Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/675319
shop around. You could easily save hundreds of dollars with just 5 minutes of time. Most importantly, you should decrease the value of the physical damage insurance on your truck each year as its value depreciates. Contribute to an IRA Saving for your retirement years should be one of your financial priorities whether you're 55 or 25. Set up automated monthly payments. Are you receiving a tax refund this year? Instead of spending it on something frivolous, deposit it right into your IRA. e contribution limit for this year is $5,500 ($6,500 if you're 50 or older). As an added bonus, any contribution you make is tax deductible on your 2016 taxes. Eliminate your debt Do you feel like you're drowning in debt? Now is the perfect time to start working towards getting rid of it for good. Determine your total debt, write down your realistic goals, and then create an action plan. Not sure how to start? ere are several schools of thought. e first is the Avalanche Method where you prioritize your debts by their interest rate. You start by paying off the debt with the highest interest rate and then move down the ladder until you're debt free. Look for recurring debts Let's face it. We live in a world of debts. Houses, trucks, and credit cards. Unfortunately those payments can't go away overnight unless you just won the lottery. But, there are a lot of little "debts" that you're probably paying that you're not aware of unless you religiously read your bank statements. Take the time to log into your bank account and browse through your transaction history. Do you have any recurring expenses that you no longer have a need for? Perhaps that gym membership? Or the newspaper? If you do, make sure you cancel them because those are hard-earned dollars back into your wallet. Review your insurance policies Whether it's your truck, house, or life insurance, you should review it yearly and shop around as needed. We oen take out an insurance policy and promptly forget about it. Money comes right out of our bank accounts and we don't even notice it. Over time you might see your insurance premiums start to increase. Car insurance is famous for this. ere is a lot of competition amongst insurance companies, so it pays to Another popular method is the Snowball Method. You start by paying off the debt with the lowest balance and move on to the next highest balance until you've reached zero debt. ere is no right or wrong method to pay off your debt. Just choose what keeps you motivated and paying each month. Start your tax planning for 2016 It's never too early to start planning for next year's taxes. If you're a company driver receiving a W-2, make sure your W-4 form is up-to-date. If you get married or have children this year then you will want to update your allowances. If you're an owner-operator, make sure you are keeping track of your business expenses, your per diem days, and that you are making your quarterly tax payments. Spring is a great time to review your finances and put your best wallet forward. Spring is all about growth so why don't you focus on growing your net worth and reducing your debts this spring. By following these five tips you'll be well on your way to being fiscally responsible in 2016. Sean Bryant is a graduate of the University of Iowa where he received a Bachelor's degree in economics. After beginning his career in banking, he found his way to ATBS where he has a passion for helping truck drivers run a more efficient business. Vo l . 1 0 , N o . 3 TRUCKSTOP.COM 25