Dubrow CPA’s Top 5 Tips for Smart Spending
March 16, 2016
Skylar Dubrow, CPA
Blog
March 16, 2016Skylar Dubrow, CPABlog
We’re officially into the season that we get really and truly busy. Even with the extended tax deadline of April 18th this year, I know that some of our clients are still gathering their paperwork for their taxes — and I wanted to say: many happy returns to you in the effort.
(See what I did there? “Many happy returns”? Tax pro humor — it’s a little corny.)
Anyway, some of our clients are experiencing some nice refunds, others are better able to plan for their tax obligations and we are cranking, cranking away. If you have NOT contacted us yet to set up a time to meet, please do so ASAP ((818) 889-7285 or email us by clicking the button above).
And if you have? We’d love it if you would let us know about your experience!
Now — I have spent some time considering what really makes for happiness when it comes to money.
Reason being, we have worked with so many intensely joyful families who have NOT been blessed with significant means (and many, of course, who are quite wealthy) — as well as families who never can quite seem to get enough.
And I believe that this is about something more than money.
Now, if you’ll allow me to think a little more deeply than normal, I have some larger thoughts about money and consumption for you today… and all of it matters, when we consider how we want to craft great tax and financial plans for you in the future.
Dubrow CPA’s Top 5 Tips for Smart Spending
“Plenty of people miss their share of happiness, not because they never found it, but because they didn’t stop to enjoy it.” – William Feather
Creating a budget really shouldn’t be the place where financial decisions begin. Instead, a comprehensive look at what you most care about and how you want to live your life is the best place to start, even before budget categories are determined.
This becomes especially clear when we consider how we seek to raise our children with a proper financial mindset. We want them to learn how to earn, how to save (and invest), and how to spend. Unfortunately, this doesn’t spring up for them from the womb!
When speaking with our clients about their financial decisions, these are the sort of conversations that ultimately prove to be the most meaningful — often life-changing.
We get the opportunity to help them discover not only how they want to use their money, but perhaps even more rewardingly — how to align that spending with the things they care most about.
Here’s one of the places where we start:
Rich people don’t clutter their lives with liabilities — they make investments. As a way of contrast, those in the middle class accumulate such items, and are often forced to make payments on them (too-expensive cars, boats, etc.). And, of course, those who are stuck in a cycle of poverty usually see themselves as buying “things”.
The problem here isn’t that those who are poor, or “middle class” aren’t wealthy — it’s that they haven’t taken the time to figure out a healthy approach to their spending.
There is a book by Elizabeth Dunn and Michael Norton (called The Science of Happier Spending) which chronicles the “research distinguishing spending that satisfies from that which disappoints.” The authors give us five principles of the kind of smart spending that actually produces fruit.
1) Experiences satisfy more than material things.
2) Too much indulgence wears down. Making it rarer makes it more satisfying.
3) The best investment is usually in your time
4) Flipping the credit game — “pay now, use later” versus “pay later, use now” — gives a sense of anticipation which is far better than immediate pleasure combined with the later pain of paying for something already consumed.
5) It is happier to spend on others rather than on ourselves.
I’d say that’s a great place to start in having these conversations.
For example, recognizing that time is much more of a limited quantity than is money (as the adage says: “We are each only given 24 hours in a day”) means that it makes sense to evaluate how you are approaching the “spending” and stewardship of your time — and that it often makes sense to pay money for more of it.
The wealthy see the value of their time, and they regularly invest in it by paying others to free it up. This could range from paying for lawncare, cooking — or even sometimes paying for someone else to drive them to and from work. And this often forces them to think about using their time in the most valuable way possible.
You are the only one who can be a mother or father to your children. You are the only one who can be a spouse to your partner. You are the only one who can do the things that only you can uniquely do.
Bringing your money together with the things you most deeply care about isn’t always easy … but it IS worth it.
But this is what my team and I are here for. When you come to us for your planning this year, if you’re willing, let’s set a time to have a longer conversation about what you would like to do with your life. Because that’s really where everything comes together.
Warmly,
Skylar Dubrow CPA
(818) 889-7285
The Dubrow Group, CPA
Preparing a correct and accurate tax return is our priority. We proudly stand behind our work and if a mistake does happen that is our fault, we will immediate correct the mistake and gladly refund your money if requested.
If any penalties or interest are incurred due to our mistake, we will do everything we can to fix the problem and cover any penalties should they arise.
We feel so confident in our processes to account for all deductions and uncover hidden deductions that we guarantee that you will pay the lowest amount of taxes legally possible. We spend a good amount of time correcting and fixing other so called tax pros mistakes and oversights.
We are so committed to giving out clients the best service. We do this by taking thte time to understand our clients situation and asking the right questions to make sure every deduction is accounted for. And remember we work for you, NOT the IRS.
Not only do we prepare an accurate tax return, we will inform you of tax saving strategies and best record keeping practices should we see fit.
Starting January 1, 2017, all our returns come with our “Silver” Stress Free Audit Insurance, FREE with paid tax preparation. Our Silver package includes our full support when handling IRS and State Notices for the 2016 tax year. If you receive a notice, send it to us and we will work with you to organize the required documentation and we will respond to the IRS on your behalf.
“Many tax experts are predicting an increase in IRS audits (because of the system automation), as well as an increase in audits by the state”
Our Gold Package adds our representation for an actual IRS audit for the current year. Whether it be an “audit by mail”, or an actual audit at one of the IRS locations, we will work with you to compile all the necessary documentation and represent you in front of the IRS for no additional charge. Our fees to represent our clients in an audit scenario can range from $1000- $2500 & up depending on time and complexities.
Our Gold option is an optional add on service & not included with regular tax preparation. Gold protection covers the current tax year only regardless of when you get audited.
The IRS and state authorities are behind in auditing tax returns and matching reporting documents to tax returns.They are currently working on 2012 & 2013 years.
Our Platinum level package covers you for a period of 7 years. It Is just like our Gold package, but it includes the currtent year and 6 prior years. We will provide audit coverage for prior years tax returns, even if we did not prepare them.
How is that for taking care of our clients! Once the Platinum level package is purchased, only the gold level will be required in future years as the previous years have been protected by the one time Platinum purchase.
