Organizing your Finances Month By Month
Thirty days has September, April, June and November…
One minute its the start of the year, the festive season is over and you think you have tons of time to sort yourself out regarding your taxes,finances and investments. Before you now it the financial year is in full throttle and you’re fighting for grip headed for surely what you see as full financial disaster.
These are tips on how to pace yourself financially over the year with the least amount of pressure to gain maximum returns on investments.
Or in one word- organize!
First quarter of the year
Get organized
1.Calculate your annual net worth.
Work out exactly how much money you would like to spend that year and decide what you will be spending it on.
2.Tax returns are always in the waiting and you never seem to get round to it until the taxman actually does come knocking. A financially sound habit to form is to always file for your income tax in good time to reduce on loans with prepayment penalties.
5.If you are lucky enough to be a home owner now would be the time to legally question your property tax bill. Over 40% of home owners who challenge their assessments through official appeals win tax reductions of up to 10%. This may seem like little but makes sound financial sense
2nd quarter of the year
White elephants and safaris
1.Saving on holiday financing: Vacation time looms. It is now time to allocate finances to reward yourself for all the sound financial decisions and investments you may have made so far. All the hard work and effort you’ve put into finding resources can now begin to pay off. The name of the game is to save as much as possible on finances - how much you will be spending.
A recent idea that has evolved is to swap houses with other like minds and eliminate hotel bills forever.If however you choose to go the traditional route book your hotel,and airline tickets now to avoid last minute outrageously high rates.
2.Pay your credit card debt now to avoid problems when you are on holiday later
3.Do a review of your investments. Decide what to sell or hold
This is an excellent time to dispose of unsuitable or dead assets. One idea would be to sell off your old car. College and high school seniors need cars for summer jobs and return to school. Hang onto the amount received and reinvest into financial enterprise for the next three months or add it onto the holiday financing plan we talked about earlier and make things easier on your credit card.
3rd quarter of the year
1.Track your cash flow while on vacation. Schmooze and snooze…with one eye open
2.Go for heavy home investments like furniture,camping,home improvement kits at this time
3.Have a garage sale. Get rid of knick knacks and accessories that clutter your home and can be turned into finances. Every little bit saved pays off later
4.Thoroughly review checking accounts and credit cards.
5. If you are blessed with children now is the time to budget for the next school year.
5.Visit your stockbroker or personal banker. Do a physical one on one review of your investments, returns and finances for the year thus far. It also makes financial sense to put a face to the name
4th quarter of the year
Last leg. time to see whether your efforts this year financially speaking have paid off. Also time to consolidate what finances you have, rethink your investments and decide what step to make for the next financial year. if you are as they say heading towards retirement it would be termed as lucrative to consolidate your investments more with each passing year.
Just for this year though
1.Shop the sales
2.Make home repairs
3. Go back to school.Take a 3 month course on financial planning to gear up for the coming year.
4.Buy your new car now.. All dealers will be having good deals and reduced prices to clear showrooms.
5. Push investment income,bonuses and extra earnings into next year to delay paying income tax. You get to use the money for another year.
With the financial skills you have acquired, next year should be a financial breeze..as you wait for your financial windfall
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