Weekly Wrap Up Session (FNI): 01st January To 07th January 2011

This week we discussed the various ways and means to save money and one of them was to pay taxes on time. This is important as it helps make you eligible for deductions and exemptions while also helping you avoid penalties and interest charges. It is also advisable to take tax assistance from IRS when in doubt rather than consulting unreliable people.

We also discussed the importance of paying taxes and the consequences of unpaid taxes. Do remember that tax evasion is a crime and you should always plan and negotiate to be on the right side of the law at all times. The various complications in income tax laws were also considered and the best methods to take care of them were spelt out. The history of Income Tax in United States was also detailed. The government has also taken certain steps to control tax evasion and they have had far reaching consequences.

It is important to use credit cards judiciously and follow certain tips that will help you save money in the long run. Almost all banks offer credit cards to their customers as a convenience but you need to be careful about the usage to ensure that you do not end up paying huge amounts of interest in the long run. In the coming year plan your expenditure in such a way that you end up using your credit card as less as possible.

Also, take up a loan when you want to purchase a vehicle or a home but ensure that you have planned in such a way that the chances of a default are almost eliminated. Always remember that a having bad credit will reflect on your credit report and will make is extremely difficult to get any future loans from the same or any other bank. Do remember that this will go a long way in keeping you in a good financial condition at all times.

If you are not able to control expenses even after trying repeatedly, you should document all expenses. This exercise will help you realize the amount you spend on different items and this will help you reduce your expenses over time.

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Sandra
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