We were asked via our Facebook page if we could suggest a few financial habits to adopt this year, so we thought we’d use it to kick off the year as January’s newsletter topic. Do you have a good habit to add? Do you have a question we can answer in an upcoming newsletter? Please let us know!

1. Make Financial Goals

Start the year by looking at where you’ve been and where you want to go. Goals can be small, like saving up for a holiday or a new car, or they can be big – like saving for a down payment or making an extra payment on your mortgage.

2. Pay Off Credit Cards Monthly

This is a MUST; only spend what you can afford. Set your payments up automatically so that you never miss the deadline.

3. Pay Off Bad Debt Before Saving

It’s usually in your best interest to pay off loans and other small debts before you start saving. A good debt, such as your mortgage, can be paid down as you go. If you have any specific questions regarding debt repayment, let us know and we’d be happy to discuss it with you.

4. Review Your Credit Report Annually

Excessive inquiries can alter ratings, so make sure you do it yourself. Equifax and TransUnion offer a free report each calendar year.

5. Track Your Spending

Most people are shocked at how much money they spend on inconsequential items. Take the time to track your spending over a few months and then look for areas where you can cut back. Check out Mint for great ideas and tracking tools.

6. Shop Around

Not all banks are alike and loyalty doesn’t always get you the best rate. If you’d like us to review your banking rates, please feel free to contact our office.

7. Differentiate Between Needs & Wants

Ask yourself, can you live without it? Of course it’s ok to splurge at times, but if you’re looking to cut back, this is a great question to consider. Many times, these “wants” end up compromising more important financial goals.

8. Have an Emergency Fund

Everyone should have this in some form. Either in the form of a line of credit, a separate savings account (they say 3 – 6 months’ income is a good base), or possibly a disability insurance policy. Corporate accounts can also serve as a source of funds in the right situation.

9. Educate Yourself

This is a HUGE one with our office. Tim spends many hours each year teaching professionals about their businesses and giving a behind the scenes look at the financial services industry. Make sure you know what you are getting into. NEVER be afraid to ask questions and get a second opinion from TPC.

10. Invest Directly

Avoid paying high management fees and over-diversification. Invest in the stock market with a managed portfolio of individual securities, directly in your own business or in real estate holdings. Invest your hard-earned money in what you know and make sure that whatever you do, it’s in YOUR best interest.

Did you know?

When your corporate taxable income rises above $500,000, the taxes are due two months after the year-end rather than three months.

In addition, if you have a holding company earning only passive investment income, taxes are also due two months after the year-end. For example, if your year-end is December 31, 2013, you should pay any taxes payable by February 28, 2014.

Since many people won’t know the exact amount owning, it’s best to work with your accountant to make an educated guess as to what the amount owing will be. Please note, the actual filing of the corporate income tax return remains the same at six months after the year-end.