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Financial Tip of the Month
April: Financial Tip of the Month
Tax Day: File Your Taxes by April Deadline
I am sure that everyone gathered all your tax related documents and provided them to your Certified Public Accountants as soon as feasibly possible. Once the tax forms are prepared and received back from your CPA, be sure to review them by comparing them to last year and to your supporting documents. Many folks miss this step.
It is important to make sure the numbers reported are accurate and the reporting of the information is correct as well. Don’t hesitate to ask questions of your CPA if you find something that does not look right. It is in your and your CPA’s best interest to make sure the information is accurate and complete.
As you gather and review your tax documents in preparation for filing, this is an excellent time to review your spending habits and create a savings plan and emergency fund if you don’t currently have one.
Financial Literacy Month
National Financial Literacy Month is recognized each year during the month of April. Congress designated April as Financial Literacy Month in 2004 to raise public awareness of the importance of financial literacy and maintaining smart money management habits.
During this month, hundreds of organizations—including businesses, financial institutions, schools, libraries, nonprofit groups, government agencies, and the media—come together to stress the importance of financial literacy.
The American Library Association and The Federal Reserve Bank (Chicago) annually sponsor “Money Smart Week” the week before the tax deadline. There are classes on financial literacy for all age groups and financial situations. Click the link https://www.ala.org/aboutala/offices/money-smart-week for more information.
Another way to celebrate Financial Literacy Month is to check in with Money Management International. They offer several options relating to debt relief and financial education. https://www.moneymanagement.org/.
There will be many opportunities to increase your financial knowledge throughout April and the rest of the year.
Annual Financial Calendar
Daily money managers are adept at keeping track of clients’ financial obligations using a variety of methods. One such method frequently used to stay organized and make payments on time is a financial calendar. A financial calendar is a simple system for keeping track of financial obligations throughout the year or for a chosen period of time, in much the same way as people remember birthdays, anniversaries, and appointments.
For those who utilize technology, here are some options available:
- Reminders automatically generated using financial software like Quicken or Microsoft Money.
- Spreadsheets that can be sorted by payee, payment due date, or other criteria.
- Reminders created using apps for electronic devices.
- Reminders established with payees. For example, some insurance companies will send emails to policyholders a few weeks before premiums are due.
A Financial calendar does not have to be high-tech to be effective. It can be as simple as a ‘list’ of financial obligations that you review regularly, or a paper calendar with payments due and funds to be received recorded in different ink colors to make them easier to spot.
Financial calendars are also useful for documenting other financial information such as IRA required minimum distribution (RMD) deadline dates. For those living on a fixed income, tracking receipt of dividends and other distributions is useful for creating accurate cash flow projections.
It is important that the system you use is one that you can maintain.
You can create a perfect financial calendar, but you will only be successful if you use it. For those who struggle with keeping track of bills, or lack the time to handle personal financial affairs, you may want to consider hiring a daily money manager to manage your financial calendar. This will ensure that all of your bills are paid on time every month.
AADMM’s Public Awareness Committee has created a Financial Calendar Series. Each month, financial events and reminders will be added. Watch for updates on AADMM’s Facebook page.