outsourced freelance contractors.

    Conclusion

    Some unscrupulous firms register many customers into their program and collect their money without providing adequate services. When there are several complaints or upset customers, they just merely change their name and begin preying on customers in a different place. So, beware, choose the best company and file your taxes on time.