Planning for the year ahead both financially and just in general is not always a task that comes easily. We have identified a number of tips and factors for you to take into consideration when planning for your year ahead.
• Budget, budget, budget! – even if it is just a rough one
• Develop folders and/or a filing system for slips and any important documentation if you haven’t already
Why is planning in advance or planning at all important you may ask?
Well, there are a number of benefits that come with planning your year in advance. Firstly, you are decreasing your financial risk. By planning your yearly budget you are less likely to splurge on too many spur of the moment type items. Secondly, it enables room for focus and priorities. Without putting some sort of plan in place, people tend to get caught up in activities that have become the norm without focusing on things that are of more importance. Lastly, it makes for a pleasant Tax Return season. By planning ahead and implementing a personal filing system you are saving yourself a lot of stress and allowing for peace of mind throughout the financial year ahead.
So, budget for the year ahead!
Create a financial plan and budget for 2016 and set yourself some personal financial goals that you can strive to reach throughout the year. Remember, this budget does not need to be an exact one, it can be done in such a way as to allow you to update it as the financial year progresses. Don’t forget to account for recreational activities and savings in case of emergency.
Alongside this, we know that tax season can be daunting and stressful which is where planning for your financial year comes in handy.
If you haven’t done so yet, try to begin planning in November or December of the previous year. Develop your own filing system for Tax purposes whereby your slips are categorised – whether it be by folder or colour – and filed at the end of each month. Remember to set aside time at the end of each month to conduct some personal filing and if this takes up too much time try to keep on track with your filing throughout the year.
Small planning instances such as the ones mentioned above can have a great positive effect on your year as they will allow for some guidance and direction so that you do not feel as though you are losing your mind as well as provide you with a stress-free sense of self.
We cannot stress the importance of planning in advance! If you need any help or assistance with your Accounting and Tax requirements, visit the DATC website today.