Right smack dab in the middle of summer might seem like the worst time to think about your taxes, but it’s actually the perfect time. Here’s what taking a pause in July allows you to do.
Get Organized
Do you have all your receipts? Are your records up to date? Did you move, get married, or change your name? If so, you’ll need to notify the IRS. In fact, you can create an individual IRS online account to look at your tax records, manage communication preferences, make payments, and more.
Take a Financial Snapshot
When was the last time you looked at your checking, savings or investments to see if you’re where you want to be? If you take the time now, you can start with January and analyze the big picture. You can see if you’re happy with the growth of your investments and discover where you can make adjustments. Taking time to do this now will pay off in the long run.
Examine Your Paycheck
Are your earnings correct? Are you withholding enough taxes? As mentioned at the top, any big life event (divorce, having a child, buying a home) can affect your taxes. If you need help, the IRS has a Tax Withholding Estimator that can help you figure out your income tax, credits, adjustments, and more. If you need to change anything, the Estimator will show you how to update your withholding with your employer or direct you to where you can submit a new W-4. Taking time to review could help you avoid an unwanted large tax bill and/or penalty come tax season.
Double-Check Deductions and Credits
Are you maximizing these? Early planning allows you to identify and leverage available deductions and credits, reducing your taxable income and potentially increasing your tax refund.
Increase Your 401K Contribution
Are you happy with your contribution? Can you increase it and still make ends meet? When you contribute more from each paycheck, you’ll decrease your taxable income for the year. Since employers usually have matching programs, it’s a great way to get free money and build your nest egg. Make sure you’re in it if your company offers this.
Convert a Traditional IRA to a Roth IRA
If you think you’ll be in a higher tax bracket when you’re in retirement, converting a traditional IRA into a Roth IRA is one way to reduce your tax payments in the long run. Here’s how it works. The money you contribute to a Roth IRA is taxed the moment you contribute, unlike a traditional IRA, which is taxed at the moment of withdrawal. When you convert to a Roth IRA, you’ll be paying taxes at your current rate instead of the (probably) higher tax rate in the future. Translated: You’ll pay taxes up front, which might be a big savings. Finally, Roth IRAs are not subject to the same Required Minimum Distributions as traditional IRAs are. That means more freedom when you want it most – when you retire.
Getting a handle on your finances by being proactive now gives you a great opportunity to take a breath, assess, and change direction if you need to. If anything, it will help prevent stress and scrambling in tax season. It’s safe to say that nobody wants that.
Right smack dab in the middle of summer might seem like the worst time to think about your taxes, but it’s actually the perfect time. Here’s what taking a pause in July allows you to do.
Get Organized
Do you have all your receipts? Are your records up to date? Did you move, get married, or change your name? If so, you’ll need to notify the IRS. In fact, you can create an individual IRS online account to look at your tax records, manage communication preferences, make payments, and more.
Take a Financial Snapshot
When was the last time you looked at your checking, savings or investments to see if you’re where you want to be? If you take the time now, you can start with January and analyze the big picture. You can see if you’re happy with the growth of your investments and discover where you can make adjustments. Taking time to do this now will pay off in the long run.
Examine Your Paycheck
Are your earnings correct? Are you withholding enough taxes? As mentioned at the top, any big life event (divorce, having a child, buying a home) can affect your taxes. If you need help, the IRS has a Tax Withholding Estimator that can help you figure out your income tax, credits, adjustments, and more. If you need to change anything, the Estimator will show you how to update your withholding with your employer or direct you to where you can submit a new W-4. Taking time to review could help you avoid an unwanted large tax bill and/or penalty come tax season.
Double-Check Deductions and Credits
Are you maximizing these? Early planning allows you to identify and leverage available deductions and credits, reducing your taxable income and potentially increasing your tax refund.
Increase Your 401K Contribution
Are you happy with your contribution? Can you increase it and still make ends meet? When you contribute more from each paycheck, you’ll decrease your taxable income for the year. Since employers usually have matching programs, it’s a great way to get free money and build your nest egg. Make sure you’re in it if your company offers this.
Convert a Traditional IRA to a Roth IRA
If you think you’ll be in a higher tax bracket when you’re in retirement, converting a traditional IRA into a Roth IRA is one way to reduce your tax payments in the long run. Here’s how it works. The money you contribute to a Roth IRA is taxed the moment you contribute, unlike a traditional IRA, which is taxed at the moment of withdrawal. When you convert to a Roth IRA, you’ll be paying taxes at your current rate instead of the (probably) higher tax rate in the future. Translated: You’ll pay taxes up front, which might be a big savings. Finally, Roth IRAs are not subject to the same Required Minimum Distributions as traditional IRAs are. That means more freedom when you want it most – when you retire.
Getting a handle on your finances by being proactive now gives you a great opportunity to take a breath, assess, and change direction if you need to. If anything, it will help prevent stress and scrambling in tax season. It’s safe to say that nobody wants that.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
According to a Bankrate Financial Infidelity Survey, 28 percent of couples said they considered financial cheating as bad as physical cheating. Furthermore, money is one of the top reasons for divorce, says Rahkim Sabree, counselor and financial therapist with the Financial Therapy Association. With these facts in mind, it makes good sense to get all your financial cards on the table (literally and figuratively) before you tie the knot. Here are a few ways to navigate this often thorny subject and create a healthy relationship with money as a couple.
Have a Money Date
Be intentional and carve out dedicated time to discuss the big issues that you both might have questions about.
How will we handle student loans?
How many children will we have, if any? Will they go to public or private schools?
Where will we live? Close to or far away from family?
Where would we like to be in our careers in 5, 10, or 20 years?
When do we want to retire? How will we spend our retirement?
If talking about these things is difficult, you might consider premarital financial counseling. When you can get on the same page before you get that other page – your marriage license – you’ll be way ahead of the game.
Set Up a Financial Plan, Pre-Marriage
While this conversation probably won’t be romantic with flowers and candlelight, it’s a time where you can share the excitement of your future. While you may not see eye-to-eye on everything, set up short-term goals, long-term milestones, and seek the middle ground when disagreements arise. Remember, life happens. Goals may change. There will be job losses, health issues, and unexpected expenses like HVAC going out or plumbing problems. The idea is to remain flexible and tuned in to each other’s spending habits by using apps like YNAB (You Need a Budget), Empower, or Tiller. When you’re transparent and can see who is spending on what, you can maintain an open dialogue about your cash flow.
Decide if You Want a Prenup
Depending on your resources and if you have children from a previous marriage, you might want to consider a prenuptial agreement. Again, it’s not the most comfortable topic to discuss because it implies that there’s an end to what is ostensibly just beginning. That said, it can pre-empt future problems that might otherwise cause a divorce. It’s also important in the case of death because if you don’t have a prenup, a judge, not the couple, gets to decide who gets what, which might result in an unsatisfactory distribution.
Figure Out Your Checking Accounts
Joint or separate? This is totally up to you, but according to Bankrate, 24 percent of couples have separate accounts; 38 percent have both joint and separate; and 39 percent have a joint account. This topic should be part of your money date.
Consolidate Debt
If you both have debt, consolidate and start paying it off. If you’re thinking about buying a home, lenders will look at debt-to-income ratio to see how much of your total income is being used to pay off debt. If your debt is too high, you might have trouble getting a mortgage. Be honest about it. Have the tough conversations before you say, “I do.” You probably don’t want to surprise your future spouse when you’re in the already emotional process of putting a bid on a house.
Bottom line, figuring out a financial plan for your marriage can be challenging, if not downright tough. But the best time to sort through all of this is before you walk down the aisle. When you have a roadmap, the chances for a successful financial future together increase exponentially.
Sources
Money And Marriage: What To Consider Before Tying The Knot | Bankrate
Alan F Burke CPA
How to Navigate Money Before Saying ‘I Do’
June 1, 2025 · Blog, Tip of the Month
⏱ 4 min read
According to a Bankrate Financial Infidelity Survey, 28 percent of couples said they considered financial cheating as bad as physical cheating. Furthermore, money is one of the top reasons for divorce, says Rahkim Sabree, counselor and financial therapist with the Financial Therapy Association. With these facts in mind, it makes good sense to get all your financial cards on the table (literally and figuratively) before you tie the knot. Here are a few ways to navigate this often thorny subject and create a healthy relationship with money as a couple.
Have a Money Date
Be intentional and carve out dedicated time to discuss the big issues that you both might have questions about.
How will we handle student loans?
How many children will we have, if any? Will they go to public or private schools?
Where will we live? Close to or far away from family?
Where would we like to be in our careers in 5, 10, or 20 years?
When do we want to retire? How will we spend our retirement?
If talking about these things is difficult, you might consider premarital financial counseling. When you can get on the same page before you get that other page – your marriage license – you’ll be way ahead of the game.
Set Up a Financial Plan, Pre-Marriage
While this conversation probably won’t be romantic with flowers and candlelight, it’s a time where you can share the excitement of your future. While you may not see eye-to-eye on everything, set up short-term goals, long-term milestones, and seek the middle ground when disagreements arise. Remember, life happens. Goals may change. There will be job losses, health issues, and unexpected expenses like HVAC going out or plumbing problems. The idea is to remain flexible and tuned in to each other’s spending habits by using apps like YNAB (You Need a Budget), Empower, or Tiller. When you’re transparent and can see who is spending on what, you can maintain an open dialogue about your cash flow.
Decide if You Want a Prenup
Depending on your resources and if you have children from a previous marriage, you might want to consider a prenuptial agreement. Again, it’s not the most comfortable topic to discuss because it implies that there’s an end to what is ostensibly just beginning. That said, it can pre-empt future problems that might otherwise cause a divorce. It’s also important in the case of death because if you don’t have a prenup, a judge, not the couple, gets to decide who gets what, which might result in an unsatisfactory distribution.
Figure Out Your Checking Accounts
Joint or separate? This is totally up to you, but according to Bankrate, 24 percent of couples have separate accounts; 38 percent have both joint and separate; and 39 percent have a joint account. This topic should be part of your money date.
Consolidate Debt
If you both have debt, consolidate and start paying it off. If you’re thinking about buying a home, lenders will look at debt-to-income ratio to see how much of your total income is being used to pay off debt. If your debt is too high, you might have trouble getting a mortgage. Be honest about it. Have the tough conversations before you say, “I do.” You probably don’t want to surprise your future spouse when you’re in the already emotional process of putting a bid on a house.
Bottom line, figuring out a financial plan for your marriage can be challenging, if not downright tough. But the best time to sort through all of this is before you walk down the aisle. When you have a roadmap, the chances for a successful financial future together increase exponentially.
Sources
Money And Marriage: What To Consider Before Tying The Knot | Bankrate
Disclaimer
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
College graduation is a huge milestone. You’ve completed one chapter and are on the precipice of the next. While exciting, it can also be daunting – you have a whole new set of responsibilities in front of you. But take heart, we have some tips to help you navigate.
Look back to look forward. Take some time to examine your money habits. Do you have a tendency to overspend? Reward yourself with dinners out or a little retail therapy after a stressful event? Neither of these things is good or bad. They’re just choices. However, if you intentionally monitor your behavior and make necessary changes, you’ll learn how to budget early in your life. This way, you’ll set yourself up for success in the future. The truth is, a little self-awareness can go a long way.
Create a budget and stick to it. Don’t think of this as limiting. It’s simply a way to get a hold of your money and learn to live within your means. One smart way to begin is using the 50/30/20 rule: You allocate 50 percent of your earnings to your basic needs, 30 percent to your wants, and 20 percent to your savings. You can also set up short-term and long-term goals. Do you want to save for a vacation? New furniture? A new car? No matter what, start by listing ALL your expenses and then breaking them out into categories. See what you’re spending and make adjustments. To get started, here’s a free budgeting calculator.
Start saving. Right now, you might be feeling immortal. You’re young and just beginning your life. But someday, you’ll be older and need resources to live. So instead of thinking of this as taking away from your fun, think of it as paying yourself first, your future self. Whether for a getaway, an emergency, or whatever, regularly set aside some cash. But there’s more. Take advantage of savings accounts that will help you save on taxes, such as an individual retirement account (IRA) or a 401(K). Many employers offer these and even match your contributions, so don’t miss out. You want your money to work hard for you.
Pay back your student loans. It might be very tempting just to kick this to the curb. Warning: Don’t do it! Even if you have a six-month grace period. Find out what kind of loan you have: Federal or private? Subsidized or unsubsidized? If you can’t afford to pay large chunks, contact your lender and work out a plan. Another important thing is to find out whether you can deduct a portion of your student loan interest payments on your taxes. And finally, you can even investigate consolidating, refinancing, or whether you qualify for loan deferment. Just handle it. You’ll be so glad you did.
Know your worth when job hunting. Do research and find out the salary range for your level in your chosen industry. You should also examine companies. What are the benefits? If the perks are exceptional, it might be worth taking a slightly lower-paying job, depending on your situation. If you can’t negotiate your salary, ask to see if they have other perks, like helping with student loans. Another exercise is to create budgets around net salaries to get a sense of what managing your money looks like.
Vet your health insurance. Some of you might be covered on your parents’ policy until age 26. Or you might be covered by your employer. If you have insurance through your job and are in good health, a plan with a higher deductible may be a smart move. You’ll save on monthly payments and have more cash for after work.
When it comes to handling your money, all it takes is a little practice. And baby steps. Sure, you’re going to make mistakes. But jump in. Learn the ins and outs. In the end, it’s going to determine whether you remain a student or become a responsible adult.
College graduation is a huge milestone. You’ve completed one chapter and are on the precipice of the next. While exciting, it can also be daunting – you have a whole new set of responsibilities in front of you. But take heart, we have some tips to help you navigate.
Look back to look forward. Take some time to examine your money habits. Do you have a tendency to overspend? Reward yourself with dinners out or a little retail therapy after a stressful event? Neither of these things is good or bad. They’re just choices. However, if you intentionally monitor your behavior and make necessary changes, you’ll learn how to budget early in your life. This way, you’ll set yourself up for success in the future. The truth is, a little self-awareness can go a long way.
Create a budget and stick to it. Don’t think of this as limiting. It’s simply a way to get a hold of your money and learn to live within your means. One smart way to begin is using the 50/30/20 rule: You allocate 50 percent of your earnings to your basic needs, 30 percent to your wants, and 20 percent to your savings. You can also set up short-term and long-term goals. Do you want to save for a vacation? New furniture? A new car? No matter what, start by listing ALL your expenses and then breaking them out into categories. See what you’re spending and make adjustments. To get started, here’s a free budgeting calculator.
Start saving. Right now, you might be feeling immortal. You’re young and just beginning your life. But someday, you’ll be older and need resources to live. So instead of thinking of this as taking away from your fun, think of it as paying yourself first, your future self. Whether for a getaway, an emergency, or whatever, regularly set aside some cash. But there’s more. Take advantage of savings accounts that will help you save on taxes, such as an individual retirement account (IRA) or a 401(K). Many employers offer these and even match your contributions, so don’t miss out. You want your money to work hard for you.
Pay back your student loans. It might be very tempting just to kick this to the curb. Warning: Don’t do it! Even if you have a six-month grace period. Find out what kind of loan you have: Federal or private? Subsidized or unsubsidized? If you can’t afford to pay large chunks, contact your lender and work out a plan. Another important thing is to find out whether you can deduct a portion of your student loan interest payments on your taxes. And finally, you can even investigate consolidating, refinancing, or whether you qualify for loan deferment. Just handle it. You’ll be so glad you did.
Know your worth when job hunting. Do research and find out the salary range for your level in your chosen industry. You should also examine companies. What are the benefits? If the perks are exceptional, it might be worth taking a slightly lower-paying job, depending on your situation. If you can’t negotiate your salary, ask to see if they have other perks, like helping with student loans. Another exercise is to create budgets around net salaries to get a sense of what managing your money looks like.
Vet your health insurance. Some of you might be covered on your parents’ policy until age 26. Or you might be covered by your employer. If you have insurance through your job and are in good health, a plan with a higher deductible may be a smart move. You’ll save on monthly payments and have more cash for after work.
When it comes to handling your money, all it takes is a little practice. And baby steps. Sure, you’re going to make mistakes. But jump in. Learn the ins and outs. In the end, it’s going to determine whether you remain a student or become a responsible adult.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
Right smack dab in the middle of summer might seem like the worst time to think about your taxes, but it’s actually the perfect time. Here’s what taking a pause in July allows you to do.
According to a Bankrate Financial Infidelity Survey, 28 percent of couples said they considered financial cheating as bad as physical cheating. Furthermore, money is one of the top reasons for divorce, says Rahkim Sabree, counselor and financial therapist with the Financial Therapy Association. With these facts in mind, it makes good sense to get all your financial cards on the table (literally and figuratively) before you tie the knot. Here are a few ways to navigate this often thorny subject and create a healthy relationship with money as a couple.
College graduation is a huge milestone. You’ve completed one chapter and are on the precipice of the next. While exciting, it can also be daunting – you have a whole new set of responsibilities in front of you. But take heart, we have some tips to help you navigate.