Life Support - Tax Facts
Your Household Budget
A Tax Fact from The Tax Institute at H&R Block
With gas prices soaring, home values tanking, food prices on the rise and the stock market underperforming, it's no surprise that people are looking for any kind of help they can find.
Since we can't do anything to change the economic landscape, we thought we could at the very least offer you some savings tips that can actually pay big rewards in your total household budget.
Your Auto
The escalating price at the pump is a reality, but we can offer some suggestions to help stretch that fill-up and the life of your auto that actually work:
Your Bank
With the explosion of online banking and virtual banks, there's really no need to pay fees for maintaining checking and savings accounts, ATM usage and check cards. If you do, it might be a good time to switch banks - but let your fingers do the walking so you save gas!
Your Food
Food prices have skyrocketed over the last year as well, but there are ways to save that can help keep your belly and your wallet full.
We'd love to hear how you handle your day-to-day spending. Check out our blog, "This is your money calling: You need a budget!" and join the conversation. Your checkbook will thank you.
This Tax Fact is brought to you by The Tax Institute at H&R Block.
To view other helpful tax information or listen to our Tax Fact podcasts, visit www.digits.hrblock.com
As always...everyone's tax situation is different, so be sure to consult a tax professional or financial advisor before making important financial decisions.
This Tax Fact is for educational purposes only and is not intended to be a substitute for seeking personalized, professional advice, nor is it intended to be used to avoid IRS penalties.
A Tax Fact from The Tax Institute at H&R Block
With gas prices soaring, home values tanking, food prices on the rise and the stock market underperforming, it's no surprise that people are looking for any kind of help they can find.
Since we can't do anything to change the economic landscape, we thought we could at the very least offer you some savings tips that can actually pay big rewards in your total household budget.
Your Auto
The escalating price at the pump is a reality, but we can offer some suggestions to help stretch that fill-up and the life of your auto that actually work:
- Slow down: yes, lower speeds do save gas
- Cruise control: if you've got it, use it and you will save gas on the long haul
- Check your tire pressure regularly and rotate: reduces wear and extends the life of your tires
- Routine maintenance: regular oil and oil filter changes keep your car in peak performing condition
- Raise your deductible: if your current deductible is below $250, you may be surprised at how much you can save by having a higher deductible, unless, of course, if you're accident-prone
With the explosion of online banking and virtual banks, there's really no need to pay fees for maintaining checking and savings accounts, ATM usage and check cards. If you do, it might be a good time to switch banks - but let your fingers do the walking so you save gas!
- Pay your credit card bills on time: not paying on time can result in not only interest on the remaining balance, but also a late-charge penalty that can really add up
- Pay your credit card bill in full: revolving credit each month can cost you hundreds of dollars each year. Look for low APR offers of 6 months to a year and request a balance transfer to save immediately. (Consider transfer fees and post-offer interest rates prior to making the move)
- Payback for using debit rather than credit: some banks, like Bank of America's "Keep the Change" program rewards you for making purchases using a debit transaction. The bank will round purchases to the nearest dollar amount and transfer this amount to your savings account. You really won't miss the "change" and your savings gets bigger at the same time. (As always, check the bank's fee schedule before moving your account.)
Food prices have skyrocketed over the last year as well, but there are ways to save that can help keep your belly and your wallet full.
- Don't eat out as often: eating at home or packing a lunch is significantly less expensive than having someone else prepare your meal (okay, we'll agree it's probably not as much fun!)
- Compare before you shop: supermarkets traditionally offer weekly specials than can save you money on items that are regularly on your shopping list, such as eggs, meats and packaged goods; don't just shop at the store that's most convenient
- Use coupons: these offer a great way to save money and sample some varieties of food products you may not necessarily try
- Check out super warehouses: Outlets like Costco and Sam's Club traditionally sell food products at greatly reduced costs, though they are packaged in larger-sized quantities
This Tax Fact is brought to you by The Tax Institute at H&R Block.
To view other helpful tax information or listen to our Tax Fact podcasts, visit www.digits.hrblock.com
As always...everyone's tax situation is different, so be sure to consult a tax professional or financial advisor before making important financial decisions.
This Tax Fact is for educational purposes only and is not intended to be a substitute for seeking personalized, professional advice, nor is it intended to be used to avoid IRS penalties.
