Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Turning Tax Preparation into a Positive, Rewarding Activity (Really!)

By Keith Wheelan Subscribe to RSS | April 12th 2012 | Views:
loading
 
  



In his song “Golden Moments,” James Taylor said: “All it really needed was the proper point of view”. I doubt he had tax preparation in mind when he wrote it. But if you look at the tax preparation process from a different perspective, it could take on a whole new meaning. Instead of being a dreaded annual task with a narrow purpose, it could be the start of a bigger Financial Management opportunity.

Yes, gathering all the documents and receipts is still a chore. But think about it - you’re taking time to collect, organize and update much of your financial information. Why should that be a once-a-year task to be done and then forgotten for 12 months? Instead, look at it as the starting point for developing a long-term financial plan for your household.Since you’ve already gathered the information, why not use it to create or update your 8020 Worksheet™? That will help you understand your overall financial situation - both your net worth and cash flow. Then, with the help of your accountant or financial advisor you can develop a long term financial strategy. You can even begin taking action on the strategy by setting and achieving one goal at a time using the Goaltracker™ feature of the 8020 Worksheet™.

That’s a complete, ongoing Financial Planning process - all of it jump started by the tax preparation activity.

I’ve always preferred spending time on improvements rather than maintenance activities. Cleaning the house and cutting the grass is just maintenance. But making the house or yard better is an improvement. The same holds true with finances. Why just do your taxes and then forget it? That’s maintenance. Instead, take full advantage of the activity to build and implement a financial plan. That’s improvement.

financial management, financial services, financial strategy, financial worksheet, financial advisor

The lower the price, the sooner you can pay it off and free up monthly cash flow, right? Not necessarily so with a lease. Vehicle dealers and their financing arms structure leases in a way that can create a dependency on them. It goes like this: Lease the vehicle for a low monthly payment and then when the lease expires exchange your vehicle for a new vehicle and a new lease. And a continuation of monthly payments. This cycle can repeat itself indefinitely. This is the lease trap.

By committing yourself to always having monthly lease payments you lose the opportunity to not have any. That option - the option to not make monthly payments - comes with the choice of buying the vehicle. If you buy it with, say, a 5 year loan and keep the car for 10 years you eliminate 5 years of monthly payments. Let’s say your monthly payment is $250. That’s $3,000 saved per year and $15,000 for the full 5 years. Think of the other debts you could pay off with that savings. And if you prepay the loan in 3 years instead of 5 the total grows to $21,000. That can go a long way in helping you get ahead financially.

Keith Wheelan - About Author:
Keith Wheelan, is a professional financial planning advisor for "Cash Flow Navigator" helps to empower members of cashflownavigator community to successfully plan for and achieve financial independence. for more info visit http://www.cashflownavigator.com/

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/insurance-articles/turning-tax-preparation-into-a-positive-rewarding-activity-really.htm

Related Insurance Articles Subscribe to RSS

Do you need assistance with financial debt that has been around for decades?
Published by Deby Suportie on February 16th 2012 | Finance
Debts can often be difficult to manage especially when it has been around for quite a while already....
 
Effects of higher business insurance rates on financial system
Published by Andrew Edwards on February 2nd 2012 | Insurance
We all necessarily buy business insurance plan for the company...
 
 
Student loans in default, a rising concern for the financial market
Published by Michelsmith on January 2nd 2012 | Finance
Student loans in default state is growing day by day. The governments are really looking into these ...
 
Bad Credit Secured Loan: Huge financial support in spite of bad credit
Published by Ian Foster on February 2nd 2012 | Finance
Bad credit secured loan has introduce by the economics establishment to continue the people whose cr...
 
Same day loans no credit check - fight with the devils of financial crisis
Published by Sam Hopkins on December 3rd 2011 | Finance
Same day loans no credit check provide instant funds to an individual without looking into their pas...
 
Bookkeeping is important while deciding future financial policies
Published by Nelson on February 1st 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
Good financial planning can give you a good future
Published by Pramod Kumar Singh on May 23rd 2012 | Finance
Start planning your finances today to have a safe and secure present as well as a bright future that...
 
Major reforms in UK financial regulation: Draft Bill and White paper produced
Published by Becky on March 15th 2012 | Finance
The most significant modification in a decade to the UK’s financial regulatory architecture began ...
 
HOA management- Capable providers for financial as well as property management
Published by Ema Sis on January 12th 2012 | Finance
HOA management companies shall be actual asset for communal administration amenities. They undertake...
 
Another financial storm to hit the Britain
Published by Look Right on January 25th 2012 | Finance
Another recession is approaching the UK economy, as a newly constituted finance watchdog has reveale...
 
Independent financial adviser – Propel your earnings
Published by John Kendal on March 31st 2012 | Finance
A financial adviser covers very important issues like wealth management and advises the clients in g...
 
 
Free credit report no fee: know your financial standing
Published by Alice Marlen on May 25th 2012 | Finance
When you request for an extension of credit, loan or credit card, the promising credit grantor will ...
 
Secured personal loans: an approved aid against your own collateral!
Published by Keith Kelly on May 31st 2012 | Finance
Secured personal loans as the name clarifies are hassle free option of attaining fiscal aid by pledg...
 
Right Process of financial Planning and need of getting a Financial Planner Sydney
Published by Avena Sowell on December 8th 2011 | Finance
Process of financial planning involves high level of knowledge and skills as financial markets keep ...
 
Top reasons to seek the help a personal injury attorney.
Published by Suji Katie on March 1st 2012 | Insurance
Any smart person will make sure to run away with smart way and try to curtail the compensation money...
 
Free Credit Score: right choice to understand your financial status
Published by Anthony Brian on May 15th 2012 | Finance
Every customer is granted one free credit score report from principal agencies each and every year, ...
 
Short Term Loans: Fills the gap during financial crisis
Published by Annisa Nelson on June 5th 2012 | Finance
A short term loan manages your sudden expenses and pays out short term monetary urgencies....
 
Great hope for the people with poor financial status
Published by Alice Johnsonn on January 3rd 2012 | Finance
Personal loans no credit check are the best way to access fast cash without undergoing any credit ch...