Professional budget advice you can’t miss! Learn why most budgets fail and how to avoid mistakes in this free online video tutorial. Expert: Alfred Loughmiller Bio: Alfred Loughmiller studies Multimedia Communications at Utah Valley State University, and has worked a number of years in advertising and television production. Filmmaker: Danny Loughmiller
Professional budget advice you can’t miss! Learn how to use the envelope system to manage a budget for personal finances in this free online video tutorial. Expert: Alfred Loughmiller Bio: Alfred Loughmiller studies Multimedia Communications at Utah Valley State University, and has worked a number of years in advertising and television production. Filmmaker: Danny Loughmiller
Tips to surviving a recession and keeping your taxes in order.
Ask an economist to define recession for you and chances are, they’ll tell you that it is a state of the economy where the GNP decline for at least two consecutive quarters. However, that is just a nice textbook definition. Recession can not only affect not just cities and countries, but it can also affect individuals and families on a more personal basis. To help you to stay on top of things durings these troubled times, here are a few things you can do:
Start saving. Immediately.
If you have a nest egg hidden away somewhere, so much the better. Boost it with more savings. If you don’t have a rainy day fund, it’s time to start saving immediately. Implement tax and personal savings steps in order to fight the effects of recession.
Cut back on spending immediately.
If you think you need everything you are buying, gather your last few weeks’ worth of receipts and then rate each item according to necessity. Chances are, there are a few things on the list that you’ll realize now that you didn’t really have to purchase.
If you see s simialr pattern in most of your receipts, that’s a sign that you ought to cut back on your expenses and seriously implement a budget or spending plan. You could, for example, cancel a gym membership and take up running or exercising at home instead. You can buy items on sale instead of at retail prices and put off any large purchases – cars, TVs, video equipment, furniture, etc.
Try and eliminate big chunks out of your debt.
The amount of debt you are carrying can get you down and it will not hesitate to have same effect to your credit score. During a recession, a bad credit rating is just not something you want to have to deal with. If you have debts in some form (loans, credit cards, mortgage, etc.), try to pay off as much of waht you owe as possible. The quicker you do this, the better it will be for your finances.
Eliminating your debts is an excellent anti-recession step because it helps save you money in terms of interest. It will also give you peace of mind and the personal satisfaction of being in charge.
Consider investing? Speak to a professional.
An experienced financial adviser can help educate you on the options you have, given your own resources and the amount of risk you are willing to take. Recession can make investing a greater challenge, particularly for the uninitiated. That is why you’ll need all the help you can get in order to find the best places where to invest your hard earned dollars.
Know your deductibles.
Review your tax code for the kinds of thngs that you can include in your deductibles. Remember that not all expenses can be used as deductions. Only if you can prove them ‘ordinary and necessary’ will the tax man consider them.
Keep every receipt for deductions.
Audit or no audit, it pays to have documents that support your tax claims, especially if they refer to deductions. Keep yourself organized regarding your files, particularly those that pertain to your business or work. Keep things where you can quickly access them and use for reference later.
Consider leasing your business vehicle
If you want to give yourself a better tax advantage, a good anti-recession tip to follow is to lease that car of yours. This will help you in terms of business deductions compared to what you’ll receive if you purchased the vehicle.
When in doubt, always refer to a professional.
The personal anti-recession tips you obtain will usually work effortflssly but some steps involving taxes might have certain limitations. Before implementing these steps, you might want to consult a basic guide on taxation or visit an accountant or bookkeeper. They can guide you on what you can and should do based on your own unique circumstances.
Saving Money During a Recession: Seem Like Mission Impossible?
Recession is a word that fills people with dread and fear. With the market falling they way it has in the past few months, its no wonder. It’s a time people consider bad for finances, a time capable of the magically shrinking a dollar’s value overnight. It also automatically increases the cost of basic living as prices increase. And where money is a huge concern, people always ask, ‘Can I still save for real during a recession?’ The answer is: you bet you can. You just need to be wise and creative about the whole financial process. Here are ways how:
Plan your purchases.
By planning your purchases, you’re effectively planning your expenses. This helps eliminate the danger of impulse buying and unnecessary spending. Try to look at the bigger picture when it comes to providing your basic needs.
Plan for a week’s worth of groceries, for example, so you’ll have an idea of which items you truly need (and want) and which items you can really can do without. To make sure that you maximize your planning efforts, consider incorporating items on sale into your planning. For example, if there are foods on sale that week, why not plan your week’s menu using what’s currently on sale at bargain prices?
Implement the ‘B’ word.
Budget, that is. If you want to be able to save money during a recession, you must learn to discipline yourself and your family. Using your plan as a reference, develop a weekly or monthly budget and then stick to it. If you must go over budgett, you should have a very good reason to do so. Otherwise, don’t spend the money.
Keep an eye out for discounts and bargains.
Learn to watch stores for seasonal sales. You will save a lot of money by buying items on sale than at their regular prices. During a recession, that is considered frugal spending. Check out the store or newspaper ads and don’t be shy about asking for cheaper alternatives, getting store rebates or using discount coupons. Consider buying at discount stores as well. Every dollar you don’t pay is a dollar you save.
Buy in bulk.
If there are items in your house that are often in use (paper towels, toilet paper, canned beans, rice, etc.), consider buying in bulk. Many stores offer items in packs, which means you’ll save money in the long run than if you buy them individually instead.
Put off those big ticket items..
A good rule of thumb is, if you can’t afford it, don’t buy it. If, for example, you have enough money for a downpayment on a new big screen LCD TV, but you will have to borrow money off your credit card just to tide you over for the next few weeks, it would be truly be insane to make such a purchase. Wait until you can comfortably afford something without going further into debt. The worst you can do during a recession is not just failing to save money but also going into debt.
Practice prevention, not cure.
If you look closely, there are many things you do in your home that are draining precious dollars from your wallet. Simple steps such as repairing and maintaining your home fixtures and appliances, using more efficient equipment, and cutting down on unnecessary consumption can do wonders for your wallet and piggy bank. And what better way to live during a recession than to be prudent?
Earn extra money.
If, after all your efforts, the money you have saved is still not enough, don’t let recession get the better of you. There are times when your current efforts are just not sufficient – mostly because you don’t bring enough home. Instead of asking for a raise that might never occur or waiting for a promotion to drop on your lap, consider finding other means with which to earn (and save) money.
Consider getting a part-time job, work extra hours, start a side business, sell things on the side or offer your skills as a freelancer. The extra income you earn, along with your recession powered money saving plan, will help you make enough until you weather the storm.
Nonetheless, scrimping and saving isn’t only for adults to be conscious of because being careful with money during economic recession, children can also play a useful part.
During a recession, financial pressure mounts, and that has more people looking for ways to save money. A quick fix for your budget could be the way you shop at the grocery store.
And in today’s climate, people are saving more. That’s one of the silver linings of this recession that we’re in. People are looking at what they’re spending their money on and making decisions in a way that benefit their future and their family’s future.
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