An educational guide for businesses and individuals

As 2025 comes to a close, it’s a great time to reflect on your financial health and take proactive steps to reduce your tax liability. Year-end tax planning helps both individuals and business owners. You can leverage deductions, credits and opportunities before 2026 arrives.

This guide outlines updated strategies based on current IRS rules and recent legislative changes, helping you prepare for a smoother and more financially sound tax season.

Individual strategies for tax preparation success

1. Maximize Retirement Contributions

Retirement contributions are one of the most effective ways to reduce taxable income while saving for the future. For 2025, the contribution limits for Individual Retirement Accounts (including traditional and Roth IRAs) are $7,000 for individuals under 50 and $8,000 for those 50 and older.

Learn more: What is an IRA?

If you’re eligible, contributing to a traditional IRA may allow you to deduct the amount from your taxable income. Alternatively, Roth IRAs don’t offer upfront deductions, but qualified withdrawals in retirement are tax-free.

Self-employed individuals should consider a SEP IRA or SIMPLE IRA, which offer higher contribution limits and can be set up before year-end. These plans not only reduce your taxable income but also help build long-term financial stability.

2. Review your deductions and potentially itemize

In 2025, single filers receive a $15,750 standard deduction, while married couples filing jointly receive $31,500 as a result of the One Big Beautiful Bill Act (OBBA) from July 2025. In addition, OBBA also enhanced deductions for seniors. Individuals who are age 65 and older may claim an additional deduction of $8,000 ($16,000 for married couples), which does phase out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers). While many taxpayers opt for the standard deduction, itemizing may result in greater savings if your deductible expenses exceed these thresholds.

Common itemized deductions include:

• Mortgage interest.
• State and local taxes (SALT).
• Medical expenses exceeding 7.5% of AGI.
• Charitable contributions.
• Investment interest.

Calculate if itemizing saves you more money. This could help especially if you’ve paid large medical bills or made sizable charitable donations in 2025.

3. Manage your capital gains (and losses)

If you’ve sold investments this year, you may have realized capital gains. To offset those gains, consider selling underperforming assets to realize capital losses. This strategy, known as tax-loss harvesting, may reduce your taxable income.

You can deduct up to $3,000 in net capital losses against ordinary income annually if you are a single filer, and any excess can be carried forward to future years.

Additionally, if you’re in a lower tax bracket ($48,350 or less taxable income for single filers or $97,600 or less for married filing jointly), you may qualify for the 0% capital gains tax rate, making it a good time to realize gains strategically.

4. Make charitable contributions

Charitable giving not only supports causes you care about, it can also reduce your tax bill. You can deduct contributions to qualified organizations if you itemize. Regardless if you itemize, you can still take a charitable deduction of up to $1,000 ($2,000 if married filing jointly) for cash donations to public charities (excluding donor advised funds).

For those over 70½, consider making Qualified Charitable Distributions (QCDs) from your IRA. These distributions count toward your Required Minimum Distributions (RMDs) and are excluded from taxable income.

As always, be sure to keep proper documentation, including receipts and acknowledgment letters from the charities.

5. Organize your financial paperwork

The end of the year is the perfect time to organize your financial records and documents—including W-2s, 1099s, receipts, donation records and investment statements. Organized records help you claim deductions accurately and avoid delays or errors when filing.

In addition, you may want to consider using a digital filing system or tax preparation software to streamline the process.

Your tax preparer will thank you!

Filing as an individual? Here’s what to avoid.

Plan early to ensure your end-of-year tax preparation goes smoothly. Don’t fall into these common pitfalls:

• Procrastination: Waiting until the last minute to make contributions or donations can mean missing out on deductions.
• Neglecting deductions: Failing to review your finances may result in missed opportunities.
• Poor recordkeeping: Inadequate documentation can lead to errors and delays.

Small businesses tax tips

For savvy businesses, there are several tax saving strategies that can really make a difference. These are just a few:

1. Contribute to employee retirement plans

Offering retirement plans like 401(k)s, SEP IRAs or SIMPLE IRAs can provide tax benefits for your business and help attract and retain employees.

You can also deduct employer contributions, so be sure to set up a plan before year-end to claim the deduction for 2025. If you’re a sole proprietor, you can also contribute to your own retirement plan and reduce your taxable income.

2. Invest in capital expenditures

Under Section 179 of the Internal Revenue Code, businesses can deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year. For 2025, the deduction limit is $2.5 million.

Additionally, bonus depreciation remains at 100% for property purchased and placed in service after January 19, 2025, allowing businesses to deduct the full cost of eligible assets immediately. This applies to new and used equipment, making it a powerful tool for reducing taxable income.

If you’re considering upgrades to machinery, vehicles or technology, making those purchases before December 31 could yield significant tax savings.

3. Claim available tax credits

Tax credits directly reduce your tax liability and can be more valuable than deductions. Some key credits for small businesses include:

• Work Opportunity Tax Credit (WOTC) for hiring individuals from targeted groups.
• Clean Commercial Vehicle Credit for purchasing electric or hybrid vehicles (only available for vehicles purchased prior to September 30, 2025).
• Energy Efficiency Credits for upgrading buildings or equipment (note, these rules have changed in 2025; contact a tax professional for specific requirements).
• Disabled Access Credit for improving accessibility.

Rules for these credits can change. Consult your tax advisor to determine eligibility and ensure proper documentation.

4. Understand the current 1099-K form limit

The IRS now observes a $2,500 threshold for third-party payment platforms like PayPal, Venmo and Square. If your business receives payments through these platforms in excess of $2,500 and 200 transactions, you may receive a Form 1099-K. However, this threshold is scheduled to decrease to $600 starting in 2026.

Regardless of whether or not you receive a Form 1099-K, be prepared to report this income accurately and reconcile it with your bookkeeping records. Misreporting or underreporting can trigger audits or penalties.

5. Review your estimated tax payments

Businesses are required to make quarterly estimated tax payments. If your income increased in 2025, you may need to make an additional payment before year-end to avoid underpayment penalties.

Use IRS Form 1040-ES or consult your accountant to calculate any remaining liability. Making a final payment now can help you avoid surprises in April.

6. Organize your business records and financial paperwork

Accurate recordkeeping is essential for claiming deductions, preparing financial statements and navigating audits successfully. Before year-end, review:

• Income and expense reports.
• Payroll records.
• Receipts and invoices.
• Asset purchases and depreciation schedules.

Consider using accounting software or hiring a bookkeeper to ensure everything is in order. Clean records also help you plan for the upcoming year and make informed business decisions.

Common tax preparation mistakes for small businesses

What should small businesses be particularly wary of when it comes to tax preparation? These three common concerns top the list:

• Not engaging a tax professional. Tax laws change often. Consult a CPA to stay compliant and maximize savings.
• Not planning for taxes enough (or at all). Strategic investments and credits require foresight and documentation.
• Poor recordkeeping. Just as with individuals, a lack of business recordkeeping can lead to missed deductions and audit risks.

Take the time now to get a handle on your paperwork—and, if necessary, get caught up before the end of the year.

The power of taking action

Whether you’re an individual or a small business owner, year-end tax planning is a powerful tool for improving your financial health. By acting now—contributing to retirement accounts, reviewing deductions, investing in your business and organizing your records—you can reduce your tax liability and be better prepared for 2026.

Disclosures

Information is gathered from sources believed to be reliable; however, we cannot guarantee their accuracy.

Representatives of Ameritas do not provide tax or legal advice. Please consult your tax advisor or attorney regarding your specific situation.

Financial security is a goal we all strive for. Passive income, which is money earned from assets, can offer an option for individuals with a long-term investing goal. Whether through dividends, rental income or investment returns, passive income has the potential to help create long-term financial stability.

Building passive income requires dedication and solid financial strategies. Not only can it give you the opportunity for more financial freedom, but it also can set up a legacy of wealth for your family. By investing in well-managed, income-generating assets, you’re not just planning for your own future, you’re giving future generations a solid foundation to build on.

Key terms to understand about passive income

What is passive income? At its core, passive income is a type of earning that requires minimal ongoing effort to maintain after the initial investment of time, money or resources. It’s essentially money you earn while not actively working for it on a day-to-day basis.

Common types of passive income can include:

• Investment dividends: Regular payments from stocks, mutual funds or exchange-traded funds.
• Rental properties: Income from leasing real estate to tenants.
• Interest earnings: Money earned from savings accounts, CDs or bonds.
• Royalties: Payments from intellectual property like books, music or patents.
• Business investments: Profits from businesses you own but don’t actively manage.
• Digital products: Earnings from online courses, e-books or apps you’ve created.

Usually, passive income earnings come from assets that increase in value over time. However, not all assets are created equal. So, before discussing how to generate passive income, it’s good to get clear on a few key terms.

Assets: In terms of a pure definition, an asset is something you own that has value. However, when it comes to wealth building, not all “items of value” are equal. For example, consider a car that you own. This item has value, but you’re not going to grow your wealth from owning your car. Why? Because your car’s value declines over time.

In contrast, wealth-building assets do one or both of the following: 

• They may put money in your pocket.
• They may grow in intrinsic value.

That takes us to our second key term, intrinsic value.

Intrinsic value: Simply stated, this is the price of your asset. If the intrinsic value of your asset increases over time, that means the amount of money someone is willing to pay for your asset is going up. This increase is called appreciation. For example, if you have a piece of property that you purchased ten years ago for $10,000, and you are now able to sell at $100,000, the intrinsic value of that property has appreciated.

When an asset you own is worth less now than when you bought it (like your car), that means its intrinsic value has gone down—a process generally called depreciation.

When you own assets that have the potential to grow in intrinsic value, they can increase your financial position over time. When you own assets with the potential to increase in intrinsic value over time and put money in your pocket such as dividends or rental income, that’s when you have the potential to begin building wealth.

How to get started with passive income

As listed above, there are several ways to build passive income, including investing in real estate, investing in the stock market or even starting your own online business. The right approach for you depends on your financial goals, risk tolerance and investment strategy. Talk with a financial professional about the tools that might work best for you.

Additionally, annuities may provide a guaranteed income stream in retirement, making them a stable source of passive income. If you’re interested in building a passive income stream while helping to ensure your family’s safety long-term, a financial professional can help. Learn more about annuities from Ameritas. Annuity guarantees are based on the claim paying ability of the issuing company subject to its terms and conditions.

Long-term impact of passive income

Receiving passive income marks a turning point in financial freedom. This new income stream can help make other things possible – a new career, a new lifestyle or even education to help you explore an entirely new field. You can reinvest your proceeds to purchase more income-producing assets, or you can use them to pay for new purchases without incurring debt. However you use it, passive income has the potential to make an impact on your financial future.   

Importantly, while it can be very tempting to sell your income-producing assets to pay for something else, understand that by selling your income-producing assets, you may be sacrificing your future wealth-building potential. In addition, there may be adverse tax consequences and other risks involved in selling an asset too early. Passive income investing is not for everyone and comes with the risk of loss, including your original investment amount. Once again, consult with a trusted financial professional to ensure you’re making the best choice for you and your future.

This article is for informational purposes and is not intended to nor should it be considered investment advice.

Representatives of Ameritas do not provide tax or legal advice.  Please consult your tax advisor or attorney regarding your situation.  

In approved states, annuities are issued by Ameritas Life Insurance Corp. In New York, annuities are issued by Ameritas Life Insurance Corp. of New York.

Credit is a two-edged sword. Use it well, and it can be an effective financial tool, efficiently cutting down on paperwork and streamlining your life. Good credit expands your financial freedom and opens doors in housing, education, business and more. When used poorly, it can cut your financial dreams short. Poor credit limits your financial freedom in many ways:

• Higher interest rates on major purchases.
• More limited employment opportunities.
• Limited housing options.
• Higher insurance payments for your car or home.
• Paying deposits on utilities.
• Diminished cash flow due to debt service.

To use credit well, it’s important to understand the nature of the credit system and the role of credit bureaus. These organizations are responsible for tracking your borrowing behavior. Your personal record of credit use generates what is known as your credit score. This number tells future lenders whether you’re trustworthy with credit. Learn more about credit scores and how to get your credit report from usa.gov/credit-score.

Having a high credit score makes a difference when you want to do big things in life, such as buying a house or starting a business. This article shares strategies to help you get there.

Keys to building good credit

To maintain a good credit score, it’s crucial to follow a few pivotal principles.

1. Pay your bills on time. This is the most important factor in determining your credit score. Late payments, even by a few days, can have a negative impact. Setting up automatic payments or reminders can help you avoid missing due dates.
2. Minimize the amount you owe. Keep your credit utilization ratio low by paying down balances on your credit cards. Ideally, your balance should be less than 30% of your available credit. The less you owe relative to your credit limit, the better it will reflect on your credit score.
3. Maintain accounts for a longer duration. The longer you keep your credit accounts open and in good standing, the better it is for your score. Avoid canceling old accounts, even if you no longer use them, as this can shorten your credit history and negatively affect your score.
4. Understand the different impacts of revolving versus installment credit on your score. Revolving credit, including credit cards and lines of credit, allows you to borrow up to a limit and repay over time. Installment credit, such as mortgages or auto loans, involves borrowing a fixed amount and repaying it in set installments. Having a mix of both types of credit can benefit your score by showing that you can manage different types of credit responsibly.
5. Avoid accounts going to collections. If you miss multiple payments over an extended period of time, usually 90 days or more, your account may be sent to collections. Having your account referred to a collection agency can severely damage your credit score.

Why good credit matters for your first home

When you’re ready to buy your first home, you apply for a mortgage loan. Your credit score directly affects the interest rate you receive on your mortgage.

Good credit scores qualify for lower interest rates, while poor scores result in higher rates. The cost difference between the highest and lowest rates may not seem much until the cost over 30 years is calculated. Qualifying for the lowest interest rate on a mortgage could save you tens of thousands of dollars by the time your home was paid for.

Building and repairing your credit

If you’re just starting out or need to rebuild your credit, it’s important to take the right steps. Here are some strategies for building or repairing your credit.

• If you have no credit history or poor credit, a secured credit card is a good way to start. With this card, you deposit a certain amount of money upfront, and your credit limit is typically equal to that deposit. By paying off the balance in full each month, you can build positive credit history over time.
• If you have existing debt, prioritize paying it down. Start with high-interest debt, such as credit card balances, as these can quickly accumulate and hurt your credit score. Consider working with a credit counselor if you’re struggling to manage debt.
• Create a budget to make smarter financial decisions. By calculating the funds required for rent and mandatory expenses, you can determine your available disposable income.

Monitor your credit

Regularly monitoring your credit is another best practice to stay on top of your financial health and build good credit. By reviewing your monthly bank statements and monitoring your credit, you can identify errors and signs of identity theft, such as unfamiliar accounts or inquiries. Early detection allows you to dispute mistakes quickly, minimizing potential damage to your score. Additionally, tracking your credit progress allows you to see how your actions affect your credit score.

Most credit bureaus offer free credit reports once a year, and many also provide access to your credit score. Additionally, there are many services available that allow you to check your credit score regularly for free or for a nominal fee. Taking advantage of these services can help you stay proactive in managing your credit.

Credit is a powerful tool that requires responsibility. By understanding how credit works, maintaining a good credit score and monitoring your credit, you can make informed decisions and protect your long-term financial goals.

 

Creating a comprehensive financial strategy is an important step to help you achieve your financial goals. It involves setting a roadmap that includes your income, savings, investments and spending habits. A well-crafted financial strategy can help you manage your money, prepare for emergencies and ensure a comfortable retirement.

Meeting with a financial professional can provide valuable guidance. These professionals can navigate complex financial decisions and identify growth opportunities. Use this meeting checklist with your financial professional to come prepared and feel confident with the right questions.

Come prepared with information

1. Gather your financial information. Start by compiling all relevant financial documents, including bank statements, investment accounts and debt information. Having a clear picture of your current financial situation allows your financial professional to provide personalized advice.

2. Set clear goals. Identify what you want to achieve financially. Are you focused on retirement planning, debt reduction or investment strategies? Setting specific, measurable goals will guide discussions with your financial professional.

3. Understand your budget. Take time to look over your income, expenses and savings. Knowing where your money goes each month is key. Read our blog to see how a financial review can help your personal finances.

Read our blog to see how a financial review can help your personal finances.

Know these financial terms

Assets and liabilities

• Assets are valuable items you own including cash, investments, real estate and personal property. Assets can be classified as liquid or non-liquid, depending on how easily they can be converted into cash.
• Liabilities are debts or obligations you owe counting mortgages, car loans, student loans and credit card debt. Understanding your liabilities helps manage debt and plan for repayment.

Net worth

• Your net worth is the difference between total assets and total liabilities. It reflects your overall financial health. Knowing your net worth helps you track your financial progress and set realistic goals.

Investment types

• Stocks: Shares representing ownership of a company that offer the potential for high returns with higher risks.
• Bonds: Loans made to governments or corporations that pay interest over time. Bonds are considered safer than stocks but have lower returns.
• Mutual funds: Pooled funds from multiple investors to create a diversified portfolio that is managed by professionals.
• Exchange-Traded funds (ETFs): Similar to mutual funds but traded like stocks, offering diversification with lower fees.

Compound interest

• Compound interest is the interest calculated on the initial principal and accumulated interest. The earlier you start saving or investing, the more you benefit from compound interest.

Retirement accounts

• 401(k): An employer-sponsored retirement plan that allows employees to save and invest a portion of their paycheck before taxes. Many employers offer matching contributions.
• IRA (Individual Retirement Account): A personal retirement account offering tax advantages and tax-deductible contributions.
• Roth IRA: Similar to a traditional IRA but funded with after-tax dollars that allows for tax-free withdrawals in retirement.

Life insurance

• Provides financial protection for your loved ones in the event of your death. Life insurance can cover expenses like funeral costs, debts and living expenses.

What to expect during the meeting

Your financial professional will start by assessing your current financial situation and reviewing the information you provided. The goal of this initial assessment is to understand where you stand financially and identify areas that may need improvement. Once the assessment is complete, you’ll move into the goal-setting phase. You’ll discuss your financial goals, risk tolerance and where you envision yourself in the future. This may include saving for retirement, buying a home, funding your children’s education, building an emergency fund and more.

Next, an action plan will be developed including recommendations on how to allocate investments, manage debt and save for future needs. Financial professionals will take personal risk tolerance into account when determining which investments fit your goals and comfort level with market fluctuations.

To reduce risk and achieve long term growth, financial professionals diversify investment portfolios across different asset classes, such as stocks, bonds and real estate. Planning your financial future is an ongoing process, which is why follow-up meetings are key to monitoring progress and adjusting the action plan as needed.

Have questions in mind

Establishing a foundation of trust is key to building a successful relationship with your financial professional. It’s important to be prepared with questions to assess your financial professionals’ skill set and build confidence in their ability to meet your needs.

Here are some questions to consider asking during your first meeting.

What are your credentials and experience?

Ask about their certifications (e.g., CFP, CFA) and educational background to gauge their experience. How many years have they worked in the industry and what areas do they focus on?

What is your fee structure?

Ask how they charge for services. Is it hourly rates, flat fees or commissions? Ensure they clearly explain their fee structure, helping you understand potential conflicts of interest.

What is your investment philosophy?

Ask about their investment strategy and how they manage risk in your portfolio.

How do you prefer to communicate?

Discuss how often you will communicate to stay on track with your financial goals.

Take the first step

Being prepared for your first meeting with a financial professional can drastically improve your experience. By gathering necessary information, understanding key financial terms and asking insightful questions, you can lay the groundwork for a successful collaboration.

Take the first step toward building your financial future by using this meeting checklist as a guide with your financial professional.

Identity theft is a common concern in the United States. As people’s daily lives become increasingly integrated with technology, new avenues for scams and fraud will emerge. This is why it’s important to learn how to prevent identity theft. In 2023, the Federal Trade Commission reported $10 billion was lost in cases of fraud, a 14% increase from 2022. 

Identity theft can result in a costly ordeal for victims, but there are proactive steps and warning signs you can look out for to reduce personal risk. Continue reading to learn more about how to protect yourself from identity theft. 

What is identity theft? 

Identity theft is a crime in which someone steals the personal information of another individual to gain access to private accounts. The resulting crime, identity fraud, is the use of this information to steal money, apply for loans, obtain government benefits or conduct any other illicit financial activity. 

There are different types of identity theft, but the most common is financial identity theft. This involves fraudsters stealing personal information to purchase products or services or apply for credit or loans under the victim’s name. 

Thieves use several methods to steal personal data. Physical items like passports, driver’s licenses, credit cards and cellphones provide an easy way for them to do so. 

In today’s digital world, more sophisticated styles of attack like phishing have become common as well. Online phishing scams through email, text and phone calls, otherwise known as imposter scams, led to $2.7 billion in losses in 2023.  

Warning signs to look out for 

Fraudsters can gain access to your personal information often without you realizing it. It’s important to know the warning signs and how to prevent identity theft. 

Here are some of the identity theft signs that might indicate your personal data has been stolen. 

• You stop receiving bills in the mail. 

• You receive notices from debt collectors about debts that are not yours. 

• Your financial statements contain transactions you did not make. 

• Your checks bounce. 

• You receive medical bills for procedures, prescriptions or services you don’t know about. 

• Your insurance carrier processed medical claims for treatment you didn’t receive. 

• You cannot file your tax return because it has already been filed by someone else. 

• Your information was compromised in a data breach at another company. 

Steps you can take to protect your identity 

Many fraudsters take advantage of people who do not realize their personal data is at risk. These are some of the habits you can adopt to help protect your identity from an unexpected attack: 

Keep personal information secure. Fraudsters can use bite-sized pieces of data to learn a lot about you. Do not share sensitive information with people you do not know or trust. Additionally, avoid joining public Wi-Fi networks without security encryption.  

Keep passwords safe. Hackers are skilled at guessing passwords. Make sure your passwords are long and complex to make them difficult to decipher. Use a different password for each one of your accounts and change your passwords frequently.  

Avoid payment app scams. Zelle, Venmo and CashApp are popular apps that allow users to easily transfer money to others. Unfortunately, fraudsters have used these apps as a new scam opportunity. Report any unexpected requests or claims of overpayment from unfamiliar accounts.  

Prioritize cybersecurity. Invest in a high-quality, up-to-date firewall system to protect your data from security breaches. 

Stay alert. Check financial documents like bank statements frequently to ensure nothing is out of place. Set up alert notifications through your banking app so you’re aware whenever a transaction is made. Catching identity theft signs early is the best way to minimize the damage. 

It’s essential you take the right steps to protect yourself from identity theft. Doing so prevents unnecessary headaches and gets you back to focusing on the things most important to you.   

How to spot and avoid potential scams 

Most cases of imposter scams involve communication via email, text or phone calls to obtain personal information. Here are some key indicators to help you steer clear of falling victim to a scam.  

Look out for unusual addresses and numbers. Double check that you’re receiving communication through official email addresses or numbers. Legitimate texts from banks only come from a four-or-five digit number. Additionally, bank representatives rarely call unless someone has previously reached out for assistance.   

Be skeptical of urgent warnings. Ever received a message like, “Important: your account will expire in 24 hours.” This is a classic example of a scare tactic that scammers use to gain access to personal information. Be wary of any message that garners immediate action.  

Report requests for personal information. If you receive an email or text requesting personal information like social security or account numbers, passwords or PINs, it’s safe to assume the message is a scam. 

Watch out for poor grammar. Stay vigilant of poor grammar or spelling mistakes within email and text messages, as this may indicate a phishing scam.  

Avoid clicking on links or attachments. While it may seem harmless, opening links or attachments from unknown senders can compromise your computer. These links are often equipped with malware to gather personal information from users.  

Do not be afraid to verify any messages with your bank, or official organization, to ensure you’re communicating with a trusted address or number. While screening for phishing scams may require extra diligence, it’s worth the peace of mind.  

What Ameritas does to help 

Ameritas maintains a robust security network to help keep your private data safe. These are some of the things our team of professionals do every day to help protect your account security: 

• Maintains a full-time security team that monitors and updates our systems and network. 

• Associates participate in ongoing education and mandatory training sessions to stay updated on present cybersecurity trends and risks. 

• Strengthens security by encrypting data, monitoring malicious activity and controlling who has access to view and handle your data. 

• Tests our network and systems regularly through risk assessments. 

• Invests in technology like two-factor authentication to contact you and verify access or changes to your account when submitted by an unrecognized device. 

• Protects and verifies your calls to our contact center through security checks to help identify calls that may be fraudulent. 

Ameritas is in the business of fulfilling life. Bringing you valuable information to help you plan well and enjoy life is part of what we do. Visit our About Us page to learn more.

Sticking to new goals can be difficult. Many Americans say their goals usually last about two to three months before fizzling out.¹ Why not consider new habits that can have a permanent impact on your well-being?

This year, improve your finances by learning how to make a budget. When you understand where you’re spending your money, you can identify areas to make cuts and help you save, such as subscriptions or eating out. This gives you the flexibility to spend money on other things when you know your fixed expenses are covered.

Use these budget tips to help meet your financial goals this year.

Get started with your fixed expenses

Your first step in making a budget is listing all your monthly income. This includes side gigs or other earnings. Once you have this amount calculated, you know how much money is available to spend every month. Your goal with a budget is to make sure you’re not spending more than you’re earning.

Next, list all of your fixed expenses. These are required bills or payments you make every month, such as mortgage or rent, gas, groceries, internet, kids’ schooling, debt payments, etc. Subtract the amount needed for these payments from your monthly income. After you’ve calculated how much you’ll need for fixed expenses, the amount leftover is for discretionary spending, like eating out or shopping.

Some payments will remain the same from month to month, like rent or your phone bill. Consider thinking about your grocery purchases in the same way. A low-cost grocery plan for a family of four costs around $1,055.80/month.²  If you’re looking for ways to cut costs, try budgeting $1,100 a month for your groceries, and any extra dollars could be saved for a family outing.

Prepare for the unexpected

We usually aren’t told when a curveball might be thrown our way, so it’s better to be proactive than reactive. Put a portion of your budget toward savings so you can continue paying your bills if you lose your job or need to make a costly emergency payment.

Also consider paying for a life insurance policy as part of your budget. If you were to pass away unexpectedly, you want to make sure your loved ones are taken care of. Life insurance can offer that protection. Either evaluate how much life insurance you need or set up a policy review using our checklist.

Be flexible

You could say you will give up shopping or drive-thru coffee, but it’s never fun to make an unattainable goal. You know yourself better than anyone else. If you know that a fountain soda is a necessity to get through your workday, don’t deprive yourself of it completely. Not only will you resent having made a budget in the first place, but you’ll also be setting your goals up for failure.

Give into your indulgences by setting limits for yourself without going cold turkey. Make at-home coffee Monday through Thursday and get your go-to drink on Friday or once every other week. It might even make you savor and enjoy your cup of joe more.

Allocating money for our favorites makes life more enjoyable. Go to the movies, visit a local vendor and attend sporting events – just make sure you’re honest with yourself and your budget.

Don’t pay for what you don’t use

January is a great time to re-evaluate streaming services and subscriptions. Lots of these payments are automatically withdrawn from your account every month without your knowledge. Take some time to look through those payments and decide if you’re really using them. If you are, great. If not, cancel your subscription. Who knows, maybe you’ll find you’ve been paying for two of the same services.

Consolidating subscriptions is also something to consider. There are lots of streaming services available. If you have one that already includes live television, it might be time to stop your cable bill.

Give your money the potential to work for you

Consider investing in yourself by putting money into an investment retirement account. Contributing to an IRA can provide another way of adding to your savings while providing tax advantages. Read more about the differences between IRAs to assess what is best for you and your budget. Consult with a financial professional to see if an IRA is right for you.

Quick tips to keep to your monthly budget

1. Order your groceries as drive-up trips instead of going inside to shop. It’ll be easier to add up your expenses and you can look at your fridge while selecting items. Additionally, it may help with buying what you need rather than impulse shopping on an empty stomach.

2. Download apps for your favorite places. If you are a frequenter of any fast-food chain, then odds are you could start accumulating “points” for your meals or have first access to deals. Some fitness apps also reward you just by getting your heart rate up with coupons to nearby restaurants. If going to the gym is a part of your daily routine, add more rewards to your wallet. If you’re looking for another incentive to keep your fitness goals, this could be your reason.

3. Keep your budget handy. Whether you choose to use your notes app or create an elaborate excel document, keep it on your phone and make adding to it a habit of yours.

4. Log every receipt right away. Take a picture if you’re with friends or make it your first task once getting back in your car.

Sticking to new goals can be hard. Create habits now that will have tangible results on your financial well-being for years to come.

Is college in your future? Whether you’re a parent who wants to secure your child’s educational future or a student looking for ways to pay for college without student loans, you have several financing options. The key is to get started today!

Parents preparing for the long-term

If your child has a college planning horizon of ten years or more, yours is a two-step process. First, set clear goals for your child’s college fund. How long will you be able to contribute to this fund? What are the estimated future costs you’d like to cover? These could include not only tuition, but fees, housing, books and other college expenses. Use our college savings calculator to estimate how much you should be saving.

If these questions feel difficult to answer, talk to your financial professional. They can help you understand your educational goals and your saving horizon so you can make the best choice for your child’s future.

Most families would like to avoid the crippling college debt that can come from taking out high-interest rate student loans. Fortunately, there are many ways to pay for college without taking out loans. They include:

• Open a 529 college savings plan. This savings tool is a state-sponsored investment plan that allows you to save money for a beneficiary to pay for their education expenses. 529 plans offer tax advantages and potential investment growth, and each state’s plan is slightly different. 529 plans are investments which are subject to the risk of loss, including principal. Talk with your financial professional to see if one is right for your situation. For more information on 529 plans refer to the SEC’s Investor Publication.
• Use life insurance to help pay for college. With a cash value life insurance policy, you can secure needed death benefit protection for yourself while also providing a future college funding source for your child. Withdrawals¹ and loans from the cash value of your policy can occur as needed. Better still, the value of your life insurance policy isn’t counted as an asset in financial aid formulas, so it won’t affect the aid your child will receive.
• Open traditional savings accounts. Although 529 plans and life insurance offer advantages for long-term saving, there are other ways to pay for college too. For maximum accessibility and flexibility, you can set up a savings account, put money away in a certificate of deposit (CD) or open a money market account. Pro Tip: Automate your college contributions so you don’t have to think about it every month. Even a small monthly contribution can add up over time!
• Dedicate gift money to a college fund. Consider opening a dedicated college gift account for your child, so that family and close friends have this as an option instead of traditional gifts for birthdays and holidays. The knowledge that their gift will help your child’s educational dreams come true is a priceless perk of this method for your friends and family.
• Encourage your student to explore a diverse range of experiences. Once your child reaches school age, encourage them to explore different activities, hobbies and interests—especially if a particular activity sparks a true passion in them. Colleges seek well-rounded students and will often favor those who have a more diverse, varied background when they’re making decisions about non-academic based scholarships or grants.

Students preparing for a near-term college education

What if college is just around the corner? You still have great options to consider paying for college without loans.

• Do your research on scholarships and grants. If appropriate, ask your college guidance counselor for scholarship and grant opportunities—or do your own research online or via community organizations. There are a wealth of sites and search engines dedicated to promoting local, regional, national and in some cases international aid sources. These scholarships and grants could be based on need, academic achievements, hobbies or even your geographic location. Don’t assume you won’t qualify—a significant amount of money is available for those willing to do the research work.
• Apply for financial aid. As early as possible during the year you’re applying to college, complete the Free Application for Federal Student Aid (FAFSA). This document helps determine your eligibility for federal grants, work-study programs and low-interest loans. Parents can submit this document any time after October 1 of a child’s senior year in high school, but it does require tax information, so most parents submit it in early January.
• Check into education tax credits. Special education tax credit programs, such as the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC), can provide tax benefits for qualified education expenses. Definitely don’t skip this step!
• Discover what work-study programs are available. Now more than ever, work-study programs are a staple of the college payment process. These part-time job opportunities not only provide money to help you cover educational expenses, but they can also offer legitimate and valuable work experience toward your future career—a win-win for any student. You can contact the financial aid offices of the colleges you’re considering to learn more about their work-study programs.
• Consider a two-year or community college that offers transferrable credits. If you’re not sure what college major you want to choose or how specifically you plan to use your degree after college—or if you simply want to attend college for less—consider starting your education at a two-year, community or online college. Many of these accredited institutions have agreements in place with major four-year schools, which will allow you to fully transfer your credits for core courses all students must take to graduate. This strategy can dramatically reduce the overall cost of your education, while allowing you to secure your final degree from the college of your dreams.

Paying for college can be challenging—but there are many resources that can help. There are steps both parents and future college students can take to prepare and help keep costs down. By talking with counselors at your child’s school and prospective college, working with your financial professional to set up a plan that fits your needs and contributing to savings programs that make sense for your budget, you can give your child (or yourself!) the gift of a college education.

Traveling is expensive on its own. If your debit or credit card is compromised, your vacation time is sure to be less than sunny. Keep your finances secure with these tips on how to keep your money safe while traveling.

Make sure your bank information is up to date

If your account does get flagged by your bank with a potential fraud threat, the most vital step is to have an up-to-date recovery phone number on file. Your bank will cancel the transaction and call the phone number on file to verify the purchase. However, if the recovery phone number is your home phone number (i.e., the one not on vacation with you or, worse yet, the phone that has been unplugged since 2010), your bank will have no way of contacting you.

Download your bank’s mobile app

Most banks have a mobile app available for download on your smart device. Downloading the application will not only save you log in time, but it will also save you time worrying. Usually, the app will give you access to:

• Place a temporary block.
• Check your account balance.
• Review transactions.

If you misplace your card, placing a temporary block on your account may calm your nerves while trying to locate your physical card. If you use the mobile app to check transactions to your account and something isn’t adding up, this will also necessitate a need to place a temporary hold before cancelling the card completely. Lastly, a mobile app makes checking your balance easy to make sure you’re good to go before making your next purchase.

Add your primary card to your phone’s mobile pay

Adding your card directly to your phone’s mobile wallet will mitigate some risk associated with entering your card information on a website. For example, if you’re purchasing tickets to an event online for your trip, consider using your mobile wallet to confirm the purchase instead of typing it in. From a bank’s perspective this is a more trusted transaction. Additionally, having mobile pay is a great backup if you can’t locate your physical card.

Where are you headed?

Are you travelling abroad or locally? If you’re taking a weekend getaway to a neighboring state, alerting your bank doesn’t need to make your to-do list. Your bank account is not likely to get flagged in this instance. However, purchases pinging from your card far away from home might send a red flag to your provider. In the case that you’re travelling abroad, you can either notify your bank ahead of time or just ensure your cellular device works in your end destination.

Best practices

Sometimes we forget best practices to keep our money safe when we’re away from home. Here are some additional tips that travelers and everyday users should consider.

• Save your customer service representative as a contact on your phone. You could call your issuer if you lost your card. This will aid you in finding the phone number quickly.
• Limit your ATM use to those inside of banks. These are often more secure.
• Be aware of your surroundings. Cover your PIN when you enter it into any device.
• Have a password protected phone or mobile application. Most phones will allow you to use your face ID to verify your identity.
• Keep your wallet in a safe and secure location.

Give yourself added protection by using a credit card. This allows you to check and validate expenses when you return home. There’s no way to validate purchases you’ve made with cash in retrospect. In addition, it’s much better to keep $500 of budget “wiggle room” on your card (which can be cancelled if need be) rather than $500 in cash in your back pocket. If you happen to purchase an item with a credit card at an establishment that becomes compromised, most companies have a zero or limited liability for fraud within their terms and conditions, so you get your money back.

Vacation should be fun! Worrying about keeping your finances secure shouldn’t make your traveling itinerary. So, use these tips to keep your money safe while traveling to mitigate any risk associated with heading out of town. If you’re ready to plan your next trip, read our article with tips for a budget-friendly vacation.

The sun is shining, school is out and work-from-home has transitioned to work-from-outside-the-home. Summer is in the air. Take some time to relax this season; you’ve earned it. However, breaking the bank on vacation might make you wish you hadn’t ventured out in the first place. Planning is key to a budget- friendly vacation. There are lots of ways to take a break without breaking the bank.

Fun, free summer activities

Consider your destination. Are you headed to a place with lots of trails? Pack a pair of sneakers, and plan to enjoy a couple of hours soaking up the sun. Spend the day at the beach for peak relaxation and tan time. In the summertime, many cities will offer free experiences for tourists. Do some research to see if your destination has a free evening at the zoo or a city-sponsored movie night or concert. If you have some extra room in your car, throw in a basketball or some rackets and a tennis ball, and expend energy at the park for more family time.

Act like a local

If you are going to a location with opportunities for sightseeing or if the place is new to you, take a day to explore. Save money on a rental vehicle or gas by using public transportation or walking. Take advantage of the opportunity for people-watching. While you’re observing the people who live there day-in-day-out, ask a local what should be on your “must do” list. Try heading to a farmers’ market. Food can be less expensive, and it counts as both a meal and an activity.

Alternate big purchases

Don’t skip out on the fun by focusing too hard on keeping your trip budget friendly. Vacation is special because you don’t experience it every day. Allocate your money ahead of time and alternate expensive purchases. If you plan for an expensive evening activity, have a “no spend” morning. Bring along a water bottle instead of spending extra cash at a convenience store. Packing snacks will save you time and money.

If you’re still in the planning stages of your budget-friendly vacation, compare prices of rental homes versus hotels. What free amenities exist at either location? For example, does the hotel offer inclusive breakfast? Does either option include a pool?

Stick to a schedule

Planning ahead will help you save money. Creating a schedule will not only help determine how you might pack for each day, but it also serves as a money map. You will be able to see an overview of where your money will be going and might discover more ways to save. Your trip outline doesn’t have to be super specific. As long as you’ve blocked your time and researched your location for fun, free summer activities, you’ll be on track for a budget friendly vacation.

Reflection after relaxation

While reminiscing on photographs through your phone’s camera roll, take another minute to think about what went well and where improvements may lie. Afterall, if you don’t evaluate your choices right away, you might forget some of the great tips and tricks that made saving easy and fun. If something wasn’t as big of a hit as initially anticipated, don’t include it in next year’s trip plan.

Have fun!

Ultimately, how you spend your vacation time is up to you. You deserve a break. There are lots of ways you can have summer fun without wishing you’d never left in the first place. Whether it’s for extended family time or a weekend getaway, it’s easy to get trapped in the cycle of overspending on vacation. Even taking only a few of the steps above will help you save. Who knows? Maybe with the cash you’ve saved this season, you’ll have enough to start researching your next trip.

Carrie Leeb is an artist and entrepreneur from San Francisco. She’s been creating from the time she was a little girl and grew that passion into a successful career as a graphic designer, sculptor, photographer and painter. She was represented by galleries in California and New York City.

After years as a professional artist, Carrie decided she wanted to share her creativity with more people. She opened Spark Studio, where she teaches a variety of art classes.

“Spark Studio is a place where people can come and feel free to explore their creative side,” explained Carrie. “My number one ambition is for people to have fun. I love seeing the light bulb go on and people realizing ‘I made this!’ and it’s all coming from within yourself.”

A decades-long relationship

In 1997, Carrie realized she needed creative help in a new way. She asked Amy Blodgett, owner and founder of Boom Planning, to help with financial strategies for her personal and business life. From buying her first house to setting up a retirement plan for her business, Carrie’s financial strategy with Amy evolved to meet her needs at each stage of life.

“What struck me about Carrie was she was so eager to learn,” remembered Amy. “She was open to new ideas, she wanted financial advice, she wanted a long-term relationship and she was creative. I’m so drawn to creative people, so it was just a match from the beginning.”

Customized for Carrie

Carrie said that when she expressed an interest in doing more impact investing and micro-financing, Amy went above and beyond her expectations. Just like artwork, a financial strategy is deeply personal. Amy took the time to research all of Carrie’s questions and paint a financial picture just right for Carrie.

“The goal of our team is to help our clients as much as humanly possible and make things feel really simple, really easy and really fun,” said Amy.

Working with Amy and her team helped make it possible for Carrie to feel comfortable about her financial future and continue pursuing all the things that fuel her creativity and joy.

“There are so many things that make my life fulfilling,” said Carrie. “I feel so fortunate to have the life that I have.”

Ameritas is proud to help paint the financial picture in this fulfilling life story.