Don’t Ruin Your Finances! Watch Out for These 6 Behavioral Finance Mistakes


Behavioral finance is the study of how our behaviors affect our finances.

In many ways, the way that we see the world, and our reactions to what is happening around us, define our finances.

We might not even realize how our biases affect our finances.

The first step to overcoming biases in your life, especially if they are psychological, is to acknowledge them.  You need to be aware of what is holding you back.

Once you recognize the reasons for your difficulties, it will be easier to address them — and to come out ahead with your finances.

Here are 6 behavioral finance mistakes that might be holding you back:

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Where’s My Tax Refund? How to Check the Status of Your Tax Refund

Where's my tax refund?

When you are expecting a tax refund, it is normal to file a little bit early.

The very next thing you say once you file is “where’s my refund?”  We can’t wait to get that money owed to us.

Indeed, many people have already received their tax refunds.

When you get refunded depends on two main factors:

  1. How you filed (mail or e-file)
  2. How you receive your refund (paper check or direct deposit)

If you mail in your tax return and opt to receive your refund in the form of a check from the United States Treasury, it can take as long as two months or more to see your tax rebate.

This is the combination that takes the longest.
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File Later Or Fix A Mistake? – Extension of Time to File Taxes vs. Amended Tax Return

Which do you need? Extension of time to file or an amended tax return?

This year, you have until April 15 to file your tax return (some years the date is off).

But that doesn’t mean that you’re ready to file.

You might want a little more time to get things together, or you might need to make changes to an already-filed return.

It is important to understand the difference between a tax extension and an amended return.

Read on and you’ll know for sure which of these 2 choices is right for you.

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Which is More Valuable: Tax Deduction or Tax Credit?

What's more valuable? A tax deduction or a tax credit?

As Tax Day draws closer, many are looking for documentation and trying to figure out whether they are taking a deduction or credit for each item that they hope will bring a tax advantage.

Understanding the difference between a tax deduction and a tax credit is important — especially when you stop to consider that one is more valuable than the other.

Is That a Deduction or a Credit?

The difference between a tax deduction and a tax credit can be expressed by the way it affects your taxes.
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Don’t Let Them Get Your Money! Where to Hide Money from Lawsuits, Creditors, and the IRS

Can you hide your money from the IRS?

Are you worried that someone might be coming for your money?

Whether it’s a potential lawsuit, or even if it’s the IRS or a creditor, you probably want to protect your assets.

If you want to protect your assets, you need to know where to hide your money, and know how to properly structure certain accounts in order to avoid having someone drain your financial well dry.

Here are some places that you can hide your money:

Retirement Account

One of the best places to hide your money is an ERISA-qualified retirement plan.

Not only can you keep some of your money safe, but you can also earn a tax-advantaged return on the money.  The money in your retirement account is protected from liability lawsuits.  Additionally, your retirement account might have some protection from bankruptcy and creditors (not always, though).
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Blogger Tax Deductions You Can’t Afford to Miss!

Blogger tax deductions you can't afford to miss!

At first glance, it may not seem that you are spending a great deal on your blogging endeavors.

However, the fact is that blogging does cost money.  And, if you are making income from your blogging, you might want to offset some of that with the help of tax breaks for your costs.

Before you go claiming tax breaks, though, it is a good idea to double check to make sure that the items you claim truly are related to your blogging efforts.

If you are looking for some blogger tax deductions, here are some things to consider:

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Tax Time: Are You Reporting Your Income? Different Tax Forms to Look For

Income tax forms that report your income.

For many, income reporting at tax time is fairly straightforward.

You get a W-2, there’s your income.  The IRS gets a copy of the W-2, your state gets a copy, and you keep a copy for yourself.  Your income is reported on this form, and you don’t have to worry a great deal about other income reporting.

However, in a world that increasingly provides opportunities to earn money from side hustles and investments, reporting income has become a little more complex.

It can be tempting to avoid reporting income to the IRS, but it’s important to remember that failure to report your income is illegal, and can result in fines and penalties and even criminal charges.

As the IRS works to recapture some of the revenue it feels it has been losing lately, you should understand that more people are reporting your income to the IRS than before.

So you need to be on your toes.

See What Income Tax Forms Report Your Income That You Need to Keep an Eye Out For

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