TurboTax shares 5 finance tips for 2020

TurboTax Shares 5 Finance Tips for 2020

With 2019 wrapping up, you may feel ready to wind down. However, if you can spend just a little time now gearing up, you can really give yourself a financial boost now and all of next year.

How to Set Yourself Up for Big Financial Wins

The key to getting your money ready for some big wins in 2020 is to have a financial system in place.

Having a smart financial system up and ready allows you to stay on top of your money, keeps you on track with your big goals, and frees up your time.

You’re no longer worrying about every penny, instead, you simply have regular check-ins just to make sure everything is going according to your plans – because you got this!

Define Your Big Goal or Two for the Year

One of the first things you should do to make 2020 an awesome year financially is defining what your big goal is for the year. What would you like to knock out?

Are you looking to paying off a debt, maybe a credit card that has been draining your budget and whose balance seems to never go down?

Would you like to have a good-sized emergency fund stashed away for when life hits a bump?

Do you want to contribute more to your retirement?

Whatever it is, go ahead and choose which goal matters most to you this year.

One reason financial guru Dave Ramsey’s baby steps are helpful for families for paying down debt is that it encourages them to narrow their focus and finances to one goal at a time.

Their money is being channeled towards that particular step and, for some, seeing that boost in progress is encouragement enough to keep going.

So go ahead and decide what’s your big 2020 goal.

Get a Clear Picture of Your Finances

Now that you have something you’re working toward, it’s time to see where you’re starting from.

Having an idea of what your monthly cash flow is and your current net worth is a helpful snapshot.

It can show you where you’re doing well and where you could adjust and improve.

Using a tool like Mint allows you to quickly and easily pull in all your accounts into one place so you can get both a big-picture view of your finances as well as your day-to-day with accounts like your checking.

This is also helpful come tax time as you have a better idea of your expenses, some of which may qualify for tax deductions and credits.

Create a Spending Plan That Fits You and Your Goals

Once you’re happy with your goals and you know where you are, it’s time to create your spending plan.

Not sure where to start? Try out the 50/20/30 budget.

It’s an easy way to divide your money up into different buckets, taking care of the essentials like bills, knock out your big money goal, and even have some money set aside for fun now.

If you use an app like Mint, you can track your progress and budget, receiving alerts when you reach certain milestones or when you’re getting close to your spending limits.

Automate Your Money

Automating your money can be a big win.

Why? Because for most people, it’s the best way to make sure your money is moving towards the goals that matter to you.

We all get times where we’re slammed with work or have a personal matter to deal with, perhaps the kids are sick or the car breaks down.

When those things pop up, having your bill pay, transfers, and contributions already set up means you’re still hitting your targets while taking care of life.

Set aside one evening to get everything all squared away and you can spend the rest of the year just checking in.

Grab an Accountability Buddy

Knowing someone you trust, who cares about you, and will be keeping an eye on you can help you stay on track with your goals.

If you’re engaged or married, this is a wonderful opportunity to work as a team and communicate better about your finances. If you’re single, chat with your friends and see if you can buddy up.

You can then set aside some time each month to meet up and check-in with each other. It can be rewarding financially and personally.

Your Take on Making This Year Your Best

There you have it – five key ways you can make 2020 your best year ever with finances.

We’d love to hear from you. What big goal are you looking to tackle this year?

Brought to you by TurboTax.com

Should You and Your Spouse File Taxes Jointly or Separately?

Married couples have the option to file jointly or separately on their federal income tax returns. The IRS strongly encourages most couples to file joint tax returns by extending several tax breaks to those who file together. In the vast majority of cases, it's best for married couples to file jointly, but there may be a few instances when it's better to submit separate returns.

Read More

Brought to you by TurboTax.com

Tax Tips After January 1, 2020

Your tax bill isn't chiseled in stone at the end of the year. Here are 10 tax tips and steps you can take after January 1 to help you lower your taxes, save money when preparing your tax return, and avoid tax penalties.

Read More

Brought to you by TurboTax.com

8 Common Life Events That Affect Your Taxes

If one thing in life is certain, it's that your taxes will never stay static. Events in your own life as well as frequent adjustments by legislation can be cause for either increasing or decreasing your taxes. Here are 8 common life events you should know that may affect your taxes.

Read More

Brought to you by TurboTax.com

How Bonuses Are Taxed

Working hard all year to help your company meet its annual goals deserves a reward, and you've definitely earned that bonus. But bonuses count toward your income for the year, so they're subject to income taxes. Read on to learn how much tax you can expect to pay on your bonus—and for tips on reducing your tax liability.

Read More

Brought to you by TurboTax.com
Read Full Story
Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.