Financial Year – 2015

It’s 2015!

It is ten days into 2015 and we have a lot to do to be ready for the coming commitments for the year. I’m not real happy with resolutions as you can read in the post Are Resolutions A Waste Of Time. Having said that, there are still a lot of things that my wife and I would like to accomplish and that takes some planning.

Taxes

Prepare for taxes. Yes – it’s that time of year. Soon you will be receiving your tax documents from your employer, banks, stock holdings, real estate and the list goes on. If you are self-employed, hopefully, you have done better than I have of paying the taxes quarterly. If not, then get ready to gather your stuff and figure it out.

Savings

January is also a great month to play your savings. Want a vacation? Better start putting something back. Want to visit relatives who live too far away to drive? Start putting something back for that too. Have a large purchase to make this year? I don’t need to say it again – do I? What about retirement? As long as you have an income, you can start at any age to put money into a Roth IRA. That’s right. Even if you are delivering papers at 12 years old, you can start a Roth IRA. There are some restrictions though. For instance, if you are single, you need to have an income, not from real estate or other investments of less than $114,000.00. Most of us fall into this category. For married couples, the limit is $181,000.00. Again, most of us fall into this category.

As I have said in the past, retirement is a financial state. The faster you gather enough assets to cover the lifestyle you want to lead, the faster you get to a point where you can choose to keep working, do things you have a passion for or travel wherever and whenever you want to. Of course, the best option is to pick a career that you already have a passion for – that way, retirement probably won’t even be a though.

Three Things

Here are three things you can start right now to prepare for 2015

  1. Save a small percentage of your income towards retirement. No one is going to make sure you have enough unless you do.
  2. Save for a vacation. Even if it is a long weekend away with family or even by yourself, it’s good to take a break from your normal routine.
  3. Don’t keep a balance on your credit card. There is no need to pay interest fees for the stuff you buy. If you don’t have the money for something, save some and when you have enough, go get it. That’s a goal.

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