Financial Follies – 5 Economic Pitfalls for Families and How to Avoid Them

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In an ideal world, putting away a little bit of money from each paycheck and watching your savings grow would be enough to guarantee financial stability for your future. Unfortunately, today’s harsh economic climate means that this is far from reality – with the cost of living rising each year significantly, today’s young professionals are at an enormous disadvantage when it comes to personal finance compared to their forebears.

To enjoy financial freedom later in life, it’s vital to have a sound understanding of how to effectively manage your money. Here, we outline 5 common mistakes that many young couples and families make with their finances, and what you can do to avoid them.

Overreliance on Credit Cards

A credit card can feel like a blessing if you need a quick solution for unexpected costs. However, while you may have paid off your immediate expenses, the staggering interest rates and hidden fees may plunge you further into debt. If you’re in urgent need of money, a growing number of microfinance lenders are offering small, fast loans online with lower interest rates. This allows you to pay off your emergency expenses without putting yourself at increased financial risk.

Not Having a Backup Fund

Many young professionals are guilty of believing that having a reliable source of income guarantees their financial security. When considering your future, it’s always best to plan ahead, and envisage what you would do in an unforeseen situation that may threaten your financial stability. In case you become injured, unwell or lose your job unexpectedly, it’s a good idea to have a safety net upon which to fall. This may mean obtaining insurance or starting an emergency savings account with at least three months’ income set aside.

 

Frivolous Spending

When you start earning enough to have discretionary income, it’s easy to order takeout every night and not check your bank balance as much as you should. While it’s important to treat yourself occasionally, living beyond your means adds up faster than you think. You can take control of this by reducing how much money you spend on non-essential items. This can be as simple as limiting takeaway coffee to once a week, which can save you as much as $1,000 a year.

Not Considering Retirement

Even though you may have just entered the workforce as a young professional, it’s never too early to start thinking about your retirement fund. In fact, the earlier you start investing in your fund, the more time you’ll have to make the most of compound interest. It’s all too common for people to reach retirement age only to realize that they have nowhere near enough on which to survive. Through adequate planning, you can spend your retirement years stress-free.

Failing to Plan

One of the biggest mistakes any young professional can make is being complacent about their income. While you may have enough to survive on comfortably now, it’s crucial to think about how your current financial decisions may impact you in the future. Paving the way to security requires planning, and a great way of achieving this is by setting goals. Whether they’re short-term or long-term, having targets to work towards can help you keep your spending in check and give you a sense of direction for the future.

When it comes to ensuring your financial stability, every bit you do makes a difference. Taking control of your finances now brings you one step closer to living your best life in the future.

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Who Needs an EIN? Does Everybody?

Employer Identification Number or EIN is typically used for people who are starting a business and have plans to file taxes on that business. While that is the most prominent reason, it is not the only. Some people choose to use their EIN number in different ways, but anybody can apply for EIN.

tax

Not a Business?

Not every person who has a tax-ID number has a business or has plans to start one. Some people choose to use an EIN number in lieu of their social security number. There are commercials everywhere about the “dark web” and the wrong people getting their hands on your social security number. This has led people to get tax-ID’s and use those on job applications, government applications, and other random places that may require a social security number.

You do not have to have an EIN number, but if you want one you can certainly get one.

North Carolina

Although the EIN numbers do come from the federal government, there are some state governments that require you to use a certain process or go through the state process to receive your ID number. The state of North Carolina is one of those states. Filing through the North Carolina government websites can be a bit of a headache. An EIN number NC may not be the easiest process, but it can be done.

Many times it helps to seek a website who can simplify the IRS-EIN-Tax-ID process. There is no longer a reason to spend hours attempting to understand the jargon and often times confusing language. Speaking with and allowing an agency who understands North Carolina EIN regulations and procedures to help you through this process will save you a lot of time and will ensure that you have completed the process correctly.

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Keep Your Savings Goals Small and Frequently Measurable

As a businessperson, you probably have at least several career-oriented goals going on at the same time. They may be big, small, short-term, medium-term, long-term, you name it. When it comes to personal savings, however, it’s often best to start with small goals. Once you have the hang of them, you can make your goals bigger if you want. (You absolutely don’t have to; why fix something that isn’t broken?) Here’s a look at the strategy behind keeping savings goals small and frequently measurable.

You Are More Likely to Succeed

Success breeds more success. On the other hand, failure can cause you to abandon a plan or idea for a long time, if not forever. Small goals increase the odds of success. Frequently measuring them also helps you stay on track and gives you more chances to succeed. The effectiveness of your endeavor does not hinge on one big day a year but instead on one day a month, or perhaps even one day a week. That way, if you don’t meet a goal on occasion, you can always say, “I’ll meet it next week [or next month].”

Details Do Matter

When it comes to personal savings, one action can make a huge difference. So, a seemingly small goal such as, “I will evaluate my car insurance on the 15th of the next month,” can reap significant rewards. Through an insurance comparison tool such as www.carinsurancecheap.net, you might discover that you’ve been seriously overpaying on your insurance for years. Your car may have gotten older, your driving record could have improved along with your credit record, and you might drive your car less. All add up to good savings every month.

This seemingly small, even “boring” goal can do a lot. Apply it to other types of insurance: home or renter’s, life, health, you name it, and you could end up saving several hundred dollars a month.

You Have Room for Other Things

One reason why huge goals or projects fail is that they leave room for little else in your life. If you set a huge savings goal that requires a long time to measure (for example, “I will save $20,000 in one year”), it may overshadow other aspects of your life. You may find yourself not going out with friends, eating food you do not enjoy because it is cheaper, and forgoing pleasures because of that big amount you are working with.

Alternatively, if your goal was something such as, “I will get all of my print, audio, and ebooks from the library this month instead of purchasing them,” you still have room for many other things in your life. And you’re more likely to stick with the library the majority of the time in the months that come. You may not save, say, $20,000 in a year, but you will have saved some serious money and still be succeeding.

You Stay Flexible

Small and frequently measurable savings goals also enable you to stay flexible. For example, getting downsized from full-time to part-time may make a goal such as saving $20,000 in one year simply not possible. On the other hand, if your goals are monthly and not contingent on exact amounts, you have the ability to keep going as you always did.

Speaking of flexibility (and failure), measuring your savings goals in exact amounts may set you up for disappointment. Some examples of savings goals are:

  •  Evaluating car, home, health, and life insurance
  •  Packing lunch three times a week instead of eating out
  •  Getting haircuts every two months instead of every month
  •  Carpooling once a week
  •  Riding your bike to work three days a week instead of driving
  •  Setting up a retirement plan

In none of them is a dollar amount mentioned. In fact, it’s even feasible that costs could go up. For example, if you have minimum amounts of insurance coverage, evaluating your needs could result in you realizing that you want more protection. However, you may be more likely to succeed with these goals because they constitute realistic actions rather than an end result.

Many people are not in a position where they can save a lot of money right away. Of course, a lucky few people can sell something such as a second car and get thousands of dollars. Successful, long-term savings is often founded on starting small and actionable.

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Security Assurance On Utilizing E-Currency

Everything that involves money would always need high level of security. Aside from the fact that everyone needs money to survive in this fast paced world, money for others is something that isn’t easy to obtain. They’ve invested so much energy and effort just to obtain such amount.

With speed up computers free of the hassle brought about by old age technology together with today’s advancement in technology, e-currency is slowly taking place our usual paper bills. Some people would prefer to use it because of the convenience that it offers. Everything is turning to be cashless as well as card-less.

However, there are still some people who are adamant to utilize e-currency because they aren’t confident on its security. They feel that anytime they can be robbed online.

These e-currency programs have their own way of securing the accounts of their subscribers. Some of them would require 3 levels of log in security processes like asking for passwords, numeric pin and even answering a pre-saved security question. If you fail to answer either of them, then you can’t open your account.

Even though these things exist, as the owner of the account, you should also be vigilant on protecting it. Do not click any links that you think would be compromising your account nor download any software that might be a way of obtaining your personal and security information.

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suphakit73 – freedigitalphotos.net

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Claim Tax Returns Successfully with TaxReturned.co.uk

Each citizen of a nation is required to pay their taxes. Some pay taxes individually while others have it deducted from their paychecks through their company. Everyone who is employed, working or performing a job has a tax id and has paid their dues to the government. However, there are instances when computation and other factors necessitate adjustments and rebates.

Healthcare providers and teachers can file claim for uniform tax rebates as well as rebates union and subscription fees to name a few. Workers may also file claims for deduction for their work tools and work-related expenses. Not many people know about the different types of claims they can file for tax rebates, but with the help of TaxReturned.co.uk you can have your tax rebates estimated in a few minutes. You can visit their website for an instant estimate and start your application process for your claim.

Tax refund estimators provide great assistance to taxpayers who want to know whether they have paid their taxes correctly and if they have something to claim at the end of the year. Be ready with your data for your filing status as well as your dependent exemption and their ages. Each year, your total earnings and the taxes withheld are essential factors required to come up with an estimate for your tax rebate. Other than that, you can also ask for assistance in filing for uniform tax rebates, work-related tax rebates and others.

Everyone works hard to earn a living for their families and being able to claim refund for taxes paid will surely have a little more on their finances. While you pay the government your dues and your taxes, you should also claim it back when you’ve paid extra or if you have spent more on work-related items such as tools, uniforms, union fees and others. TaxReturned.co.uk has more than ninety thousand claims processed and more than Four Million Pounds reclaimed taxes for their clients. If you want to know whether you can get tax refunds, ask them how now.

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