With the New Year upon us, we’ll probably all vow to lose weight, exercise, and spend more time doing things with family. But for those of you looking to increase your pocket book (and who isn’t?), we have a few bookkeeping and money saving tips you should consider. Check out our top 5 below.
1. Pay Off Your Debt
We are always in favor of staying on top of debt but may have neglected to mention that with interest rates being as low as they are, debt isn’t that bad. However, all of that is about to change in 2016 when the Federal Reserve is expected to raise interest rates. The tall and short of this is that anyone who owes may see their interest rates rise, which can add up to thousands of dollars in extra fees in the coming year alone.
2. Buy Stock and/or Invest More
Sure, the market is down, but in investor speak it’s the perfect time to buy. Why buy? With stock prices down, the standards are sure to rise in the next year, and you may be kicking yourself come 2017 when you have to buy them for a higher price. If you don’t want to worry about the stock market, and few do, just putting a little extra into your retirement account could add up big. After all, you’re allowed at least $5,500 in tax free contributions to your IRA for 2016.
Not sure which stocks to get? Do a little research and see what the pros are recommending. See if two or more like the same stock and make sure you’ve heard of it before investing away.
3. Insurance Audit
If you’ve had any life changes in 2015, such as getting married or having another child, be sure and review your insurance options. Some forms of insurance, such as life insurance, will actually increase in their payouts if any of the above happens. You can also review your insurance if you have gotten divorced, moved to a different state, or other major change.
4. Shop Around More
Sure, it’s convenient to buy that most wanted item first time you see it, but could you be throwing hundreds or thousands of dollars down the drain? Taking even five minutes to shop around for that iPad, new car, clothing item, etc. can end up saving you big, as we demonstrated in 7 Ways to Save Money in the City (Houston). In a store and want to buy something now? Look it up on your phone and see if you are getting the best price.
5. Avoid Scams
We are constantly warning our readers about the dangers of scams, and they are getting more sophisticated each year. These scammers can be local or international and use a wide range of distraction and fear tactics to get you to open up and share your sensitive information or just outright send them some money. This includes calls from people alleging to be the IRS, the Sheriff’s Department, from your health or home insurance, and many others. This also includes official looking letters saying you owe a penalty, missed some sort of payment, or owe some random medical bill. The solutions are fairly simple: 1. Don’t buy anything over the phone AND 2. Call the company (not the number on the bill) to validate the bill, and if you’ve never heard of the company and don’t remember buying anything, it’s doubtful you owe them a cent.
What does 2016 hold for scams? We don’t know, but remember: if it sounds too good to be true, it most probably is.
Houston Bookkeeping Tips
And if you live in the area and are in need of a Houston bookkeeping firm to help you prepare for the New Year, please contact me.