5 Need-To-Know Tax Terms That May Save You This Tax Season

1. Not automating your savings

When's the last time you actually put money in savings when you said you would? Let me guess: it went towards your fave Chick-Fil-A meal or the Valentine's Day decor you couldn't resist buying. This is a judge-free zone, so I'm not here to make you feel bad, but sometimes our best efforts to save money fall flat. Yet have no fear because there's a solution that stems from something you've been overlooking.

"One of the most common money mistakes is not automating your savings. If you’ve ever gotten to the end of the month and felt guilty because you didn’t save any money (or as much as you hoped), this is one thing you can do to help yourself out," says Dunlap. According to her, this looks like you taking the time to "set up an automated transfer from your checking to your savings, at least once a month." You could "set up the transfer on the first day of the month, maybe on the first and half-way through the month, whatever works for you."

But don't worry about getting things "wrong" because Dunlap doesn't think the amount you transfer has "to be a lot" because "even $20 means we're choosing progress." In her opinion, the very act of automating your savings means "you're doing the hard thing first!"

2. Overlooking high yield savings accounts

In addition to having an automated savings transfer, it also matters what kind of account you're putting your money into. I'm 100% guilty of going beyond a basic savings account as a broke college student because I was terrified I wouldn't understand the terms of what I was doing. Apparently I'm not the only one because Dunlap says we tend to overlook "ensuring that savings money is going into a high yield savings account. But, what is it?

"This is just like a normal savings account, but it’s going to earn you WAY more in interest. Basically, your savings are going to make you more savings," she shares. If you're scratching your head and need more information, we've got your back! Basically, "this is going to be the perfect account to keep your emergency fund in," according to Dunlap.

Instead of being limited to when you can access your funds (like a certificate of deposit or CD), she says "you can take your money out at any time, your money is insured," and "the partner" she and her team "recommend" doesn't have "fees" or "minimums." However, she warns "terms always apply, so check with your bank" before making a hasty decision.

3. Treating your retirement account as an investment

Full transparency moment: I didn't start paying attention to my retirement account until I left my prior job and had to roll the funds over. Even then, I thought I didn't have to focus on investments because I was sure my new IRA covered all the bases. Wrong! "...one of the biggest financial mistakes is believing the misconception that a retirement account itself is an investment–your IRA is not the investment, it's an account that HOLDS your investments," stresses Dunlap.

Her advice? "Don't just put money into a Roth without actually investing it. It’s a two-step process: make sure you transfer money into your account, and then buy investments with that money."

4. Going into debt to enjoy yourself

I fear little treat culturesunk its teeth in us and hasn't let go. I'm a recovering shopaholic who puts things in my cart and empties it if I ever feel the urge to do some unhinged damage to my debit card. Still, there are other people who are still in the trenches of living a FOMO-life.

"We know Millennials and Gen Z-ers are more likely to splurge or go into debt for travel, events and entertainment than their generational counterparts–there’s nothing wrong with having a little fun money (plus, I don’t blame them after the pandemic), but we want to make sure we’re not going into debt or dipping into an emergency fund to make it happen," says Dunlap.

If there's something you really want to do, back away from the credit card and listen to Dunlap's suggestions first. She says, "For something like a big trip or a concert, I would suggest starting a sinking fund or a dedicated high-yield savings account. That way, you know you’ve saved that money for the exact purpose you’re using it for, and you get to protect your emergency fund and credit cards in the process."

5. Waiting too long to start a retirement fund

Be honest: do you have a retirement fund? If your answer is no, Dunlap is ready to have a heart-to-heart with you. "In addition to not investing, I see a lot of women waiting too long to start preparing for retirement," she says. It's so easy for Millennials and Gen Z to think our elderly years are far away, but that doesn't mean we can't start planning for them now.

Also, saving or investing your money while you have debt isn't a sign of irresponsibility. Dunlap says, "You may have heard that all of your debt needs to be gone before you start investing–sure, some of your debt needs to be gone." Of course she'd like to see "your high cost debt like credit card debt" lowered as much "as possible before you prioritize investing," but she doesn't want you to "wait too long to start investing because" you think your "other finances aren't perfect," you're clueless about next steps, or think you "need a billion dollars to get started."

All you have to do is try. "...you’ve got to start somewhere, and something is better than nothing," adds Dunlap.

6. Bypassing investing because you have limited information

Financial literacy is important, but you're not incompetent because you have limited information about investing. Dunlaps says she sees "people believing the misconception that investing means you’re just selecting individual stocks and taking a gamble on them." Though she agrees it's "an option," she wants you to realize it's "not the only one." So, what to do?

"You can also consider investing in index funds. Essentially, this is a group of companies or groups of stocks. So rather than putting all of your eggs in one basket, you’re putting your money towards something more diversified and low-risk, that’s going to be less of a gamble long-term," suggests Dunlap.It's actually something she likes and teaches about in Stock Market School. "...index funds made me a millionaire," she offers.

BRB, going to sign up so I can get my finances together once and for all.

7. Shying away from budgeting because you don't want to be restricted

Friends, we can't keep running away from the "budgeting" word. It hasn't helped us, especially if we've been crying about sneaky expenses that are doing a number on our accounts. There's a reason we keep running from it though.

"A lot of us associate a budget with restriction–the idea that in order to save money, you have to restrict yourself and keep a tighter budget. But if you treat money like a diet, it will inevitably fail," Dunlap points out. Here's a secret she wants you to know: "It’s not your fault that you’re not sticking to your budget, it’s just psychology! If you tell me I can’t have fried chicken, all I’m going to do is want fried chicken. Psychology."

Her point is that "a super restrictive budget just doesn’t work, it's not sustainable" because "your budget shouldn’t stop you from doing things." Instead, she feels "it should be the thing that allows you to do things comfortably." You know like buying those new pair of shoes without calculating if you're going to forfeit part of your cell phone bill.

Dunlap further says, "I’m not going to tell you to stop spending money, because that’s not the solution. I am just going to tell you to stop spending money on things you don’t care about." Her number one suggestion for "helping your budget" is to "establish 3 areas of your life where you get the most joy (ex. eating out, traveling, nesting)."

"When you review your budget, these are going to be the 3 areas you make sure your spending is in line with," she also says.

8. Pretending your debt doesn't exist

How many of us are guilty of ignoring the credit card bill until we get our statement? According to Dunlap, that's a terrible idea. "The first thing is to make sure you know your numbers, and aren’t running from them–the only way to take control of your debt is by avoiding what’s called the Ostrich Effect.

This is when you avoid addressing and accessing a situation because you’re afraid of what you’ll find," she says. Wondering who the ostrich is in this situation? You are because you're keeping your "head in the sand." However, it's "so common when it comes to debt, but conquering it is the first step to making progress."

Next up? Get familiar with "tackling debt" by "building an emergency fund — regardless of how much debt you're in," says Dunlap. Even if things feel like they're going really well, she knows "life is inevitably going to throw you a few curve balls." Here's looking at you unexpected car crash that totaled my car last year.

"If you're not prepared for emergencies, you still need to find a way to navigate them–whether that’s dipping into your savings, using credit cards, or asking family and friends for help. We don’t want you to have to do that–we want you to have an emergency fund that you can use," she says. It "safeguards you from going into more debt in an already stressful situation," according to her.

After you've started building a nice emergency fund, she can't wait for you to use her "favorite debt handling method" called "the Debt Avalanche."

1. Write down all of your debts, listing them from highest interest rate to lowest, and how much the minimum payment is on each.
2. Calculate your total minimum payments to give you an idea of how much you need to pay every month to keep current.
3. Start paying extra on the credit line with the highest interest rate. Keep paying the minimums on the rest. This process works best when you focus on one bill at a time.
4. Once you’ve paid off the debt with the highest interest rate, move down the list to the next one and start paying whatever extra you can towards it each month.

Again, Dunlap doesn't want you to feel like you have to have a fail-proof system in place. "Start where you’re at — you’ll be amazed how fast that debt will start disappearing even with just an extra $15 – $20 a month."

Noted! How can I create attainable financial goals this year?

Now that you're ready to stop making financial mistakes, you can start thinking about your overall money goals for the year. Dunlap says, "One thing you can do to make your goals automatically more achievable is attach them to a mission. It’s one thing to give it a deadline and make it specific, but thinking about what achieving it actually means to you is going to drive you to accomplish it a little more."

An example she gives is you saying "'I will save my first $100K (specific) by the end of 2026 (timely)'," but she asks, "what does that mean to you, what does it get you? Why is important?"

Per her suggestion, "add your answer as a part of your goal statement." She says you could write something like "'because I want to have enough money to quit my toxic job (mission-driven).'"

Doing this "makes accomplishing your goal about more than the money, and reminds you why you're doing it in the first place," she says as her final piece of guidance.

In this segment, Paige Wiese, founder & CEO of Tree Ring Digital in Denver, CO, walks us through some of the ways she encourages clients to double down on marketing when business is slow. Paige built her business as a solopreneur graphic designer to a team of 15, helping clients with SEO, online ads, and social media management. Here’s her Take 5, plus more tips for surviving the business lulls below!

What's a recent small win for you and your business?

Paige: A recent small win has been just seeing business pick up again. I am seeing businesses start to engage with their marketing efforts and really trying to get to the root of why their website might be underperforming. We look at what they can be doing to see their money actually go to a place that it should be going.

What's a big piece of advice that you give to your clients?

Paige: A lot of them want to back off anytime there's a little bit of scarcity. I really think that's the time to double down, whether it be your digital presence, your website, or just adjusting how you're spending your money. But instead of just saying, ‘Hey, we're going to stop [investing in marketing],’ ask ‘How do we double down in the correct way and make sure we're seeing measurable results out of it?’ I do it myself anytime business is a little slow. I think we have to either change or we need to be doubling down. A lot of clients come to us when the pipeline is already dry and money is tight and they’re hoping for a quick fix. Marketing, unfortunately, isn't a quick fix.

See more tips for surviving business lulls below!

What's an unexpected business challenge you’ve faced and how did you overcome it?

Paige: I think one of the bigger challenges that we've run into has been more on the employee side, some of the retention or the hiccups that come along the way and then just learning from them. So how can we be a better, stronger company coming out of this and how do we use it as a growing opportunity?

How has the Verizon Small Business program helped propel your business forward?

Paige: I learned about the Verizon Small Business Digital Ready program through the National LGBT Chamber of Commerce (NGLCC). It's a free resource that’s self-paced and very digestible. The variety of topics it covers is a large gamut for any size business. The Selling with Storytelling course, especially, was really valuable to me, just really getting your messaging out there. I laugh that I sometimes enjoy the marketing ones a little bit more just because it is a refresher or another take on how we do this.

Thanks Paige!

Here Are More B+C Tips For Surviving The Small Business Lulls

1. Refine Your Strategy
   • Review your business plan and goals. Are you on track? What can be improved?
   • Analyze customer feedback and sales data to spot trends and areas where you can grow.
2. Boost Your Marketing Efforts
   • Refresh your website or social media profiles. Verizon Small Business Digital Ready’s free Put Your Website to Work course will help you get started with best practices for building your business website.
   • Create engaging content through blogs, videos, and newsletters. Verizon’s free Creating Compelling Content course can help you create consistent, quality content for your target customers.
   • Offer promotions or limited-time discounts to attract new customers.
3. Invest in Learning
   • Take an online course related to your industry, like Verizon’s free Planning for the Unexpected course for building resiliency in your business.
   • Stay updated on industry trends and innovations.
   • Engage with customers too. Send personalized emails to loyal customers or clients. Ask for reviews!
4. Improve Your Processes
   • Streamline operations or explore new tools to increase your efficiency.
   • Organize your workspace and declutter your digital files.
5. Self-Care and Rest
   • Take advantage of the slower pace to recharge. A refreshed mindset is exactly what you need to bring forth fresh ideas!

Is 'ACOTAR' a BookTok famous series?

BookTok is the reason we love the ACOTAR series so much. All it takes is a quick search on TikTok to see how many fan theories, memes, and hot takes exist within its realm. Have an intense dislike for the way Feyre's siblings failed her after their mother died? There's a video for that. Want to see hilarious depictions of the Suriel? You won't be disappointed!

But, I've never read anything in the series? What's it about? 

We thought you'd never ask! A Court of Thorns and Roses introduces readers to the thin line that separates humankind from the mythical world, but boundaries are crossed when a young woman named Feyre unknowingly commits a grave offense. As her family's only hope for survival, she slays a wolf who happens to be a close friend of one of the many high fae in ACOTAR.

As repayment for her "terrible" deed, she's whisked away from everything she knows to live the rest of her life in the spring court. But Feyre soon learns that politics and evil aren't just relegated to humans because she's subject to torment that turns her into what's she still trying to understand.

Throughout each book, we watch as Feyre comes to grips with who she thought she could trust, her perception of herself, and the consequences of each choice she makes.

Knowing this, what will ACOTAR book 6 be about? 

Don't panic, but ACOTAR'ssixth book doesn't have a plot yet! The only sliver of hope we have stems from Sarah J. Maas' appearance on the TODAY show last year. She said, "I know much more about what’s happening in this one. And then the next book in that series, I have the ideas and general, vague thoughts. But the nitty gritty of writing and the emotional journeys with the characters — I usually love to go on those journeys with them.”

Has Sarah J. Maas shared a release date for ACOTAR book 6? 

Sorry, but she hasn't shared a release date for ACOTAR book 6 either! The TODAY show speculates "readers will have to wait a year or two" which makes sense.

What theories do fans have about the next book? 

Fans believe Sarah J. Maas dropped a massive hint about what to expect in her collab video with Spotify last year. Instagram user @just.innis wrote, "Hear me out: spilled the tea, spring, two rings on the same fingers (rose and blue), flowers and doors behind her, "a looong book" ("...Azriel’s wings are the biggest." if you know what I mean), soon... 👀📚🤯."

If you're not familiar, E! News reported this could be an indication that Feyre's sister Elain and Azriel, one of Rhysand's right-hand-men, will get the love story fans have been waiting for. Most fans are in agreement because this Reddit thread dives deeper into the potential lore. @plantsandanimalsdude wrote, "I think …. Elain will decide to reject her mating bond and choose Azriel, taking control over her life after losing her humanity and engagement to a man SHE chose."

A separate Reddit thread starts off with a belief ACOTAR book 6 will be a follow-up to Nesta's story (Feyre and Elain's eldest sister). User@PrestigiousFun782wrote, "...it's pretty clear that Nesta's plot is not done yet. For that my theory is that she will learn a lot about her powers and maybe she would leave the night court..."

However, nothing's set in stone. The only thing Sara J. Maas promised is that ACOTAR book 6 is "going to be a long book."

OMG, I want to catch up on ACOTAR! Where do I start?

• A Court of Thorns and Roses(Book One) — An introduction to Feyre, the high faes, and danger!
• A Court of Mist and Fury(Book Two) — An exploration of Feyre's conflicted feelings about marrying Tamlin, her growing understanding of Rhysand, and an even darker evil
• A Court of Wings and Ruin (Book Three) — A tale of 'sleeping with the enemy' to gain important intel that'll save Feyre's new home, albeit with damning consequences that changes everything
• A Court of Frost and Starlight (Book Four) — A story of rebuilding and healing after mass devastation
  
• A Court of Silver Flames (Book Five) — A close look at Nesta Acheron's journey as she learns to accept who she is, how she'll spend the rest of her life, and who she'll come to love