THAT WON’T KILL YOUR SAVINGS 3 GIFT-GIVING TIPS
Ah, the holidays. It’s a time of sweet treats, family, and giving back — and sometimes giving a little too much. When it comes to the perfect holiday gift, many people spend too much money. The average American spends nearly $1,000 on gifts during the December holidays alone!
the people who didn’t make the cut into a second list. If you still feel the need to do something for them, send homemade cookies or a handwritten note instead of purchasing something. This limits how much you actually have to spend! THINK BEYOND STORE-BOUGHT OR EXPENSIVE ITEMS. Sure, everyone wants this holiday season’s “it” item, but sometimes the best gifts don’t even come wrapped under the tree. Instead, look to your own talents as a clue to what you should give. If you’re a great crafter, create something unique for the people on your list. If you can offer the gift of time, provide a free night of babysitting for your friends with kids or an experience at the local theater. These gifts have a bonus factor: Recipients
love the gift when they open it, and they love it when they get to use it!
SET A BUDGET — AND STICK TO IT. Setting a holiday budget ensures you only spend what you can afford. It also narrows down your search. If you choose to buy your neighbor something, but they aren’t your top priority, set their budget at a lower level, like $25–$50. If you have a sibling who has had a rough year and you’d like to make their holidays a little brighter, bump their budget up. This narrows the focus of what you’re looking for so you don’t stumble into something you can’t afford. Ultimately, it’s the spirit of giving during the holidays that makes them so rewarding. With a little ingenuity, you can be generous and avoid the stress of excess debt come January.
It’s possible to cut back and make it to January without major debt. Here’s how.
CHECK YOUR LIST — TWICE! The list is going to be your secret weapon to tackling the holidays with your savings still intact. Start by writing down the name of every person you’d like to get a gift for. Now, with the exception of your immediate family members, narrow the names down to your top five — top 10 if you’re really popular. Now, place the names of
IMPORTANT LAW CHANGES YOU NEED TO KNOW
AFTER THE CONFETTI DROPS
The beginning of each year is usually very predictable. After all the celebrations, holiday treats, and midnight kisses are wrapped up, many people will begin working on their New Year’s goals and return to some sense of normalcy after the holiday rush. For many, that does not include reading up on the new laws and regulations that will go into effect on Jan 1.
than $80,251 would now be taxed in the next lowest bracket at a rate of just 12%.
SOCIAL SECURITY JUMPS Starting on Jan. 1, Social Security and Supplemental Security Income (SSI) will increase by 1.3%. While this may seem like a small jump, it’s an adjustment that’s typically made after assessing livability and current wages. The taxable maximum income will also increase to $142,800 from $137,700 after this jump, as well. These increases may seem minor, but they can have an impact on how much you are taxed in 2021 and how you budget for your retirement. It’s important to follow trends and assess what changes you may need to make in the new year to accommodate adjustments made by the government. Our team can help you with this. If you have questions about how these changes will impact your plan or if you need to make changes, give us a call today. We’ll help you ensure your plan continues to work for your goals — regardless of how the laws change.
So, we did the work for you. Below are two law changes taking effect in 2021 that you need to know about.
TAX BRACKET CHANGES This October, the IRS announced new tax brackets for 2021. Not to be confused with tax rates, which have been the same since 2018, tax brackets signal the threshold at which your income is taxed. (By contrast, rates are how much people in those brackets are taxed.) In many cases, the threshold for the bracket jumped by a few thousand dollars. For example, the tax bracket for married couples filing jointly in 2020 (taxed at 22%) was for income between $80,251— $171,050. The bracket for those filing at that same rate in 2021 is $81,051–$172,750. Those who earn less than $81,051 but more
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