Month: February 2016

You need to be aware of that any money that is coming to you is taxable and it is surprisingly said by tax attorney Sam Brotman in San Diego. According to him everything you receive in form of money, IRS has right to tax it even the $10 you pick up from somewhere. He also mentioned that though these little money are taxable, people usually don’t declare them and hence tax Is not deducted from them. IRS would have to use more enforcement measures but that would cost the department more than the tax they would collect.

Here are the money items that you would be surprised to know are taxable

Employee Awards: There is some bad news for those of the best employees last year. The employee awards you receive for being a talented and extra ordinary employee are all taxable. Though gifts and achievement awards like gold, silver that are under $400, evade tax.

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Lawsuit Money: Winning a case is not a hundred percent good news while you may have to lose some money as tax. So all the settlement money awarded to you by court fall in taxable finance though tax accountability on that money is quite hard.

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Gambling Reward: Chicago’s tax attorney confirms the money won as lottery, gambling or betting is considered as income and so it is taxable. He also said that your gambling losses would be deducted against winnings.

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Alimony: It might be relieving to get money from your ex-spouse, but again that is taxable. There is relaxation in property or child support payments.

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Renting a room: According to IRS, if you are renting a room for more than 15 days, you are making it taxable so be careful while you rent any room on Airbnb next time. Keep your trip short.

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Found Money: Remember the $10 we discussed in the very beginning, that amount is taxable and its called treasure trove tax. Suppose you found an envelope of money, or any such thing in the car you brought you are taxed for that amount.

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Settlements: Just like money you get in a lawsuit or legal settlement, anything like that received as a settlement payment by gym, bank etc. for charging you extra is also taxable.

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Volunteering is an amazing way to raise donation while help you save money. Isn’t it quite wonderful? It has some hidden benefits for both you and underprivileged. While keeping other resolutions in mind, add this to your list and see the wonders. Below you would find why you should actually donate your time.

Workout outside the gym: Volunteering could demand physical fitness or indulging in any such activities like shoveling snow, keeping rocks off the road or helping in home construction. You can have to burn calories without going to the gym. So skip gym and make lives better.

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To have good health: Research suggests that people who are into volunteering have lower rates of depression, anxiety and mortality. Their body functions better and they are more likely to stay fit in long run. It is highly recommended to older people as it keeps them busy positively and improves their health.

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Easy Networking: Going to events, parties or get together for the sake of specializing can cost you a lot. The good news is you can actually save what you are spending as paying for tickets, beverages and membership fees each month. By working toward a common cause you can actually make some real friends and meet people of your kind with paying anything.

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More Employment Opportunities: Future clients would value your efforts and experience in volunteering which would be added to resume. They appreciate people who go extra mile and gain experience in such welfare services so it’s a bonus added to your CV that could get you nearer to your dream job.

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More Travel at less cost: Traveling takes away large part of your savings and you cannot deny how much you like traveling. There’s some whole organization that helps volunteers get some space on board in exchange of the work they do for them.

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If you have a good credit score, you are more likely to get good terms regarding mortgages, car loans and credit cards. In short they get lesser interest rates, fees and more sign up bonuses. Make 2018 your year to shoot up your credit score and save money.

Though it wouldn’t be easy and all at once, but at least it can be done. You can control your credit score with just few ways that we are sharing.

Fix any errors:  Your first move towards boosting credit score would be finding any error in your credit score report. Get a free copy of your report and look for any suspicious entry like accounts you fail to recognize, any kind of payment you think you never made or any open account that was supposed to be closed. Hold an investigation in any such cases.

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More credit cards, more score: Getting new credit card would help you increase your credit score in such a mathematical tricky way for an instance you have $1500 in your credit card with the maximum limit of $3000, your utilization rate would be 50%. However, if you add another credit card of same limit your utilization would become 25%. Feel the trick? But you need to be careful in this to avoid unbalance.

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Large and frequent payments: Make large and multiple payments in a month that would enhance the score because each time you pay it takes a snapshot of your balance and the score gets down while lower balances gets your score up so making larger payments in more frequent shifts would risen credit score.

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Become Authorized user: Parents often make their child an authorized user so they can draw and cash money. This technique is found good for account holders, any payment done by authorized user makes their payment increase and so the credit score.

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Keep Balance and Simplicity: In order to keep your score maintained you need to balance everything, just make sure you keep an eye on all your stuff. To sum up, we can say if you are going to pay bills on time for a long time, keep balances low without applying for new credit, you are ultimately going to achieve greater score.

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Let these points resonate in your mind and make you act upon them, 2016 would be your year!

2016 is here with all the new blessings; it’s time to gear up for new you and reach your money goals.

Even if you have to pay off debt, buy new home, these expert financial tips would make you one step ahead in moving towards financial targets.

Write down your finances: Do simple accounting for your current assets and liabilities and make a chart to draw your savings to monthly. This way you would have clear idea of your spending and earnings and you can allocate specific amount to savings.

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Set Big Goals: Do not be afraid to dream big or follow them just because you think you are not capable of doing them. While you set your eyes on your goal, invest in both time and efforts and see what wonders it does. Do not stop believing in yourself.

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Take Small Steps: You cannot eat entire meal all at once or you’ll choke yourself. Similarly, there’s so magic wand or magic carpet to fly you to your dream goal, baby steps toward the monster goal is what confirms consistency and surety.

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Share with friends: Friends are supportive angels sent direct from heaven that share with you each and everything. Sharing your goals with pals would give extra amount of encouragement and amazing ideas that could helpful in long run. So open up about your dreams to your buddies and see what happen.

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Announce your goals: By sharing your goals on social media would give you more motivation and sense of responsibility to achieve them. Doing so will also hold you more accountable.

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Leave Bad habits: If you think eating out is more fun and skipping home food is okay then you need to realize you are wasting a lot of money you can actually save. Leave behind such habits and strive to be a better person.

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Seek Advice from Someone who’s traveled this journey: The best advice you can receive is from someone who has already accomplished what your seeking to do. Most people who have achieved success in have no problem sharing how they got there. Welcome their advice so you do not have to make the same mistakes.

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Going on a money diet does not need a specific time of the year or any other condition, except for the summers as they come with a lot of spending moments e.g going on a vacation, shopping for weddings and beach trips. Money diet is very different to ‘food diet’, since it is about gaining money and not losing it.

There are some really easy successful money diet tips for you to try:

Eat healthy, eat on budget:

By food shopping, strictly stick to groceries. Eat at home. Avoid pizza delivery, meal takeaways and hotel meals. In case, you find candy man or ice cream vans, look away to crush the craving.

Skip Shopping gigs:

While only window shopping, ladies are often caught buying scarves, headbands and accessories and such frequent little shopping gigs actually cost more than mega shopping.

Part-time working:

Work part time for few hours to gain extra money and show consistency. Join a toy store costumed as a spider man or become a host for an Italian restaurant.

Recycle at home:

Utilize free time at home and peek inside those used/unused stuff in backyard, go-down, old cupboards for some scrap and invest in some really cool DIY skills to create masterpieces that would both save you money and time for shopping outside. You can even do grocery shopping at home, consume some space in lawn and go green with home farm. While money dieting don’t go way too far to skip basic necessities like soaps and shampoos. These are the things of primary importance.

Visit Library:

If you are a keen reader, go on read entire library and cut the cost of buying books. You can not only explore the world of books but enjoy some real free entertainment and get this amazing chance of socializing on budget.

 

 

Try this crazy method called money diet and save dollars. You can thank me later 🙂