Triumph over Taxes and Personal Finance

I had to pore over last year's expenses all in a matter of a week. This is the 3rd time I have done it in a tight deadline. A decade ago I paid an accountant $70-$80 to file my tax returns for a few years since I had no knowledge of it. Since my tax return is simple and straight forward , I thought I was totally capable of doing it on my own, until it becomes complicated.

I started taking a deeper interest a decade ago. I'm deliberately giving just an overview since I do not want to bring attention to money. Beware con artists ,scammers, I deliberately timed this article later than the tax season. Knowledge about money does not equate with having money.

There was an article that in some countries they are making it easier to file taxes. Canada intentionally makes it hard and complicated. All resources are on the CRA website.

Tips to be organized:

Keep receipts, invoices and any records of purchases for possible return/refund/proof etc.

Bank statements will show you 75 % of the picture .

Ideally track your expenses monthly.

Categorize your expenses ( below is the most universal)

Rent/Mortgage

Utilities

Auto ( Auto Finance/Leasing/Repair )

Gas

Meals and Entertainment

Grocery

Household ( Supplies, Cleaning Products, Maintenance)

Medical

Electronic

Work Related

Clothes & Accessories

• Export your transactions into the file format you prefer ( .CSV is a spreadshhet like Excel).

• Some are specific to accounting software like Quicken, Quick Books etc

• Use the SUM function to find the total of all the Categories.

I still take the pains to go though it since I can see which category resulted in the greater expense and what is eligible to be claimed.

The bank's built in dashboard only gives you the pie chart with the percentage.

I yet have to deeply look into it. I see an improvement in the year 2020.

There is some tax software that asks you question about the below methodically

T4 - Employment Income

T5 - Investment Income

T4 is just a matter of plugging in numbers. So is T5.

Pathway to the Guide that I discovered recently.

CRA Tax- Income Tax- Personal Income Tax

As you go through different milestones in life - 1st job, 1st car, 1st house and mortgage , 1st investment etc, you will learn more or be motivated to learn.

I don't think another person will have your best interest at heart, including a significant other. So I keep that part separate and private and get to know more about what I don't know.

Be comfortable about talking about money with family, friends etc.

Example: I can't join a X event since it is not in my budget

Live within your means. Ask yourself whether you truly want something or want it because somebody else has it.

In a downturn of life, only money will help you out and opens doors.

It buys you freedom to live life at your own terms.

See it as a tool to acquire what you desire in this life ,without being overly greedy about it.

I have always chosen the harder path of self reliance since I steer clear of unnecessary obligation.

It took me a few years of experience and mistakes to understand money better.

In my early 20s, I spent a lot on clothes and fashion accessories when I did not have other bills to pay :)