It's All About Money Management

A lot of people make the mistake of only thinking about their finances and planning for their taxes when it’s down to the wire, i.e. in the days before taxes are due. In reality, though, you could be taking small steps toward preparing your taxes all year long. In fact, during the year is actually the perfect time to do a little “money managing” since it will give you enough time to spot and fix problems and make changes that can have big benefits. For some simple  “check-ins” that you can do, keep reading!

Task #1: Check on Employee Benefits   

It’s always smart to do a little check-in on your employee benefits. Ensure you’re getting everything you signed up for and are entitled to, and check in with your boss or the accounting department to ensure you’re not missing out on good earning opportunities, like a 401(k) matching option. It’s also a good time to assess whether you need to be making more pre-tax contributions to experience maximum benefits because, if you do these types of things mid-year, you’ll still have some time to see their advantages.

Task #2: Prepare for Tax Season

Even though it can be a pain, why not go ahead and take a look at your taxes for the next year and how they’re shaping up? You don’t have to do anything too major, but do check in to ensure that you’re happy with your paycheck tax withholding setup, that you don’t have any bad investments weighing you down, and that your income, investments, and deductions are all stacking up as planned. If not, you’ll have time to make the necessary changes.

Task #3: Assess Your Risk

Finally, always check in mid-year to determine how risky your investments are looking. If you find stocks that aren’t doing well or other risks, it’s a good time to rebalance your portfolio and sell off bad stock.

Doing these things takes just a little of your time and can set you up for a much easier and more successful tax experience in the coming year, so get on it!  #FinancialPlanning