Your Accountant's Tips for Yearend Tax Planning and Sticking to Your Budget

As we draw near to most yearends, it is crucial that you connect with your accountant to maximize your opportunities to save tax. These tax planning tips involve many items that are specific to your needs.

As the new year is approaching, many people consider that time for fresh starts, with new goals and opportunities. It is the best time to create a budget for yourself and your business and stick to it. With the holidays approaching, chances are your wallet has taken a hit but remember that some strategic decisions could in fact save you taxes. Canadians spend on average over $1,000 per person during the holiday season.

Worried you'll have trouble sticking to your budget? You are not alone. Many people consider budgets to be unattainable and unrealistic, but they don't have to be. The following are tried and true accountant tips for sticking to your budget.

Tell Your Friends and Family for Accountability

Having a support group consisting of family and friends is a great way to keep you motivated. Once you communicate your goals to someone you trust, they can help hold you accountable. Sticking to a budget will be challenging at first, but if your friends and family are in the loop, you'll have someone to call you out if you let your commitment slide. Not only will your friends and family keep you on track, they'll also be there to celebrate your wins with you.

Sleep on Big Purchases

Next time you're out shopping or browsing online and you see that 70" TV on sale or that promotion going on at the car dealership, it's crucial that you take a few days to think it over. Impulsivity is a threat to budgets everywhere. That's why when you suddenly decide you want the latest phone but don't necessarily need it, you should wait it out for a few days. Always look at your budget planner before making large purchases, whether through an app or your computer; chances are, you'll change your mind.

Lower Your Credit Card Limit

Acquiring a credit card with a large credit limit can offer a false sense of security. You might excuse it as being necessary in case you need to make a significant purchase one day, but it isn’t usually a good idea to pay for expensive purchases with credit.

Having a high credit limit makes it easy to fall into temptation. You might be low on money but think you have a readily available amount waiting for you to spend; this can lead to a downward spiral that can derail you from sticking to your budget and living within your means.

Allow Yourself to Occasionally Indulge

If you're sticking to your budget and reaching your goals, it's okay to treat yourself every once in a while – you deserve it! Too much rigidity could build resentment, so allow yourself to splurge occasionally. Eat out at a new restaurant or buy that expensive coffee. Celebrate how well you've been doing.

Track Your Success

There are many apps and computer programs available for tracking your budget. Keep a spreadsheet or budgeting app that allows you to create a monthly budget planner. Seeing your purchase and expenses will allow you to keep track of your success. You’ll be able to see how well you're doing and feel good about your progress, making you more comfortable enjoying a reward.

Charles Ghadban Accounting Can Help

If you need further help or advice for sticking to your budget, our accountants at Charles Ghadban Accounting , based in Ottawa, ON, can help. Our accountants know how important personal finance is and can assist you with learning more about managing finances and reaching your financial goals. Call us at 613-234-7856 or fill out our online contact form to book an appointment.