Category: Finance

Taxpayers can feel that it’s already too late to save money on their taxes. You have already earned most of your income for 2022, but you may still make some smart moves to lower the amount of tax.

If you’ve already read every article, overview by Paydaysay, and don’t know what to do with your taxes, there are even more options both for small business owners with stable incomes and for ordinary people. Keep on reading to learn how to boost your tax refund and what strategies can help you reduce your tax bill in 2022.

Make an IRA Contribution

Do you know that your contributions to an IRA may be tax-deductible? You can deduct your contributions to a traditional individual retirement account in the year you make them.
There are various situations that refer to various IRS regulations regarding IRA contributions. Consumers can typically deduct the entire sum of their IRA contribution in case retirement plans don’t cover them at work.

The contribution to this account may be limited if the taxpayer or their spouse are covered. Those who are in the top bracket of 37 percent and contribute $6,000 to their IRA account, which is the maximum sum for this year, can save $2,220 in their 2022 taxes. More than that, you have a chance to contribute to this account until the tax filing day.

Defer Your Income

Consumers prefer to wait longer to pay their taxes. During this time, half of them look for an alternative way to find money, for instance, using payday advance app from PayDaySay or just borrowing from their parents. Others are looking for a more formal way out of the situation. One of the options to delay this payment is to defer your profit from this year into the next one. It will lower your taxable income for the current year.

For instance, workers who are due a bonus at work at the end of this year may ask their recruiter if they plan to defer this payment into 2023. On the one hand, this option works well for saving your taxes in the current year.

On the other hand, you will need to balance any present tax savings with the potential taxes you will have in the future. Besides, deferring your current income can lead to some tax issues next year, especially if you are in a higher tax bracket. Still, this option is suitable if your aim is to lower your tax bill for 2022.

Try Tax-Loss Harvesting

The S&P 500 Index is down almost 20 percent for 2022 as of December 19. What does it mean for taxpayers? It is a reasonable option to start tax-loss harvesting. This strategy will help you offset brokerage account revenue with losses. Once you lower the 2022 investment profit, you will be able to utilize extra losses to decrease regular profit by $3,000.

The remaining losses will be carried forward to the next tax years. A chart from MarketWatch demonstrates that US: SPX was 3,912.52 on January 10, 2023, compared to 4,727.35 in January 2022.

Boost Retirement Plan Contributions

What can you do if your year-end income estimate demonstrates the possibility of being in a higher tax bracket? In this case, you should make or boost your retirement plan contributions.
Taxpayers may increase their employer-sponsored retirement plan or IRA contributions until April’s filing deadline. Yet, your 401(k) and 403(b) contributions should be ready by the end of December. People over 50 years old may boost their tax deduction by making catch-up contributions to the majority of plans.

Select the Cost Basis Wisely

Taxpayers can calculate their cost basis with the help of different tools. The strategy you need to select can differ from one year to another. It can actually make a difference for taxpayers willing to reduce their tax bill.

Consumers can select to utilize an identical number of shares that were bought at a higher price as the basis if they made a lot of money selling shares and need to declare this profit. This option may come with tough regulations and demand assistance from specialists.

Choose to donate all or some of your appreciated shares to charity in case you don’t own any lots for the basis. A tax deduction up to particular limits can be taken for the full fair market value.

You will be able to avoid capital gains at all if you have had these securities for over a year. Reporting and computing cost basis will become more convenient as monetary companies have been obliged by law to provide this information for your buy and sell transactions every year.

Bunch Your Expenses

Are you a business owner? Entrepreneurs have the right to deduct a variety of expenses related to their venture. It is another suitable way to lower your tax bill if you are a small business owner. Bunch your business-related expenses as much as possible into the present year to lower income taxes.

What are the most widespread tax methods? You may want to pay your workers bonuses at year-end instead of at the beginning of the year. You may decide to make upcoming big-picture purchases related to your venture at the end of 2022 rather than at the beginning of 2023. Prepaying your business-related costs is another option.

In case you spend $3,000 each month to purchase business supplies, you may want to buy $9,000 worth at year-end to help you get through the coming three months. Entrepreneurs will be able to deduct their income tax for a certain business cost if they make a bulk purchase at the end of the year.

Get Written Deductions

Have you made any charitable contributions in 2022? You should receive a written receipt for your records. It will help you deduce these donations if they are over $250. The IRS requires taxpayers to have a receipt to prove these contributions. You need to submit them on Schedule A and ensure you can assert that these deductions and contributions are genuine.

The Conclusion

In conclusion, you still have some time to follow these tips and use our strategies to reduce your tax bill in 2022. Consider these methods of lowering your taxes so that you don’t feel upset when time passes and it becomes too late. Be proactive and use this last chance to reduce your taxes, or consult a financial advisor if you have additional questions.

Sending money to family and loved ones can be an essential part of supporting one another and staying connected. With so many options available to choose from, however, knowing what’s going to work best for you is not always easy. Keep reading to take a look at the five most popular ways to send money to relatives anywhere in the world.

Bank Transfer

A bank transfer is one of the most traditional methods of sending money. Most banks will allow you to easily make both domestic and international transactions through their online banking service. It is usually a straightforward process that involves entering the account information of the recipient, specifying the amount you want to send, and confirming the transaction. This is often one of the most reliable and secure options available. However, it does have some downsides including being slower and more expensive compared to other options.

Mobile Payment Apps

Mobile payment apps such as the Ria Money Transfer international app are becoming an increasingly popular method of sending money to family and friends in other countries. Their widespread use is largely down to the fact that they allow users to easily transfer money without long processing times or many hidden fees. All you need to do is download the app to your smartphone and set up an account. Most allow you to transfer money easily and effortlessly using the recipient’s phone number or email address.

Money Transfer Services

There are also several money transfer services that are specifically designed for sending money to people abroad. They tend to offer a wide range of services such as online transfers, in-person transfers, and mobile transfers depending on your needs. The process of using a money transfer service to send money to somebody abroad is often quick and easy. On the downside, however, the fees for these services are often higher compared to other options. Along with this, they are often targets for scams and other fraudulent activities, which is why it is so important to use them with caution.

Prepaid Debit Cards

A prepaid debit card can be an ideal option to consider if you are supporting a relative in another country. This can be a very easy option to set up, too, as the recipient does not have to have a bank account in order to use it. All you need to do is set up a card to provide them with, which you can then load with money whenever it is convenient for you. Many allow for easy online top-ups, and some offer different currencies, so you can save money on currency conversion fees.

Whether you are helping out a friend or sending regular payments to support your family back home, the number of transfer options available can be overwhelming. By weighing up the different services offered, as well as the pros and cons of each, you can find the right option for you.

Some people feel that credit is not very important. They might get credit cards at a young age and rack up significant debt very quickly. If you’re blasé about this, though, you might pay for it later.

Poor credit can hamper your progress as you try to get ahead in the world. We’ll talk about some of the most notable ways it can slow you down right now.

You Can’t Get Loans as Easily

You might need a loan at some point. You may require a general bank loan for no particular purpose, or at least none that you specify. Title loans for those with poor credit are possible, but they’re not so likely. If you have better credit, a bank will look at your request more favorably.

If you can’t get a loan, maybe you can’t buy the car you want. Perhaps you need that money to start a business. Without that cash, you can’t rent or buy the property you need. You can’t use that money to pay your workers, and you can’t use it to buy the raw materials to make your products.

Reckless credit card usage can put you in this position. You may work to get out from under your credit card debt and eventually get the loan you need, but it will take time, and the delay may frustrate you.

You Can’t Rent Apartments as Easily

You may decide you want to rent an apartment at some point. Perhaps you’ve lived in your parents’ home for years, and you’d like your own place. You might have a significant other, and you two want your privacy. 

Maybe you’ve married your partner, or you two consider marriage often. You don’t want to stay under your parents’ roof anymore.

Renting an apartment isn’t that difficult if you have excellent credit. A high credit score and a steady job can get you out of your parents’ house and installed in your new apartment quickly.

With bad credit, though, the landlord or building owner might turn you down. Poor credit signals financial irresponsibility. That might not seem fair, but that is reality. The landlord will give away the apartment you want if they find someone who seems more responsible and has better financial habits.

You Can’t Get New Credit Cards

Maybe you want to get some new credit cards. You might have one or two, but you’d like a couple of others that come with better perks.

Some credit cards have cash-back rewards, while others have travel benefits. Those perks might appeal if you want to travel internationally one day. If you utilize just one credit card for months or years and pile up thousands of points, you might use those for flights, hotel rooms, meals while you are overseas, and so forth.

If you can’t pay off your existing credit card debt, companies likely won’t give you any new ones. Credit card companies can easily check your credit score and see how much you owe. A low score means you are a high-risk prospect, and the companies don’t like that very much. They will probably reject your card application until you can pay off your current debt and raise your score.  

You Can’t Extend Your Credit Limit

You might not want any new cards. Instead, you’re planning a credit limit extension. You might want this if you need that credit for a major purchase. 

Maybe you need to fix your car, and it requires some costly replacement parts. You might need to fix your roof or do something else around the house. Perhaps you want to build a deck or patio in the backyard and need the raw materials for that.

No matter what you want, if you have a poor credit score, you can’t extend your credit limit. The company will reject you until you solve the problem. You’ll either need to wait or get the money elsewhere.

You Might Not Convince Someone You’re Marriage Material

Maybe you want to marry someone. You have a significant other, and you’ve dated them for quite some time. You feel you want the next step, and you propose marriage to them.

They might feel unsure about the situation. Perhaps they say they’ll only marry you if you can prove you’re financially responsible. They like you or maybe even love you, but they’re also practical. They don’t want to move forward if you don’t have a good credit score and a nest egg.

If so, you must improve your score before you hear any wedding bells. That might sound callous, but some people value financial stability. If you can’t offer that, they may remain undecided or say no when you propose.

How to Improve Your Credit Score

Paying off your credit card debt will go a long way toward improving your score. To do that, you must embrace a frugal lifestyle for a while. You probably can’t eat out very much or buy any new clothing. You must shop at Goodwill or other second-hand stores. You can purchase bulk food and make simple meals that don’t cost very much.

You might also pay off all your other outstanding debts. If you owe back rent, you must pay that off. You can also get your credit report and make sure it’s totally accurate. Sometimes these reports have incorrect information. If that happens, you can contact the company that issued the report and dispute it.

You might also consolidate any loans you have into just one. Sometimes, you can pay off your debt easier that way. You can pay just one amount each month and not several different ones.

Your credit score matters, and you’ll soon learn that in life if you haven’t realized it yet. Try not to lower your score if you can avoid it. If you have a low score, start working and dig yourself out. You can improve your score in time if you work hard at it.

There are a few different options available to you when you need to get some extra money. You may choose from personal loans, an instant payday advance, or even an Fit My Money instant tax refund loan. However, probably the first thing you’ll try to do is increase your credit card limit.

By doing so, you’ll have more money available to use in case of an emergency. Plus, if you use your credit card responsibly, you can improve your credit score over time. So increasing your credit card limit may be a good option for you to consider if you need extra money.

The credit line on the card is different for each client. Even if banks advertise promising a card with a million-dollar line, not all borrowers will be approved. How do I increase my line of credit, and what affects the bank’s decision?

It can be revolving and non-revolving. It depends on the program and the bank’s product.

A revolving line is an amount available for borrowing, which is restored after making a monthly payment or full repayment of the debt. Renewal rules depend on the bank’s terms and conditions. Within the line, the borrower can pay for purchases, and services, transfer money, and change currency.

Under the terms of some products, you can withdraw cash, but it is not mandatory. For example, there are cards with only non-cash transactions available.

A non-revolving line is an amount you can use only once. Usually, it’s a consumer loan, given not in cash but on a particular card. After you repay the debt, the organization will reset the balance. After that, the card is closed; you can’t use it again.

How the Line Is Set

It is the amount the bank can lend to the borrower with or without interest if it is a card with a grace period.

Two advantages of a line on cards are:

• Renewability. the line is renewable after the borrower pays off the debt.
• You can spend as much as you need within the line. You don’t have to spend the entire amount on one purchase; you can pay as long as the available limit remains.

Banks set the line individually for each customer, considering:

• Salary size. The higher the income, the more significant the amount the bank is willing to approve.
• Length of service. The bank considers both complete employment history and the last job — clients who don’t stay in one place for a long time cause no confidence in the bank.
• Documents. The more guarantees of solvency the bank receives from the potential borrower, the higher the limit will be approved.
• Loan history. Bad or zero histories are a reason to approve a lower limit or refuse to issue a card.
• Other parameters that the bank considers significant. For example, some banks pay attention to the marital status or the presence of dependents of the potential borrower.
• The length of your employment, income, documents, and history quality also impact the credit line you are approved for.

Maximum Line. In advertisements, banks often indicate a maximum line amount but only approve it for “perfect” borrowers. In the best position are payroll customers or those who are already working with the bank, such as holding a deposit or using a large money brokerage account. To such potential borrowers, the bank offers the most favorable conditions.

Minimum line. It is set for new customers with low income or even no income. Also, a small line can be set due to problems in the previous loan history. But this does not mean that this amount will remain forever. For example, if you use the card often and repay the debt on time, the bank may increase the limit.

If the potential borrower has many debts, and half of his income or even more goes to repay them, the bank may refuse to issue a card even with a minimum limit. Sometimes, borrowers can spend all their money on things that they don’t even need, for example you can buy really expensive presents for your family and use Creative Packaging Ideas. But the main point is that you will spend your whole income and then you will need to borrow money that can make your limit lower.

Who Decides on the Limit

The customer can’t change the line himself. Instead, the bank decides to increase or decrease the maximum available amount on the card. The procedure is different for each bank. In some, it may be an automated system. In others, a bank specialist assesses whether you can or cannot increase the limit. Most banks use both methods at the same time.

Banks use automated systems to avoid human error. The software collects information about the borrower, his rating, and the activity of using the card and conducts a scoring analysis on the available data. Bank employees do not interfere in this process. They only “help” in making the final decision.

If there is a technical failure, the specialists cross out the errors. In some cases, credit department employees may manually decide to change the limits.

You should not contact bank managers to change the line or influence the final decision. Bank employees can only advise the borrower, suggesting ways in which the bank will understand that the client is reliable.

You can find out the size of the limit in the bank’s mobile app or your cabinet through a web browser. To do this, select the desired card and click “find out more about the debt.” You can see not only the size of the line but also the amount of the monthly payment, the total amount of debt, and the dates of the reporting period.

How to Increase Loan Limits

On average, it is not necessary to ask for a credit line increase before three months of credit card use. Banks review card terms every three months or six months. During this period, it is recommended that you

• Use the card regularly. Pay for online and offline purchases with it.
• Make the mandatory payment on time.
• Notify the bank in time about changes in personal data. Changing your cell phone number, place of residence, and family name is essential.
• Notify the bank if you have financial difficulties, for example, losing your job. The bank is interested in getting its money back, so it can make concessions and postpone the due date or revise the monthly repayment amount.
• Keep track of your debt load. If you have several small loans, try to pay them off as soon as possible. You can connect all your loans into one. The more you owe, the less likely the bank will increase your line.
• Use other bank products as well. You can, for example, open a deposit, an impersonal bullion account, an individual investment account, or an integrated product that combines several banking services at once. Such customers trust the bank more because depositors and investors have savings, which guarantee the borrower’s solvency.
• Before applying for a card, check your rating. The history will help you assess the chances of approving a loan or increasing the available amount.

Are There Cards with Zero Line of Credit?

When processing, banks often set a minimum amount. If the cooperation is booming — it will increase over time. But if the line is not approved, the card is not issued and denied.

Sometimes zero line cards are called debit cards. You can’t borrow money on them, but you can add funds to the card and use them to make purchases.

Different point — zeroing the line at the initiative of the bank. Such situations happen. Most often, the reason lies in the borrower’s behavior — violating the terms and ignoring the bank’s attempts to get in touch. It is enough to fulfill all your obligations in full and on time to avoid this.

In Conclusion

The bottom line is that banks use a variety of methods to determine credit limits, and it’s important to be aware of all the factors that go into this decision. Understanding how your credit limit is determined can help you manage your finances more effectively and avoid getting into debt. If you have any concerns about your credit limit, be sure to contact your bank or financial institution for more information.

If you want to be a successful forex trader, you must use a good exchange rate. For this reason, you need to be very careful when you choose your forex brokers. The problem is that with the popularity of forex trading increasing, there are many brokers around to choose from. Considering all their features and benefits, making a choice may seem rather difficult. Here are some considerations to keep in mind if you want to select a good broker for your needs. 

1. Look at Regulatory Compliance

Not every forex broker is the same. Each country has its regulations, so if you are going for a specific broker, make sure that they cover your area. Look for brokers that are members of the NFA (National Futures Association) and are registered with the CFTC (Commodity Futures Trading Commission). Even if the website looks fancy, it doesn’t necessarily mean it is regulated.

2. Check the Account Features

All forex brokers have their own offerings when it comes to their trading accounts. Check their leverage and margins, while considering the spreads and commissions. For example, if you have $1,000 in your account, a 50:1 leverage allows you to hold a position capped at $50,000. This can help you increase your earnings and reduce your risks. 

3. Consider Deposit and Withdrawal

Each forex broker will have a certain deposit limit. In some cases, the initial deposit may be as small as $50, whereas others may ask for much higher deposits. You may also want to check the ease of deposit and withdrawal. You should ensure they have your deposit and withdrawal method of choice (i.e., credit/debit card or PayPal). Bear in mind that the broker may charge fees for these transactions.

4. Check Currency Pairs

When you want to find on FX-list a good broker, you need to check the currency pairs that they offer. There are hundreds of pairs out there, but you want to get the ones that have the highest liquidity pairs. Moreover, while a broker may provide a huge selection of currency pairs, it doesn’t mean they have your pair of choice. Make sure that they can offer the currencies that interest you the most as a trader. 

5. Verify Their Customer Support

The forex market never really stops, and you don’t know what’s going to happen overnight. As a result, you must be able to contact your broker at all times. See what contact methods they provide, and whether they have 24/7 customer support or not. A tip here would be to give them a quick call before you commit. This will give you a good idea of their responsiveness. 

The Bottom Line

When choosing your FX broker, you must be very careful of the features that they provide. After all, you will put them in charge of your money, so you need to ensure they can be relied on. They should have all the necessary regulations and offer you their support whenever you require it.

After the COVID-19 pandemic, many people were left cash-strapped. In 2022, 11.1% of Americans have bad credit scores, which makes it difficult to acquire loans. Loans are necessary to buy a house, further your education, or grow your business, but lenders are cautious in giving loans to people with bad credit, as they sometimes cannot pay it back. Even if you have low credit, you can still acquire loans. Here are a few ways you can get loans on bad credit.

1.   Find a Co-signer

One way of getting a loan with bad credit is by having a friend or family member co-sign the loan with you. Ensure the co-signer has a steady income and a strong credit report. The cosigner’s high credit will satisfy the lender. This method can also allow you to get loans with low-interest rates and easy installments, so you can quickly and comfortably pay back the loan.

Sometimes co-signers can be apprehensive about putting their names down because they will have to step in and help if you cannot repay the loan. Convince them by showing them your plan for repaying the loan.

2.   Peer-to-Peer Loans

Peer-to-peer (P2P) lending is a loan-acquiring process between two individuals, removing the financial institution as the middleman. P2P lending websites will directly connect you to a lender or an investor. The interest rate on these websites is decided upon your credit score. Your low credit will likely only get you high-interest loans. If you are willing to pay high-interest rates, you can find a loan option on P2P lending sites. Regardless of whether you obtain a loan, you will have to pay the website a fee to initiate the process.

3.   Payday Loans

If you want to achieve small loans, consider taking a payday loan. They only provide you with up to $500 in loans, and you need to repay it by the next time you receive your salary. Only consider getting payday loans for emergencies, as they have incredibly high fees. Their interest rate can be anywhere between 150% to 600%.

4.   Unsecured Personal Loan

You get loans on low credit through an unsecured personal loan, but you will have to use some of your belongings as collateral. Such as a property, vehicle, or certificate of deposit. Unsecured personal loans are also given at high-interest rates. Only consider this option if you can pay back the loan, or you will lose your collateral.

5.   Tradelines

Tradelines are accounts listed on your credit reports, such as credit cards, mortgages, and student loans. They contain information on each account and show your payment history. Even if you have bad credit, lenders can look at this tradeline’s good payment history to approve your loan. To further improve your chances of getting a loan, you can purchase more tradelines from companies like tradeline supply. Read the tradeline supply company review to determine if it is the right match for you.

Endnote

Loans are necessary to improve your financial situation as they help you start businesses, get higher education, and provide relief in emergencies. A bad credit score may prevent you from getting loans. Options like payday loans, personal loans, peer-to-peer loans, co-signers, and tradelines let you achieve loans even on low credit, but these loans come at high-interest rates. To ensure you repay the loans on time, you must devise a repayment strategy. Otherwise, your credit score can drop further.

Unemployment is one of the most devastating situations to be in. It affects your social, financial, psychological, professional, and emotional well-being. This is because most people attribute their sense of self-worth and identity to their careers and jobs. As scary as loss of employment is, you can get through it. If you were recently downsized, laid off, or resigned from your position, here are six tips to help you survive unemployment. 

1. Take time to grieve the job loss

Like other kinds of loss, such as death or breakup, you will likely experience grief due to the sudden loss of your source of income. Embrace the different stages of grief, including denial, anger, and bargaining. You should accept your situation and not be too hard on yourself. 

Consider unemployment as a temporary setback and stay positive. Exercise regularly, maintain a proper diet, get adequate sleep, and engage in other activities that make you feel good about yourself to keep despair, anxiety, and stress at bay. 

2. Update your budget

If you do not have a household budget, set one up. If you already have one, consider updating it to suit your current financial status. By revising your budget, you can identify unnecessary expenses you could eliminate or areas you could save cash. For instance, you could consider streaming your favorite shows instead of paying for cable, raising your car and home insurance deductibles to reduce premiums, and canceling some of your subscriptions.

You could also identify and plan for core essentials such as medication, transportation, food, and utilities like water, electricity, and gas. If you are struggling to pay for basic expenses, check Ontario Works eligibility to determine whether you qualify for financial relief to help you manage bills before you get another job. 

3. Create an emergency fund

Do not waste or misuse any penny you trim from your expenses when updating your budget. Instead, place the money in a high-yield savings account to build an emergency fund. An emergency fund can help you cater to your family’s needs until you secure another position.

4. Look for temporary employment

Securing your dream job could take some time. Instead of staying idle while your bills pile up, consider applying for temporary work to generate a little income. You could apply for seasonal employment, work online, or start a side job.

5. Connect with your network

Contact friends, family, acquaintances, and former colleagues, and let everyone know you are hunting for a new job. While you do not have to divulge the details of your current unemployment status, allowing your network to know you are on the market will increase the chances of landing another position quickly. You could also update your resume and post it on the internet to enable potential employers to find and contact you. 

6. Register for unemployment benefits

Some states often provide financial relief for a specific period to individuals who lose their employment. For this reason, if your loss of a job is not our fault, consider applying for employment benefits. Check your state’s guidance on unemployment registration to determine the eligibility criteria, the application process, the expected amount, and the required documentation.

Endnote

Unemployment may be scary, but you can survive it. Take time to grieve the job loss, update your budget, build an emergency fund, secure temporary employment, connect with your network, and apply for unemployment benefits to get through your current financial situation.