Tag Archives: taxes

Mind Over Money

When I graduated in the spring of 2015, I thought I had it all figured out. I had some money saved, a job lined up and an apartment to move in to. College had been a blast, but I felt mature and ready begin my life as a real adult. I was going to succeed and it was going to be a breeze.  

Now, a year and a half later, I sit here writing my first post for my brother’s finance blog. See, I used to think this blog was dumb. I didn’t understand what BeatingBreakEven really meant and always thought my brother was wasting his time talking about money so much. But after switching jobs in June for a salary raise and signing a new lease, for rent that was $200 dollars less a month, I realize I am exactly where he was. I am broke, have no concrete plans for my future and am extremely unsure of myself.

In the past few months I have been thinking a lot about my life and who I want to be. I’ve thought about what to do next in my career, thought about what city I want to move to and thought about how to save more money. I’ve also spent a lot of time contemplating my inner motives, my deepest fears and my varying levels of self esteem. In this process of psychological discovery, I have begun to understand just how powerful our minds really are. They can be our biggest tool for success and the biggest obstacle.

I have started to experience first hand how becoming more aware of my thoughts and psychology can really help me achieve my goals. I mean don’t they say that you can achieve anything you put your mind to? Mastering your mind will not only make you a happier person, but will keep you on track to reaching your long term goals. Since many of my goals are financially based at the moment, I went through last month’s credit card statement to recount my recent purchases. Besides food, almost everything I bought was unnecessary. Nails, makeup, new shoes, drinks at the bar, etc. Practically everything on there were things I bought to feel better about myself. For many of us millennials, our credit card statements are a long list of our deepest insecurities resurfacing as impulsive spending habits. It’s actually pretty scary. Working through my insecurities and understanding the motives behind my purchases has started to help me say no to a lot of things I normally would have swiped for without thinking twice.

If we want to change our spending habits, we first have to change our thoughts. Seems simple and intuitive on the surface, but our minds are really unexplored territory for many young adults. We millennials do not spend enough time understanding our needs, wants and desires and instead, act on impulse as a way to band aid our immediate emotional challenges. We are impulsive because we do not take enough time to think and we spend because we don’t want to feel. We really need to learn how to understand our thoughts and be okay with our emotions, so we can make healthy, logical financial decisions.

Don’t Skip On Your Taxes, Keep Every Penny

Approximately one month ago, I had a big decision to make. Do I pay a professional or do my own taxes. After about 3 seconds I knew the answer was clear. It’s like I had forgotten that I just graduated from business school with a major in finance. When people hear the word taxes many tend to cringe because of thoughts of endless paperwork and boring meticulous detail. Thankfully this isn’t 10 years ago and technology has advanced tremendously. We have TurboTax at our fingertips, and for all of you who don’t know, even a child can use this product. It makes doing your taxes as easy as those computer games they make for 5-year olds with the colorful pages and big text.

Here are a couple of reasons to do your own taxes.

  1. The software is easy to use, TurboTax does a great job making their product as unintimidating as possible.
  2. You are more aware of your own money, how much you are making and how much you are saving.
  3. Understand more about politics and where your money is going, if you don’t like how much you’re paying; make sure you vote in the next election.
  4. Saving money. Why pay your local accountant $150-350 when you can use turbo tax for free; if you qualify for the free version. If you make more than $55k, the other version will run you about $90.
  5. 1-step closer to becoming financially independent and more of an adult.
  6. The more you know about taxes the more you can benefit from deduction such as student loan Interest, job hunting costs, and moving expenses.

As a young millennial, most of us will be filing single with no dependents. This means that for most of us our taxes will be simple and less complicated than our parents. We can see our deductions and get every penny that is ours in our tax return. The average tax return is just shy of $3,000, which is a pretty big incentive to just get them done.

It may be tempting to just spend this money on frivolous toys such as a new laptop, expensive sunglasses, shoes or bottle service, but I would recommend investing in your student loans, credit card debt or investing for the future. With interest rates and loans as high as they are it’s almost as if you’d be paying yourself more.