Stress is something we could all do with avoiding. Stress can create some serious problems within our minds and bodies. When you think of stress, think of a faultline within your body, much like the fault lines within the crust of our Earth that lead to earthquakes. In a similar manner, this is like our bodies – when we stress, or are stressed out – we will crack and pull until we break. We want to avoid stress.
Stress comes from many places though, doesn’t it? Consider your job – you’ve probably felt stressed out at your job. You might be stressed out with family matters and personal issues as well. Money is a big stress for us all – no matter the size of our monthly pay packet, it might be that we can never find enough to make ends meet. We might be spending too much, we might be in a bad situation with our finances, or we might be reckless with our spending decisions – either way, we can all get worked up over our cash.
There are two huge reasons why we get stressed over money. Mainly, it’s these two big financial woes. Debt, and taxes. Both can be separate, but they can also be tied together. You might be in debt because you pay your taxes, you might be in debt because you did not pay your taxes. Debts can come from commitments that you just cannot meet; they can come from poor decisions or poor finances, they can come from a change in situation as well. Debts aren’t always our fault, but we should be planning for them – we should always seek to plan for the worst case scenarios in life, as they are not always avoidable.
You can avoid being caught out by tax though. If you are responsible for declaring your own finances, you need to be responsible for managing your taxes. Now, if a fair bit of money is going through your hands, things can get complicated. This is where a personal accountant comes in. If you do your own taxes, it can be worth hiring an accountant – not just to help you file on time and help you pay, but also to ensure your budgets are correct and they might even help you find tax exemptions so you can save cash. Just don’t avoid paying your taxes, even if they are stressing you out. If you are getting stressed out, simply find help – this is not a problem you can avoid. Avoiding paying your taxes comes with big consequences.
The thing is, if you don’t pay your tax – you are going to get punished in one way or another. You will get fined, or you might go to jail. Sometimes, the punishment of a constantly ringing phone is enough, and sometimes – even when you’ve paid up, the debt collectors might not be notified. If you just want the calls to stop, you need to have a pro tax attorney get it done for you, if you’ve got an issue with your tax, consider taking the issue to court and finding a resolution. Avoiding it and simply waiting around can lead to big fines. These fines won’t help you at all.
Fines can, and will, lead to huge debts. We can get into debt and bad finances for plenty of reasons as we described above, but what you always want to do is avoid debt. Avoid debt by saving an emergency fund of six months expenses and then some. This isn’t always possible, but we all have good times where things are going smooth, and this is the time where we need to save our cash up just in case. Bad situations can arise at any time to ruin our finances and having an emergency fund that isn’t based on a credit card can be a life saver. Debts aren’t always avoidable, but when you have them – make efforts to pay as much as you can towards them a month. This will help you avoid debt collectors and serious action being taken. Like taxes, don’t avoid conquering your debts, only you can sort them out and fix the situation.
Debts and taxes – two huge woes. However you can make life a lot of stress-free if you acknowledge these things and pre-empt the worst-case, you can save the day and your mind! The thing is, time doesn’t fix your taxes and it doesn’t clear your debts, only your actions can do that, so take action!