I just realized that it was back on March 3, 2009 that I posted my very first article on Pennysaver Blog. Wow, does time ever fly! It has been a real joy doing this blog so far, and I look forward to another year of learning and sharing what I’ve learned with anyone who is interested. Thanks for taking time out of your day to read my blog.
Lack of tax knowledge could mean missed credits and money left on the table
Canadians may be leaving money on the table at tax time because they do not have a good understanding of what can be claimed on their tax returns. Less than 25 per cent of Canadians provided the right answers when asked questions about their tax returns, according toa recent survey by Leger Marketing for H&R Block Canada.
“No matter how you decide to prepare your tax return, you need an understanding of which credits and deductions you can claim and how to report them accurately,” says Cleo Hamel, Senior Tax Analyst, H&R Block Canada. “No one wants to pay the government more tax than absolutely necessary, so Canadians should make sure their return includes all their deductions and credits.”
A great way for couples to manage their money effectively is to routinely set up money dates. Pick a time when you are both alert and set aside about 30 minutes to discuss your current financial situation. Be sure to touch on any outstanding or upcoming bills and evaluate your current debt situation. It is also important to talk about how much you are saving as a couple each month and what your goals are for the short and long term.
Couples who set up money dates on a regular basis find it much easier to manage their money. It is important for both parties to understand where the family is at now and where they are headed. Both can contribute to the discussion and can have input into where changes need to be made.
Many folks work really hard in order to pay off their debt, including credit card debt, car loans, student loans, and their mortgage. This is an excellent idea, although, sometimes once our debt has been paid off, we get careless with our money. We suddenly have all this extra money at our disposal and it can be tempting to splurge.
Instead of blowing money that you no longer need to use to pay off debt, consider saving that money instead. For example, if you were making $350 payments towards your car loan and then you finally paid it off, why not allocate the $350 towards contributing to your retirement savings and other investment accounts to save for your short and long term goals?
If you want to make some serious financial changes in your life but you are finding it difficult to stay on track, you may want to join or start up a money club. Money clubs consisting of 6 or 7 people is ideal. It gives everyone a chance to share their own money experiences and provide tips to the group for what’s working for them.
By joining a team of people who are open to sharing their own financial experiences, you will be made to feel accountable to achieving your own financial goals and it will help you to stick to your budget even during tough times.