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During periods of high inflation, making money in I-bonds was easy. Now bondholders are sobering up during tax season. Series I Savings Bonds have been a popular investment during periods of high inflation, for people seeking a safe and reliable way to grow their savings. However, when it comes to tax season, many bondholders find themselves in the dark about the intricacies of reporting and paying taxes on their Series I bonds. Understanding Series I Bonds Issued by the U.S. Department of the Treasury, Series I bonds (also known as I-bonds) provide a low-risk investment option with inflation protection. Series I bonds accrue interest based on a fixed rate and an inflation rate, ensuring that your investment keeps pace with rising prices. Leveraging tax-deferred growth One of the key advantages of Series I bonds is that the interest earned is tax-deferred at the federal level. This means that you don't have to report or pay taxes on the interest until you redeem the bonds. While this feature provides a tax advantage during the holding period, it's essential to understand the implications when it comes time to cash in your bonds. Options for paying taxes on Series I bonds Report Annually: Interest on I bonds is exempt from state and local taxes but taxed at the federal level at ordinary income-tax rates. You can pay taxes every year on the interest instead of waiting until you cash out, but that can be a headache, especially since TreasuryDirect does not send 1099s. This method allows for a consistent reporting schedule. You only pay taxes on the interest you've received, which can be advantageous if you redeem the bonds over multiple years; however you may potentially have a higher tax liability in a single year if you redeem a significant amount of bonds. Hold Until Maturity (30 Years): You can hold your Series I bonds until they reach their 30-year maturity date, at which point they stop earning interest. You then report the interest income on your Form 1040 for the year the bonds mature. The advantage to this method is that you defer tax payments until maturity, potentially allowing for lower tax rates in the future. However, you may also end up a surprise tax liability by deferring for 30-years, if you don't keep an eye on how much interest you owe. Use Bonds for Qualifying Educational Expenses: You can redeem Series I bonds and use the proceeds to pay for qualified educational expenses, such as tuition and fees. The greatest advantage to this is that the interest is tax-free when used for qualified education expenses. For many people, this provides a practical way to offset education costs. The bottom line Understanding your options when it comes to paying taxes on Series I bonds is crucial for optimizing your finances. Whether you choose to report your bonds annually, hold until maturity, or utilize them for education expenses, being informed enables you to make decisions aligned with your financial goals. Remember to consult with a tax professional to ensure compliance with the latest tax regulations and to make the most of your Series I bonds while minimizing tax implications.

How to implement best practices when renting to friends and family Renting your home or apartment can be a great way to make extra income or cover expenses while investing in another property. Whether you’re a long-time landlord or new to property management, finding the right tenants is key to the rental process. Renting to friends or family may be a dependable way of finding trustworthy tenants--but you need to be confident this won’t complicate your relationship. Here’s what to know before handing over a lease to friends and family--no matter how close they are. What to consider when renting to friends and family The decision to rent to friends and family is not one to be taken lightly. Remember, you’re still a landlord, at the end of the day. Although your new tenant may be a loved one, it's key to consider the following: Is your friend or family member disorganized and forgetful? Is your friend or family member reliable? Can you trust them to maintain your property and not cause damage during their stay? Is your friend or family member in healthy financial standing? Additionally, it's easy to skip some of the legal tasks because you're renting to a loved one, but remember to always do the following: Maintain professionalism when discussing the rental agreement Conduct a credit and background check Agree upon key terms of a lease agreement, deadlines for rent payments, and other key rules for living on property Treat overdue payments or breaches of contract like you would any tenant Ensure that your tenants apply for renters' insurance and receive the appropriate coverage, in case of damages The pros in renting to family members and friends There are many pros to renting to a friend or family. In many cases, living with a loved one can provide a built-in support system; and having someone familiar to share your living space with can contribute to a more comfortable and enjoyable atmosphere. Below are additional reasons to consider renting to family members or friends: Helping a friend or family member in need: If your loved one is in a bind, looking for a place to live and you have an available property, why not help them out? You can potentially help support a friend or family member, by providing them a safe and secure place to live Established trust and compatibility: Since you know your tenant's background, you can lower your risks by renting the space out to them, rather than someone you're unfamiliar with Lessen the time and money to find a tenant: You don’t have to advertise the space and put extra effort into finding a tenant, including interviewing potential candidates and touring the space. Sharing the cost of a home: Renting with a friend can make the financial burden more manageable, especially if you're also living in the home. Splitting rent, utilities, and other household expenses can lead to significant cost savings for both parties. The cons in renting to family members and friends Renting to loved ones might seem like a win-win situation, but there are several drawback to consider. Unfortunately, sometimes friends or family members make terrible tenants; and allowing them to move in can end up costing you more than necessary in the long run. Below are important drawbacks to consider: Taking advantage of your generosity: Your friend or family member may use your relationship as a way to take advantage of your agreement. For example, they may start looking for a discount or extension after a few months. Late rent payments or property damage can have financial implications and strain your relationship. Blurring professionalism and boundaries: Renting to family or friends may blur professional boundaries, making it challenging to address issues objectively. Maintaining a professional approach to responsibilities and conflicts becomes crucial in such situations. For example, a relative might think that calling you at 3 a.m. about a leak is appropriate, whereas a stranger would likely never do such a thing. Risking a close and important relationship: If anything goes wrong, it could affect your relationship. Mixing business with friendship can sometimes strain the relationship. Conflicts about bills, chores, or other living arrangements may affect your relationship if not handled carefully. The bottom line If you set the right boundaries and know someone you can trust, renting to friends or family can be a great experience. It's crucial to approach the decision with open communication, clearly defined expectations, and a realistic understanding of the potential risks. While renting to family and friends can be a win-win situation, both parties must be willing to navigate challenges professionally to maintain a healthy friendship and living arrangement. Remember, careful consideration and communication are key when deciding whether to rent to a friend.

How a financial education can save you money in the long-run Having a solid understanding of personal finance is crucial for saving for retirement. Unfortunately, many people overlook financial education, often leading many to poor money management decisions and missed opportunities for savings. In fact, there is a lifetime benefit of roughly $100,000 per high school student from completing a one-semester course in personal finance, according to a recent report by consulting firm Tyton Partners and Next Gen Personal Finance, a nonprofit focused on providing financial education to middle and high school students. According to Tim Ranzetta, co-founder and CEO of Next Gen, much of that financial value is comes from avoiding high-interest credit card debt and having better credit scores to get preferential borrowing rates for key expenses, such as loans and home mortgages. “You can’t play the money game if you don’t know the rules” Christopher Jackson, who teaches a personal finance course to seniors at Da Vinci Communications high school, a socioeconomically and racially diverse public charter school in El Segundo, Calif., said he found that students were enthusiastic about saving in Roth individual retirement accounts once they understood the concept of compound interest and how investments grow over time. He advises them to open Roth I.R.A.s at 18, rather than waiting until they graduate from college and start a career. One of his students has already saved $14,000, he said. “You can’t play the money game if you don’t know the rules,” Mr. Jackson said. “I teach them the rules of the game.” Students with a financial literacy course under their belt have better average credit scores and lower debt delinquency rates as young adults, according to data from the Financial Industry Regulatory Authority’s Investor Education Foundation, which seeks to promote financial education. A report by the Brookings Institution also found that teenage financial literacy is positively correlated with asset accumulation and net worth by age 25. How financially literate are Americans in general? American adults have shown a “generally poor” level of financial literacy, according to the 2023 Personal Financial Index report from the TIAA Institute and the Global Financial Literacy Excellence Center. On average, adults correctly answered about half of the index’s 28 questions in 2023, consistent with the results since 2017. Americans struggle particularly with understanding risk, the report said. Improving financial literacy is important, the report said, because people with a very low level of financial savvy are more than four times as likely as those with a very high level to have difficulty making ends meet in a typical month. The bottom line Investing time and effort into financial education is an investment in your financial well-being. By learning budgeting, understanding credit, making informed investment decisions, managing debt effectively, and building a robust emergency fund, you can save substantial amounts of money over time. Take the initiative to educate yourself financially, and watch as your knowledge transforms your net worth.

Savory Savings: Expert Tips to Cut Costs on Dining and Takeout It's no secret that dining out and ordering takeout can quickly drain your wallet. According to the Bureau of Labor Statistics, the average American household spends about $3,600 a year dining out. Even as inflation eases, U.S. Department of Labor data shows prices at restaurants and other eateries were up 5.1% last month compared with January 2023. Restaurant and food company executives also say they are still struggling with rising labor and ingredient costs, which are only getting more expensive. “If you look historically after periods of inflation, there’s really no period you could point to where [food] prices go back down,” said Steve Cahillane, chief executive of snack giant Kellanova, in an interview. What’s a reasonable food budget? Determining a reasonable food budget depends on various factors, including your income, lifestyle, family size, dietary preferences, and where you live. However, a commonly recommended guideline is the 10-15% rule. This suggests that you should allocate 10-15% of your monthly income towards groceries and dining out combined. Below is a common breakdown for most households: Groceries (5-10%): Aim to spend 5-10% of your monthly income on groceries. This includes all the food items you purchase for cooking at home. Planning meals, buying in bulk, and taking advantage of sales can help you stay within this range. Dining Out/Takeout (5%): Allocate an additional 5% for dining out or ordering takeout. This provides room for occasional meals at restaurants or the convenience of takeout without overspending. It's important to note that these percentages are general guidelines, and your actual spending may vary based on your individual circumstances. For example, if you have dietary restrictions or preferences that lead to higher grocery costs, you might need to adjust your budget accordingly. Additionally, consider factors such as where you live, your cost of living, and your food prices can significantly impact your budget. Keep track of your spending, review your budget periodically, and make adjustments as needed to ensure that it aligns with your financial goals and priorities. What are ways to save on dining out and take-out? With a strategic approach and a dash of creativity, you can savor delicious meals without breaking the bank. Below are expert tips to help you save money on dining out and takeout without compromising on taste: Explore Daily Specials and Happy Hours: Many restaurants offer daily specials and happy hour discounts, providing an excellent opportunity to enjoy your favorite dishes at a fraction of the regular cost. Check out the timings and offerings of these promotions to plan your meals strategically. Loyalty Programs and Apps: Take advantage of loyalty programs and mobile apps offered by your favorite restaurants. Many establishments reward frequent customers with discounts, free items, or exclusive deals. Downloading restaurant apps can also unlock app-only discounts and promotions. Subscribe to Newsletters: Subscribe to newsletters from your preferred restaurants and delivery services. They often send out exclusive deals, promo codes, and special offers to their subscribers. By staying in the loop, you can seize opportunities to save on your next meal. BYOB (Bring Your Own Beverage): Opting for restaurants that allow you to bring your own alcohol can significantly reduce your bill. Check the establishment's policy beforehand and enjoy your favorite drinks without the hefty markup often associated with restaurant beverages. Utilize Cashback and Reward Credit Cards: Paying with cashback or reward credit cards can earn you significant discounts or cashback on your dining expenses. Look for credit cards that offer bonus rewards for restaurant spending and watch the savings accumulate. Share Entrees and Appetizers: Portion sizes at many restaurants are generous. Instead of ordering individual entrees, consider sharing with a dining companion. This not only saves money but also reduces food waste. Dine During Off-Peak Hours: Timing is everything. Dining during off-peak hours often comes with lower prices and faster service. Book your next date for lunch at a place that may offer special lunch menus or early bird discounts, providing a budget-friendly dining experience. Cook at Home with Friends: Recreate your favorite restaurant dishes at home by experimenting with recipes. Not only does this allow you to learn new recipes and level-up your cooking, but it's also a cost-effective way to enjoy restaurant-style cuisine without the restaurant price tag. Compare Prices and Reviews: Before placing a takeout order, explore multiple platforms and compare prices. Additionally, read reviews to ensure you're getting value for your money. Sometimes, the same dish may be priced differently on different platforms. Take Advantage of Group Discounts: Coordinate dining plans with friends or family to take advantage of group discounts. Many restaurants offer special deals for larger parties, making it a win-win for everyone. The bottom line With a bit of savvy planning and a willingness to explore different options, you can savor the joy of dining out and takeout without emptying your pockets. By incorporating these expert tips, you'll find that enjoying great food doesn't have to come at a premium price. Bon appétit!

New year, new you: Are you improving your finances in the upcoming year? According to a recent survey from Fidelity Investments, 66% of those consumers surveyed are setting financial resolutions for a better 2024. Among Millennials and Gen-Zers, the number is even higher at 75%. Whether you're aiming to save more, invest wisely, or reduce debt, setting financial resolutions can pave the way for better financial habits. Below are five resolutions and tools that can help you improve your finances in 2024. 1. Upgrade Your Savings Account If you still have your savings stored at a traditional bank, consider moving a large portion of your funds to a high-yield savings account. Our top picks are Goldman Sachs Marcus and the Capital One Performance 360 accounts, but it's easy to explore rates at other providers. Rates have soared in recent years, with some banks offering APYs of 5% or more. Given that most traditional banks only offer 0.46% on average, keeping the bulk of your cash in their accounts is a missed opportunity to leverage higher rates of compounding interest. Already have a high-yield account? Consider a certificate of deposit, or CD, for funds you won’t need in the short-term. With the Federal Reserve poised to lower rates next year, CDs are a great way to lock in today’s high interest rates. “The top-yielding savings accounts, money market accounts, and CDs are earning well more than the current rate of inflation, and this is likely to persist in 2024,” says Bankrate Chief Financial Analyst Greg McBride. “Interest rates will probably come down a bit, but so too will inflation. The yields you lock in today will look even better as inflation ticks lower during the year.” One of the fundamental steps towards financial well-being is creating a budget. This resolution involves taking a close look at your income, expenses, and financial goals. Begin by categorizing your spending, distinguishing between necessities and discretionary expenses. Use online budgeting tools or apps to help you track your money more efficiently. Having a realistic budget not only helps you manage your day-to-day expenses but also allows for strategic planning toward your financial objectives. 2. Tackle High-Interest Debt High-interest debt, such as credit card balances and student loans, can be a significant obstacle to saving and investing for the long-term. Start by identifying the debts with the highest interest rates and focus on paying them off first. Consider consolidating debts or negotiating with creditors for lower interest rates. Make it a priority to reduce and eliminate high-interest debt in the new year. 3. Diversify Your Portfolio Investing is a one of the best ways to grow your wealth. Whether you're a seasoned investor or a novice, make a resolution to review and optimize your investment strategy in the coming year. Diversify your portfolio, consider long-term investment options, and take advantage of tax-advantaged accounts, such as IRAs and 401(k)s. If you're unsure where to start, consult with a financial advisor to create a personalized investment plan aligned with your financial goals. 4. Lower Your Insurance Costs Insurance costs have skyrocketed across the board. Homeowners insurance costs increased by nearly 11% between 2021 and 2022, according to S&P Global. While the cost of auto insurance soared 17.8% from July 2022 to July 2023, according the U.S. government's consumer price index. Getting quotes from new insurers can lower costs, as can reducing your coverage, selecting a higher deductible or leveraging discounts. Insurance providers may offer discounts if you bundle multiple policies, such as auto and home insurance. 5. Improve Your Financial Literacy Financial literacy is key to making informed decisions about your money. Commit to enhancing your financial knowledge in the new year. Read books, attend workshops, and follow reputable financial resources to stay updated on economic trends and investment opportunities. The more you understand about personal finance, the better equipped you'll be to make sound financial decisions that align with your goals.

How to leverage Lunar New Year traditions to create prosperity, wealth, success, and happiness during the New Year As the Lunar New Year approaches, it's not only a time for joyous celebrations but also an opportune moment to kickstart your finances. Here are some savvy strategies to usher in prosperity and financial abundance during the Lunar New Year: 1. Embrace the spirit of cleaning and decluttering during Lunar New Year: Apply the same principle to your finances by reviewing and organizing your budget. Clear clutter, organize your financial documents, and start prepping for the upcoming tax season. 2. Bring in Prosperity with New Income Streams: The Lunar New Year is a symbol of new beginnings. Consider exploring additional income streams such as freelancing, online gigs, or investing in side projects. Leverage the flexibility of the gig economy by participating in platforms that match your skills. Whether it's freelancing, ride-sharing, or selling handmade crafts online, these opportunities can boost your income. Diversifying your sources of income can bring in extra prosperity. 3. Leverage the number "8" for good luck: The number "8" is considered lucky in Chinese culture, because the word for the number eight is "ba" (八), which sounds similar to the word for wealth or prosperity, pronounced as "fa" (发). Leverage the luck behind the number "8" and consider setting an automatic deposit of $8/day for the rest of the year into an Acorns or Betterment account. 4. Celebrate Mindfully with Budgets: While celebrations are essential, be mindful of your expenses during the festive season. Set a budget for gifts, feasts, and other festivities, ensuring that you enjoy the festivities without compromising your financial goals. 5. Honor Your Family through Your Finances: Family plays a central role in the Lunar New Year celebrations, symbolizing unity, love, and the continuation of traditions. The festive season provides an opportunity for generations to connect, express gratitude, and reflect on the past while looking forward to the future. Incorporate the idea of unity and family ties into your financial planning; consider pooling resources for joint investments or setting financial goals together. 6. Build a Legacy through Estate Planning: Draw inspiration from the tradition of honoring ancestors; and consider leaving a financial legacy through proper estate planning and wealth transfer strategies. If you don't know where to start, consider sitting down with family to learn how to deepen your financial literacy together. 7. Give Yourself a "Red Envelope": Just as families exchange red envelopes for good luck, consider creating a "financial red envelope" where you allocate a portion of your income to savings or investments. This can be a sinking fund for a down payment on a home, a wedding, or for a lavish trip. Consider it a "red envelope" that will bring you luck and prosperity in the future. 8. Reflect on Your Journey: The Lunar New Year often serves as a time for reflection. Spend time thinking about your personal and professional growth, express gratitude for positive aspects of their lives, and consider areas for improvement. Additionally, the Lunar New Year is seen as a time of renewal and fresh beginnings. Set new goals, make resolutions, and plan for the upcoming year based on insights gained from those reflections. It's a holistic approach to welcoming the new year, combining a sense of gratitude for the past with an optimistic outlook for the future. Conclusion As you celebrate the Lunar New Year, seize the opportunity to revitalize your finances. By combining traditional wisdom with modern financial strategies, you can embark on a journey of prosperity and abundance throughout the year ahead. May your finances flourish like the blooming flowers of spring!

Juggling school and work can be stressful, but manageable with the right tips and processes For people who are going back to school to start or finish a degree, quitting their job is often not an option. With family responsibilities on top of a school bill, many people need to keep working in order to keep the lights on. Which begs the question: Is it worth it to work while also juggling school? Yes, it can be, but you are going to need the right time management and prioritization to make it work. Below are practical tips to help you manage your day effectively and balance your career and academics: 1. Create a Realistic Schedule: Establish a weekly schedule that includes dedicated time for work, classes, studying, and personal activities. Use productivity tools and apps to help manage your time efficiently and set reminders for important tasks. 2. Choose Flexible Work and Study Options: Look for employers who offer flexible work hours or remote work options to accommodate your class schedule. Consider online courses or evening classes to create a schedule that aligns with your work commitments. 3. Effective Time Management: Prioritize tasks based on deadlines and importance; and break down large assignments into smaller, more manageable tasks to avoid feeling overwhelmed. 4. Open Communication with Employers and Professors: Great communication goes a long way. Inform your employer about your academic commitments and discuss any potential challenges or adjustments needed. Establish open communication with professors and don't hesitate to seek guidance or discuss challenges in balancing work and school. 5. Utilize Support Services: Take advantage of support services offered by your college, such as tutoring, counseling, and career guidance. Seek mentorship from professionals who have successfully balanced work and college. 6. Set Realistic Goals: Clearly define your short-term and long-term goals for both your career and education; and adjust your goals as needed, considering the demands of your work and academic responsibilities. 7. Effective Study Techniques: Identify study techniques that work best for you, whether it's group study sessions, flashcards, or online resources. Break your study sessions into focused intervals with short breaks to maintain concentration. 8. Take Care of Your Well-Being: Prioritize self-care to avoid burnout. Ensure you get enough sleep, exercise, and relaxation time. Maintain a healthy diet to support your energy levels and cognitive function. 9. Create a Financial Plan: Plan your budget carefully to account for tuition, textbooks, and living expenses. Explore financial aid options, scholarships, and employer-sponsored education programs. 10. Prepare to be Adaptable and Flexible: Be prepared to adapt your schedule and plans as needed. Develop resilience and the ability to handle unexpected challenges that may arise. The bottom line Navigating the dual responsibilities of college and full-time work requires careful planning, effective time management, and a resilient mindset. While it might not be easy, these time management tips might help you feel more organized and achieve your goals.

From debt collection to employment fraud to cryptocurrency, scams are increasingly sophisticated and harder to discern as fake As of late, financial scams have become more prevalent. Protecting yourself from falling victim to scams is crucial for safeguarding your hard-earned money. Below we'll explore common financial scams, provide tips on how to spot them, and offer practical advice on protecting yourself from these fraudulent activities. What are the most common financial scams? You may find scams compromising your financial accounts unnerving, but understanding the types of scams out there can prevent you from giving up important information to fraudsters. Below are several common schemes: Phishing Emails: Scammers often send deceptive emails that appear to be from legitimate financial institutions, urging recipients to click on fraudulent links or provide sensitive information. Impersonation Scams: Fraudsters may pose as representatives from reputable organizations, financial institutions, and even family members. Under this scheme, scammers seek personal or financial information under false pretenses. Investment Scams: Unscrupulous scammers may promote fake investment opportunities, promising high returns with little risk. Ponzi schemes and pyramid schemes fall under this category. Identity Theft: Criminals may steal personal information to commit identity theft, opening fraudulent accounts or making unauthorized transactions in the victim's name. Tech Support Scams: Scammers may call or email, claiming to be tech support representatives. They then convince victims to grant remote access to their devices or pay for unnecessary services. How do you spot financial scams? Although some scams are difficult to immediately spot, below are some best practices to safeguard your confidential information and finances: Be Skeptical of Unsolicited Communications: Legitimate financial institutions rarely contact customers via unsolicited emails, calls, or messages. Be wary of unexpected communication requesting personal or financial information. Verify Sender Information: Check the sender's email address or contact details. Scammers often use email addresses that mimic legitimate institutions but contain subtle misspellings or variations. Research Investment Opportunities: Thoroughly research any investment opportunity before committing funds. Verify the legitimacy of the company and seek independent reviews from reputable sources. Protect Personal Information: Avoid sharing sensitive information, such as Social Security numbers or account details, unless absolutely necessary. Legitimate entities will not request this information through unsolicited communications. Stay Informed about Scam Tactics: Stay updated on common scam tactics. Knowledge is your first line of defense against evolving fraudulent schemes. Educate family and friends. Awareness is crucial in preventing financial fraud. Use Two-Factor Authentication (2FA): Enable 2FA on your online accounts to add an extra layer of security, making it difficult for scammers to gain unauthorized access. Regularly Monitor Your Accounts:Keep a close eye on your bank and credit card statements. Report any suspicious activity immediately to your financial institution. Install Reliable Security Software: Use reputable antivirus and anti-malware software to protect your devices from malicious software that scammers may use. The bottom line Safeguarding your finances from scams requires awareness and education. By staying informed, adopting security practices, and being cautious about unsolicited communications, you can significantly reduce the risk of falling victim to financial fraud. Prioritize your financial well-being by implementing these protective measures and staying one step ahead of scammers.

Many taxpayers wait until the last minute to file their federal income tax returns; but there are many reasons to prep for your taxes early. The mention of tax season might induce a sense of dread for many, but tackling your returns early might be the key to a stress-free tax season. Instead of waiting until April to start your taxes, consider starting the prep work now. Why Start Early? Preparing your tax return early can prevent last minute problems, and avoid needing a tax preparer to sort your finances and complete your return on time. Here are our top five reasons why to start getting ready for your taxes sooner rather than later: Avoid the Last-Minute Rush: By starting early, you eliminate the pressure of scrambling to gather documents and complete forms at the last minute. Early preparation allows you to address any unexpected complications or missing information without the stress of impending deadlines. Maximize Deductions and Credits: Starting early provides ample time to review potential deductions and credits that can lower your tax liability. You may uncover overlooked opportunities for savings that could have been missed in a rushed approach. Organize Financial Documents: Early preparation allows you to organize and categorize your financial documents, ensuring that nothing is overlooked. You can create a system for tracking income, expenses, and receipts throughout the year, making tax time a breeze. Identify and Resolve Issues: Address any discrepancies or issues in your financial records well in advance. Early detection of errors gives you the opportunity to rectify problems and avoid complications with tax filings. Plan for Tax Payments: Knowing your tax liability early on allows you to plan for payments and avoid any surprises. Explore payment options and consider setting aside funds to cover your tax obligations. Helpful To-Dos for Early Tax Preparation: Need a place to start? Below are some helpful to-dos to jumpstart your tax preparation: Gather Income Documents: Collect W-2s, 1099s, and other income-related documents from employers and financial institutions. Review and Update Personal Information: Ensure that your personal information, including your Social Security number and address, is up to date. Organize Receipts and Expenses: Categorize and organize receipts for deductible expenses, such as business expenses, charitable contributions, and medical expenses. Contribute to Retirement Accounts: Maximize contributions to retirement accounts before the end of the tax year to potentially reduce your taxable income. Explore Tax Credits and Deductions: Research available tax credits and deductions applicable to your situation. Consult with a tax professional to identify opportunities for savings. Check Your Withholding: Review your withholding to ensure it aligns with your tax liability. Adjust withholding if necessary to avoid overpaying or underpaying taxes. Consider Professional Help: If your financial situation is complex, consider consulting with a tax professional early in the process. Professional advice can help optimize your tax strategy and ensure compliance with tax laws. The bottom line Starting your tax preparation early not only reduces stress but also allows you to approach tax season with greater ease. By taking proactive steps, organizing your financial records, and exploring potential savings opportunities, you can navigate tax season smoothly and make the most of available deductions and credits.

Food prices rose 2.7% between December 2022 and December 2023, according to the most recent consumer price index (CPI) report The specter of inflation has loomed large in the U.S., but it's impact is keenly felt on the rising cost of groceries. From the staple essentials to indulgent treats, it seems like every item on our shopping list is sporting a higher price tag. Food prices rose 2.7% between December 2022 and December 2023, according to the most recent consumer price index (CPI) report from the Bureau of Labor Statistics. The CPI uses indexes to measure changes in average costs of items in a given period; and is often know as the "cost of living" index. There are specific indexes for these items, including food costs. Factors driving rampant inflation and rising food prices Inflation is a complex economic phenomenon that occurs when the general price level of goods and services in an economy rises over time. While it affects various sectors, one of the most immediate and noticeable impacts is on consumer goods, particularly groceries. Here are some factors contributing to the recent increase in grocery prices: Supply Chain Disruptions: Disruptions in the global supply chain, exacerbated by the COVID-19 pandemic, have led to shortages and increased transportation costs. These challenges trickle down to the consumer, resulting in higher prices for goods. Droughts and Wildfires: Droughts and wildfires in the western U.S. led to lower-than-average crop yields from farms, driving up consumer costs for food, according to NPR. Rising Production Costs: Farmers and manufacturers face escalating costs for labor, raw materials, and energy. These increased production costs are often passed on to consumers. Food production costs are estimated to increase 4.1% in 2023, according to the U.S. Department of Agriculture. The War in Ukraine: The war in Ukraine has impacted the country’s ability to export food. Known as the "breadbasket of Europe," Ukraine’s food exports have historically accounted for 9% of the global wheat market and 12% of the corn market, according to the USDA’s Foreign Agricultural Service. Tips to manage and lower your grocery bill Now that we've explored the reasons behind the grocery price hikes, let's focus on practical strategies to navigate these challenging times without breaking the bank. Create a Budget and Stick to It: Set a realistic monthly budget for groceries. Plan your meals in advance and create a shopping list to avoid impulse purchases. Embrace Meal Prepping: Plan your meals for the week to minimize food waste. Look for recipes that use common ingredients to maximize your grocery purchases. Explore Generic and Store Brands: Opt for generic or store brands, which are often more affordable than name brands. Compare prices and quality to find the best value for your money. Take Advantage of Sales and Discounts: Keep an eye on weekly flyers and promotional offers. Stock up on non-perishable items during sales to save money in the long run. Shop in Bulk: Purchase non-perishable items in bulk to benefit from lower unit prices; or consider joining a wholesale club for additional savings. Utilize Loyalty Programs and Coupons: Sign up for loyalty programs offered by grocery stores. Clip coupons or use digital coupon apps to access discounts on various products. Explore Alternative Shopping Options: Consider shopping at local farmers' markets or discount stores for budget-friendly options; or explore online grocery delivery services, comparing prices and promotions. The bottom line While inflation may be driving up grocery prices, adopting strategic and methodical shopping practices can help you navigate these economic challenges. By planning ahead, making informed choices, and taking advantage of discounts, you can manage and even lower your grocery bill. Remember, a well-thought-out approach to grocery shopping is not only cost-effective but also contributes to a more sustainable and efficient use of what you put into your cart.

Step aside, quiet luxury--there's a new money trend hitting the ground Remember the "quiet luxury" trend? Thanks to HBO's show Succession, "quiet luxury" had a huge moment. From Instagram posts to the pages of Vogue, there were tons of "quiet luxury" brands like The Row and Bottega Veneta splashed everywhere. These were investment pieces that fetched thousands of dollars for a silk shirt or polished neutral coat. Then, came "loud budgeting," which encourages people to publicly talk about their budgeting efforts and being open about trying not to overspend. Instead of peer pressure to overspend money to get the latest shoe or handbag, "loud budgeting" normalizes saying “no” to an expensive dinner or a pricey vacation. “It’s not ‘I don't have enough,’ it’s ‘I don’t want to spend,’” creator Lukas Battle put it in a TikTok video with over 1.4 million views. Or, as he said in another clip, it's “‘sorry, I can’t go out to dinner — I’ve got $7 a day to live on.’” How to get started with "loud budgeting" "Loud budgeting" means having an open and honest dialogue with friends and family about money. If a friend suggests spending money that isn't a priority for you, offer up an alternative solution to spending time together. Through "loud budgeting," you can make it clear this is not about them, but rather about you sticking to your goals. Here are some ways to decline a friend's offer, while providing transparency on why without hurting anyone's feelings: "I can't go to that concert--I'm saving for a trip to Greece, but I'm happy to hang out for drinks beforehand." "Sorry, that restaurant is a little out of my budget, but I can host a potluck at my place if you're interested." "With student loan payments resuming, I'm just a little more budget conscious with my spending this year." Be loud, be proud The more honest you are (aka the "louder" you are), the more likely you'll be able to skirt pressure to overspend. Even though talking about money is often taboo, "loud budgeting" pushes you and others around you to be open about it. Brian Ford, a Northwestern Mutual wealth management advisor, says, “Many people can identify with having to prioritize essentials like food and housing over disposable expenses, and loud budgeting is giving people a community where making those difficult-but-responsible choices can be celebrated."

Two-thirds of respondents in a recent survey plan to make a financial resolution for the new year. As the clock strikes midnight and we usher in a new year, improving finances often top the list for many Americans' resolutions. A recent survey by The Ascent found that 67% of Americans are making financial resolutions for 2024. Read on for a deeper dive into how Americans are thinking about financial goals, New Year's resolutions, and anticipated challenges in the upcoming year. 67% of Americans plan on making a financial resolution for the New Year Every January, countless Americans set their sights on improving their finances According to The Ascent, two-thirds of respondents to their survey plan to make a 2024 financial resolution for the new year. The most common New Year resolutions include: Pay off debt: For 22% of respondents, paying off debt is a key goal for 2024. If paying off debt is on your list, prioritize high-interest debts and explore consolidation options. Establish a repayment plan and consider negotiating with creditors for lower interest rates. Save for milestones: Approximately 16% of Americans are saving for a big milestone, like buying a home or having a baby. If you're saving for a near-term milestone, keep your funds in a high-yield savings account, which allows you to both earn interest and maintain liquidity Save for large purchases: While many Americans are saving for a specific milestone, 12% are saving for a larger-than-usual purchase, like a TV or phone. Before you splurge, review your upcoming finances and ensure that you don't have any anticipated home or car repairs, or high-interest debt payments. Boost income: 11% of respondents hope to increase their income in the upcoming year. If this is also one of your goals, you could put together a plan to set yourself up for a promotion; or pick up a side hustle with a flexible schedule. Build an emergency fund: 8% of respondents are focused on building an emergency fund. According to Bankrate’s Annual Emergency Fund Report, 57% of U.S. adults are currently unable to afford a $1,000 emergency expense. Check out one of our posts on how to save $400 to jumpstart your emergency fund. Millennials and Gen Z are most likely to make financial New Year's resolutions The Ascent's survey found that 82% of millennials and 74% of Gen Zers plan to set financial goals for the new year, compared to 69% of Gen Xers and just 49% of baby boomers. Inflation and interest rates are the greatest concerns for Americans in 2024 Although 71% of survey respondents were confident about keeping their New Year's resolutions, many still had worries about inflation and interest rates. 85% of respondents with a financial New Year's resolution think inflation will make it harder to keep their resolution 80% of respondents with a financial New Year's resolution think higher interest rates will make it harder to keep their resolution New year, new money goals As we step into the new year, take time to reflect on your financial goals from the last year and how you'd like to improve over the next 12 months. Focus on ways to maintain accountability. Regularly review your financial progress and adjust your strategies accordingly. Enlist an accountability partner, whether a friend, family member, or financial advisor, to provide support and guidance on your journey. By adopting a thoughtful and strategic approach, you can turn the new year into an opportunity to build lasting financial habits.