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Trim Financial Fat Living the Dream — Without the Debt Many Americans dream of traveling to exotic destinations, buying a home, or retiring early. Realizing those dreams, however, requires saving some cash — a habit that is becoming a dying art. Only 41% of Americans have emergency savings to cover unexpected medical bills or repairs, and more than 25% have no savings at all, according to a Bankrate survey. Instead, more people are using credit cards to cover expenses and vacations, driving consumer credit card debt to a record $1.17 trillion in 2024, up 8.1% from 2023. Inflation and low pay are partly to blame, but taking charge of your spending can still bring you closer to achieving your dreams. Here are two ways to better your budgeting. Take control of your bills. A smart first step is to stop spending everything you earn. Start by tracking where all your money is going. List fixed expenses, such as housing, and variable costs, such as utilities and food. Add up subscriptions, transportation, entertainment, and health care spending. You can also track your incidental expenses in popular apps like YNAB, Monarch, Goodbudget, and PocketGuard. Then, look for places to trim. To reduce utility bills, consider lowering the thermostat or installing low-flow fixtures. Cancel subscriptions you aren’t using. (Nearly half of subscribers pay for streaming services they don’t use.) Consider preparing more meals at home as the cost of dining out has soared! And make paying off credit card debt a top priority; those high-interest charges are a cancer on your budget. If you can’t pay off your balances, try switching to a lower-interest card or ask your provider for better terms.
LAST-MINUTE TAX T FOR AN EXTENSION A
As the April 15 tax filing deadline approaches, many taxpayers may still be unprepared to submit their returns. Fortunately, the Internal Revenue Service (IRS) offers an option to request an extension, providing additional time to file without incurring late-filing penalties. Here’s what you need to know about tax extensions before the deadline. Understanding Tax Extensions A tax extension grants taxpayers an additional six months to file their federal income tax returns, shifting the deadline from April 15 to Oct. 15. It’s important to note that this extension applies only to filing your return, not paying any of the taxes owed. Taxpayers are still required to estimate and pay any taxes they owe the IRS by the original April 15 deadline to avoid interest and penalties.
How to Request an Extension There are several methods to request a tax extension:
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Online Payment With Extension Indication: You can make a payment using the IRS’s electronic payment options and select the option
indicating the payment is for an extension. This method automatically grants you an extension without the need to file a separate form. • IRS Free File: The IRS offers a Free File
Cultivate healthier habits. Strive to set aside 50% of your income for basic needs, 30% for things you want, and 20% for savings. If you can’t save 20%, start with a smaller percentage. Pay yourself first by setting up automatic transfers into your savings.
KETO LEMON GARLIC BUTTER CHICKEN Inspired by DietDoctor.com
Online shopping with credit cards can be a significant
budget drain. Restricting yourself to debit card or cash-only payments can help you reduce impulse purchases.
If you yearn for a little retail therapy, dive into a cleaning project, call a friend, or do volunteer work — distract yourself! Even if these steps seem menial at first, your savings over time will bring you closer to realizing your dreams!
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