2019 Learnings: Financial Mistakes to Avoid in The Next Year
- December 31, 2019
- Posted by: asal
- Category: Tax Resolution
2019 was a great year for learning. With countless ups and downs in the financial sector, there sure were things that one learned during this time. Here are a few things you got from 2019 so that you make better decisions in 2020.
Monetary problems to avoid next year
Futile budget plans
If you wish to succeed financially in the next year, you need to begin planning now. The best way to do so is to keep track of your income and how much you are spending. Create a strict budget and spend money according to your financial plan. Be sure to keep a close eye on all your transactions to avoid IRS audits. Recklessly spending money may land you in hot water at the end of the next financial year. It is always wiser to have a thorough account of all your business and personal dealings. You can hire tax resolution services to help you avoid enduring any IRS audit penalties.
Trying to fly solo financially
In any business, you are mutually associated with someone or the other. Either you have a business partner or subordinates who are dependent on you. In the next year, you must realize that you do not need to make major financial decisions all by yourself. Talk to the people who are involved with you and brief them about what you are planning to do. This does not just apply to businesses but also relationships. If you are married to someone, you must inform them about your money related decisions just to be on the safer side. Talking to someone can help prevent getting stuck into IRS audit penalties. It is always better to have someone go through your ideas before execution to avoid mishaps.
Reckless Money borrowing
Borrowing money can be a very addictive habit that can lead to many problems in the future. You can borrow money if you desperately need it for something important, and there is no other way. However, borrowing money for recreational purposes can lead to a downward spiral ending in perpetual financial instability. Moreover, having several loans under your name can draw suspicion, and you may have to deal with IRS audits. Therefore, money borrowing can be avoided if you stay in your budget and tread carefully next year. In case you face IRS audit penalties, you can hire Platinum Tax Defenders to help you solve any problems.
Do not make frivolous investments
Making investments is an essential part of financial stability. It helps you keep your money in check and multiplies it over a period of time. However, with an increase in the number of investment opportunities, it is difficult to find the right one. Investing in something you have little knowledge about is a risky task. You may land up in a fraudulent scheme and lose your money. Before you make any investments in the next year, be sure to investigate them thoroughly. In fact, go through as many reviews as you can and ask around for help to know more about investment schemes. Seek advice from experts to avoid IRS audits.
Here are a few safe investment options in 2020
- Equity mutual funds
- National Pension System (NPS)
- Debt mutual funds
- Direct equity
Make sure your calculations are right
Mathematical errors are taken very seriously by the IRS. This can lead to heavy penalties levied on you. To avoid this, make sure you hire Platinum Tax Defenders who keep you away from such discrepancies. Double-check the calculations for your financial budget and get rid of any miscalculations. Adding up the wrong numbers deliberately can land you in jail as it is counted as tax fraud. So, be sure your calculations are correct and legitimate to avoid any IRS audit penalties.
Make sure you invest money and time wisely
Investing your time just as wisely as your money is your key to making good financial decisions in 2020. If you spend time correctly and work efficiently, you will be able to earn money more effectively without straining your mind and body. However, overworking is not the right way to earn more money. In fact, exertion can reduce productivity. So, be sure to work smartly and spend time working smartly to succeed in life.
Establish a healthy savings account
Savings accounts will be your best friends in the next year. These accounts are where you put in your salary and all the money that you are currently not using. You may feel like there is not enough money in your paycheck to put in your savings. However, the first thing you do once you get your salary every month must be put some money into your savings account. This way, you have a safety net to fall back on in hard times. After setting aside these savings, you can spend the rest of your money on essentials like rent, utilities, food, etc. Therefore, even if you find yourself in IRS audits, you will have enough money to fall back to in times of need.
What companies are looking for now are experienced individuals who have equal amounts of street smartness as they have book smartness. In your career, you need to keep learning new things and make personal improvements. This is so that eventually, you get promoted and make actual progress in your career. This can help you can earn more efficiently and work smartly.
About Platinum defenders
Platinum Tax Defenders is a tax resolution agency that started out in 2011 and has been active since. The main aim of the company is to provide tax and financial freedom to businesses and individuals too. Put an end to all your tax problems by hiring our expert professionals. Even if you have back tax debt, our experts can help you get out of the most difficult of situations. Our quality services can help you get the much-needed results to make sure that you and your company are on the correct financial track.