 |
 |
|
|
9009 West Loop South, Seventh Floor, Houston Texas
1-866-889-9347 |
CCCS of the East Bay
A Division of Money Management International |
|
Regional Headquarters - 7677 Oakport St., Suite 700, Oakland California |
|
|
|
|
|
|
 |
|
Pinch Time: After The Holidays and Before Taxes |
|
 |
|
| |
|
 Just as the holiday credit card bills begin to appear another less festive season arrives—tax season. Money Management International (MMI), a national nonprofit credit counseling organization, reports substantial increases in the number of clients who come in for help during February and March.
And it is no wonder. It is estimated that the average American spent more than $1,800 on holiday related expenses. To exacerbate the problem, many people will also soon learn that they owe the Internal Revenue Service (IRS) more than they planned. In fact, more than 24 million people owed the IRS a total of 91.8 million dollars at the time of filing last year. (IRS Statistics of Income).
Both holiday and tax debts are periodic, meaning they are not part of regular monthly expenditures. In that regard, they fall into the category of “other” expenses such as automobile registrations and vacations. Often, we know when these events will occur, but still fail to plan for them. Unfortunately, when these expenses arise, many people rely upon credit to extend their monthly incomes. Using credit this way is one sign of pending financial trouble. To avoid this scenario, follow these tips when planning for periodic expenditures:
- Determine what you spent last year for periodic expenses. Assume that you will spend at least this amount again this year.
- Don’t hide expenses! Just because you don’t list an expense doesn’t mean you won’t have to spend money on it. Don’t forget things like back-to-school expenses, auto maintenance, and birthday gifts.
- Remember that some items, like auto insurance premiums, may occur more than once a year.
- Expect the unexpected. Cushioning your savings account for those “unplanned” expenses can make the difference between a minor financial setback and a major financial disaster.
- When you have a realistic idea of what you will need to spend on periodic expenses during the year, divide the total amount by 12 and save that amount each month. Designating a savings account for this purpose may help to organize this process. Check with your financial institution, you may even be able to have the amount automatically transferred.
Finally, don’t forget to revisit your overall spending plan several times throughout the year to make sure you are on track. Common sense and flexibility are important keys to financial success.
|
|
|
|
|
|
|
| | Home |
Privacy Statement |
About CCCS |
Contact CCCS |
Site Map | |
|
CCCS, A Division of Money Management International
Regional Headquarters - 7677 Oakport St., Suite 700, Oakland California
Corporate Address - 9009 West Loop South, Seventh Floor, Houston, TX 77096
|
|
|
|
