A time to pay our taxes, we take advantage of a number of mechanisms that will reduce the amount payable or, where appropriate, increase our return. These tax deductions.

In this article we will focus on three products that can qualify for deductions on income tax: Housing Accounts, Pension Plans and Mortgages. There are other ways to deduct, such as fees paid to mutual trade unions, have dependents, donations to nonprofit organizations, and so on. On another occasion we will discuss more deeply the tax deductions.
Tax deductions for Housing Account

To begin, we say that a housing account is a repository where they make regular contributions that are deductible as long as they specify that their ultimate goal is the acquisition of the residence, which has to buy four years before the formalization of its account. Otherwise, we claim the tax refund of tax benefits over their respective interests.

One way to maximize our capital would invest the money into another financial product with greater interest than the Housing Account and the end of the year, before December 31, enter the amount in the Housing Account, because the deductions are calculated on the balance 31/12.

Therefore, the fact that it is a deposit for the purchase of the residence, makes this product is often appropriate for young people who plan to become independent.
Tax deductions for mortgage

After purchasing the home, usually as security for payment mortgage credit contracted with the entity to deal with the purchase. The mortgages also deducted for the income statement. All expenses for the purchase of housing, such as Notary, Property Registry, administrative, etc.., Plus the amount of the payment of principal and interest of the period, are deductible on income tax. Therefore, we must take advantage of these tax benefits (see article on advance payments on mortgages).
Tax deductions for pension plans

Finally, another product that allows tax deductions is the pension plan. In fact, the product allows the biggest possible deduction.

A pension plan is a repository (input) the managing body normally performed in an investment fund to use the capital invested in its revaluation at the time of retirement, or if there is a disability, serious illness or unemployment prolonged. In case of death will be the beneficiary chosen by the owner who copper. This capital value will vary daily, depending on the evolution of the fund, its value is calculated by dividing the total value of the fund between existing shareholdings.

When the hour of return on investments (vested rights) may take the form of an immediate income (payment) of deferred income (monthly, quarterly etc ….), Or a mixed income (down payment and a regular income ).

As mentioned, the biggest advantage of the Pension Plans is your tax reduction. In fact, allow a tax saving of up to 43%. Until age 50, the annual contribution limit is $ 10,000 plan. After 50 years, the contribution limit of 12,500 euros. So are the tax benefits that encourage us to have a pension plan. Another option is to find (not easy without taking risks) financial investment products which, although not tax deductible, provide some income minus taxes, the tax deduction over the plan over the expected value of revaluation.

The three products we tested are not mutually exclusive. We could say that the maximum tax advantage would be: get an account housing, acquire housing and mortgages. And get a pension plan as soon as our economy is sufficiently loose to devote part of our income to the regular enforcement of the Plan. In addition, the Pension Plan will complement the future income that we shall by our pension.

One of the best ways to know if our actual financial situation is taking a careful control of expenses. We saw some ways to control spending on items How can I save some extra money? , Tips to help you spend less and save more, or how to budget.

Knowing exactly how we spend our money on one hand can help to identify the degree of need for each expenditure, and secondly, to know in what areas we can try to reduce spending. Our intention is to reduce spending on some things not essential to spend the money to pay off other debts or charges that we have, improving our financial situation this way twice.
Monthly spending plan

We will make a monthly spending plan. Try to make up a few days before each month to have time to make the occasional variations that can occur in both the expenditure and revenue.
Categories of expenditure

First, we will create a number of categories of expenditure as expenses and payments that we know we will have: mortgage, rent, insurance, gas, electricity, water, community neighbors, telephone, Internet, gas, maintenance of car loans and miscellaneous payments, food, clothing, school supplies, entertainment, health, personal care … and everything we know to be paid, and add a paragraph and we will call Contingencies.
Expenses not covered

In this section we will attach a small amount (eg € 50 per month) to leave remaining for any expenses not covered in our spending plan.

Some of these costs are known in advance, and some not. Among the latter, try to make a forecast as closely as possible, always trying not to be very optimistic (not to wait too down payments). We will be prudent and better calculate the higher payments that are lower then expected that the opposite, and fall short of our expenditure projections.
Minimal costs

You could set for other expenses such as food or clothing, not involving minimum losing our quality of life, sufficient to live well, but try not to exceed (for example, we put a limit to food that does not involve buying little food, but avoid unnecessary whims or expensive designer products).
Contingencies

When we have the total amount of estimated costs, we will add an extra 10% because experience tells us that there are always unforeseen bills did not expect.
Expenditure over income

Once the estimate of expenditure increased in the 10%, we compare it with our income. If they are known in advance, as usual, there will be no major problem.

If our revenues are variable, we also forecast here. But to be prudent, if not certainly know our income will sin of naysayers and put a quantity measured. One method might be to use the average of the last twelve months, unless we have more data that allow us to know beforehand how much you charge so (for example, someone who will know whether commissions charged for that month is selling a lot or little) . With experience, it will become easier to plan and to better align spending forecasts.
More revenue than expenses

If revenues are greater than anticipated costs, we will have surplus money, if the forecast is correct and includes all expenses, we can allocate to reduce our debts and credits. This is money that will take her without control of payments almost certainly spend on other things not necessary.
More expenses than income

If instead the income is less than the expenses, we must reduce certain redundant expenses such as telephone, Internet, laundry, etc.. We will have to spend less to balance the spending plan. If this situation occurs several months in a row, it would be a good time to rethink our position and move to deeper action, such as renting instead of paying mortgage, changing jobs for better income, try to reduce consumption, and so on.

The desire for material things has become important that people have debt problems today. Debts occur mainly due to uncontrolled and impulsive spending of a person beyond their means.

It is important to get rid of debts, because if you run into huge debts can hurt your financial history or even lose your home. But every problem has a solution, millions of people have converted their debt into a learning experience and have been able to pay them in full.

Debt consolidation is one solution to get rid of all your debts.
What is debt consolidation?

The consolidation, unification or consolidation of debts is a process that lets you convert all your monthly payments into one lump sum less than the sum of all your current monthly payments, hence the term consolidate or unify, because it groups all your debts into one.

To carry out the consolidation is necessary to be the owner of any property, even if it is mortgaged. The unification is to mortgage your property or to renegotiate your current mortgage to pay your other debts. There are also companies that make loans for consolidation, but be very careful if you take this route.

By canceling the other debts, and since the interest rate on mortgages is much lower than personal loans, credit cards, etc.., You save much money on interest, so your debt is reduced. By reducing your debt to one monthly fee you will pay after unification also is usually lower than the sum of all that pagabas before.

Ultimately, what you get with debt consolidation is to convert all your current debts, whether long or short term debt into a lower long-term only, and thus pay less each month.
Requirements for debt consolidation

* A copy of your monthly expenses for presentation at the bank and see if you can pay the monthly amount unified.
* You must have stable monthly income to repay the loan.
* You may need a co-signer (a person who signs as they are responsible for your payments if you do not do) or a material warranty, as a house or a car.

Types of debts that are eliminated with the consolidation of debts

The loans to consolidate debt usually granted to pay any of the following debts:

* Credit Card Debts.
* Medical Debt.
* Debts of credit cards issued by commercial entities.
* Personal loans.
* Student loans.
* Checks rejected.