Happy President’s Day! Now that there is a nice three day weekend, let’s talk about finances…
No wait, come back!
I know that fixing your finances isn’t the ideal way of spending your three-day mini vacation, but if not now, when? Don’t worry, we’ll try to help make this as painless as possible.
1. Learn to Budget
Even though money is green, it doesn’t grow on trees. This is where budgeting comes in! Similar to how presidents have to manage the nation’s budget, you have to be in control of your own finances and ensure you aren’t overspending. If you are planning on making a big purchase anytime soon, don’t forget to calculate the cost after taxes are calculated to make sure you saved enough. Even our presidents sometimes don’t budget their personal finances well. Eisenhower had to borrow money from his bodyguard to buy his grandchild a gift! (I bet you did not know that one!)
2. Resist Temptation
With Presidents Day’s sales, it may seem extremely tempting to buy things just because they are on sale. RESIST RESIST RESIST! There will be other sales later on down the road. Before you go shopping, think if you really need what you’re planning on purchasing or if you just want it because it’s on sale. If you really cannot resist the urge to splurge, set a strict budget on how much you are allowed to spend and be sure to stick to it!
3. Prepare for Tax Season
Do you make money? If so, then you’ll probably have to pay taxes. As American citizens, paying taxes is our civic duty (also required by federal law). Taxes are everywhere: sales tax, property tax, and even income tax! The money is used for things like public parks, schools, libraries, and roads. For more in-depth information about taxes and the different types of forms associated, check out Financial Focu$—a free, interactive online course.