Financial Feng Shui

So it’s looking like tax time is on the horizon. Considering that I just got back from three weeks in Africa, it really is just about the last thing I want to think about. At the same time, I want to make sure that Uncle Sam isn’t keeping anything extra longer than necessary. Here are a couple of things to consider in clearing financial clutter for the year to come.

• Sort through finance records. I know it is a pain, but you will thank yourself when you are done. You’ll feel that much lighter once you’ve rid yourself of irrelevant paperwork. I started this just before my trip and made it about half way through. My goal is to finish the second half over the weekend.
• Check your credit score. It’s also a good time of year to check your credit score. Keep in mind that reports are now free annually from each credit bureau, so don’t fall for any sites that want you to pay. Check your report for accuracy and take action to improve your score. You might not think it makes that much difference, but a quarter of a percent on house mortgages or credit cards can make an impact in the end.
• Simplify accounts. James and I have struggled over the past year to simplify our accounts to make them easier to navigate. In the end you’ll thank yourself. Make paying bills that much less painful and have less to handle. I’ll also be working to switch over to ING’s online checking over the weekend too.
• Research how to minimize your taxes. You can both get a better return for 2006, but also take measures to make it even better next year. James & I will be meeting soon with our accountant to discuss ways that we can minimize our tax base now that we will be filing as a married couple. We’ll definitely keep you posted on anything we learn from this process.
• Get it done early. You can both take the stress of procrastination away, as well as get any return early on. If you end up owing you’ll also be able to know further in advance to help cover this cost.

Good luck with tax time!

Miel