Moolah

LIST, written on a sticky note, may have gotten stuck on your foot and deposited in the parking lot of Harris Teeter, it’s probably time to reassess your goals for the year. Most of us have heard of the Dry January challenge, which seems to work out better for some than others. No further comment. However, have you heard of the Frugal February challenge?

It’s an idea that’s been around for several years now: Use this shorter-than-usual month to make some financial sacrifices. Spend a bit less, save a bit more and try to get your money situation more organized. Get a budget in writing and look at what you spend your money on daily and weekly. Ask yourself, “Do I need that or just want it?” Take a look at your monthly payments and highlight any areas where you can reduce your spending. Here are some ideas to get you started:

Skip the takeout: Eating out is a budget-buster. Instead of grabbing takeout, prepare your weekly menu ahead of time to save money. An added bonus? You can focus on reducing food waste—a financial and environmental win-win.

Cancel unnecessary subscriptions: If you’ve now got yourself saddled with every streaming service available, consider cutting back. Whether it’s Netflix or Disney+, consider which streaming channels you use the most and cut the fat.

Make your own coffee: Skip the daily Starbucks run (which is actually a sit and wait) and make your own coffee.

Tip: Reach out to a financial expert who doesn’t charge for consultations. This will allow you to educate yourself, gain perspective from an expert on ways to improve your financial picture and, overall, gain a plan of action for the year to come. Yeeesss, we offer that.

Consumer Reports’ product-research experts, who track prices all year, have compiled a list of items that are discounted. If you’re shopping for the best deals this month (or throughout the year), look for sales on their Deals tab at consumerreports.com. There’s no membership required for this research tip.

Tuesday, April 18, 2023 is Tax Day Tax Time! (Rub your hands together thinking about that return direct deposit arriving!)

Everyone loves an extra windfall of money. But remember, don’t give the government an interest-free loan. That is actually your money. You just overpaid throughout the year. So, how can it be avoided?

The best thing you can do is to adjust your withholding allowances so that you’re taking out the right amount. That way, there’s less chance that you will overpay and end up getting a large refund next year.

If you get a paycheck, you can use the IRS’ withholding calculator to figure out the right withholding amount. Then file a new W-4 with your employer.

Self-employed workers should re-evaluate whether they’re making too large of quarterly payments to cover their projected tax liability for the year.

Be careful, though, you might not be ready to under pay. The opposite of that large chunk of cash is you owe taxes. You should plan ahead, educate yourself on your situation, save your funds for what you’ll owe. The best way to evaluate your situation is to use tax software (or work with a pro) to estimate how much you’ll owe.

Tip: Explore the outcome on your taxes if you contribute to an IRA account for a deduction versus not. In most cases, you have until the Tax Day deadline to contribute for the previous year.

Another point from consumer reports.com: Finishing your taxes is also an opportunity to shred papers that you may no longer need and organize those that you will need to access in the future. In general, there’s no reason to hold on to ATM or credit card receipts after you’ve reconciled them with monthly statements. Keep documents you need to hold on to longer, such as car titles, unpaid loan statements or your tax returns, in a fireproof box or password-protected electronic file.

Once you’re rid of unnecessary paper files, do the same with those on your computer, phone or external hard drive. While you’re at it, delete any apps you’re not using, and deactivate your accounts on websites you no longer frequent. Doing so will reduce the chances that your personal information is exposed if those companies get hacked.

Final tip: Star of the Pines

Wealth Management has an annual free drive-thru shred event in April. Save the piles and save the date: Saturday, April 15.