Still Haven’t Done Your Taxes? Here’s 7 Reasons Why You Should
Financial advisor Canna Campbell knows it’s easy to put off doing your taxes, but we’re inching closer to the October 31 deadline. She shares some reasons why you should actually be excited about getting your act together and doing your tax this month.
Most of us pick up our financial habits from our parents, which can mean experiencing flashbacks to our parents hunched over the kitchen table swimming in receipts and frowning foreheads; not a pleasurable memory. Feel like doing your taxes? No thanks.
But doing your taxes is actually an exciting time of the year. Yes, I know I sound like a nerd, but hear me out. I have summarised my top six reasons why you should be embracing the end of the financial year and your opportunity to get your taxes in order.
#1 You see where you stand
Like a getting a report card at school, when you see your tax return and group certificate, you see the reality of what you actually earn, how much tax you pay and what you are doing to get ahead financially. Often this can be the catalyst for people to step up and start being more savvy when they see these numbers in black and white.
#2 It’s a platform for a fresh start
Like drawing a line in the sand, taking stock of your finances by doing your tax is similar to the start of the new year. It’s a time where you can set new financial goals to achieve and make 2016/17 a more financially successful one.
#3 You can get easily organised
Make this next year one that’s more organised and proactive when it comes to your personal finances and document keeping. Set up a system to file receipts and important documents – the more on top of your personal admin, the less stressed you will be when it comes to lodging your required returns.
#4 Knowledge is power
It’s also motivation. When you research the different deductions that you’re able to claim (assuming that you have actually paid for them), you feel a lot more enthusiastic about lodging your taxes. Find out what you are legally entitled to claim and if you want to increase your pot next year, find out what things you can do before June 30 to maximise your tax efficiency.
#5 It’s honey money
OK not all of us are lucky enough to get a refund, but if you normally do, why would you hold off getting back your hard earned cash? It is rightfully yours, so get up and claim it. Plus, you can do so much with this extra honey money (see point #6).
#6 Work your magic
If you get a tax refund, this is your opportunity to improve your financial situation. How about finally paying off that credit card that has been haunting you through the financial year? Or put that money into an emergency savings account that will give you that much appreciated feel of security and comfort? Or how about really raising the stakes by starting to invest in your financial future or bringing that retirement date forward? The choices are all exciting and liberating.
#7 Proactive pressure
Even if you don’t get a tax refund (or owe more money in taxes), it isn’t the end of the world. This is your opportunity to make some changes going forward, from this point on, so you’re reaping benefits next year.
Instead of coming up with a dozen excuses as to why you can’t do your taxes just yet (which will continue to be the internal conversation in your head), shift your perspective and use tax time to your financial advantage.
So get your excel spreadsheet ready with receipts in tow and book in to see you tax expert ASAP.
Canna Campbell is a certified financial advisor running her own company, SASS Financial, established in 2007. Her blog and YouTube channel, SugarMamma.TV teaches people the power of financial freedom; covering everything from managing budgets and investing in stock and shares, to saving strategies for your ultimate designer handbag. Canna regularly appears on TV as a personal finance expert, and has written for many publications.