Thursday, February 17, 2022
February is well underway, which means that tax season is here. Now if your change to make someserious resolutions to improve your financial situation in 2022! Save more and spend less will not be enough in inflationary times. Spend a few minutes considering the following tips:
  • Control excessive and frivolous spending. Remember great fortunes are often lost one dollar at a time! That $4 Starbucks every day adds up to over $1400 a year.
  • Take a look at your recurring monthly payments. If you haven't gone to the gym in over 9 months, maybe rethink the membership and lose the fee.
  • Don't live on borrowed money. Think twice if you're using credit cards to pay for essentials. Unless you pay the card off every month, the interest is killing you.
  • Think twice about a buying a new car this year. If you need to buy a car, consider one that uses less gas and costs less to insure and maintain. Do you really need a gas-guzzling SUV? Reconsider if you're buying more of a car than you need.
  • Remember when COVID first hit? If you were sorry then that you didn't have an emergency fund, now is the time to start building one. A good buffer is to keep three months' worth of expenses in an account where you can access it quickly.
  • Make your money work for you and reap the tax benefit. Making monthly contributions to designated retirement accounts is essential for a comfortable retirement. Take advantage of tax-deferred retirement accounts and/or your employer-sponsored plan. Harness the power of compounding.
  • Make spending some time planning your finances a priority. Know what your short term and long term goals are.
  • Look over your W-2 withholdings and make necessary changes for 2022.
  • Review your insurance coverage for necessary increases and change of beneficiaries.

Other important items to consider: Start to organize your tax records, and create a list of expected tax forms you will be receiving. Inform our office of any changes in address, filing status, employment, sale or purchase of large assets, births, deaths, etc. We want to help you keep as much of your money in your pocket as possible, and not in Uncle Sam's.