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Having a hundred thousand on hand is something that many Americans can only dream of, and so you don’t want to squander it by losing it all to a series of poor decisions (or one really bad one). To make the most out of your savings, take a moment to peruse these key investing strategies for when you have 100K+ saved. For expert financial advice before you get the ball rolling, schedule a complimentary consultation with Maggi Tax!

When finding the right investment for you, you need to consider your short-term and long-term plans as well as your risk tolerance. Once you have your baseline fleshed out, it’ll be easier to move forward in choosing a solid investment strategy like the ones listed below:

1. Save With Your Retirement In Mind

$100,000 can make a huge difference in your retirement, and it’s one of the easiest solutions to investing in your future. When done right, a substantial retirement fund contribution can help you cut down on what is taxed. With that amount, you could look into converting your funds into an IRA for a more tax-friendly account. Consulting with a financial advisor can help you figure out if a traditional IRA or a Roth IRA is best for you.

2. Capitalize On Stock Market Opportunities

If you’re looking to turn a profit sooner than later, the stock market can be a very promising platform for your extra funds. Depending on how much you’re willing to risk, you could look into liquid stocks for quick profits with higher stakes. Or, you could find non-liquid stocks and bonds that can act as a more stable but prolonged source of passive income. If you’re unfamiliar with the stock market, you’ll definitely want a crash course and expert financial advice before diving right in.

3. Use This Chance To Pay Down Debt

In today’s age of rising inflation and higher interest rates, one of the smartest investments that you can make with your $100,000 is to pay off all of your debts. Being debt-free will save you much more in interest in the long run and in a way, it’ll almost be as if you are making a profit by cutting off that financial burden.

4. Establish Or Enhance Your Emergency Fund

Sometimes, the best investment is to safeguard what you already have. By that, we mean hanging onto your extra funds as emergency cash should worse come to worst. If you can help it, keeping 6 months’ worth of living expenses tucked away could potentially save your life in countless ways. Just keep in mind that a regular savings account that generates interest can be taxed like income, so you may want to discuss with your trusted financial advisor regarding best practices for reducing the taxable amount.

5. Venture On A Small Business Journey

Another way to put your $100K to good use is to start a business. We don’t need to tell you that starting a business (let alone running it) is a ton of work, and so this option should be reserved for the truly ambitious and dedicated. But if you are willing to put in the time and effort, this can be a viable way to turn your saved cash into a new source of income! Consult a professional to ensure that you’re not investing more than you need to for your business needs.

Consult With Maggi Tax For Smart Investment Decisions

There are so many opportunities to be had with $100,000 or more in savings, and we know how to suggest the best options for you! Call Maggi Tax today at (727) 799-1701 to schedule a consultation and discover how to handle your cash in a way that is tax-friendly and has the potential to bring in a profit.

With the IRS sticking their hands anywhere they can reach, it can be hard to keep up with all of their rules, and getting in trouble with them is at the very bottom of everyone’s list. The professionals at Maggi Tax will be giving you a crash course on what the TFRP is, how it happens, and what you can do to handle your income and trust funds more responsibly to avoid any audits.

The Trust Fund Recovery Penalty Explained

A Trust Fund Recovery Penalty (TFRP) is one of the many penalties enforced by the IRS. When an employer is faced with a TFRP, it’s usually because they’re withholding the amount of income tax that is subtracted from their employee’s paychecks without remittance to the government.

There are two ways that an individual may be assessed for accountability. One, they must be responsible for the withholding. Two, they must be willfully withholding. Oftentimes, the one at fault is a higher-up at a company such as an employer, director, owner, or CEO. However, the extent of the TFRP isn’t limited to these occupations.

How Long Does It Take For The IRS To Step In?

Once the IRS begins an audit in response to a TFRP, they are able to go back three years from the start of the audit. Depending on the situation, exceptions can be made to extend this timeframe.

Read more > 3 Red Flags That Could Cause An IRS Tax Audit

What “Trust Fund” Means In The Context of TFRP

Ordinarily, a trust fund is similar to that of the process of creating a will. Setting up a trust fund in the traditional sense ensures that your approved beneficiaries receive the assets that you choose to allocate through a trustee at the time of your passing. This could include monetary assets, properties, or other tangible valuables. But what do trust funds have to do with withholding an employee’s taxes?

When an employer hangs onto an employee’s income tax (or other deductions like healthcare costs or social security), that money is considered to be held as a “trust” until taxes are paid. Thus, when the taxes aren’t paid, this penalty is referred to as the Trust Fund Recovery Penalty.

Are There Taxes I Should Know About For My Personal Trust Fund?

When setting up a trust fund, you typically only pay the fees for the services involved. This includes hiring a trustee, any legal fees, and so on. Your beneficiary, on the other hand, may have to pay an income tax when receiving your assets.

Handle Income Taxes And Trust Funds The Right Way. Call Maggi Tax!

To avoid any possible complications with the IRS, it’s best to get tax advice from a trained and educated professional. Call Maggi Tax today at (727) 799-1701 to schedule a consultation appointment for some insight on how taxes work and how you can navigate your way through them as a responsible taxpayer! Ask us about our tax advisory services today.

Do you find yourself grappling with the harsh reality of rising costs in one of the worst economic states that this country has ever seen? At this point, you might be cutting up coupons, eager to hear any bit of good news addressing a solution. It’s about time, but we’re finally starting to see a light at the end of the tunnel! Discover how taxpayers can save money on the IRS 2024 inflation adjustments before reaching out to your trusted financial advisors at Maggi Tax.

 

What’s Changed For 2024?

 

During times of financial crises, tax season becomes a moment of truth. Are steps being taken to mitigate the damages, or do we need to gear up for more monetary struggles? Prayers have been answered, and now we’re seeing an increase in tax brackets and more for the 2024 tax year.

 

Standard Tax Deduction Increase

For all of you singles-filers out there, you’ll be seeing a bigger deduction to help your case. To be precise, the standard deduction has been raised by $750. As for married couples, there are also increases but you’ll need to decide if filing taxes jointly or separately is right for you.

 

Social Security Adjustments

Seniors who are currently collecting social security get to enjoy a little treat as well. That’s because, for 2024, cost of living benefits have been increased by 3.2%! In addition, there are other ways to maximize your social security and pension benefits in early retirement.

 

Improved Tax Credits

Individuals who qualify for certain tax credits may also see an increase in how much they receive. A perfect example is the Earned Income Tax Credit which will be raising the maximum limit.

 

What These Inflation Adjustments Mean For You

 

All of these inflation adjustments should translate to more cash, right? Before you get your hopes up, it’s best to understand the importance of managing your expectations. Yes, more of your income will be taxed at lower rates, but that’s designed to help minimize the impact of inflation. So rather than thinking about it like you’ll be getting a profit, you should think of it as getting some kind of reimbursement for the prices you’ve been paying. That’s the intended purpose of these increases, after all.

 

Why Is The IRS Making These Changes?

 

While these inflation adjustments aim to compensate for rising costs, the IRS tends to look at the grand scheme of things when making these huge decisions. By fixing up tax brackets and deductions, we’ll have a better chance of stabilizing our economy. Without these changes, taxpayers will end up paying the usual amount this coming tax season while still facing a higher cost of living. This could easily result in lower purchasing power for the majority of Americans, thus causing our system to grind to a halt. Imagine what life would be like if everyone ceased to go grocery shopping because they simply couldn’t.

 

How To Act In Response To Inflation Adjustments

 

Now that you know what’s coming, is there anything you should be doing in response to the IRS 2024 inflation adjustments? To make the most out of your situation, it’s best to visit your trusted financial advisor. They’ll be able to teach you strategies that can help you maximize your taxes for a more desirable outcome so you can be more excited about these drastic changes.

 

For Professional Financial Advice Near You, Contact Maggi Tax!

 

All of these new tax adjustments can be a lot to take in, but Maggi Tax is here to help you navigate through everything you need to know about your next tax return. Be a step ahead and plan out your strategy today by calling (727) 799-1701 for a complimentary consultation!

It’s hard to ignore the undesirable effects of inflation. Your favorite fast food burger doesn’t taste nearly as good when it’s two dollars more than you’re used to, and it’s hard to justify paying more for a bag of chips that contains fewer munchies than before. Inflation can also affect your financing on a new car! But with rising inflation also comes adjusted tax brackets, and your trusted financial advisors at Maggi Tax are here to help you navigate these changes.

In this useful guide, we’ll help you better understand the IRS inflation-adjusted tax brackets and what it means for you:

An Overview of The 2023 Tax Brackets

For personal income tax, the inflation-adjusted changes are as follows:

Tax Percentage Individual Income Married Income Dollar Increase
10% Below $11,000 Below $22,000
12% $11,000 $22,000 $725 / $1,450
22% $44,725 $89,450 $2,950 / $5,900
24% $95,375 $190,750 $6,300 / $12,600
32% $182,100 $364,200 $12,050 / $24,100
35% $231,250 $462,500 $15,300 / $30,600
37% Above $578,125 Above $693,750 $38,225 / $45,900

By raising the income for each bracket, individuals will have a better chance of being taxed at a lower percentage which means less that they will need to pay and more that they could receive. While the difference may not feel so astronomical, every little bit helps during a time of rising inflation.

Navigating Tax Bracket Trends – Why 2023 Is Different

Inflation-adjusted tax brackets aren’t all that new. The topic of income and prices rides on trends: up-and-down patterns that move according to our fluid economy. However, the 2023 tax year happens to stand out as one of the highest adjustments since the ‘80s when tax brackets saw a rise of 2-4%. This time, the difference between 2022 and 2023 is roughly 6.5%.

Tax brackets aren’t the only thing that the IRS tends to change every now and then. Learn more > What Are The IRS Limits For 2023?

What This Means For You As A Taxpayer

As a model citizen and responsible taxpayer, you can benefit from inflation-adjusted tax brackets. Rather than seeing a complete loss in savings from the rising cost of various expenses, these changes can help level the playing field so that the losses don’t hit as hard. Taxes will account for less of your overall income, meaning that you would be paying less. You won’t necessarily make a profit, but it’s better than paying more than you would before the adjustments.

How To Prepare For Next Tax Season

To set yourself up for success come next tax season, it’s a good idea to get a head start by visiting your financial advisor to see what you can do in the meantime. There may be a way to adjust your income or investments to work in your favor for a greater tax return or to prepare certain information or documentation to make the tax filing process easier. For tax strategies and preparation services near you, you can count on Maggi Tax!

Looking For A Reliable Financial Advisor Near You? Call Maggi Tax!

It’s never too late to educate yourself on effective tax strategies! Contact Maggi Tax today at (727) 799-1701 for a complimentary consultation to get started on managing your taxes like a pro. We’ll go in-depth to help you find the best plan of action for you to help you maximize your taxes.

Do you find yourself spending more than you would have liked to on gifts every year, no matter how much you try to be careful? You’re not the only one, but we’re here to help you out with some useful pointers that can guide you back into better spending habits. Take a moment to review our top budgeting tips to prevent overspending this holiday season, courtesy of your trusted financial advisors at Maggi Tax!

The most effective way to prevent overspending during the holiday season is to calculate a realistic budget and take it seriously. You can also get creative with the types of gifts that you give to help you spend even less.

Find A Realistic Budget And Stick To It!

We’ll say it again, the most efficient way to prevent overspending during the holidays is to find a budget and stick to it. Keep all of your receipts and tally up your spending on paper if you have to! But how do you find your budget before you go shopping? The easy way to calculate our budget is to take your income (and any money you already have saved up) and subtract all of your expenses like bills, food, etc. while taking emergencies into account. Whatever your total comes out to, subtract a little more for good measure.

If you’re going to be using a credit card to buy your gifts, make sure you’re capable of paying it all back in full. The main goal is to have the mindset of staying out of debt territory, even if it’s only by a dollar or two.

Understand That Not All Gifts Need To Be Store-Bought

You could avoid spending altogether by making homemade gifts. In this economy where people are fighting against rising interest rates and high inflation, no one would blame you. The important thing is that you put care and thought into whatever you give, even if it’s just a batch of sugar cookies!

Cater Your Gifts To Each Individual Recipient

Another thing to keep in mind is that not everyone has to have gifts of the same price value. In fact, personally tailored gifts are the best kind because they show your loved one how much you’re paying attention to them. For example, someone who just recently burned an oven mitt due to an unfortunate baking accident would be thrilled to receive a brand-new mitt from someone they care about.

Make The Most Of Any Available Deals Or Coupons

It’s okay if you’re still dead set on going on a small shopping spree for the holidays, but you might want to make use of any available coupons or limited sales. There’s no shame in capitalizing on a great deal, especially if it can get you the gifts that you want to hand out while staying under budget.

Cut Down On Your Own Spending Budget

You can make room for a larger budget simply by cutting down on your own unnecessary spending like daily fast food lunches and crafted lattes. Even cutting down those extra expenses by half can pave the way for more holiday gift spending.

Learn more > How To Make A Spending Freeze That Works

Get A Head Start On Next Year!

It’s never too early to get a head start on next year! If you set aside a small amount from each paycheck for an entire year, your gifts could end up being taken care of without you needing to create a budget!

New To Budgeting? Let Us Give You Some Pointers!

To learn more about budgeting and how to better handle your income, consult your reputable tax advisors at Maggi Tax by calling (727) 799-1701 today! We’ll evaluate your situation and help you find the best course of action.

Have you ever noticed that many Americans end up retiring to Florida? That’s no coincidence. The Sunshine State is a popular place to leave your old life behind and enjoy the peace that lies ahead. If you also plan on retiring to Florida, you’ll want to make sure all of your ducks are in a row so everything can go off without a hitch. The professionals at Maggi Tax are here to let you in on our top end-of-the-year retirement tips for Florida Retirees!

If you plan on retiring in Florida, the most important thing you can do is to be aware of the state’s economic practices and adjust your estimated cost of living according to your findings. Basically, you need to know what to expect and prepare as much as you can.

Why Florida Is The #1 State To Retire

Why is Florida so popular with retirees? Other than the gorgeous scenery, there’s lots to do like golfing, fishing, visiting historical landmarks, and eating amazing food. There’s also the added benefit of being close to cruise lines. You have everything that you need to set yourself up for a vacation that never ends! However, one of the main draws of Florida is the topic of taxes and the cost of living.

Florida is commonly known as one of the most tax-friendly states in America due to the fact that there is no income tax. Property taxes are also fairly low and there are plenty of incentives to cash in on. The state makes up for it in higher sales tax, but many would agree that’s a small price to pay.

When Is The Best Time To Retire In Florida?

So now you’re dead set on retiring to Florida. But when should you do it? The ideal retirement age is 62 since that’s when you can start claiming Social Security. However, the percentage that you receive increases each year to age 70, so waiting is something you should consider.

Coming In To Retire From Out of State? Here’s What To Expect In Florida

If you’re coming in from out of state, there’s a lot that you need to process. To play it safe, make sure you account for these expenses before you settle down and order your first mimosa:

  • Housing
  • Transportation
  • Healthcare
  • Cost of living

When accounting for your housing situation, you also need to factor in the cost of possible damages and increased insurance rates. This is Florida that we’re talking about, after all. The home of seasonal storms and hurricanes can lead to higher rates and plenty of costly repairs.

Additional Tips To Help Your Retirement

It’s never too early (or too late) to start planning for the financial aspect of your retirement. Sitting back and letting your 401(k) pile up isn’t always enough. If you want to maximize your retirement fund for an easier and stress-free time, consider a Roth IRA and pay attention to your yearly contribution limits. You also don’t want to neglect your estate plan which can come in handy during your senior years.

Learn more > What Estate Planning Documents Do I Need In Florida?

Need Assistance In Retiring? Maggi Tax Welcomes You!

Make sure your retirement in Florida goes smoothly by confiding in your trusted tax advisors at Maggi Tax! Call us today at (727) 799-1701 for retirement planning and estate planning services starting with a complimentary consultation. We want to help you enjoy the retired life so we’ll do everything we can to help you!

Congrats! Your child has reached the next big stage in their life: college. Does that make them an adult? It all depends on your perspective, but your tax person might have something else to say about it. Learn more about what makes a college-age kid a dependent and what that means for your taxes! When the time is right, be sure to visit Maggi Tax for all of your taxing and financial needs.

There are a great number of stipulations that determine whether or not a college student can be considered a dependent such as age, income, residency, and more. If they can be claimed as a dependent, it may also be up to the parent or legal guardian to claim them or not since there are possible benefits (as well as drawbacks) to doing so. Let’s dive deeper into what this means:

When A College Student Is Still A Dependent

Let’s get the most common misconception out of the way. Just because your college student is living with you doesn’t automatically make them a dependent. This is a common belief because in most cases the college student in question is still living with their parent. For a better understanding of what actually deems a college student a dependent or not, let’s take a closer look at some of the other deciding factors:

  • The student must be under 24 years old and attend college full-time at least 5 months out of the year.
  • The student must be under the age of 19 when not attending college full-time.
  • The student can be of any age if permanently disabled.
  • The college student must be your child or sibling.
  • The college student must have lived with you for more than half of the tax year unless they are gone for temporary absences.
  • The college student does not provide more than half of their own support.
  • And more…

These are just a handful of rules that can determine whether or not a college student can be claimed as a dependent, and the rules can change depending on the tax year or where you live. This can be a lot to take in, but there are tax specialists like those at Maggi Tax who can help you navigate the intricacies of filing for taxes when claiming a college student.

What Counts As “Support”?

One of the rules listed above states that a college student can be claimed as a dependent if they do not provide more than half of their own support, but what does that mean? As a college student, support involves anything that the student would need to attend college and survive. Examples include the cost of tuition, books, supplies, food, transportation, clothes, medical expenses, and so on.

Read more > Creative Ways To Lower College Costs

The Benefits Of Claiming Your College Student As A Dependent

Why are many parents so adamant about claiming their college student as a dependent? Because there’s a high chance that they’ll get some sort of benefit out of it, like tax credits or deductions that can help bring in more cash or lower the interest rate on student loans. Sometimes, these savings can add up to thousands of dollars!

Is It Ever Not A Good Idea To Claim A Dependent?

Are there any possible drawbacks to claiming a college student as a dependent? It might not be as common, but if you have a high income and your college student is making a low income, they may qualify for certain tax credits if they file independently.

Need A Second Opinion? Let Maggi Tax Help You With Your Taxes!

Still not sure if it’s a good idea to claim your college student as a dependent? Schedule a consultation with Maggi Tax at (727) 799-1701 and we’ll help you find the best solution for you!

Have you ever invested in something with the intention of making a fast and easy profit, only for that investment to turn into a slow and agonizing process? Maggi Tax will be taking you through a crash course on what liquid investments are before ranking the investments with the least liquidity so you can have a better idea of where to place your money from here on out!

What Is Liquidity? Liquid Investments Explained

When you look for investments to turn a quick profit, what you want to look for are liquid investments. Liquidity refers to the ability to quickly sell an investment without having a great impact on its market value. How reliable this method is depends on your own knowledge and skills, as well as countless other factors such as:

  • The number of active investors
  • Market conditions
  • The availability of market information
  • Accessible funding
  • Timing
  • And more

There is nothing wrong with liquid assets, but it shouldn’t be your only source of funding unless you’re a pro. Part of being an expert is understanding the risks of ESG investing among many other things.

Our Ranking Of Investments With The Least Liquidity

Not every profit has to be a quick one which is why some of the best investments that can help broaden your portfolio are the ones with the least liquidity. To become a good investor, it’s beneficial to have both liquid and non-liquid assets on hand to better manipulate your funds.

1 – Direct Ownership In Private Companies

One of the riskiest investments with the least liquidity involves buying into direct ownership of a private company. Since there isn’t a large market for these shares, it can be difficult to find avid buyers. There may also be many rules and regulations in place that could make it harder to sell, or at least prolong the selling process. This option may sound incredibly undesirable at first, but having direct ownership of a company always offers the potential to bring a large profit when handled with expert care.

Read more > Incentive Stock Options vs. Non-Qualified Stock Options

2 – Real Estate

Another tedious yet fruitful non-liquid investment is in real estate. While it’s easy to buy and sell liquid investments on a whim, buying and selling real estate is the complete opposite. It takes an incredible amount of time to go through the stages of paperwork involved, not to mention how long it takes to find a potential buyer. There are also many smaller tasks that can add up to time and money, including inspections, remodeling, closing, and so on. But if you’re willing to put in the time to nurture an investment in real estate, all of that hard work can pay off.

3 – Art and Collectibles

Investing in art pieces and various collectibles is nowhere near as tedious (which is why it’s third on this list), but the nature of the market for such goods can be rather unpredictable. Many factors come into play such as the significance of the media it’s representing, the status of the artists involved, and of course, the demand for such items. Unless you’re purchasing the art or collectible for your own personal enjoyment, this may be a risky investment.

4 – Uncommon Cryptocurrencies

Cryptocurrency may feel like the future, but don’t be fooled by unfamiliar crypto that no one has ever heard of. After the Dogecoin phenomenon, there have been many newcomers attempting to recreate something similar hoping for a positive outcome. If you’re dead set on investing in crypto, it’s best to tread lightly.

Let Maggi Tax Help You Make Smart Investments!

Before jumping into your next investment, be sure to consult your trusted financial advisors at Maggi Tax! We can help you make smarter decisions with our investment planning services so you can see greater returns. Call us today at (727) 799-1701 to schedule your next consultation!

Have people been telling you that you can maximize your tax returns, but you just brush off the idea because you feel like you don’t know enough about taxes to even try? You don’t need to study for hours on end to be an expert on taxes before you can reap the benefits. Your trusted financial advisors at Maggi Tax want to show you two simple strategies that can help you maximize your taxes!

Become Tax-Free With A Roth Conversion

One of the most common ways to save on taxes is by circumventing the need for them when it comes to your retirement accounts. But aren’t taxes something that just happens when you make an income? 401(k)s are usually the go-to method of collecting retirement funds, but a Roth conversion could be a better option for you.

Learn more > 401(k) vs Roth IRAs Compared

What Is A Roth Conversion?

A Roth conversion simply involves transferring your retirement accounts into a Roth IRA. This applies whether you have a 401(k) or a regular IRA because the basic idea is to take a tax-deferred account, extract all of your funds, and move it into a tax-free Roth IRA. Even if you have to pay a fee or leftover taxes in order to accomplish this, you will still be saving money in the long term by excluding the tax process in the future.

What Happens After?

The way Roth IRAs work is that the contributions that you make are already adjusted to account for taxes. So instead of paying taxes by the time you wish to take out your retirement funds, your Roth IRA will already be set for you to collect without needing to pay taxes. This is especially useful considering that the percentage for taxes will only increase as time moves on, and if you continue to make the same amount of contributions, you could see incredible losses.

A Small Warning About Roth Conversions!
An important thing to note about Roth conversions is that you will not be able to access your funds until five years after you’ve made the switch. This is just another reason why it’s better to do this sooner than later! If you need help, you can always contact your reliable financial advisors at Maggi Tax.

Turn Your Losses Into A Win With Tax-Loss Harvesting

Another proven way to maximize your taxes is through tax-loss harvesting. This method may sound risky at first, but it’s worth it once you know how to pull it off.

What Is Tax-Loss Harvesting?

Selling your investments at a loss has probably never even crossed your mind. If the entire purpose of investing is to make a profit, then why would you? That way of thinking is precisely why many individuals feel skeptical about tax-loss harvesting, but it’s the tax aspect that you need to consider.

Normally, you would need to pay taxes at a high rate for short-term capital gains. But if you simultaneously sell your other securities at a loss, that will offset the amount of taxes that you would need to owe.

Do People Really Use This Strategy?

Believe it or not, many investors use tax-loss harvesting to effectively maximize their taxes. And by selling their securities at a loss, they will turn that money around and put it towards a new and better investment. Managing your investments this way looks great on your portfolio by the end of the tax year!

Not Sure Where To Start? Play It Safe And Hire Maggi Tax!

These strategies may work, but they can also feel intimidating if you don’t have a clear direction. In that case, contact Maggi Tax today at (727) 799-1701 for professional financial advice near you! We’ll get you started with a complimentary consultation before discussing the best tax strategies and preparation plans for you.

Graduating from college and venturing out into the “real world” is a huge yet exciting step for countless young adults, but many of them aren’t prepared for what comes next. A single misstep is all it takes for things to start crumbling apart, but Maggi Tax is here to give you the tools you need to prevent that from happening. Read on for useful tips when it comes to managing your finances as a recent college grad!

Painting The Hardships Of A Recent Graduate

Picture a recent college graduate landing their dream job that makes use of their hard-earned degree. Moving out of the parent’s house into an apartment, getting take-out every single night, and simply going with the flow. However, rising inflation and low wages barely make it possible to stay afloat while avoiding making that awkward phone call announcing having to come back home. If this sounds like you, then you need to reconsider your finances. Money doesn’t have to feel tight when you know how to manage it properly.

Ways To Prepare Your Finances After Graduation:

Ideally, recent grads should figure out their financial plan long before they graduate (if possible). At the very least, knowing what to do as soon as you land a job can help you keep your head well above water for comfortable living. Take a look at these helpful tips for managing your finances:

1. Find Your Budget Sooner Than Later

It’s easy to get caught up in the excitement of being independent and overspending with your newfound income. This is how the financial decline usually starts, and hitting rock bottom can happen over the course of a few months or even overnight. Find your budget by sorting out your needs and wants and setting idealistic limits for both. It also always helps to have an emergency fund set aside.

Don’t forget to factor in taxes! When planning out a precise budget, many people forget to account for the cost of taxes and end up in the red because of their oversight. Be sure to plan accordingly!

2. Start Saving For Retirement (No, It’s Not Too Early)

You might feel like you have all the time in the world to begin retirement planning, but every day you spend not having an account in place is another dollar (or more) that you’re missing out on. When done right, retirement funds are meant to snowball by using the amount that you put in and investing it where it will grow. This means that the earlier you start saving, the more you could receive when it comes time to collect.

3. Protect Your Credit At All Cost

When recent grads overspend because they haven’t set a financial budget, that’s usually when they resort to signing up for credit cards. Opening a credit line can help your credit when used responsibly, but it’s important to tread carefully. Damaging your credit with a missed payment or too many hard inquiries can make it difficult to secure a loan when you want to start looking for a car or a house.

4. Learn From Your Mistakes

Let’s be realistic. Everyone makes mistakes, especially those who are new to managing finances. The important thing is to not be too hard on yourself when things don’t go as planned. We’re all learning, so take it as an invaluable experience and use it to be better next time!

Get Expert Advice From Financial Advisors Near You!

Are you a recent college grad in need of a solid financial plan? Let Maggi Tax help you find a budget that works best for you! We can assist you with budgeting, taxes, and retirement funds so you can be set in all aspects of your new after-college journey! Call (727) 799-1701 to schedule your complimentary consultation.

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St. Petersburg, FL 33713

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