May 18, 2012

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Ways to Stay Debt Free

Credit cards

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We all want to get rid of whatever debt we have. But once you have managed to get your finances out of control, how can you stay debt free? Here are some tips to try, and hopefully you will never run out of money!

Don’t go Back to Nasty Habits

Once you have gotten that debt monkey of your back, don’t be tempted to let go of your new-found financial prowess. Be strong and exercise your will power. If you find yourself getting weak with spending, stick things up around the place, such as on your fridge, that will remind you not to fall back into the same situation.

Budgets are Your Best Friend

If you somehow got out of debt without a budget, don’t be fooled. You will still need to create one to stay out of debt. You need to sort out exactly how much money you have coming in and going out. Keeping track of your finances is an important way of not getting back into debt. Without a budget you will start to become relaxed with spending again and soon be in debt again!

Cut up the Plastic Cash

Credit cards are a person in debts worst friend. It may offer material happiness in the short-term, but in reality will create more problems in the future. it’s simple, get rid of them. If you are uneasy with that and want to keep one for emergencies, then put it somewhere that is not easily accessible on a day-to-day basis. This way you will not tempted to use it when out shopping.

Staying out of debt will make your life easier if you follow the above tips.

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Filed Under: Finance, Personal

Preparing for Tax Time

Replacement filing cabinet

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It is a time of the year that most people dread. Filing taxes is a nightmare for some. If you are one of these people, how can you make tax time easier on yourself? Whether you have a regular day job or you trade commodities online for a living, paying taxes is still inevitable. Here are some hints for preparing for tax time.

Don’t Wait Until the Last Minute to get Organized

If you know that you will have to keep many receipts and other documents throughout the year, don’t wait until the last-minute to sort them out and then get caught out. Set yourself up with a filing system to keep all of those bits of paper organized and in easy reach. It could be a proper filing cabinet system, or something as simple as a bunch of document wallets or boxes. Make sure you have a separate area for each kind of document and don’t mix them up.

What Types of Receipts and Other Documents Should be Kept?

Being organized is great, but first you need to know exactly what it is you are organizing! Basically, if you are going to claim it, then you need to keep a record of it. Documents can include:

  • W-2s
  • 1099s & Social Security statements
  • Statements from dividends and any other type of account that earns interest
  • If you buy and sell investments, you will need brokerage statements
  • Records of other income, such as rental properties or self-employment
  • If you have been on a jury you will need to show proof of pay
  • If you have received alimony you will need to show proof of that also

The above are only some examples of what you will need for tax time.

 

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Filed Under: Finance, Personal Tagged With: , ,

Tax Tips for Freelancers

IRS Building

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Being self-employed as a freelancer allows you the freedom to work as little or as much as you like. However when it comes to doing taxes, for a self-employed person it is a bit of a different ballgame. Here are some things to keep in mind so you don’t end up in trouble with the tax man!

  • Always tell the truth. The IRS is always a bit suspicious of people who claim to be self-employed. It is especially suspicious of those who continually claim to have high wages and a high business loss, continual business losses, those who have low-income in comparison to others who are self-employed in the same field.
  • Know how you will be taxed. The self-employed get taxed differently to those in regular employment. There are two separate federal taxes applied against the net income of a self-employed person:
  1. the income tax and;
  2. the self-employment tax.
  • As the self-employed do not have taxes taken out of their pay, submit intermittent tax payments throughout the year. You can estimate the amount to pay by keeping a log of income and expenses and then calculating estimated taxes.
  • Other factors, such as a retirement plan can impact your taxes as a self-employed person.

Tax time for a self-employed freelancer can get tricky! The above are only some starting points for making sure you complete your tax correctly. If you are new to self-employment, or are having troubles and concerns with submitting your tax, it is advised to seek the help of a professional. When it comes to tax, it’s better to be safe than sorry!

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Filed Under: Business, Finance Tagged With: , ,

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