Tips for Doing Your Taxes on Your Own

Filing taxes can seem daunting, especially if you’ve never done it. However, doing your taxes on your own can save you money on professional fees and empower you to take control of your finances. Here are some tips for doing your taxes on your own:


Gather all necessary documents: Before you begin, gather all the required documents, such as your W-2 forms, 1099 forms, and receipts for deductible expenses. This will make the process smoother and ensure you get all critical information.


Choose the right tax software: Many tax software options exist, such as TurboTax and H&R Block. Choose the one for your needs and budget. Ensure the software includes all necessary forms and schedules for your tax situation.


Read instructions carefully: Each tax form and schedule has specific instructions. Read them carefully to ensure you correctly fill out each section. Research it online or consult the software’s help section for more clarification.


Understand deductions and credits: Deductions and credits lower your tax bills or increase your refund. Ensure you understand which deductions and credits apply to your situation and how to claim them correctly.


Double-check your work: After completing your tax return, double-check it for errors or omissions. Even small mistakes can cause problems down the line. Most software programs have a feature that checks for errors and alerts you to potential issues.


File on time: The deadline for filing taxes is typically April 15th. Make sure you file on time to avoid penalties and interest charges. If you can’t file on time, file for an extension. Remember that an extension only gives you more time to file, not pay.


Keep records: Keep a copy of your tax return and all supporting documents for at least three years. This will come in handy if you’re ever audited or need to reference your tax information in the future.


Consider professional help: If your tax situation is complicated or you need help with how to proceed, seek professional help. A tax professional can help ensure you’re claiming deductions and credits and help you avoid mistakes that could result in penalties or interest charges.


Doing your taxes may be satisfying, but it takes close attention to detail and an eagerness to learn. You may ensure a simple and effective tax filing procedure by paying attention to these pointers. Remember, if you’re unsure about anything, seek help from a tax professional or consult the software’s help section.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

Tips for Doing Your Taxes on Your Own

Where Are Professionals Encouraging Individuals to Invest Their Money in 2023?

The term investment brings up images of frantic stock exchanges or individuals who are more prosperous, older, or farther advanced in their professions than you. Investing is a terrific way to build wealth when done wisely. Many investments are available to almost everybody regardless of age, wealth, or trade. 


As we begin a new year, many individuals seek ways to invest their money wisely. With many options available, figuring out where to invest can take time. Professionals are encouraging individuals to consider the following areas for funding in 2023:


Cryptocurrencies continue to gain popularity. Many professionals believe cryptocurrencies will continue growing in popularity and value in 2023. However, it’s important to note that cryptocurrencies are highly volatile and risky investments, so it’s essential to research and only invest what you can afford to lose.


Renewable energy is a promising investment opportunity with an increasing focus on sustainability and reducing carbon emissions. Investing in companies that manufacture or provide renewable energy solutions, such as solar or wind power, can be smart. The demand for clean energy is growing, and investing in this area can provide both financial returns and contribute to a better future for the planet.


Real estate is a popular investment option. Investing in rental properties or flipping houses can provide a steady source of income and potential long-term gains. It’s imperative to do your due diligence and research the market before investing in real estate.


Artificial intelligence (AI) is revolutionizing many industries, from healthcare to finance. Investing in AI companies or funds focusing on AI can be brilliant. AI can transform our lives and work, and investing in this area can provide significant returns.


Emerging markets are increasing and offer promising investment opportunities. These markets are often overlooked but can provide significant returns for investors willing to take the risk. However, it’s important to know the risks associated with investing in emerging markets, such as political instability and currency fluctuations.


There are many areas where professionals are encouraging individuals to invest their money in 2023. Cryptocurrencies, renewable energy, real estate, AI, and emerging markets are all promising investment opportunities. However, it’s essential to research, understand the risks, and invest only what you can afford to lose. Wise investments allow you to grow your wealth and achieve your financial goals.


To learn more about investing, check out this article on the basics of investing. If you’re interested in renewable energy, check out this article on the benefits of solar energy.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

Where Are Professionals Encouraging Individuals to Invest Their Money in 2023?

Current Economic Crises in 2023

In its annual Global Economic Outlook report released on Tuesday, the World Bank, a U.S.-based agency that offers loans and grants to different nations pursuing capital projects, said the world economy might experience a recession and one of the slowest growth rates ever in 2023. The reasons include a year marked by increased inflation, deteriorating financial circumstances, and Russia’s invasion of Ukraine.


The organization reduced its projections for global growth in 2023 by almost half, from 3% to 1.7%. This is the third-weakest growth rate it has ever predicted, below rates seen during the recessions of 2009 and 2020. According to projections, the real GDP of the United States would expand by 0.5% in 2023, compared to no growth for the European Union and 2.7% for emerging markets and developing economies (EMDEs), which exclude China (4.3%) and include nations like India (6.6%) and Russia (-3.3%). In contrast to the World Bank’s predictions, Goldman Sachs forecast a 0.6% increase for the E.U. in a report on Tuesday, saying that inflation has gone beyond the top. The firm also kept its prediction of a severe recession in the U.K.


According to the groups, growth predictions have been lowered because rising inflation rates have driven surprisingly quick policy changes, deteriorating financial circumstances, continuing economic shockwaves, and an energy crisis brought on by Russia’s unjustified invasion of Ukraine. 


Global economies saw an incomplete recovery in 2022 due to banks having to undo pandemic-era policy changes. The IMF continues to reduce its prognosis for the worldwide economy in the organization’s biannual report due to growing inflation and interruptions brought on by the conflict in Ukraine. The organization’s statement is a percentage point lower than forecasts made in October by that institution. The problem confronting development is deepening. 


While the globe is tightening its purse strings, no space should exist for defeatism. Significant reforms could be undertaken now to steer the economy from recession. Proposed ideas include investing in new jobs, improving cross-border trade, and increasing energy access. Federal Reserve Chair Jerome Powell and other reserve officials cited the U.S. job market, which recorded stronger-than-expected data last month, as proof that the U.S. economy can continue to sustain further rate rises. Nonetheless, despite this, after roughly 125,000 people were let go in 2020, layoffs still occur at several influential American organizations.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

Current Economic Crises in 2023

Reasons Personal Finance Should Be Taught in School

From high school graduation until retirement, Americans make countless financial decisions, and the choices they make early on often have long-term consequences. Young individuals must gain the knowledge and experience necessary to make these choices. All school-age children are taught a strong foundation in reading, writing, and math to become contributing members of society. The same should be true of their financial education. Many students will choose between attending college or landing a full-time job when high school is complete. Regardless of who attends college, everyone is concerned about covering housing, transportation, insurance, and meal expenses. The average American loses around $1,800 annually due to financial illiteracy. 


Finance is a part of daily life. The choices made regarding careers, first home purchases, marriages, and the birth of children are all greatly influenced by financial situations. Every day, people must make monetary judgments about anything from where to eat and what to purchase to traveling, going out with friends, and haggling over costs. Young individuals must gain the knowledge and expertise to make these choices, whether large or minor.


When high school graduates decide to attend college, a university, or pursue further vocational training, it is often their first significant financial choice. Many of these high school graduates are unaware of the impact of paying back student loans on their finances after graduation. The pandemic and rising inflation costs have significantly burdened consumers, increasing their financial worries. Other elements like excessive student debt and shaky retirement security have made it even more crucial to give high school students financial literacy a high priority. 


A person’s life might suffer significantly from debt or a lack of money. Divorce, ill health, despair, and bankruptcy are all consequences of financial difficulties. Millennials are beginning their careers with a total debt of $1.52 trillion. Graduates of colleges owe more debilitating student debts than ever. They are not saving as much as they might be since they are taking years to attempt to pay off loans. These staggering statistics might be avoided if students were educated about debt, the many methods to pay for college, and the value of not taking on more debt than feasible. They should be educated about the risks associated with using credit cards, such as their high-interest rates and the significance of paying them off.


People may make better spending choices because they know their financial situation. Early financial education would explain the importance of budgeting. This practice helps Americans be alert and responsible with money because you must examine expenditures when managing a budget. 


⅓ of Americans are saving nothing for retirement. Lack of funds is a significant issue since the majority will need at least $1 million to retire. Starting early is the most crucial retirement savings tip. Still, since they are not teaching the value of compound interest and time, high school graduates miss a critical early-stage window of opportunity.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

Reasons Personal Finance Should Be Taught in School

How to Curb Overspending Year-round

Beyond making New Year’s resolutions, you must commit to a year-round mindset. Recognizing when you veer off course and teaching yourself new behaviors are essential to being a success in the long run. If overspending is the habit you want to curb, remember that spending money isn’t bad. For the most part, it’s necessary. Overspending, however, can negatively impact your finances, credit rating, and every other aspect of your life.

Whatever your objective, it helps to remember why you want to change. Clarity is the driving force behind every action we do. It fuels motivation and reminds us of our end goals. To control spending, calculate your net income after taxes and subtract mandatory monthly bills, like rent and utilities. Budget for holidays like Christmas and birthdays and put aside money regularly. 

Temptations exist all around when it comes to spending. Consumers no longer need to leave their homes to receive advertisements catered to their ideal needs, sometimes before they know themselves. To protect yourself, it helps to cancel all digital and mail-order catalogs and unsubscribe from all marketing lists. You can also combat spending triggers by keeping a spending journal, using budgeting software, and checking your bank account daily. Transaction alerts show in real-time, making you consciously aware of purchases online or in person. This accountability will reduce the number of impulse purchases. Additionally, a spending journal will help you notice frequent purchases and simplifies budgeting. 

Credit cards offer rewards like frequent flyer miles, cash back, and spending points. Cards can be helpful in some instances, but it’s essential to rely on them sparingly. Without seeing an instant effect on your bank account, it is easy not to hold yourself accountable. Only buy something on credit that you can pay for in cash. Credit cards should always be paid in full when the bill comes due to avoid paying ridiculous interest rates. Even when cards are paid off, keep accounts open and active. A zero balance reduces your revolving usage ratio, which is used to identify clients in financial distress. Lowering this proportion demonstrates steadiness.

Another tool for curbing spending is to set a 48-hour restriction on purchases. Often, impulse buys are based on a current state of mind. The inevitable post-purchase anxiety and regret follow. After the waiting period, if you still feel the same way, then buy the item. Set limits on the scope and range of purchases to avoid causing disruptions in your daily life.  

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

How to Curb Overspending Year-round

Saving Habits to Commit to in 2023

New Year’s resolutions are statistically unreliable without making a consistent effort. Many resolutions fail because people don’t make a plan of action. It’s ok to set aspirational objectives, but one must take into account their current state of affairs and the daily work needed to accomplish their goals. Saving money is one of the top five resolutions. Here are some tools to help you succeed.

Start Small

Dividing large goals into smaller, more manageable ones has repeatedly proven effective. Success breeds success. A series of modest victories will motivate you to keep going. Forming lifelong habit changes will help you achieve those goals. Small changes such as checking bank account balances, establishing a budget, setting transaction alerts on credit cards, and prioritizing spending will help you keep track of your progress, giving you a visual representation of your successes. 

Check Accounts Daily

ID fraud is on the rise. Cybercriminals can obtain valuable data such as social security information, birthdates, and credit card numbers. In worst-case scenarios, they even destroy people’s credit ratings. Get into the habit of checking your daily balances on all accounts, including checking, savings, and credit cards. Anticipate pending and upcoming charges to avoid paying overdraft fees. Most banks also require a minimum balance to avoid charging penalties, so it’s wise to maintain a consistent level. 

Sometimes it helps to see in real-time how purchases affect your worth. Transaction alerts will show you up-to-date balances whenever a transaction occurs, allowing customers to watch their balances fluctuate.

Automate Income and Expenses

Several financial institutions provide savings if you set up autopayments and direct deposits. Many credit card companies offer cash back or other incentive programs if you set up autopay. 


Depending on your preferred method, there are several methods for tracking monthly expenses. Choose one that blends with your daily activities to create long-lasting financial habits. The most important thing is creating a budget that you can stick to. Check regularly to make sure you’re still on track.

Expect the Unexpected

Hope for the best while preparing for the worst is a famous saying for a reason. Nothing is 100% definite if the last several years have taught us anything. Inflation is high, and the markets are highly volatile. Experts caution that it’s necessary to have three to six months’ worth of income saved for emergencies. Open an interest-bearing account and put away a modest amount each week to prepare for financial emergencies. It could be an excellent addition to your retirement fund if you never touch it.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

Saving Habits to Commit to in 2023

An Overview of Roth IRAs

It is never too early to plan for retirement, regardless of how old you are. Seemingly insignificant choices made now can have a profound impact on your future. While you may already be contributing to an employer-sponsored retirement plan, an Individual Retirement Account (IRA) enables you to make additional retirement contributions while offering the possibility of tax benefits. There are various IRA varieties, each with advantages and conditions. Traditional, Rollover, and Roth IRAs are the three most common options.


An IRA that accepts after-tax contributions is known as a Roth IRA. Roth IRAs are funded with after-tax money. The main advantage is that if the account is open for 5+ years, your contributions and the returns on those contributions can grow tax-free. They can also be withdrawn tax-free after the holder reaches 59.5 years of age. Since taxes are deducted from the money at the moment of deposit, all withdrawals after that are tax-free.


Other advantages of Roth IRAs include no age limitations for contributions. You may contribute at any age if you have an eligible earned income. This makes it ideal for retirement planning. Gains from investments and contributions accrue tax-free. Your heirs’ withdrawals from your Roth IRA will not be taxed. In addition, unlike a Traditional IRA, there is no requirement to make minimum distributions.


Your Modified Adjusted Gross Income (MAGI) will decide whether you are eligible to start a Roth IRA and how much you can contribute. Numerous Roth vs. Traditional IRA calculators help determine which IRAs you qualify for.


Another option is a Roth IRA Conversion. In this scenario, income taxes must be paid on converted funds in the conversion year, but there are still benefits to converting to a Roth IRA. One reason is that your retirement tax bracket will be higher than during your employment years. In this case, paying taxes now is preferable to paying them at a higher rate once you’ve quit working. Although it may seem unlikely, paying more taxes in retirement is possible, mainly if you are still in your prime earning years or have a sizable nest egg in your retirement funds. It can make sense to convert at least part of a Traditional IRA now rather than later.


If you don’t need to access your IRA funds during your lifetime, converting to a Roth IRA permits your investments to grow without being reduced by RMDs. This decision will leave more money for your heirs, who can withdraw the cash tax-free as long as they adhere to IRS distribution guidelines.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

An Overview of Roth IRAs

Different Types of Insurance to Consider

Life is full of unexpected surprises. Depending on the severity, life can be emotionally and financially catastrophic. Be proactive by exploring the different types of insurance policies that are available. 


In addition to being illegal in most states, driving without insurance can also cripple you financially. A variety of auto insurance policies cover damages to vehicles and injuries sustained in collisions. If you cause an accident and are at fault, liability auto insurance covers the property damage and injuries caused to others. If you are sued due to an automobile accident, liability car insurance also covers your legal defense and any judgments or settlements. Coverage for uninsured or underinsured drivers protects you and your passengers if an underinsured driver causes an accident and impacts your car. An uninsured motorist policy may also cover lost wages and emotional distress. Protection from personal injury (PIP) protects you and your passengers regardless of who caused the collision. This insurance might cover lost wages, medical expenses, and services like child care. 


In contrast to auto insurance, homeowner insurance is not mandated by state law. However, lenders often require coverage if you finance your home. You will need it to rebuild in the event of damage and protect against defaulting on your mortgage. If anything damages or destroys your house and you don’t have home insurance, you’re liable for the costs of replacement or repairs. This is true even if you own your house and don’t have a mortgage. Multiple forms of coverage are bundled together in home insurance policies. Personal property coverage protects personal goods, furniture, appliances, and clothing. Explosions, fire, and theft are included. The typical range for personal property insurance is 50% to 70% of your home coverage. If you require more coverage, you can purchase it. Outbuildings or other structures on the grounds is a type of insurance that covers structures on your property, such as a fence or tool shed. 


Finding the best life insurance for your scenario is crucial if anyone depends on you financially. According to the Life Insurance Marketing and Research Association (LIMRA), 44% of American households would experience financial difficulties within six months following the death of the primary wage earner. For 28%, it would happen in just one month. One approach to replace your income in the event of an untimely death is through life insurance. There is also short- and long-term disability insurance that may be available through your employer.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

Different Types of Insurance to Consider

How to Divide Your Paycheck According to Your Budget

Although budgeting might seem complicated to some, it can be done in a simple format that splits your finances up from each paycheck to ensure that you are splitting your finances wisely. One of the most common ways to do this is by implementing the 50/30/20 rule, which is a monthly budget that shows you exactly how much to allocate to your savings and living expenses.

A clear monthly budget can help you avoid overspending and instead begin building up savings. If you’ve ever tried to use a budgeting app that you can’t keep up with after three days, then give the 50/30/20 rule a try.

Understanding the 50/30/20 Rule

The 50/30/20 rule is a simple budgeting method that can help you manage your finances sustainably and effectively. It divides your after-tax income into three categories: 50% for “needs,” 30% for “desires,” and 20% for savings or debt repayment. Having a clear understanding of how much to spend on each category can help you stick to your budget and keep your expenses in check.

The 50% Portion

Your needs are expenses that you can’t avoid, such as paying for essential items that you would have to live without or paying rent.

The budget for each person may vary. If your needs exceed half of your take-home income, then you can try cutting down on expenses to bring them down a bit. For instance, you can try switching to a different energy provider or finding ways to save money at the grocery store.

The 30% Portion

With half of your after-tax income going toward your basic needs, you can use the other 30% to cover your wants. Non-essential expenses are those that you spend your money on even though you could live without them. This is typically viewed as “fun money,” as this portion of the budget is used on activities like shopping, eating out, traveling, etc.

Although the 50/30/20 rule doesn’t mean that you can’t enjoy your life, it does require you to be more conscious of your finances. This can be done by identifying areas of your budget where you are spending too much.

The 20% Portion

The remaining 20% can be used to pay off debts or to put money aside for your savings goals. Although minimum payments are typically considered needs, extra repayments can reduce your existing debt and interest, which makes them savings.

One of the most important factors that you can consider when it comes to building a better savings plan is regularly putting aside 20% of your pay. This can be done for various goals, such as saving for a down payment on a house or building an emergency fund.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

How to Divide Your Paycheck According to Your Budget

The Financial Benefits of a Will

Having a living will can help ease the burden on your loved ones in the event that you suddenly pass away. It can also help you manage your assets according to your wishes. Everyone should have a will, but making one legally binding is not as complicated as most people think. Having one can also help minimize the burden on your loved ones when it comes to distributing your assets.

You’ll need to assign someone trustworthy and honest to be the executor of your estate. This individual is responsible for managing your assets and ensuring that taxes, debts, and other estate-related issues are resolved. They’ll also guide your estate through the probate court.

If you don’t want to appoint an executor, then the state will appoint one for you. Anyone can also petition the court to take over the position.

Oral wills, which are made in front of witnesses, and holographic wills, which are drawn up without the presence of witnesses, do not have much legal significance. A properly prepared will, which includes a statement signed by multiple witnesses, can serve as the best way to ensure that your assets are distributed to the beneficiaries you have listed.

Intestacy laws vary depending on the state. In the event that there is no will, the assets of a person are usually distributed to their immediate family first. If there is still a surviving family, then your assets are typically dispersed among your siblings, children, and grandparents. Having a will can help protect the interests of your children in the event that you and your spouse die suddenly. It can also help identify the individuals who would be the children’s guardians.

If you have a business or trust, then it’s important that you have a clear will. This document should include a statement that clearly states how you want to divide your assets.

If you have a significant amount of assets, then you may need to work with an estate planning attorney. This type of professional can help you prepare a will that will effectively manage your assets. An attorney who’s knowledgeable about estate laws in your state can also provide you with legal advice regarding your will.

This post was originally published on Etienne Kiss-Borlase’s Finance Blog. For more info about Etienne, please visit his homepage.

The Financial Benefits of a Will