PFT #65 - Personal Finance Tip of the Week: Creating a Fiscal Year When Filing Taxes

This week’s topic is about managing your tax returns. By the beginning of February most people should have all documentation necessary to file their taxes.  When it comes to filing the standard date to complete this April 15th.  At this point in time, you can actually adjust your filing to a fiscal year. In my case, I account for the tax I need to save from March to March each year, rather than January to January. Hence, if you are in a bind this year and owe money to the government, this allows you 3.5 months to accumulate money to make things whole with the government.  This also allows for you to readjust your budget planning for the next tax year so that you are not in a bind - and this brings up a point that we consistently preach. When it comes to owing the government or receiving a return, the goal is to achieve a zero dollar result.  The reason is two-fold: if you have debts, especially home equity loans or credit cards and you receive a check, this money could have been used to pay down principal balances and the overall interest on your loans.  On the other hand, if you do not have debt, this is money that can be invested and collecting compound interest which we know is our best friend.  To sum things up, when preparing for tax filing, this is your chance to create and review your budget and improve your financial fitness. Moreover, this is one New Year’s resolution that you can actually stick to for the benefit that it provides.  Website   https://www.somethingonmymind.net/ Merchandise https://www.somethingonmymind.net/shop Social Media  https://www.instagram.com/somm.podcast/ https://www.youtube.com/channel/UChec5qcZBcGkIhUU3belNDw https://www.tiktok.com/@somm.podcast?lang=en https://www.facebook.com/somm.podcast https://twitter.com/Somm_podcast