As the new year begins, it is an opportunity to review your past financial practices and set goals for the future. MCK CPAs & Advisors offers these tips to help focus your personal financial goals this year.
- Check your W-4. This may not seem like a task that you need to do, but with changes in tax law in recent years, you will want to ensure you are claiming the appropriate exemptions or you could face an unexpected tax bill when filing your
- Make a budget. Whether you use an app, a spreadsheet or just a pen and paper, creating a budget is the foundation of planning your fiscal future. It provides you with a framework on how you should spend month-to-month and can help you to identify opportunities to save money.
- Payoff debt. Debt is not a one-size-fits-all topic. There are different types of debt—secured and unsecured—and some that offer tax benefits. Reducing your unsecured debt and lowering your debt-to-income ratio is an important goal as you plan your budget.
- Save money. Saving for retirement, emergencies and for large purchases are all good practices make habits this year. If you have children, you will also want to make sure you are saving for college. Consider your savings goals as you plan your budget.
- Donate more. If one of your goals is to be more generous, take advantage of opportunities to reduce your tax burden—making more money available for charitable giving.
Not sure where to start? Need help setting up a budget or understanding taxes? Contact MCK to speak with an accountant or advisor today.