As summer comes to a bittersweet end, and kids are getting ready for ‘back to school’, it may be an opportune time to look at your finances and do some planning. Don’t wait until the end of the year, when you’re under pressure to pay off holiday debts and income taxes are looming – tackling the job now, when there is little time pressure, can pay you greater dividends. Here are five ideas you can take advantage of right away.
1) Start organizing for tax time.
According to the IRS, the average refund is more than $3,000 so far this year with nearly 45 million Americans who filed early collecting refunds.
That’s a great incentive to get your tax files in order ahead of time! At the simplest, you should have two “buckets” – one for tax-related items and one for non tax-related items. Better yet, create an easily accessible filing system for all your household receipts and paid bills, and commit to filing them at least once a week. TIP: Some people find it convenient to staple receipts to warranty information and product guides so that, should you ever need it, you have all the information on your stove or computer in one place.
2) Make a plan for holiday spending. Continue reading