The other day on the news they were speaking about the mid-year financial checkup and how to check and see if you are going to meet your goals. This is a great idea. I thought I would give some tips on how to prepare yourself now for tax time next year.
We all know that tax time is going to come. The only two things certain in life is death and taxes. So here are a few tips.
1. Save all of your medical expense receipts. I didn't do this last year and ended up way under-guessing how much we had spent on medical expenses. Your prescription co-pays are tax deductible.
2. Donate to charity and save the receipt. Every few months I do a house cleaning and then schedule a pick up with American Kidney Foundation. They will come to our door and pick up the stuff we no longer need. Plus, they give you a receipt for your taxes.
3. Look at IRA's and 401K's for retirement. They have tax benefits. I'm not sure all about them but I know funding your retirement is IMPORTANT. So look into it. Save now or risk a bad future.
4. Look at setting up a 529 for your child. I recently set one up with Upromise. They have a great program and certain expenses are tax deductible.
Now for some other incredibly important financial tips.
- Get a budget and get one now. Every one of us needs a budget. There is a wonderful website You need a budget, which will help you set up one. Each and every one of us could put at least a small amount into savings if we would only realize where we are spending.
- Get debt under control. As Suze Orman says, live below your means.
Those are just some tips, I am in no way a financial expert, but those are the guidelines we do at our house and it has helped a lot. For some more great tips, check out Dave Ramsey or Suze Orman!