The millennial generation is building tech companies and running multi-million dollar enterprises. It makes sense that this success is due to smart management of almost every aspect in life. However, some millennials aren’t managing their money as properly as they could be. As tax season arrives every year, it’s time to take a close look at the top money tips for millennials. Your finances can shine brightly with a few changes to your saving-and-spending strategies.
5. Make a List
Take some time out to sit down and make a list of your personal tasks. Going to school, making charitable donations and investing in startups can all be used as tax credits. One year is a long time to remember every detail so making a list throughout the months is beneficial. You’ll have a reminder and proof that the activity took place for the federal government’s benefit.
4. Save and Save Some More
If you receive a refund on your tax return, don’t think of it as money to spend. Save it for your emergency fund or pay down those student loans. Ideally, you want the money to work for you so saving is always the best choice.
3. Don’t Overlook Retirement
Many employers match the percentage of money that you put into your 401(k) or retirement account. Take advantage of this perk because it’s literally free money. It’s preferable to increase your retirement savings by one percent each year anyway. At the very least, keep up with the minimum percentage offered by your employer. Who wouldn’t want to retire early?!
2. Education Perks Abound
Whether you’re currently going to school or just completed college, there are considerable tax benefits surrounding education. Read up on the various credits offered by the federal government or state. It’s possible to write off student-loan interest so that your tax bill is much lower than before.
1. Be On Time
Every financial commitment has a deadline. From paying the electricity bill to filing your taxes, simply be on time with each transaction. Late fees accumulate and your credit history suffers when you don’t pay attention to due dates. You’ll have more money in your pocket as a result.
Taxpayers are constantly questioning their tax returns, which leads to mistakes or overlooked credits. Take your time with the tax forms each year, and thoroughly vet your lifestyle. Some of the simplest part of life have a credit associated with them. By being smart about your taxes, your financial situation will improve with each passing year.
David Milberg is a financial analyst in NYC with nearly 3 decades of experience in the finance industry. He is a long-time owner of Milberg Factors, a factoring and finance company with locations in New York, California, and North Carolina.