Get Your Finances Ready for 2008

IT’S TAX SEASON. Some of us put if off, waiting until midnight April 15 to file our income-tax returns. Others file early, expecting to receive refunds. No matter what your style, it’s time you take control of your finances. To those of you receiving funds, pay attention. You have allowed the government to be your banker. And worse, you weren’t paid interest on your money while the government held it. Your excuse may be that this is how you force yourself to save money. But would you deposit money in a savings account that paid zero interest? Plus, you’ll probably spend that refund as soon as you get it. (Translation: Still no savings.) MORE TIPS. * If you have an accountant, ask her to review your return with you to make sure you’re taking advantage of all the tax deductions available to you. This should be something your accountant does automatically, but ask anyway. * Even if you’re happy with your accountant, you may want to interview a new one and ask her to review your prior year’s tax return. You know what they say about a “fresh set of eyes.” * If you don’t have an accountant, maybe it’s time to find one. Ask your friends for referrals, and ask the accountant for an initial consultation to review your prior year’s tax return. * If you’re an employee, start an automatic savings deduction plan instead of withholding a higher amount of taxes from your paycheck. This “pay yourself first” concept will help you put away money for savings and investing before you get your paycheck. * As an employee, you may also want to consider starting a part-time business on the side. Employees have their taxes withheld before they receive their paychecks. Business owners receive their income and can pay their business expenses before they can pay their taxes. In other words, an employee can only spend after-tax dollars, but a business owner can spend before-tax dollars. * Business owners also may be able to convert personal expenses into legitimate business deductions such as cell phones, second phone lines, subscriptions and business-related travel expenses. * You don’t have to know everything, just know who to ask and be willing to take actions. At day’s end, we each see our worst enemy or our best friend when we look in the mirror. Which one will you be: victim or victor? -Sharon Lechter The following article appeared in the May/June edition of Arizona Woman.