January 16th, 2012 | Finance Planning |
Award-winning insolvency practitioner, Bev Budsworth offers a simple, 10-point plan for any student looking to sort out their finances and manage debt repayments whilst at university:
1. Don’t panic
o For young people and students in debt the most important advice is don’t panic – there is always a solution available for dealing with debt.
2. Talk to someone
o Talk to someone – either a friend or family member or a fellow colleague who has experience of a similar situation, who can give you advice on their own experience
o As a student, you will usually have a local student’s union available who will have staff on hand that are used to dealing with money problems. They may well refer you to hardship schemes, which can help tide you over until you get back on your feet. They will offer sound advice on how to budget and manage your money.
o You will feel so much better if you can share how you are feeling with someone. If you are unable to talk to someone at least write it down. You are doing something positive and this will help you feel more in control, reduce the feeling of panic and make you calmer.
3. De-clutter
o Get all your personal bills and bank statements together, sort them and put them in a file. An untidy environment creates confusion and a sense of loss of control. A thorough tidy out has a good feel factor – you will instantly feel more in command.
4. Exercise
o Going for a swim, walk or a work out in the gym will always make you feel far more able to deal with the more unpleasant aspects of life including debt.
5. Acknowledge your debt
o You need to take responsibility for your debt. It is easy to blame institutions for making credit to easy to obtain but it is your debt, your responsibility and you need to deal with it.
6. Visualize a life free of debt and embrace change
o Imagine what it would be like to be free of debt – your finances sorted, money in a savings account, no stress!
o Develop a practical plan that is gradually going to move you closer to the debt-free state.
o Remember if you do nothing, nothing will change and you will remain in debt.
7. Budget
o Work out exactly what essential costs you have each month (rent, food, bills etc) and then divide what you have left into weekly amounts. Try taking that amount out of the bank at the start of the week and sticking to it, rather than making numerous trips to the cash machine.
8. Don’t spend money you haven’t got
o Don’t be tempted to write cheques when you know you are up to your limit. The banks don’t take to kindly to this and will charge you
December 23rd, 2011 | Finance Planning |
1. Keep Good Records
With the tax-filing complications of the trucking industry, dozens of truckers get audits in the mail every year. While an audit is never a “good” thing, as long as you have your financial information organized then you should not have anything to worry about. Throughout the year, keep your receipts and financial records together and safe in a box. When its time to get your taxes done, take the whole box in so that you have all the info you need.
2. Business Deductions
If you are self-employed, there are many truck-driving expenses you can look into deducting. The basic rule of thumb with these deductions is that about anything that goes on or in your truck can be deducted as a business expense. This can include decorations for the inside of your cab, the materials you use to clean your truck, and even repair expenses.
3. Itemizing Tips
While it is not true that itemizing deductions will automatically give you an audit, it does make sense that itemizing can make it more “likely”. This is only due to the fact that itemizing uses more paper; therefore the IRS spends more time looking over your return. This is not a bad thing however, just be sure to keep good records and keep all receipts. If you do not receive a receipt for a truck wash or other expense, write down the amount, description and date in a “receipt book”, which the IRS should accept.
4. Meal Allowances
According to the IRS, you are allowed to deduct up to $52 worth of meal allowances, as long as you are on the road that full day. Keep a logbook with dates and amounts that you eat while on the road or it will be very difficult to come up with an accurate number.
5. Multiple States
Perhaps the biggest tax headaches truck drivers face is the taxes they have to pay in every state they are registered to drive their truck in. For some truckers, this is can be as little as 1 or 2 states. However, for truckers driving across the country, this number can quickly add up. Each state will collect vehicle registration fees, and some states will charge other tax fees as well. Make sure your tax preparer is up to date on each state’s tax codes regarding out-of-state truck drivers.
6. Weight
If you drive a truck with a large gross weight (over 55,000 pounds) you will need to pay the federal highway use tax by August 31st every year. If you have not already purchased a truck with this weight, be aware that if you do, this tax will be due for the first time at the end of the month in which you make your truck purchase. After you have paid it for the first time, you can decide to pay it every year in August, or in quarterly payments to reduce the burden.
7. Fuel Taxes
Luckily for truckers, most states appreciate your purchase of their fuel and will give you specific tax breaks. Therefore it is imperative that you keep good track of your mileage and fuel purchases.
8. Hire a Professional
With so many IRS rules and regulations as well as deductions and credits available to truck drivers, you should definitely consider hiring a tax professional to help you sort it all out. You may even find that your tax preparation fees pay for themselves, as a professional will be able to tell you any and all deductions you are eligible for, even the new ones you may or may not know about yet.
December 21st, 2011 | Finance Planning |
Personal finance is extremely important in today’s society. Whether you are looking to purchase a new home, pay for college or take a trip of a lifetime, personal finance can help you achieve these goals. While there are many ways to benefit from good money management, here are three essential personal finance tips that can truly help you achieve your goals.
Save and Invest
It is absolutely essential that you save as much money as possible and then invest it so that it can work hard for you. Saving money is vital to having a nest egg in the future for the purchases you desire. Saving requires a plan and usually lots of time. One of things that you should do once you receive your paycheck is to pay yourself first. Take a set amount of your pay check and put it away. Once you have money saved, the next step is to invest it and make it work hard for you. Over the years, you can earn hundreds of thousands of dollars off of just $30K to 50K in savings using the power of compound interest. There is no magic involved. In order to create a nest egg in 10, 20 or 30 years save money and invest it.
Create a Budget
Creating a budget is essential for anyone that has an income and expenses. Many of us are usually carefree and do not keep a record of all our purchases, however if we knew just how much we spent each year on junk or impulse purchases we would be aghast. Creating a budget is a great way to understand what we spend our income on, reduce spending on non essential items and discipline ourselves to save and invest our money for the long term. Creating a budget is extremely simple and requires only a few hours of time each month. A simple budget can literally save you thousands of dollars a year and give you true piece of mind.
Use Credit Wisely
Credit cards can be extremely convenient, but many times they are equally destructive. A credit card is not a license to spend; it is in effect a loan. Understanding how credit works and how to use it responsibly can make your life much easier. Credit cards can be a great option in certain situations, however using them properly is essential to proper money management.