Do you have goals in life that you want to achieve? Of course you do! Setting goals is an important part of keeping your life organized, and it gives you something to look forward to. Setting financial goals is just as important as personal goals and will provide a “framework” for any future money decisions. Here are some tips to help with setting goals while budgeting.
Call A Meeting
Every single year sit down and have a financial goals meeting with yourself if you are single, or with your spouse if you are married. The purpose of this meeting is to set and evaluate your financial goals. Look at the previous goals you set and see where you are at on the scale of completion. Did you reach your goal over the past year? Great! It’s time to set new ones. Setting new goals will make sure that you won’t get lax with your budgeting. Oftentimes, when people reach one of their goals, their budget goes out the window. That’s why new goals are so important.
Don’t Get Ahead of Yourself
Make sure each of your new goals are attainable. Don’t make your goal so incredibly large that it will take 30 years to achieve. If you do this, you will get discouraged and quit everything. Set goals that you know you can achieve if you work hard. Don’t base your goals off something that only has a chance of happening. Set a solid plan in place that, if you follow it all the way, will lead to a known success.
Line ‘Em Up
When budgeting, it’s important to make sure that your financial priorities line up with your priorities in life. If you set a goal of buying a house in the next five years, make sure your budget reflects that. Don’t take lavish vacations all over the world multiple times a year if your true goal is to save for a house. Now, if your goal is to be able to travel lavishly every year, then your vacation fund section of your budget should reflect that. The point is, if you have a financial goal, make sure you aren’t wasting a lot of money in other areas if they aren’t priorities.
Think Both Ways
When goal setting in any area of your life, it’s always good to make short-term and long-term goals. In finances, it is especially important. Having long-term goals that you are working toward–such as retirement or emergency funds–can provide you with a peace of mind that you are on the right track. If something happens, you have those goals you are working toward to back you up. However, once you have those goals in place, setting short-term goals is what makes life a little more fun. Setting budget categories for vacations, homes, home remodeling, cars, events, etc., will help you see that you can be responsible with money and still achieve all the things you want in life. It just takes a bit more patience. However, always make sure you are contributing to your long-term goals before you put money towards the fun categories.
A good life is all about balance. When you set financial goals, you are showing yourself that you can plan for the things you want and need in life, and you are in control of where you money goes. Going through life without a plan, budget, or goals is sure to set you up for chaos. Be smart–set goals you can achieve, and your life will be what you make it.
Making a budget and sticking to it may seem like a tedious task that only restricts you from doing the things you want, but in actuality it is the opposite. Having a budget can set you up to win financially in the future. It is only restrictive if you make it restrictive. Here are a few good things that budgets can do for you and your life.
Reach Your Goals
Having a solid budget can not only organize your life, but it can help you reach all of your financial goals over time. Setting financial goals can help you get to where you want to be in the future. Making categories in your budget for each of your goals, and then regularly putting money in the categories will put you on the right track to reaching every single goal you set–as long as you stick your budget. When you break your goals up into categories, it makes them seem more attainable. When you feel your goals are attainable, you will be more likely to reach them.
While some people may believe that having to stick to a budget will cause stress, it’s actually the other way around. Having a budget reduces stress because you know exactly where your money is going. When you have a plan for your money, you don’t have to worry about there not being enough money left at the end of the month. Budgeting lets you see where every dollar is being spent, and all you have to do is simply follow the plan. Stress over finances significantly lessens when a proper budget is in place.
Budgeting can show you many things about your life, but one of the main areas that gets brought to light is how much money you waste. Do you feel like you never have enough money to put in savings? If you look at your spending habits, you will probably find that there is money available to save, you’ve just been spending it on things like coffee shop coffee every morning, trips to the convenience store for snacks, eating out, etc. Once you set a budget, you no longer waste that money because you have a certain amount to spend in those categories. Once you’ve spent it, you’re done. This leaves more money available to put in savings.
Builds Good Spending Habits
Along the same lines as eliminating wasteful spending, budgeting can help you build good spending habits. When you have your financial life down on paper, it makes you realize that you don’t want to be wasteful with your money. It helps you look at your goals and evaluate every purchase you make. After several months or years of being conscious of your spending, this way of life will become second nature to you. You won’t want to go back to the old way of spending because your budget has set you up for success.
Doing your taxes is not exactly the most exciting task in the world. Oftentimes we dread it or even put it off as long as possible because we don’t want to have to pay any money–whether it be paying the IRS what you owe or paying someone to do your taxes. If it’s the latter you are worried about, we might can help! Here are few different ways you can save money on tax preparations.
Many people prefer to go to an accountant to get their taxes done. This is simply because they are experienced in the field and know what they are doing more so than the average person. However, it is easy to do your taxes yourself thanks to increasingly intuitive tax software such as TurboTax, H&R Block, TaxAct, and more. These software programs prompt you through every single part of doing your taxes, making it super easy and efficient. You really don’t have to do anything except have all of your information together. Doing your taxes yourself can save you hundreds of dollars in fees from accountants. Of course, if you don’t feel comfortable with the software, or you have a complicated situation, a professional might be a better option for you.
Organization is Key
If you want to have your taxes done by a professional, make sure you have all of your paperwork organized and turn it in early. Tax professionals often charge extra if you are disorganized or if you need their services expedited. Save a few bucks by having your papers together in a timely manner.
Just as if you were purchasing something for your home, shop around and compare prices on tax software. Prices will vary between products, and you want to make sure you get the biggest bang for your buck. Look for the difference in features, ease of use, and price point. It also doesn’t hurt to get the price of a few professionals in your area and compare the software prices to their prices. Doing your research always comes in handy when you are trying to save a few dollars.
If you decide to go ahead and do your taxes yourself with software, check the different packages they offer before buying. Some offer extra features like tools for tracking your charitable contributions or checklists for your paperwork that you don’t need. Skip all the extra features and just get the bare minimum package that you need to get your taxes accomplished correctly, and your wallet will thank you.
There are many ways to save a few bucks on tax preparations, but it does require a bit of research. Take your time, get your papers organized, and look around for the best deal, and you will have it done and your refund on the way in no time.
Doing your taxes yourself can be a great alternative option to having it done by an accountant. With the very sophisticated tax software available at your fingertips, it’s worth giving it a shot. It is also usually cheaper to do it at home than at a tax accountant’s office. However, when doing taxes yourself, you have to be extra careful to make sure everything is correct before you send it in, or you could suffer some consequences. Here are four common mistakes people make, and what you can do to make sure you aren’t one of them.
Wrong Social Security Number
Your social security number is how you are identified by the IRS when you turn in your tax forms. You probably wouldn’t intentionally put the wrong social security number on your taxes, but it happens all the time. People can get mixed up and put a couple of numbers in the wrong order, or they simply remember their number wrong and don’t check to see if they got it right. To make sure you don’t make this mistake, double and even triple check that the number you type in on your taxes is the number that is on your physical social security card. It never hurts to take a second look.
Much like the social security problem, many times people make serious math errors on their taxes when they are filing for themselves. Sometimes they input the wrong numbers due to a typing error or simply just reading the numbers wrong on their year-end statements or W-2 forms. Obviously, all of the numbers you put on your tax forms are extremely important, so it’s imperative that you check all math with a calculator and double check all numbers you type or write. It seems so simple and basic, but it’s the small things that trip people up sometimes.
What’s Your Status?
A common mistake people make, sometimes knowingly, is putting the wrong filing status on your tax forms. Different filing statuses can give different tax breaks, but not everyone qualifies for every status. Sometimes people can accidentally file as “Head of Household” when they should be “Unmarried”. Sometimes the status labels can be confusing, so it’s important to research your particular situation and what you should file as before you do your taxes. You could save a lot of headache by knowing what you are going to do beforehand.
Perhaps one of the most common mistakes people make on their tax forms is simply not signing or dating the forms before submitting them. It seems silly, but it happens more than you would think. Before submitting anything on your taxes, go through each page and look for signature lines. Make sure you have signed everything completely, and then check again. If you are filing jointly with a spouse, remember that both you and your spouse have to sign each form. Without your signatures, the forms are invalid and won’t be accepted.
Most of these common mistakes are simply caused by a lack of double checking your facts and figures. It’s easy to get caught up in the attitude of just wanting the chore to be done and then forgetting to look everything over before submitting the forms. However, it will become even more of a chore if you have to go back and redo your taxes or your return gets delayed due to a silly mistake that could have been avoided.
Research from USA Today
As you know by now, there is a big difference between regular banks and credit unions. There are thousands of credit unions in our country, but you don’t hear about them as much as you may hear about banks in your area. Today, we are going to fix that. Here are four reasons why you should choose a credit union over a bank for your financial service needs.
- Credit unions are owned by you–the members. A credit union is a not-for-profit company, which means that there is no stockholder looking to make money off of the business. Every member is an owner of the credit union, and the whole reason for the credit union existing is to help each other with their financial needs.
- Credit unions are operated by people within the community it serves. That is the definition of a cooperative. WCU prides itself on being run by the community to help the community in which it operates. We participate in several community activities and give back via community projects. We are here for you!
- Credit unions usually have lower interest rates on loans and credit cards than traditional banks. This is the way the credit union passes their not-for-profit status onto its members. Check out WCU’s current rates by clicking here!
- Credit unions like WCU participate in Co-op Shared Branching. This means that when you are out of your community, you can do your financial business with a participating credit union that is in your immediate area. This comes in handy when you are traveling. In addition to shared branching, credit union members also have access to thousands of free ATM’s all over the country! There is no reason to pay another ATM fee ever again when you are a member of a credit union.
These four reasons are, of course, not the only perks of being a credit union member. There are simply too many to name. Being a member of a credit union is a very rewarding community-oriented experience. To find out more about WCU and what we have to offer, click here and go to “Our Services”! We would love to have you as a member.