In life, there will always be instances when you will be caught off guard. And most emergencies have a financial bearing. It could be that you need cash to bail a loved one out of an emergency, or you might have lost your job and need some money to keep you going before you land another job. Irrespective of the crisis, you need to embrace the fact that financial emergencies can be tricky to deal with.
The best way to deal with a financial emergency is to have a plan to salvage the situation. Well, different people resort to different approaches when it comes to dealing with emergencies. But if you are currently facing a financial crisis and you do not have an idea of how to handle things, this article shares some tips to help you deal with the situation you are currently facing.
Understand the Nature of Your Problem
When you find yourself facing a financial emergency, the chances are that you might have some trouble figuring out what is happening. One of the main reasons why this happens is that emotions often tend to interfere with the way you deal with the situation. Therefore, the best way to handle a financial emergency is to stay calm and focus on the issue at hand. Once you are relaxed enough, it becomes a lot easy to identify the cause of your emergency. In most cases, it is after you get to the root cause of the matter that you can attack the problem.
Get a Loan
Financial emergencies are only solved by money. As such, getting a quick-fix loan from a moneylender could be a surefire way of solving your problems. The good thing about most moneylenders is that they are always willing to offer short-term financial aid without collateral. Banks might also help, but the wait time involved before you are approved for a loan can be too long.
As a tip, before going to a moneylender Singapore for a loan, you also need to ensure that you get a lender who has what it takes to bail you out. This means that you need to work with a licensed lender, and most importantly, one who is willing to offer you favorable loan terms.
Prepare for the Next Emergency
The journey to your second emergency commences right after you are done solving your first emergency. As such, it is advisable to have an emergency fund. This will prove to be worthwhile in case you find yourself in a financially difficult position in the future. Preparations are crucial to dealing with financial emergencies successfully.
As you know, it is quite important to file your taxes. Also, the tax refund is useful and if it is filed correctly, it can change your life. Thus, it is advisable to either file your tax returns or even request a tax extension. The following are vital tips to help you file your tax returns and ensure you do not suffer penalties.
Pay Taxes After Filing
There is a penalty for not paying your taxes. This can be about 1 percent per month of the total amount of tax debt. Also, IRS can charge you interest on the amount you owe them. If you fail to pay your taxes by the set deadline, you have options such as filing for an extension. In this case, you need to fill out the relevant form before the deadline which is usually set on April 15.
Another option you have is to pay the amount you can. Also, this should be done before the deadline to avoid suffering maximum penalties. It is advisable to pay your taxes using a credit card or setting up a schedule of payment with IRS. In this case, you will have money automatically withdrawn from the checking account.
Ask for Help
You should not be afraid to ask for assistance from someone to help prepare your tax returns. Nowadays, there are different companies out there that are helping people file tax returns. If you allow someone to access your tax information, then you need to fill out the Third Party Designee. The tax preparer can talk to IRS about any concerns or questions you might have about your returns.
It is unfortunate that most people forget to sign everything on their tax returns. When you sign your tax return, it means that you are declaring under the law that the information you have provided is accurate and true. You cannot cross out perjury statement and if you do, it will invoke a civil penalty. Moreover, your tax return cannot be accepted for processing. Other than the signature, the date of return must be the day you signed it. Also, telling the IRS your telephone number and occupation is optional.
Prepare Filing Your Taxes Early
If you realize that you owe IRS money, then you should increase your income tax withholding. This will prevent this from happening again. In this case, you should fill the relevant form and then give it to the employer.
Nowadays, there are thousands of people trading in regulated stock exchanges and are successful. You should note that a profitable outcome is not because of luck, but the application of simple principles that are derived from the experiences of millions of investors. Although intelligence is a great asset, you do not need to have superior IQ. Every person has the brain power required to follow and monitor stock markets. It is unfortunate that most people are looking for easy and quick ways to happiness and riches. The following are tips to be followed by beginner investors.
Set Long-Term Goals
Why do you want to invest in the stock market? Do you need your cash back? Do you want to save for retirement, buy a home, build an estate, or cater for future expenses? Before you start to invest, there is a need to know the purpose and the time in the future you want funds. If you want an investment that will generate profits in the coming few years, you should consider another investment. Remember that the stock market can be volatile and it does not provide any certainty that all your capital is available whenever you need it.
Understand Your Risk Tolerance
This is a psychological trait influenced by education, wealth, and income. It is about how you feel about the degree of anxiety and risk. Your perception of the risk affects your risk tolerance. This idea is quite important, particularly in investing. When you gain a lot of knowledge about the investments, you can make the right decision about your first purchase. Also, when you understand your risk tolerance, you can avoid investments that are likely to result in a loss.
Control Your Emotions
Failing to control your emotions and make logical decisions can be a huge obstacle towards your trading on the stock market. Remember that in the short-term, the prices reflect combined emotions of the investment community. For instance, if a lot of investors are worried about a given company, its stock price is likely to decline. When stock prices move control to your expectations create insecurity and tension. Before you purchase stock, you should have a good reason for doing so.
Handle the Basics
Before you invest, you should learn about the basics of the stock market and individual securities. Focus on individual securities, instead of the whole market.
You can quickly get a loan for your tax refund. This loan is offered by the tax preparation company you pick. These companies do not offer you a loan directly. Rather they partner with banks that can lend you income tax loans. After they receive the tax refund, part of the money goes to pay the loan. You will find these loans quite useful if you require cash immediately rather than waiting until you get your tax refund. Ideally, tax refunds are loans and can be advertised as not having any fees or interest, but it is advisable to read the details.
Tax Advance Refund
This can be defined as a short-term loan that is free to allow you to access your tax refund sooner. Ideally, the amount of money you get is based on the expected tax refund. You need to file your taxes by the same tax-prep company ahead of the refund deadline. Usually, you may get the money the same day or wait for 24 hours. However, some tax returns take quite long to review, and the money is sent within three weeks.
How to Qualify
If you are expecting to get a tax refund from IRS, then you can apply. Depending on the expected tax refund amount, there is a minimum loan amount to borrow. This ranges from $100 to $500, but it is dependent on the tax preparation company you choose.
Will It Cost You Money?
Most tax preparation companies will provide you with a tax loan without fees or interest. However, they are likely to charge the preparation feels to process the loan or file your taxes. Thus, such costs will reduce your expected tax refunds. There is free tax software that can help you file taxes online. Moreover, your tax refund loan is likely to be issued on a debit card. Thus, the card may have its associated fees. Sometimes you may get a higher loan than the tax refund because of a miscalculation by the tax preparation company.
Effect On Credit Score
The tax advance loan may affect your credit score depending on the bank that provides you with the loan. If a hard inquiry is made, then your credit score will be affected. However, if the bank makes only a soft investigation of the credit report, then your credit rating will not be changed.