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How to Manage Your Budget Like a Tax Accountant

How to Manage Your Budget Like a Tax Accountant

Tax accountants don’t get into trouble at the end of the year because they prepare continuously for the tax season, and you can be just as organized as the pros when it comes to your budget and taxes. Here are a few tips and tricks from the experts that will keep your accounts in order.

Get Organized (Now)

Stop procrastinating. The main tip from professionals is to start organizing your budget and receipts right now. For most people tomorrow is a myth that never comes, and when we say we’ll organize our budget tomorrow it never happens. So, here’s what you need to do:

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  1. Look at the clock and consider your schedule for the rest of the day.
  2. Determine one 30-minute block of time you can spend organizing your budget.
  3. Stick to this scheduled slot. Work quickly, organizing for thirty minutes, and then stop.
  4. Repeat this process tomorrow, and every day until you are organized.

Choose a Place for Your Documents

When you have one designated place for all of your financial documents, it’s easier to keep track of them. When bills arrive, place them in your determined area immediately, and when receipts make their way home in bags, file them the same way. By doing this, you’ll ensure that everything you need of a financial nature is readily available when you’re ready to start organizing each day.

Learn to Organize Like the Pros

Once you’ve started sorting receipts and bills each day for thirty minutes, you might wonder if there’s an easier way. Here’s what the experts do to keep their budgets in order:

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  • Buy a filofax that has a tab for each month, and sort your receipts by month.
  • Get a calendar and note each bill’s due date. Check this calendar each day to see which bills are upcoming.
  • Use handy software to fill in each of your monthly bills, credits, and reoccurring payments. Find out what your monthly savings could be if you cut out some unnecessary expenditures (such as eating out, or cable).
  • Make a plan to save a percentage of your income (experts recommend 10%).

Experts and financial gurus like Mark Weinberger don’t get successful or rich overnight—they plan and prepare, just like you should be doing.

Make Apps Do the Work for You

If  keeping track of your finances manually isn’t an option, consider one of the following apps:

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  • Mint – You can consolidate all of your credit cards, bank accounts, savings accounts and other investments within this one app. Mint will also set a budget for you, let you know of upcoming bills, and tell you when you’ve gone over your budget.
  • BillTracker – Keep track of your upcoming and outstanding bills with this simple-but-handy app.
  • Shoeboxed – This genius app lets you take a photo of your receipts, and then processes and organizes the data so you can ditch the hard copies.
  • Most major banks have apps you can connect with your online banking; check with your banks and credit card companies for any apps they offer.

Get Serious About Your Future

Tax accountants have plans for the rest of the day’s budget, as well as for their retirement, and you need to be just as serious about your own finances. Once you have your daily finances organized and you’ve begun to organize like an expert by using tools and software, all that remains is savings. Find out what kind of retirement plan you are comfortable with, and plan for it. Whether it’s a company savings plan or a personal goal to save 10% of every paycheck and invest in mutual funds, you need to start today.

Your finances don’t have to be confusing or messy; all they require is a little attention and organization. With just 30 minutes a day of focused organizing and sorting and a few free online tools, you can easily become a tax accountant’s dream client: informed, prepared, and ready for the unexpected.

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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