BY: ACHILLES YANEZ
We live in a time in which any help we can receive on how to stretch our dollar is welcomed. Stretch every dollar? You might ask. I’m doing this as it is. Can I go any further? The answer is YES! We all can.
Let me introduce my self. My name is Achilles Yanez I currently work as a Financial Advisor and Tax Preparer for Inland Professional Tax Service located in downtown San Bernardino. For many years I have thought of ways of helping our community save money without the need of getting a second job. No matter the economic status we hold, meaning we could be rich, middle class or poor, the advice I give is always helpful. Let me begin by asking you a few questions. Would you like to take a long and well-deserved vacation? Maybe purchase a new car or pay off a credit card? Then this is an article you don’t want to miss. Remember all this on the same paycheck and not taking into consideration any raise or additional income you might receive during the course of the year.
Let’s begin with one simple word but a very important one: Downgrading, if we think carefully for a minute we can find many ways in which we can downgrade, and downgrading equals savings. Take for instance your cable package, the average American family pays 100 dollars a month. Downgrading to a simple package can save you 75 dollars a month, which equals 900 dollars a year. What will I do for entertainment? You might ask. Finding alternative activities can result not only in a savings, but also contribute to the welfare of your family.
Another way we can save money is with a form called W-4 given by your employer. The purpose of this form is basically to tell your employer at what tax bracket to tax you. Many believe that by adding as many dependants as they possible can, will result in receiving more money, and to a certain extant this is true. But let’s analyze this closer. If you are taxed at bracket that does not correspond to you at the end of the year when filling your tax return you will either end up paying or getting very little money. So you either get the money in a week-by-week basis or receive the whole sum at the end of the year. What’s better? Well, let me give you an example. If I was to give you 20 dollars each week for the next year, what would you prefer? Getting the 20 dollars weekly or receiving 1040 dollars at the end of the year? The answer is clear! Plus remember, this year you will be receiving the Stimulus Government Money in every weekly paycheck, so this is a great year to save. How do we go about this? Ask your employer for a new W-4. When filling it out if you are married, put married filling jointly, if single put single, if you are Head of Household put your self as single, remember you will be taxed more but you will receive that money at the end of the year. When filling out line 5, claiming the amount of allowances, just add your children, DO NOT add your self or spouse. Additional to all this, line 6 allows you to make an additional savings, like the 20 dollars I put as an example. Remember this form can be changed each month and adjusted to your needs.
