By Michelle Wilson, wellness program manager
Tax season: time for a financial well-being checkup
Tax season is here and for many of us, this can bring up challenging feelings. We may realize that our finances were tighter than usual in this past year during the pandemic, or we may owe taxes and not know how we will pay them. We may also be looking toward the coming year wondering what it will bring for us financially. No matter where your finances are at this moment, it is a good time to do a checkup on your budget and set goals for your financial well-being.
Here are a few tips for planning for the coming year:
Do you have a monthly budget? Do you use it?
If you don’t have a monthly budget, create one to help you stay on track. Write down all the expenses you know you will have each month, remembering to add things like prescriptions, gas, groceries, and extra things that come up each month. Write down your income from all sources each month, including support you may receive from sources such as child support, government assistance, or side jobs. If your expenses are higher than your income, look for ways to increase your income or lower your expenses. Ask for support if you need it.
Try to put aside money for the future.
As soon as you can, start putting money into an account for retirement. Your employer may have a plan that you can use, or you can open your own account. Look up options on the internet for starting your own retirement account or talk with someone at your bank. It is also important to have some money set aside for unexpected costs that may come up, such as car repairs or medical expenses. Set some money aside each month in an account where you can access it quickly if you need it, and if you have to use it, pay it back as soon as you are able.
Think about what you value when you decide how to budget and spend money.
We are all different, and we all want and need different things to be healthy and happy. What is important to you and what brings you happiness? As you create your budget and make decisions about how to spend money, choose things that bring you the most joy and save money by not spending on things that are unnecessary. Watch where you spend money on things that you don’t need to buy and save that money for things that bring you joy. Keep track of how you spend your money each month and make changes when you see yourself spending too much in areas that are unnecessary.
Visit our wellness page for videos, audios, and other resources on this topic and other ways to stay healthy: www.laclinicahealth.org/wellness.
Tip: Watch this short video by Ed Smith-Burns, our community partnership director, on how to create and use a monthly budget: Financial Wellness: Creating a Budget – YouTube