End of year expenses, When the calendar year comes to a conclusion, the clichéd remark “time flew by, didn’t it?” arises. Then there’s the issue of how to plan parties, purchase presents, plan trips, and, most importantly, keep end-of-year costs underline.
We understand that it is not a simple task, but it is surely feasible to enjoy a quiet New Year’s Eve. The key is to remain steadfast in giving everything while spending no more than necessary.
This is because Brazilians confront inevitable costs during the months of January, February, and March, particularly on account of taxes. As a result, planning for the near future is essential in order to prevent unpleasant shocks.
In this article, we will teach you how to plan for end-of-year costs while still saving money.
It is almost inevitable that some taxes will have to be paid following the new year. Discover the most important ones here.
The city hall of the city in which you live collects the Urban Property and Territorial Tax (IPTU). Its value is determined by the property’s square metre. It is possible to pay the tax in up to ten payments in practically all places; however, you lose the entitlement to a discount. In most cases, the refund is equal to or more than 10%.
If any payment is late, a fee will be applied to the monthly amount. In such situations, the IPTU will provide an exception. Simply go to your city hall’s website and go through the prerequisites for applying for this perk.
The Motor Vehicle Property Tax (IPVA) is levied at the state level. Your payment may only be made once (with a discount of up to 8%), however, you must be aware that this single quota will expire. The sum is automatically paid in up to three instalments after the date. The tax is determined depending on the kind of vehicle and is charged on the car’s market value (the actual worth of the asset at the time) — using the Fipe Table.
The licence quota is already incorporated in the IPVA in most Brazilian states. Its cost is determined on the kind of vehicle. This tax must be paid in order to receive the Vehicle Registration and Licensing Certificate (CRLV), which must be carried by the driver.
What are the most important year-end expenses?
End of year expenses, There are several costs that might occur at the end of the year that must be addressed. Learn about the most frequent.
Friends and family gifts
Gifts are required for events such as Amigo Secreto and Natal. The correct course of action is to make plans to spend on such memories guilt-free. Also, keep your budget in mind and recognise that not everyone in your social group should be monetarily blessed.
Christmas or New Year’s Eve Drinks and Food
Christmas meals are becoming more popular in stores. As a result, the best option is to compare costs and use your imagination to construct a less expensive meal. A excellent advice is to make your own meal and follow the tried-and-true rule of “everyone gets their own plate,” which doesn’t turn nasty in times of economic uncertainty. After all, many others are in the same situation.
Trips planned in conjunction with vacations are another common year-end cost. In this instance, purchasing travel packages in advance is the best option. That way, when the time comes to go, you’ll already have everything paid for.
Every year, any contractual protection (life, auto, property, or for mobile phones and other devices) is renewed, and it normally ends in January. As a result, it is necessary to pay attention to these wages in order to ensure the continuance of services.
If your kid attends a private school, expect a rise at the start of the school year. Examine the monthly payments as well, to minimise financial squeezes. Also, while purchasing school supplies, conduct a lot of research. To save money, compare costs at several stores, both physical and online.
Read more: Multilaser car dashboard converts a cell phone into a multimedia centre.
How to prepare?
As may be observed, some advice was previously offered in the preceding discussion. Let’s move on to some further suggestions for preparing for year-end costs.
Raise all costs
The first suggestion for avoiding problems is to examine your financial situation. Create a personal or family budget. Record all sources of revenue (rents, wages, sales, and other income) as well as expenditures (from essential expenses, such as water, electricity, internet, telephone bills, to leisure costs).
Use a notepad or download a personal money management software to make your life simpler. The most essential thing, regardless of the resource utilised, is to understand how your money is being spent. That way, knowing how to spend at the end of the year is simple.
Cut expenses that won’t be needed
Once you have all of the financial information, look for costs you can cut or eliminate. As a result, you will be able to buy everything you want over the Christmas season, as well as pay conventional debts at the start of the year. Annual taxes, such as IPTU and IPVA, may be paid all at once to get a discount.
Buy gifts in sight
Choose monetary presents and goods that are within your budget. After all, the aim is more important than the price of the goods. If at all feasible, purchase everything in advance. There are various flash sales at well-known internet retailers. If you wait until the last minute, you may end yourself spending more.
Make a list of the individuals you want to give and the maximum amount you want to spend. Then, look for the best goods, keep up with discounts, and compare costs. Finally, avoid making rash purchases.
Use the 13th salary
Many Brazilians earn their 13th pay, bonuses, and bonuses between November and December. If you have debts, it is preferable to spend this money to pay them off. If, on the other hand, your bills are current, save the excess money to purchase something or build your financial reserve.
So, have you learnt how to handle your year-end expenses? Simply put our advice into action and make sound financial decisions to live a stress-free, debt-free life.