Make a New Year’s resolution to bring financial security into your life. It’s easy to let things get out of control, running up credit cards, not reconciling your checkbook or not saving for big-ticket items such as vacations, education and furniture. Borrowing money to cover your recurring and non-recurring expenses is a formula for disaster.
If it seems like your money just disappears then it’s time to develop a simple budget and start to track were your money is going. Yes, I said the treaded “B” word. You can use computer software such as Quicken or a pencil and paper. Before you can start to achieve you financial goals, you have to take control of your spending. Work with your spouse or your significant other in this process. Without both parties committed to the plan, your budget is doomed.
With a clear understanding and commitment to your budget it’s time to start achieving your financial goals. Although the tax season is a busy time for CPAs, it’s also a good time to discuss your financial situation and schedule a follow-up meeting to develop your financial plan.
Your plan should address each of the following areas:
• Money Management
• Devise a pay-down plan to get out of debt
• Review you home mortgage. Can you qualify for a lower monthly payment?
• Save and invest for the future
• Paying for college
• Evaluate your insurance coverage. Do you have adequate coverage to protect your family?
The one common thread running through many of these concerns is the tax impact of each decision. Effective tax planning is a year-round endeavor. Developing long-term tax savings strategies is the key to keeping more of what you earn. This puts your CPA in a unique position to be your trusted advisor as you invest your way to wealth.
Please contact me with any tax, budgeting or accounting questions or concerns you may have. You can contact me at 661-253-0270 or e-mail info@chegwin.com