EMERGENCY FUNDS SAVE TAXES
As we all know, life is very unpredictable.
Any number of unexpected events can have an immediate (and usually negative) impact on our finances--and on our income taxes.
That's why setting up an emergency fund with liquid cash available is so important.
When an unexpected financial emergency arises, you do not want to be in the position of having to take a distribution from an annuity, IRA, or pension plan.
These distributions take money away from your retirement that is hard to replace, are taxable income, and an early or premature distribution could possibly subject you to an 10% Additional Penalty Tax as well, unless you meet one of many exemptions.
Being forced to sell investments or other assets or cashing in CD's early can greatly impact your finances and taxes in a negative way.
Getting Started When Finances Are Tight
The easiest way to set up an emergency fund when finances are tight is to make commitment (RIGHT NOW) to start a saving plan.
Start small and build up over time so that the task doesn't seem so daunting.
Save $1 dolllar each day for a month or two and then gradually build up the daily amount little by little.
Save spare change each day.
Save money on the little things that quickly add up to alot on money like eating out, getting coffee, unnecessary memberships or subscriptions and so on.
The public library is a goldmine for FREE books, movies, CD's and much more.
Never impluse buy.
Set up a WRITTEN Personal Budget to track EVERYTHING you spend money on to see where you can cut back---and communicate this plan with all family members so that everyone is on the same mindset.
Review all aeas of your finances to see where you may be able to save money.
Don't get discouraged.
Doing this over time will bring peace of mind, more financial security, and keep more taxes and money in your pocket.
Making a commitment and getting STARTED NOW will make your life less stressful and more enjoyable!!
CALL NOW 561-746-1926 or 561-339-8102 if you have any questions or concerns or would like to schedule a FREE, Confidential, No-Obligation Tax-Saving Consultation.