When you’re running a busy household, it can seem like you need to have a never-ending pit of money for you and the kids to take from. But of course, and sadly, that is not the case. One thing that every household needs to be doing is to be thinking about some more savvy ways to save money. Even investing your money into different things can mean that you are saving, and even having to pay less tax. So why pay more than you need to? Here are a few ideas that you might not have thought about before, and you can be saving more money for your household before you know it. Have a read through and see what might be for you. Then you can consider it and see if it will be a good option for you or not.
Use Your ISA Allowance
In recent years, it has been shown that many of us, all around the world, are missing out on hundreds of dollars as we are not putting our money into tax-efficient ways of saving. Getting an individual savings account (ISA) is a wonderful way to invest some of your money. As a rule, a certain amount is allowed each year for this kind of account. It means that you won’t be paying tax on that amount either. So, it not only can help you get an excellent rate on your savings but saves you paying some tax that you don’t need to. So, this is something that is worth considering.
If you are lucky to have quite a few assets to your name, then it could be a clever idea to think about donations (especially if you were thinking about selling them). Take, for example, a boat. If you’re thinking about selling one, then it could mean a lot of tax paid on that. But something that the IRS encourages is making boat donations. In simple terms, it is a tax-deductible donation, so you can sell your boat, but not have to pay tax on the sale. There are other things that work like this too. So, you could consider it if that is something that is relevant to you.
Use Your Pension
In a lot of cases, you can use up to all your salary for the year towards a pension, which can give you some tax relief too. Some people might even have employers that will match that too, up to a certain amount. It is also an innovative idea to think about this if you are due a large bonus as part of your salary. Your employer might be able to donate this to your pension, instead of paying it straight to you. Which one of those ways won’t result in tax? Yes, you guessed it, having it paid straight into your pension. So, it is something that is well worth considering. It might not be saving or giving you money immediately, but it can help you in the long term. During tax time, you will need to fill out a 1099-R form for things like pensions.