Use 2015 to Revamp Your Financial Health

The New Year is upon us, and now is the perfect time to get your finances in order. There are some things that just about every single person needs to be financially fit. Without those pieces, your overall finances will never be complete. Here is a list of the most important parts of your financial plan, if you are lacking in an area, use this year to get it fixed up.

Emergency Fund and Other Savings

Ask any financial expert, and they will tell you that an emergency fund is one of the most fundamental components of a healthy financial plan. This fund can look different depending on the person, but it has a few key features that make them all similar. First, the money has to be easily accessible. This means you should not be using home equity as your emergency fund. Second, it should be safe; that means no risky stock ventures or buying bitcoins. Instead, most people opt for a high-yield savings account to stash their money in case something happens and they need a boost. After have your tax return prepared by an accountant in Billings, Montana (you can do so by utilizing the services of Practical Taxes, you should have a refund that you can use to get a jump-start on your savings.

Insurances Protect Your Financial Health

We live in a world where we can protect ourselves from the unknown. While the premiums may not be something you really want to pay, they are always much lower than the out-of-pocket costs if tragedy hits. There are ways to protect your income and finances through insurances such as:

Life Insurance: Leave your legacy, provide for your family, and cover final expenses all after you are gone. Utilizing permanent life insurance can help you meet savings goals as well as protection goals.

Disability Insurance: Most disabilities are caused by illness rather than major accidents. And you don’t have to be in a wheel chair to be disabled. If you are young, you have a lot of years left before you will be done working. Protect that income with disability insurance.

Financial advisors will tell you that insurances make up the foundation of your financial plan. Without protection against the “what ifs” there is no real way to plan for the future. Review your insurances over the next couple of months and make sure they are adequate.

Investments Build Your Financial Health

There is essentially no way that you can retire comfortably without investing some of your money. Social Security was never designed to cover all of your retirement goals, so you need to put money away on the side as well. Those investments can be in a tax qualified plan, like a Roth or Traditional IRA. Or they can be invested in non-qualified accounts. If you do choose the non-qualified option, your accountant in Billings, Montana can help you to determine the best way to report the gains on them. There are ways to minimize the taxes that come as a result.

Get Rid of Your Stuff to Increase Financial Health

Our culture shows us that people are prone to collecting stuff. We buy a house, and we have to fill it. We buy things we think that we need, and after using them a few times, they sit idle in the closet. You can use 2015 to help get your home organized, and build your net worth at the same time. More expensive items can be sold on Ebay or Craigslist, and smaller items can be filler for a garage sale. If you choose to just donate things that you don’t need any more, that is great too. You will be able to deduct the value off of your taxable income.

Revamp Your Financial Health, and End the Year in the Green

Let’s make 2015 the year where we get the most out of our finances. Starting with getting your taxes prepared by a professional accountant in Billings, Montana, and ending the year with money coming in on the side, make this the year that your financial picture looks great.

Practical Taxes is a full service accounting firm. If you need online payroll services, this is your place to be. If you need business consulting services, then look no further. Of course if you just need a professional to do your tax preparation for a cost that is affordable, we can do that as well.