No matter what profession you’re in; no matter what stage of your career; no matter if you’re only a student, EVERYONE needs to know how to handle money. It’s not just about watching your spending but anything related to finances because it affects everyone. Everyone handles money. We learn at an early age the purpose of money, value of money, and significance of money. It’s a part of our lives from saving, investing, credit, taxes, giving, loans, banking, and more.
If you didn’t think you need to worry about taxes, filing taxes, or learning how taxes work, think again. Nearly everyone pays taxes and has to file a tax return. Are you familiar with the tax laws? Do you just let an accountant take care of your filing? Do you know what those lines on a 1040 tax form mean? If you don’t you might be missing out on how to strategize your life to pay less taxes.
Not sure how to save or how to budget? Not familiar how credit or loans work? These are things that everyone will experience in their life, not just once but throughout their life. It’s part of our journey and we need to know how to handle each aspect that impacts our financials.
Before I got married, I went to an accountant to file my taxes. I had no interest in learning that area. It was not area of study. Plus I was afraid to make any mistake and get flagged by the IRS. All I wanted to hear from my accountant is that I don’t owe any taxes and I’ll be getting a refund. After I got married to an accountant, I had to learn about taxes because I was the one doing the filing. Let’s just say that my wife had the mindset that everyone needs to know taxes. Now I know what a Schedule C is, what deductions help me, and what things don’t help me. Understanding this area has allowed me to strategize my investing, saving, and spending.
I take every advantage of pre-tax benefits, expenses, and deductions. Plus I took the advice from my accountant who told me to do 4 things: Buy a house, get married, have children, and start a business. Now I know why she told me these things because each has an impact on taxes and my financials.
Do you know how much you’re making and how much you’re spending each month? Are you barely making ends meet? Grab a hold of your spending. I wrote about it’s not about how much you make rather how much you spend. Identify what you can eliminate spending on so you can handle your money more efficient.
Are you spending on things that you need or that you want? Take a look at the things you’re spending on and are those things you can live without? If yes, try living without it and see if your money grows.
The point is that money impacts our life more than you realize. It’s one of those areas that we should not avoid learning just because it wasn’t our major or study. Our life is surrounded by financial aspects and it’s a good idea to learn it. Ultimately helping us to be able to handle our money more effective and efficient will lead us to retirement and possibly early retirement. Everyone needs to know how to handle money. If you are interested in following my journey, email subscribe to get alerts of latest posts or follow me on Facebook.