No matter how carefully you budget, does it sometimes seem as though you’re still swimming upstream against a current of bills and debts? The problem could be due to one of these five common budget killers.
Bad timing of large purchases. One of the most common examples of this problem is new car purchases. Normally, when you want to buy a car, you might head over to your local dealership without glancing at the calendar. But if you choose the right time to shop for your new car, you could save hundreds or sometimes thousands of dollars. Go shopping at the end of the month, or better yet, at the end of the year. Dealerships need to meet a sales quota, and will often give you a much better deal on your new vehicle. Even shopping at the end of the day can help, as sales people will be more willing make concessions so that they can close the deal.
High healthcare costs. The cost of healthcare is rising for everyone, but luckily there’s a way to pay your deductible and other expenses while saving a bit of money. Set aside pre-tax dollars in a health savings account, and you can recoup some of your money by lowering your tax bill.
Errors in your property assessment. When most people receive their property tax bill, they simply pay any amount due without questioning it. The problem is, many properties are being assessed at higher values than they are actually worth. If you don’t agree with your county tax collector’s assessment, you can appeal it and possibly end up with a lower property tax bill.
Capital gains taxes on stocks. If you were going to give money to charity anyway, you might consider gifting them with stocks instead. By doing this, you can often avoid paying capital gains taxes on their appreciated values. However, the rules for doing this are complicated, so consult with your tax professional before making any decisions.
Missed tax deductions. If you’re already making IRA contributions, then you may be enjoying a tax deduction for doing so. But did you know you can also make IRA contributions for a non-working spouse? Talk to your tax professional about the details, and you may be able to get another break on your tax bill.
