October is National Financial Planning Month—a great time to think about your financial future. With the end of the year approaching, it’s important to review spending and see if you’re on track to achieve your financial goals. It’s also a perfect time to set goals for next year. Be sure to take time this month to review your insurance coverages, retirement contributions, subscriptions, bank statements, stock portfolios, etc.
Spending, Saving, Budgeting Tips
- Track spending for one month. See where you could cut back.
- Take care when using credit cards. Always pay the total balance on your card or no less than the minimum amount due each month.
- Consider paying cash for expenses or having a “No Spend November”.
- Create a budget by creating a spreadsheet that lists all your monthly expenses and what you bring in every month financially, and make a goal of sticking to that budget.
- Make a plan for tackling debt
- Building an emergency savings fund
- See if additional income is needed based on spending compared to budget.
- Invest in your future if you can through a 401 K or other retirement savings account.
Here at Charlotte’s Best Nanny Agency, we require all of our families to pay their nannies and domestic staff legally through W2 as 1099’s are illegal in the industry. According to the Fair Labor Standards Act in the United States, Nanny and Domestic workers MUST be paid by W-2.
This means your paycheck will reflect tax withholdings. While no one likes paying taxes, it is important and it provides benefits to the nanny. It’s easier to apply for credit, budget for tax bills, and gives you protection on the job. It also helps document employment history as well as ensure compliance with the law.
Household employees are liable for four key taxes:
- Social Security Medicare
- Federal income tax State and local income taxes
2020 has been tough and unexpected in a lot of ways. Spending has been all over the place and incomes have been cut. Please spend some time this month reviewing your finances and your money goals. As always, please consult a tax professional or financial planner for specific information related to your circumstances.