Category: Savings

The Top Ten Best and Worst Things to Spend Your Tax Return On

5/1/2020

It's tempting to use your tax return to buy something fun and exciting. It's also such a relief when those funds show up in your bank account. But, in a world that is very unsure and uneasy, it might be time to think practically when it comes to your tax return this year!

Hello Goose Creek! How are you? We hope you and your family are doing well, and we hope you know we miss you! Know that through everything we are here for you, and if there is anything we can do to help you, please don't hesitate to reach out to us! It was a much different April than any of us expected or could have imagined. Tax day came and went without much attention. For the first time since 1955, when April 15th officially became tax day, we didn't have to pay our taxes on that day. It was also the first time since 1955 that tax day was moved, this time to July 15th. It was very strange for us, of course. But, we know that for many families in Goose Creek, this might have been a huge relief! Did this help you and your family? If you still haven't paid your taxes, you do have time to do so. But, we do recommend that you do so as quickly as you can. This way you can receive your tax return quicker and possibly your stimulus check too if you haven't already!

Regardless, for every accounting service in Goose Creek and tax preparation in Goose Creek, this was a very strange April. Thankfully there are still plenty of great things to look forward to on the horizon. One of those great things being the appearance of our tax returns in our bank accounts or mailboxes. For many families, the appearance of this money comes with a lot of relief, bills being paid, and sometimes something very fun for the whole family. But, as we mentioned before, this April and the whole of 2020 has created quite a different dynamic for our everyday lives. As much as we love surprising the family with a new TV, A new car, or a family vacation, now might be the time to look at your tax return in ways you never have before. Being the best tax preparation service in Goose Creek, we wanted to share some of the best and worst ways you can spend your tax return. By doing so, we hope to help bring awareness to what is important right now, and what isn't. Please note, we are a family company. We love our town and want each of you to rise to the best of your abilities. We respect the freedom of your decisions but want to help you through these difficult times as best we can.

WHAT NOT TO SPEND YOUR RETURN ON!

The stock market has been tumultuous these past few months. Some view this as a great sign, while others are avoiding it like the plague. The market as a whole has been in a very unique and interesting flux. Some are calling this a buyers market and pressing people to buy now. Your tax return might be burning a hole in your pocket right now while you're sitting at home, but your tax return is not what you should be using to make a quick and hasty investment. Always make sure you research the investments you want to make and how to properly do so. Making a poor investment can lead to losing your whole tax return, and then some.
The decision to not spend your tax return and just let it sit in your bank account might seem like a wise decision right now. But let us convince you otherwise. Just letting it sit there can tempt you to spend it on all kinds of fun or unneeded items, helping it disappear before you know it. Delegate where your tax return is the most useful to your budget and your needs right now. Put some in your savings, get ahead on your bills, bulk up your emergency fund, and plan out your grocery trips based on this money. This way you're using your refund where you need it right now, and don't wind up in an even more difficult position than before.
One of the most obvious things not to spend your return on right now, and one that we've been hinting at, is a big splurge or big-ticket item. Think about it, most of these items or trips can't be enjoyed or used right now. A new car, unless it is needed, can add on a very expensive insurance policy you can't afford right now. Also, tax returns, just like a normal paycheck, don't last forever. As much as differing bills and payments have been helping right now, those bills aren't going away forever. Neither are your grocery bills, utilities, expenses, and gas expenses. A splurge can be very exciting for a short period, but it doesn't last forever.
We are online more and more every day for work, school, and play. Some of us are looking for a way to supplement lost income, get a new job, or ease our boredom. The world might have shut down, but there are still so many get rich quick scams out there waiting to pounce on you and your tax return, promising to double your money overnight. If it sounds too good to be true, it is. Avoid buying into these companies regularly, but avoid them now even more in particular.
Expanding on the idea of those 'get rich quick' ideas, avoid gambling online or other pay to play games online. It might be a fun and exciting thing to do while we're all at home, but it's just as easy to lose it all from the comfort of your living room as it would be in Las Vegas. Also, avoid spending your return on scratch-off lotto tickets and the state lottery in general.

WHAT TO SPEND YOUR RETURN ON!

Buy groceries and other essential items. Hoarding these items is not helpful or necessary right now. But, buying a larger quantity of groceries and important household items than you normally would can help limit the number of trips you're making outside of your home. This can help keep you and your family members healthier and safer.
Catch up on your bills and try and pay ahead. Like we mentioned above, these funds won't last forever, while your bills will. Help yourself by getting ahead as much as you can, and stay prepared.
Like we have mentioned in our past few blogs, keeping up with paying into your retirement fund and leaving it alone right now is very important. If you haven't been able to do so because of the change in your financial situation, take the opportunity to do so now!
Everything is so unknown right now, the job market is very unsteady, and hurricane season is right around the corner. Using this money to bulk up your emergency fund can help you make it through these unknown times now, and once hurricane season shows it's ugly face.
Now is a great time to invest in yourself and your home. Thanks to online education, you can still sign up to finally finish your degree or start the new degree you've been dreaming of. We also offer Quickbooks training and services, which is a great investment for your personal and small business finances. Thanks to online shopping, you can still order those appliances you've been needing to replace or those materials you need to finish up all of your home makeover projects. It is also the perfect time to support local companies! Hire small companies to do all those repairs you've wanted that are just beyond your skill sets. Support local businesses of all kinds if you can, you're investing in your community and helping it stay strong and united.

Money can be a difficult and tricky topic, but it doesn't have to be. We hope these tips help you and your family through this difficult time. Remember if you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon!

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Managing Your Money Now

4/17/2020

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Money for many of us is tighter in new ways than we could ever have imagined. How can you make life a little easier while you adapt to the changing world around you?

It seems strange that while the world is turned on its head and we are living differently than we ever have before, there are still bills to pay, groceries and important items to buy, and other possible expenses heading our way. Before your tax return shows up and the stimulus check appears in your bank account, money might be very tight at the moment. For those of you who have been put on furlough or have been laid off from your job and you're now depending on an unemployment check or your savings, these times are even scarier. For those who don't have unemployment or savings, these times could be very dire. We understand, and we sympathize with you. With these changing times, we wanted to share a few tips and pieces of advice to help manage your money while the world is on hold. We hope these tips and suggestions help while you wait on your tax return, your stimulus checks, and to head back to work.

Pause every streaming service, monthly subscription, and monthly subscription box that you don't need right now. If you're streaming on Netflix, Prime, Hulu, Disney Plus, HBO, Apple TV, and beyond try and pair it down to one or two. Share an account with someone and split the price. Those fun little things in the mail and those services you don't use every day can add up, cutting back on a few or all of them can put some much needed money back into your pocket.
Call all of your credit card and loan companies and explain your situation to them, and see if they can help you in any way. Many companies have already jumped at the opportunity to help their clients. Some are not charging interest through the months that have seen shutdowns, stay at home orders, and closures. Others are working case by case. They could offer you more time to pay back what you owe so debt doesn't begin to pile up and your credit score doesn't start to plunge. It might take some time to get through to talk to someone on the phone since so many people are dealing with handling this situation. But, it's worth the wait. You're home right now anyway! Not paying your bills and not contacting the people you owe money to isn't a choice. Call them and they can and will more than likely want to help you as best they can.
As much as we adore supporting local companies and whole heartily support you doing the same, pick and choose how often you're eating out. Although many apps are eliminating delivery fees, some of our favorite restaurants can still cost a pretty penny when we get our takeout and delivery meals. That includes your fancy coffee drinks that you might still be getting too. We understand that these treats are needed to make you feel a sense of normalcy, but be smart about it. Try and cook most of your meals at home. This will save you money and help you follow social distancing and the work or home orders even better!
That being said, if you are financially able to without any issues or worries of being strapped for money down the line, we do suggest supporting local businesses. Keeping the economy as flush as possible will help the return to normal business. This will also help a ton of people who still need help paying their bills. There are some restaurants and businesses that are offering perks if you buy gift cards from them while they are currently shut down. You might not be able to use the gift cards right now or enjoy their services, but some of the perks that come with the purchase can be special.
You're working from home right now, right? You now have a designated part of your home that is your office, and you are using your phone and internet to help workers throughout the day. Do you know what that means? Tax write-offs! Be very vigilant in keeping track of all of your business expenses while you're working from home. It might not help you right away, but it could be a big payoff for next year's taxes!
If you haven't already, file your taxes sooner rather than later. As we have discussed in recent blogs, tax day has been officially moved from April 15th to July 15th. Although that might be a relief to you so you don't have to pay what you owe right now, getting your taxes in sooner means getting your refund quicker. This will help boost your bank account for a bit in between receiving your stimulus checks, and your unemployment money, or even your current salary. If your income from 2019 is lower than that of 2018, you could be receiving a larger amount in your stimulus check, too!
Always be prepared. None of us are sure when this will all end and when our finances will return to normal. If at all possible, keep adding to your emergency fund and don't touch it until you have to. Also, keep saving for your retirement. We know that might be the last thing on your mind right now, but just like staying up to date on your bill payments, paying into your retirement needs to remain just as important. You don't want your future finances to be destroyed by what you're going through right now if you can help it.
It has also be recommended to leave your stock portfolio alone. The rise and fall of the stock market has been intense to watch recently, and for many, it has been very tempting to cash out now for fear of what could happen net. But, try and hold onto it! When we get back to business, can you imagine how the stock market will rise and prosper? It could very well be in your best interest to hang on.
Try and avoid touching your IRA or any other retirement savings. It is very hard to think about your finances in the years to come right now. But, even though you might need the money now, you don't want to put yourself in a difficult position later down the line. There are other options. Avoid touching this money until you have to. Your future self will appreciate it.
We have all felt the need to rush out and stock up and stockpile everything we think we need to get us through whatever else could be next. There is some merit to stocking up, but overbuying out of panic can put you in a financial pinch. Overbuying can lead to a lot of food going bad, and flushing money down the toilet. This can put a huge strain on the budget you're working with. Be smart when making your grocery trips and be mindful of what you need.
We are saving so much money on not getting our hair and nails done, not going shopping, not buying gas, or even eating out as often. Put all of that extra money into your emergency fund!
Retail therapy will be very tempting. We are all at home on our phones or computers killing time or working, and those advertisements for our favorite products will continue to pop up. It will be so easy to shop online even more now, but try and curb those cravings.

At the end of the day, the biggest thing you need to focus on is to not panic and to make wise decisions. Panicking can lead to some very drastic decisions, especially when it comes to your money. Please remember we are all going through this together. We are here to answer any questions you might have or to advise you during this difficult time. We are still here to offer everyone in Goose Creek the best tax services too. Please don't be a stranger. Give us a call or email us, we will figure out your next best step, together!

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Saving Pennies for Turkeys!

11/19/2019

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It's so easy to splurge during the holidays, but don't forget that Thanksgiving is just one of many festive activities on your list over the next few weeks and months. You also might want to still have a few dollars left in the bank once the new years begins. So enjoy these tips on how to save a few dollars as you approach the holiday season.

I'm not sure about you, but Thanksgiving has always been one of my favorite holidays! Sitting around with your loved ones, celebrating the things you have to be thankful for, all topped off with an amazing plate (or two) stuffed full of amazing food, all ending with a nap? That sounds pretty perfect to me. It's so easy to want to buy the best foods, the best decorations, and the best little extra things to make these days special. But remember, you can still make Thanksgiving and every holiday special without breaking the bank. Just in time to start buying all of your favorite items to kick off the holiday season, here are a few tips on how to take care of your bank account while still celebrating the holidays in style!

Don't overbuy or buy expensive items. Everyone loves to eat extra food on thanksgiving but plan on feeding the actual number of guests that will be attending your dinner, and not planning for the entire neighborhood. Maybe plan a little extra for those days after Thanksgiving sandwiches too, but go easy on yourself. This also means less cooking and stress for you too!
Don't splurge on everything. Not every item has to be the most expensive or the very best. Pick an item or two that you'd like to be the special centerpiece of the meal, and the rest can be regular store-bought items or even discounted.
You don't have to buy and make everything on the menu. If you're hosting, have your guest bring items to share. If you are in charge of the turkey and a few other staples, have your guests bring the rest. They can even bring cups, plates, and other paper items to cut down on clean up time and expense!
As much as we all love specialty grocery stores, they are also the most expensive to shop in. Shop at your local chain grocery stores to save money. You will find everything much cheaper, and the quality is still fine.
Check your fridge and pantry before you go shopping. You might already have a lot of ingredients and items you need to get cooking. Don't waste money on buying a duplicate of something you already have!
It's hard not to decorate every room of your home like Martha Stewart, with a top-dollar budget to make it Hallmark ready. Remember, decorative items can add up quickly too. See what you already own and get creative. The amount of adorable DIY projects out there are amazing. You'll be surprised at what you can find. Also, invest in what's growing in your garden! The last bit of seasonal flowers, greenery, squash, pumpkins, and other garland are PERFECT for holiday decorations!
Your turkey can easily be the big-ticket item on your shopping list. But if you get your turkey at a chain supermarket, this is the easiest place to save money. You will find that turkeys are much cheaper there.
Research what will be cheaper to buy pre-made and what will be cheaper to make from scratch. This might surprise you!
If you are hosting a large Thanksgiving this year, use stories like Costco or Sam's Club to your advantage. Buy in bulk and save. At some Costco's you can even buy wine and other alcohol in bulk very inexpensively!
If you are traveling for the holidays, try and travel with just a carry-on. Thanksgiving trips usually are shorter than most, and you don't need any extra room for gifts just yet.
If you're flying for the holidays, start thinking about buying your tickets in advance. A lot of experts recommend you start looking and purchasing as early as September if you can. Fly on days where it will be cheaper. Use popular apps and websites that are designed to help find the cheapest flights for you.
If you're visiting family and friends, try and stay with them instead of renting a hotel room! If that isn't an option, try looking into Air B&B instead. You will get a homey feeling for a much better price.
Pick and choose which holidays you're going to travel for, don't travel for all of them. Have family come to you, or celebrate locally with friends. Use Skype, Video Chat, and a good old fashion phone call to check in on your family if you decide to stay home for Thanksgiving.
Use coupon saving apps and websites, and save up any kind of grocery store points and rewards for the holidays. These will go a long way. You can also apply this to fuel points and other offers for the holidays as well!

The holidays can be overwhelming and expensive. But if you take the time to do a little extra research and planning, they certainly don't have to be. Use this list to help enjoy your holiday, let it be a little less stressful, and save some money while you're at it!

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Being Financially Prepared for a Hurricane

9/22/2019

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You've made the runs to the grocery store for the bottles of water, bread, and PB&J. But when it comes to natural disasters, you need to consider your financial preparedness as well.

It's not new news that hurricane season is here. The weather channel, our weather apps, and friends up North have made sure we don't forget. But hurricane season isn't just about being prepared by storing up on non-perishable foods, batteries, bottles of water, and having an evacuation plan. You financially need to be prepared and ready for a hurricane, especially here in the Lowcountry. Now that we have had a taste of our first hurricane of 2019, we need to remember that one could be on its heels. Hurricane season isn't over until November. So, you still have time to get prepared.
It goes without saying that yes, you need to make sure that your home and family are safe and prepared for anything. Make sure your home is stocked with what you'll need to get through a storm if you're going to stay. Follow all of the safety precautions laid out by local officials and police, and make sure you make informed and safe decisions. Your safety and the safety of your loved ones and pets are the first things that need your attention.
But these precautions need to be taken care of even before the hint of the first hurricane appears. Taking care of your financial needs ahead of time will help eliminate stress, worry, and truly help you when a storm does arrive. Here in the Lowcountry, it's not a question of if, it's when.

Make sure you understand all of your insurance policies, your deductions, and know what is covered and what will not be covered.
Make sure you have all the correct forms of insurance. Some forms of homeowners insurance DO NOT include flood insurance. If you live in a flood zone, make sure that you have flood insurance included or have flood insurance.
Have your car and home service and inspected ahead of time. You need to have a safe and reliable car to help evacuate at a moment's notice, and paying for repairs on the road during an evacuation can be a nightmare or not even a possibility. Paying for your home to be serviced and repaired ahead of time can help prevent damage and help save you money.
Consider having a credit card used ONLY for hurricane needs. Build up the credit line when you first get the card so you can cover any unknowns that a hurricane could cause. From getting a hotel room, extra groceries, or home repairs, you will know you can cover these needs no matter what happens.
Make sure all of your important financial documents are stored in plastic bags and even wrapped in plastic to add another protective layer. Consider a fireproof box that can be carried out of your home with you to travel with or in a state of emergency.
Just in case the worst does happen, always have and carry with you copies of your most important documents. These documents include:
- Drivers license, your SSN card, birth certificates, copies of your children's identification, deed to your home, property tax information, car ownership, will and living will, estate info, power of attorney, lease for your rented properties and vehicles, proof of pet ownership, insurance papers, and any other important financial and tax document.
Make sure your banks and any other business you pay a monthly amount to are aware of the situation at hand. More often than not, these establishments will be willing to work with you in these situations as long as you alerted them ahead of time.
Have an emergency fund or savings account for times like these.

Go beyond a hurricane fund or credit card. Have a budget in mind. With your everyday budget and salary in consideration with this, make a plan for the amount that you will need to spend on essentials. This includes the stocking up and hunkering down of your home and also if you do plan on evacuating. That will include hotels, travel expenses, and food. Depending on the outcome of a storm, you might be away from home longer than expected. Be financially able to support that!
Last but very not least, keep cash handy! ATMs might be down or unavailable after a storm. You might not be able to get cashback at a store or even get to the inside of your bank. Make sure to have a safe stash with you or ready to go when you evacuate. Most plan for at least 72 hours worth of lodging, food, and travel expense. So start with that amount, and go from there.
We hope this information is helpful for this year's storms and for many storms to come. Now that we've had the taste of our first one you have time to get prepared for the next hurricane. But as you do so, don't panic. If do just a few of these main points, you will be ahead of the game. Please stay smart, safe, and prepared this hurricane season!

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Hoods Tax & Accounting Blog

The Top Ten Best and Worst Things to Spend Your Tax Return On

Managing Your Money Now

Saving Pennies for Turkeys!

Being Financially Prepared for a Hurricane

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