Get Money Smart – April 15th – 21st

So, are you ready to get money smart? In fact, every year in April; a week is chosen to help people make better financial decisions.

Get Money Smart

In 2002, this was organized by the Federal Reserve Bank of Chicago to provide financial literacy. When it comes to saving money; many people have a difficult time building a nest egg.

If you are self-employed; it is essential to work with your Accountant in paying quarterlies. Indeed, when you are paying estimates; you are more likely to not owe a large sum.

Moreover, if you see a change in your earnings during the year; reach out to your Accountant to discuss this.

Get Money Smart – Tax Deadline – Refunds

Since the tax deadline for 2023 is April 18th; here’s what you need to know.

First, if you are getting a refund; check out my Tax Refund – Ten Things to Do with Your Check post.

Meanwhile, if you don’t have a savings account, investments, or a retirement account; now is the time to establish one.

Also, if you have any balances on credit cards with high interest; use your refund to pay the balances down.

Owe Taxes

However, if you owe the IRS; it is important to know you can be penalized if you don’t file on time or file late. Therefore, if you are going to be late filing your taxes; it is essential to file for an extension.

Next, if you cannot afford to pay what you owe; reach out to the IRS to explore different options. Also, pay what you can to reduce penalties and the amount you owe.

Moreover, if you work for a company; make sure you put a 0 on your W-4. By having a larger amount withheld each pay period; you are less likely to owe money.

Manage your Finances

Indeed, managing your finances can be tricky.

First and foremost, review your monthly bank statements, credit card balances, and retirement funds. Once you start reviewing this monthly; you will have a better handle on what you are spending and saving.

At the same time, debt for the average American household is at an all-time high.

Save

So, the best way to save is to think before making any large purchase. For instance, try the 30-day rule. Meanwhile, if you are not familiar with this rule; it basically states instead of making an impulse purchase; think 30 days before buying anything that isn’t essential. By following this rule; you most likely will think twice before making a purchase.

In most cases, the 30-day rule gives you plenty of time to think before buying something.

Because most people buy impulsively; this rule will help you think before spending for something you may not need.

Another way to save money is to look for CD Certificates that are paying high-interest rates for a short period of time. When I recently inherited some money; I met with a Financial Investor to diversify my investments.

Of course, there are a lot of different ways you can diversify your portfolio. In my opinion, a good mix of assets includes the following.

CDs with high interest and short duration

Gold – Over the last decade, gold has continued to increase in value.

Investments such as Art, Collectibles (cars, jewelry, and stamps)

Mutual Funds – I recommend working with an Investment/Financial Adviser to put you on the right path toward your financial goals.

Real Estate

Establish a Retirement Account

So, if you don’t have a retirement account; now is a good time to begin. You should start by meeting with an Investment Company. More importantly, make sure you feel comfortable with a financial professional or company you choose to work with.

It is essential to look into starting a retirement account.

Although many people begin setting aside money in their 20s; there are many people who don’t have a retirement account.

Indeed, the first thing you should do is decide how much you can invest. Even if you think you can only invest $10.00 a week; this will help you have income in place when you retire.

When you start saving earlier in life; you will have a larger retirement account.

Although you will receive Social Security when you retire; this shouldn’t be your only source of income per month. Also, the longer you continue to work and not collect Social Security; the more you will collect per month. Hence, someone who waits to collect Social Security at 67 versus 62 or 65 will receive a larger amount monthly.

Lastly, make sure you check your IRA or retirement account regularly.

How to Use Get Money Smart Week to your Advantage

Finally, use Get Money Smart Week to learn how to manage your money. Since many people live paycheck to paycheck; learn how you can build a cushion to become financially secure.

When you learn how to make better choices with your cash flow; you will be one step closer to becoming more financially prudent.