Month: July 2017

How to Focus on Maximizing Your Personal Finance

Personal Finance

Maximizing your personal finance goals means setting a budget, saving for retirement and emergencies, investing wisely, and watching your taxes. If you can do those four things, you will find that you’re able to feel financially secure and prepared for the future. Check out Myles Haverluck Tax for more information!

Check out Myles Haverluck Tax for a more in-depth view.

Setting a Budget

A budget will keep you on track and ensure you don’t make bad decisions. With a good budget in place, you can avoid going into debt and overspending. There are some excellent programs and apps that can help you set a budget, or you can talk to a financial planner. However, it can be kept pretty simple. Determine how much you earn and then figure out how much you need to spend every month on housing, insurance, food, utilities, transportation, and other necessities. Budget for some entertainment and recreation, and direct anything you have leftover towards paying down debt, your savings account, or investments.

Saving Money

You should participate in any retirement savings plan that’s provided
by your employer. You might want to put away a little extra too, since the cost of living is going up in every part of the world. In addition to retirement, you need to save for other things such as college, vacations, home repairs, and emergencies. Have enough put away that you’ll be able to manage paying for the car repair or the new roof that you’re not expecting.

Investing

Most people invest in retirement funds, college education plans, and mutual funds. Diversify your investments whenever possible. The stock market can provide a great return, especially if you have a financial adviser who can help you choose stocks, bonds, and other funds wisely. There are also alternative investments, such as metals and real estate. Creating passive income streams is a great way to earn wealth and shore up your personal finances.

Plan for Taxes

It’s easy to get confused when it comes to taxes. The more complicated your financial situation becomes, the more critical it is to have a great tax attorney or CPA helping you out. Even if you don’t think your tax situation is particularly complicated, it can be a huge benefit to have a professional help you. Tax mistakes are easy to make, and they can end up costing you dearly. Educate yourself, and get some professional help.

Maximizing your personal finance is all about organization, planning, and goal setting. Decide what you want your money to do for you, and then put a plan in place. As long as you can stick to a budget, put some money away, invest wisely, and watch your taxes, you’re going to be just fine. Remember to check in with your tax attorney or financial planner regularly, especially when you approach a life change or a milestone.

About the Canadian Tax System

Canadian TaxIn Canada, both the federal and provincial governments collect taxes from its citizens and residents which are used to pay for the services provided to the people, including health care, education, Old Age Security and maintaining roads and highways. If you are a newcomer to Canada or are paying taxes for the first time, the following information will help you to learn about the Canadian tax system.

The two types of taxes levied by the federal and provincial governments are income taxes and consumption or sales taxes. Each province has either the Goods and Services Tax (GST) or the Harmonized Sales Tax (HST). The consumption tax is a sales tax on items that you purchase, such as clothes, restaurant meals and even certain services. Some items are exempt from the sales tax, such as basic groceries, rent and prescription drugs. The income tax, however, is simply a tax on the income that you earn each year and is calculated on a graduated scale, with higher earners paying more in taxes than those with low incomes.

Every resident of Canada must file an income tax return by April 30 each year. The Canada Revenue Agency considers you to be a Canadian resident if you have established significant ties in Canada. This could include having a permanent home in Canada, a spouse or dependents living in Canada or spending 183 or more days in the country in a given year. Residents must pay income tax on their worldwide income, not only income earned inside Canada.

It is important to note that Canada does not allow spouses to file a joint tax return. Each person must file their own tax return. However, there are various tax credits that can be claimed to reduce your tax owing. For example, if you are supporting a spouse, you can claim a spousal benefit for them on your tax return. There are also tax credits available for child care, medical supplies and other essential items.

Many people rely on the services of a professional accountant to file their tax return. If you are feeling confident enough, you can prepare your own tax return using any of the available tax return software packages available.