Published on: 31 January 2019
Last Updated on: 08 August 2019
A letter from the IRS may seem serious, but the situation that results in the letter may not always be serious. You may find that you’re receiving a notification of a minor error or small sum of money that you owe. Even an audit isn’t causing to panic — the IRS may simply need some additional information in your personal files. Follow these tips to handle communications from the IRS in a calm, sensible manner.
You should always open and review documents from the IRS as soon as you receive them. The IRS will attempt to connect with you by mail to make initial contact regarding any issues with unpaid tax debt, tax filing errors, tax audits, and other issues. The sooner you address the problem, the easier it will typically be to find a satisfactory resolution.
If you ignore letters from the IRS, it is possible for the agency to reach out to you by phone. The IRS recently started working with private debt collection companies to handle unpaid tax debt. Many telephone scams exist as well, and you should be vigilant about confirming any information that you receive by telephone.
Keep Your Tax Documents Organized:
Ideally, you’ll have your tax documents for the last three years safely stored and ready for your review at any time you may need them. These materials include documentation regarding any protections you may enjoy through a third-party tax filing service. Many websites and companies provide audit protection or a guarantee of accuracy, which can give you valuable peace of mind if an audit should arise.
If you do not have these documents on hand, you should take the time to gather them as soon as you’re informed of any type of dispute or IRS audit. Having these documents provides an important sense of security going forward.
Verify the Tax Issue:
Before you make arrangements with the IRS to settle a debt, make sure that the amount of the debt is correct. The IRS may occasionally make errors, so it’s crucial that you check the numbers for yourself and file a dispute if you believe that the figure is incorrect. Contact the IRS immediately if you believe that the agency is operating with incorrect information.
Explore Your Tax Debt Options:
If you owe a debt to the IRS, you don’t necessarily have to pay the full sum immediately. You can explore several tax debt options. Understanding these options can help you avoid panic, particularly if you’re facing a debt too large to pay at once. You may qualify for an offer in compromise, a condition in which you settle your debt with the IRS for a lower sum of money. You can also request that the IRS delay collection or set up a payment plan to handle the debt in a series of installments.
If you hear from the IRS, you should take the time to thoroughly review all communications so that you understand what the IRS requests from you. If you need assistance navigating an audit, tax debt, or other situation, don’t hesitate to reach out to a professional for help.
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Before entering into marriage, you and your soon-to-be lifetime partner should talk about finances. Both of you might have different ways of handling your finances.
Settling down and starting to grow a family is one big responsibility that both of you will share. One may be frugal and minimalist, while the other is the opposite. Your differences, if not taken seriously, like by discussing it, might cause a collision.
Just let me share one fact about what happens in marriage nowadays. Few are getting married. Many are getting divorced. And according to Forbes, one of the factors why couples end up divorcing is money issues. Unsettled issues!
It's not the main factor, but somehow, it contributes tension to the couple. And we don't want to let that happen to you. This article aims to help you understand what a couple should do in creating your budget.
Take this opportunity to know what couples should do in handling money. These best-picked tips will guide you in building your budget.
Vital Tips For an Effective Budget-
Communicate at all times:
Discussing financial matters is vital, and it's the only way to know each other, especially in handling money.
Let's face reality. Not all couples have the same spending habits. One might want to save more and choose to live a simple lifestyle, while the other might want the opposite.
As you can see, managing your finances contrasts with the other. With that scenario, both of you might encounter some financial struggles while building your budget goals.
Through proper communication, you can set things up with an open mind. But both should adjust each other's expectations. This way, you can organize everything and meet one's goal.
Remember, this isn't a simple game to win. It's a real-life game that both should work together as one.
Categorize your budget:
If both of you feel like your goals are somewhat overwhelming, you have to remember that you can only eat an elephant one bite at a time.
By simply categorizing your budget, you can have a more exact path to follow. You can see which to prioritize and which is more necessary. Do it one step at a time.
As you continue to discuss things, one should jot down everything. This way, you won't miss or forget some information or idea.
Identify your household needs:
Both should identify your household needs. This way, it will become easy for you to categorize them. List them down. Afterward, you order them to either mandatory expenses, significant, nice, or unnecessary.
Don't forget to include your existing debts on your list. May it be a mortgage loan, credit card, other outstanding debts, car loans, utility bills, food, and other different personal needs.
After listing things, you can now identify which category it is.
Mandatory expenses and significant ones should be your top priority. The rest will be considered as your minor focus.
You might be wondering what mandatory expense is? In layman's terms, mandatory means something that obliges you to perform. That means "mandatory expenses" are something that obliges you to settle.
For instance, debts that should be settled fall to mandatory expenses. Whatever type of debt it is, it will be considered mandatory spending.
Settling debts might be overwhelming. Why not consider paying your debts in full using a personal loan from a licensed money lender Tampines? It's a form of debt consolidation. It merely means combining your debts into one.
For example, you consolidate all your credit card debts and pay them using a loan from moneylender woodlands. You settle your debts in total, with lower interest and one monthly payment.
If there's something you are paying because you need it, you can categorize it as a pressing need.
Important or significant things refer to your basic needs. Foods, clothing, water, electricity, internet connection, and the likes are your basic needs.
Nice things give you fun and convenience, but not that important. For example, car accessories, upgrading or changing phones, buying too many dresses. Everything's look nice but not necessary.
Unnecessary things are simply those that don't have value. For instance, you purchased an online subscription that you seldom use for leisure. It's a total expense that you don't benefit anything. And it only cost you money.
Spending money to buy trendy things, eat at a restaurant, and travel around is not bad. As long as you know to discipline yourself. You can never deprive your happiness in reaching your goals.
But if you want to achieve your financial goals faster successfully, you have to be patient. Always remember that it takes strong commitment and determination to do it. Saving more, spending less will help you a lot.
Set money goals:
Setting goals means taking in-depth planning. It is about creating a path towards your goal, guiding you on how to achieve it.
Achieving your money goals is not impossible as long as you make a well-thought plan. To make it happen, both of you must cooperate with your plan.
Visualize what both of you want to have. Both should be specific.
Let’s say you are dreaming of buying a condominium property. In what location? How big should it be? Would it be a two-bedroom or three-bedroom unit? Such questions show what particular property you dream of having.
Aside from being specific, you evaluate whether it is realistic and achievable in your current state. Your partner dreams of having a sports car. The question is, is it realistic to get such a thing based on both financial capabilities?
The next thing you must consider is the time-frame. Home property is expensive and needs a considerable amount of money. If you aim to buy one, you have to set a timeline.
Just say, after two to three years, you will buy your dream property for your family. Within those three years, both will have to work hard and commit to saving a part of your income until you reach your specific goal.
The mentioned tips above will be the most thoughtful way to start building your budget goals. Otherwise, the case can probably push you to sacrifice valuable things. You and your partner should evaluate your money flow before you decide.
Determine how much you earn:
The next thing you do after setting your goals is to determine how much earning you have. There are types of income that we make - gross and net income. Among these two, net income is what you are going to use in creating a budget.
Gross income is a sum of money before your taxes and deductions. In contrast, the net income is your take-home pay.
The question is, are both of you work as a salaried employee or not? If you are an employee paid hourly, your income would likely be stable.
But if you work seasonally, or you are self-employed, that means you earn irregularly. That said, you have to track your income section monthly.
Track your spendings by having a meeting:
You both need to track your spendings. You can do it daily, weekly, or monthly. But for couples who have just begun to create their budget goals, it is recommended to do it every day. You can eventually do it weekly or monthly.
You talk about where your progress is towards your budget goals. You check every spending you take on different categories and manage what's left.
You can do less work by using some financial apps exclusively designed for couples to organize and track finances. It gives convenience and, at the same time, can make your meetings shorter and more effective.
The Grand Debate – Joint or Single Account
Any newlywed couple's financial choice is whether to open joint or separate accounts.
Now, many might love the idea of sharing finances such closely, or while others might run away from the idea.
There is not wrong or right about having a savings account. It is all about advantages and disadvantages based on your relationship with money and each other.
Some like more autonomy when it comes to financial reasons!
However, you should decide upon assessing both the pros and cons of the matter!
When it Comes to Joint Accounts
Many couples opt to open joint accounts as a way to keep their finances simple. With a joint account, each partner puts their income into one account, making it easier to manage household bills and expenses and work together to reach their financial goals.
It also promotes transparency and trust, and as everything is out in the open, you and your partner will both be on the same page when it comes to spending money.
Joint accounts can also make it easier to achieve long-term savings goals such as buying a house or traveling.
However, you will need to communicate well because if you have different spending priorities, this could cause tension.
In terms of Separate Accounts
On the other hand, keeping separate accounts can help partners feel more in control of their finances. This is especially true if one tends to spend more on hobbies or interests.
With separate accounts, both individuals agree on how much money they will contribute toward shared expenses (like rent, groceries, and utilities) and what they’ll keep for themselves.
While this approach allows for independence, it requires open lines of communication and clearly defined expectations.
Are you ready to begin your financial journey?
Creating a budget has to be undergone through in-depth planning. Start-ups aren’t easy.
Both of you might face financial challenges along the way. However, with concrete planning, if both are committed to achieving the goals, nothing is impossible. Follow what you should do, focus, and get it one by one.
You should also consider discussing bank accounts, and other matters early on.
In the end, some couples find that sharing a hybrid approach works best for them.
This is where they have one joint account for shared expenses and then each maintain a separate individual account for their own personal spending.
This way both individuals get some level of independence with their finances while still maintaining financial transparency.
The most important part here is to communicate on a regular basis and adjust along the way to ensure both individuals’ needs are being met and goals are being achieved.
Read Also:
Make Your Savings Goals Come True with Gold
Eight Essential Tips For Getting Out Of Debt
The Importance Of Saving: The Bedrock of a Bright Financial Future
One of the biggest concerns surrounding cryptocurrency, in general, is the impact that they have on the environment. In a world that is already struggling to catch up with the expectations that previous generations set, how much of an impact does Bitcoin make in the long term?
Bitcoin Mining and Energy
Bitcoin mining involves using a high-powered computer to solve a huge amount of cryptographic puzzles and problems, awarding bitcoins to the miner who operates that computer. This is a core part of how Bitcoin works and is also used to keep the blockchain behind it functioning.
However, since computers need to become stronger and stronger to satisfy these requirements, they also need more power. Dedicated ‘rigs’ have been built that are focused on nothing but mining bitcoin, which consumes even more power at a faster rate.
Over the last two years, Bitcoin mining caused an extreme spike in emissions, producing more than some countries would in the same length of time. While this is not an acceptable level, it also is not impossible to fix, and many people are already working on solutions.
Renewable Energy
Bitcoin mining has already begun to switch to renewable energy, with around 40% already having changed over. This does not sound like much, but it means that 40% of Bitcoin miners are using energy that is not going to pump CO2 into the atmosphere.
This switch has helped a lot, but there is still more progress to be made. Until a massive proportion of Bitcoin mining is done with renewable energy, it will keep contributing to pollution and climate change.
Elon Musk and Bitcoin
While many people associated Elon Musk with Bitcoin, part of his reason for distancing Tesla from the currency was the Bitcoin environmental impact. Bitcoin had begun to create so much pollution that Musk actively suspended purchases using it, moving on to other cryptocurrencies instead.
Considering that this came only a few weeks after he had announced buying almost $2 billion of Bitcoin, it was a surprising change, but one that made sense. However, Tesla has been open about the fact that they will return to using Bitcoin once it is more sustainable.
The Future of Bitcoin
Many people who are new to crypto often assume that Bitcoin means 'cryptocurrency,' even though there are plenty of other crypto options out there. This has led a lot of people to assume that every kind of crypto is just as risky, even though some are purpose-made to use sustainable options.
This even includes Bitcoin itself, in some cases. The president of El Salvador tweeted about the state-owned geothermal power company using volcanos to create clean mining energy shortly after accepting it as a legal tender. This is meant to help keep Bitcoin circulating without those downsides.
Bitcoin is not going away any time soon, but it will not return to the same level of popularity until it is cleaned up a bit. However, this also means that the price is lower now – people who are adopting sustainable mining options ahead of time will have plenty of Bitcoin before the next big spike.
Read Also:
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The Profit Revolution: The Best Bitcoin Trading And Investing Platform
Investing In Bitcoins: 5 Things You Need To Know
To become a reputed and successful entrepreneur, it takes hard work. In India, the opportunities for launching new businesses are umpteen, but the competition is fierce. There is no magic mantra that can help one company find success within record time. It requires dedication, perseverance, and knowledge. Sub-brokers are entrepreneurs with immense potential for making a profit. They are not trading members of stock exchanges, but they can act on the behalf of one. They can also assist business owners and new investors to buy or sell securities through registered trade members.
The opportunities of a sub-broker business are plenty. If you have a fair idea of the share market and its products, it is going to be a rewarding business for you. In fact, it is a rewarding profession for novices as well. Anyone with the aptitude for share trading and the will to learn about the share market should be able to master the necessary skills of a sub-broker.
What are the necessary qualifications of a sub-broker?
The qualifying criteria remain more or less constant across the country for sub-brokers. Here’s a list of the edibility requirement for joining the elites –
The person should have a graduate degree. Any subject should do, but the aptitude for share trading is a must. The applicant should have passed their 10+2 examinations at the least.
They should know about the financial markets of the country. They should either have the qualification that gives them the knowledge of it or previous experience that gives them the insight of the share markets. He or she should also be able to manage basic financial transactions.
They should have the latest information on the economic, socioeconomic, political and environmental scenario in the country. That is because every change in the scenario impacts the share market.
They should know how to operate computers. The applicant must also be able to learn specific trading and monitoring software necessary for the process.
Nothing can replace good communication skill for sub-brokers. They should be able to convince and comfort their clients during and after investment. It is a highly competitive niche and reliable skills of communication can give you an edge over your competitors.
They should be good at management. You must remember that every business is about great management. Nothing can take the place of management when it boils down to man, market, and money.
The aspiring sub-broker should clear the basic NISM modules on mutual funds, equities, F&O, and commodities. These regulations ensure that all sub-broking work should follow the completion of these modules.
How to find a stockbroker to work with?
Next, it is time for the sub-broker to find a broker as a partner. It is the most crucial step towards setting up the sub-broking business and you need to keep a few things in mind before you go down this path –
i. Pick a good broker
Finding a good stockbroker does not mean looking for one with a lucrative office or higher profit share. The broker you should look for should be reputed in the market, should be trustworthy and active. Make a list of the priority values you want to see in your stockbroker. Consult with your friends, family and fellow sub-brokers during the selection process. Check the broker’s profile before you go into business with him or her.
ii. You should be ready for the full-time commitment
Being a sub-broker is not a part-time hobby. It is a business and a full-time commitment. You will almost never be off the clock. Even when you will be away from your desk, you will be receiving updates on your mobile phones. Staying connected 24/7/365 will ensure that you will always be ready when a big business opportunity knocks on your door.
iii. You need to be more than the average sub-broker
Clients expect a lot more than the usual assistance and dealing. It is a competitive market, and you need to cater to your clients’ needs for market advice, investment aide, and product selection. Every client now deals in multiple products like mutual funds, currency, equities, and securities. It has become the responsibility of the sub-broker to advise them on the selection of products to avail the best investment opportunity at the time.
What are the finishing touches of becoming a fine sub-broker?
Get your own client database
Becoming a good sub-broker takes a lot of practice and time. It is important to have databases of people, who are likely to become your clients soon. It is possibly the only profession where cold calls are still valuable and useful. The first stage of the database may consist of your family, friends, ex-colleagues and social media contacts only, but you need to start working on that data. You will have to go through multiple rounds of meetings with your clients, explain the prospects, your business USP and their chances of making profits in the long run.
Build your network
Finding a reliable sub-broker is a challenge for many regular share market clients. You need to fill that gap and become the sub-broker they can trust. So, do not push sales from the first round of calling and meeting. Ask for references once you establish a relationship with the client. Attend networking meetings. They might be a tad bit cliché, but they are always effective in getting new leads for the new sub-broker. Yes, you should expect to find them the moment you step in. It will take some time for others to warm up to you and for you to notice the new opportunities in the market.
Keep yourself updated
Lastly, no great sub-broker can remain great without regular brush-up of their market knowledge. So, go ahead, install some of the best market update applications, follow rewarding share trading blogs and follow the news on the changes in the financial policies of the country that can affect the market. To offer your clients a little more than the next sub-broker is offering, stay updated with the international market news as well. The ups and downs of the global market always influence the prices in the Indian share market.
Read Also :
How To Choose The Best Broker For You
How Real Estate Factors Into Business Decisions
