Whether you’re on a high income or are barely making ends meet, there’s one looming threat that you likely lose sleep over – the possibility of unexpected expenses.
From boiler breakdowns to emergency car repairs and even unexpected traffic tickets, the smallest expense stands to capsize your monthly finances when it creeps up on you like a ghoul in the financial dark. Forget imaginary ghosts – this is a very real, and very frightening prospect.
Understandably, you’ll want to do whatever you can to batten down your finances to better cope with such a scare. But, most articles on the subject are…well, we’re sorry to say it, a little useless!
We’ll get into why exactly that is in a little while, but the simple fact is that you need real, hard advice to help you stay afloat financially no matter the waves that come your way. And, that’s exactly what you’ll get if you keep on reading!
Why the ‘Emergency Fund’ Isn’t Necessarily the Solution You Need
Remember when we said that most articles about managing unexpected expenses aren’t much help? Well, this is why. The need for an emergency fund is the first thing you’ll see whenever you search this subject, but guess what – it’s dud advice.
Of course, an emergency fund is going to help you weather sudden financial blows. You don’t need the internet to remind you of that, especially not when you’re staring down the barrel of a major unforeseen payment.
But, let’s be frank – there’s no time to get your emergency funds in order when the worst happens, which we’re guessing is the case considering you’re reading this article. So, while you’ll want to take this as a lesson that yes, you do need to get on top of money management that leaves room for a rainy day moving forward, you also deserve advice that’s applicable right now. And that’s what we’re hoping to give you.
# 1 – Explore Your Credit Options
Recent studies have found that 43% of low-income households are unable to weather even seemingly small expense shocks without additional credit. Even the 77% of households that can cover surprise costs of up to $400 may turn to short-term credit to do so.
We know what you’re thinking – isn’t credit a bad financial trap to fall into? Yes. But it also has its uses. The trick to avoiding ongoing debt problems is to simply consider the credit options available to you.
Of course, you could just pay that bill with a credit card, and that’s certainly an option if an expense is small and easily payable in a short period. But, if unexpected costs exceed the $500 mark, it may be better to look for short-term loan options that are ideally zero interest, or at least offer low-interest rates if you’re eligible.
By factoring in a fast repayment plan in the coming months, you can then clear that debt and quickly weather this storm without the worry you might’ve faced otherwise.
# 2 – Find Ways to Lessen the Blow
Unexpected expenses are inevitably changeable. This is what makes them so slippery to get a grip on, but it’s also a reality that you can use to your advantage.
Of course, some financial blows are harder to shift than others. For instance, that broken boiler or car isn’t about to go anywhere. But the same isn’t necessarily true for an expense like a traffic fine, which you could lessen or otherwise avoid altogether by simply seeking professional help to dispute a traffic ticket. The same can be said for unexpected expenses like sudden rent increases. If your landlord hasn’t given you due notice (which we’re guessing they haven’t if this is unexpected), then you may have legal grounds to at least avoid the increase for the next few months while you get things in order.
But, do you want to know the real secret about lessening the blow? You simply need to stay calm. It’s all too easy to get stressed when sudden money troubles rear their heads, especially if you thought you were spinning those financial plates just fine. But, the clearer you manage to keep your head, the better able you’ll be to see options like these moving forward.
# 3 – Balance it Out
Sometimes, an unexpected expense is here to stay, and you may already be so maxed out on credit that you couldn’t possibly shoulder any more debt. Is this the end for your financial prospects? Not necessarily. Lucky for you, there are always ways to balance it out.
In its most simple iteration, balancing it out simply means reducing your discretionary spending to cover a sudden payment need. For instance, the fact that the average American spends as much as $3,008 eating out each year highlights that even small changes like making your own lunch could free up a surprising amount of money when you need it the most. Equally, canceling rolling subscriptions like a Netflix, Disney+, and NowTV account for even a month may help you to cover a cost that’s crept up on you.
If all of that isn’t enough, balancing it out could also refer to your credit options themselves. Even if you feel like you’ve reached your credit limit, considering options like debt consolidation could see you securing another loan without it necessarily over complicating your finances. While that is a far from ideal option and depends entirely on whether or not your loan eligibility, it is an option that would buy you time to make cutbacks until you’ve successfully ridden the worst of those financial waves.
Takeaway
Unexpected expenses aren’t good news. You don’t need us to tell you that. But, are they always going to capsize your financial boat? Well, that fact is debatable. Emergency fund or not, there are always options for seeing yourself through even high sudden expenses. Simply keep a calm head, bear these pointers in mind, and choose the best path forward based on your unique cash flow situation.
We all make mistakes when it comes to our life choices and life in general. We’re only human, and often these mistakes are unavoidable.
However, whether it’s a lack of education on your finances or not having much experience with money in general, many common financial mistakes are made throughout life.
With that being said, if you’re looking to be more money-savvy and want to make changes to your financial habits, here are eight common financial mistakes to avoid in your twenties.
1. Not building up an emergency fund
Firstly, everyone needs an emergency fund. From businesses to everyday individuals and family households. If you don’t have an emergency fund right now, then you could be in financial trouble if something unexpected and financially damaging happens to you tomorrow.
We can never predict what could go wrong in life. From being made redundant in your job to having to replace an old boiler that’s suddenly given up. These are all issues that can be fixed or at least helped with the addition of an emergency fund.
How much you have in that emergency fund is up to you, but anything from $1,000 to $10,000 can give you that bit of extra comfort, should anything go wrong that wasn’t planned or predicted.
2. Debt accumulation
Debt is a danger for anyone to get themselves into. Some of the biggest debts can be accrued by purchasing a property, for example. However, it’s the smaller amounts of debt that you want to be careful of and be mindful of when paying back.
Individuals can very quickly get themselves into serious debt and might need to seek the guidance of an insolvency trustee to help them with bankruptcy.
Debt is something you can’t always avoid, but it’s certainly a financial problem that you can take control of if you can get good with your money and pay debts back as quickly as you borrow the money.
Always be mindful of how much debt you have and consider only borrowing more money once the money you owe to other lenders has been paid back.
3. Ignoring your credit score
Credit scores are something you want to think about because they can impact your ability to borrow and get good rates on any money you do borrow from a lender.
Whether you’re looking to remortgage a property or lease out a vehicle, it’s important that you have a great credit score rating in place.
Any low credit score ratings could be due to a number of factors. If you’ve never borrowed money before, then that means you’ll have a low or non-existent credit score. Try building up debt, but make sure to pay this back on time.
Other reasons for a bad credit score would be not paying a debt payment on time or not being registered to vote.
4. A lack of budget
If you’ve never budgeted before when it comes to your money, then chances are, you’re not going to be great with money management. Unfortunately, money management and budgeting in general are not always taught to you as a youngster, so it’s good to start self-teaching as soon as possible.
Creating a budget on a spreadsheet is easy enough. Make a note of everything you’ve got coming in and everything that goes out. That way, you’ll know exactly how much you have available to spend, and hopefully, you won’t go into debt as a result of overspending.
5. Not investing your money
Investing your money is a good way of making your money work harder so that you don’t have to. There are plenty of investment types and assets to put your money into, but unfortunately, not everyone invests their money within their lifetime.
The earlier you can invest your money, the more you’ll likely get out of the activity over time. Building up a portfolio and diversifying it is only going to help you make more of the money you make over time.
By not investing your money, you don’t build your wealth, and that’s something that a lot of people make the mistake of doing, especially in the earlier years of their lives, aka, their twenties.
6. Living beyond your means
How often are you living paycheck to paycheck? Do you find yourself spending more money than you can afford to? It is often the case that people in their twenties are spending more of their income than they can afford to.
At the same time, there are a lot of struggles that people will have when it comes to the cost of living. However, there are occasions where you might be spending more than you can afford, and you could be actively spending less to make your money go further.
Look at what your expenditures are; this is where your budgeting comes in handy, and make any changes you need to so that you’re not overspending as much.
7. No financial goals
Financial goals are important to have, and it’s something that not everyone sets up. Just like your life goals, financial goals should also be considered and factored in.
If you’ve not made any financial goals in the last year or so, look at setting them up now. By setting goals, you’re going to be more motivated and driven to achieve them.
8. A disregard for tax
Finally, if there’s anything you don’t do when it comes to your finances, it’s disregarding tax. Paying your tax bills is unavoidable, and if you’re trying to skirt around doing so, you’re going to get yourself into more financial and legal trouble.
Look at what taxes you might owe if you’re obligated to do so from extra earnings. Be sure to check your investments and be aware of what taxes you might have to pay on those investments, too.
Common financial mistakes happen in your twenties, so it’s always good to pay attention to what you might need to change in order to avoid these problems for yourself in the future.
Hurricanes can cause major damage in communities, disrupting lives and destroying homes. After the storm, many homeowners don’t know what to do next. Having a clear recovery plan is just as important as preparing before the storm.
The first few days after a hurricane are often chaotic, but acting quickly and calmly can help you avoid bigger problems later. A step-by-step plan gives you direction when everything feels uncertain and helps you protect both your home and your financial stability.
Talk to a Hurricane Damage Attorney First
Getting help from a hurricane damage attorney is a smart first step. These professionals understand how to deal with insurance companies, which can be confusing and stressful. They’ll guide you through the process and help avoid mistakes, like missing a filing deadline or accepting a low initial offer, that could hurt your claim.
Before you clean up anything, take lots of clear photos of all the damage. Such documentation isn’t just for reference—the images are important evidence for your claim. Make sure to keep a detailed record of every damaged area. Such records can help when talking to insurance adjusters and may improve your chances of getting fair compensation.
Get a Structural Engineer to Check for Hidden Damage
Not all hurricane damage is easy to spot. Some problems—like a weak foundation or roof damage—might not be visible. Hiring a licensed structural engineer for a full inspection can reveal these hidden issues. Their expertise helps keep your home safe and supports your claim by pointing out damage you might miss on your own.
A detailed report from a structural engineer can help your claim a lot. It shows specific structural problems that can raise the value of your claim. For example, the report might identify cracks in support beams or shifting in the foundation that could lead to long-term issues. Try to schedule this inspection as soon as possible so you have strong documentation before starting the claims process.
Keep Track of All Temporary Housing Costs
If you can’t stay in your home, you need to keep track of every cost related to temporary living. Save receipts for hotel stays, meals, laundry services, extra pet boarding fees, and anything else related to being displaced. These costs show how much the hurricane has impacted your daily life.
Good record-keeping helps both your own budgeting and your insurance claim. Organize receipts by category and keep a log of your expenses. It helps to store all this in a folder—digital or physical—just for housing-related costs. Having everything in one place makes the process easier when you’re ready to file.
Wait Before Starting Cleanup with Unlicensed Help
It’s natural to want to clean up quickly, but jumping into cleanup too soon can hurt your claim. Friends and volunteers might toss out damaged items that could serve as proof of your losses. For example, a waterlogged cabinet with visible mold might show how deep the flooding reached. Each item tells part of the story of the damage.
Wait until inspections are done before letting anyone remove things. Doing so helps preserve all the proof you need. Take photos of each item, label them clearly with details like the room the item was in and the type of damage, and keep the damaged items if possible. That approach gives you a strong, organized record to use later when working with your insurer.
Ask for Copies of All Insurance Documents
After a hurricane, stay on top of all communication with your insurance company. Ask for written copies of everything tied to your claim. Examples include notes from adjusters, photographs, and reports from outside inspectors. You should also request any timelines or logs the adjuster maintains during the inspection process. Keeping such records helps you see the full picture.
Having such documents makes it easier to track changes to your claim. It helps you understand how adjusters decide on compensation and lets you catch any issues early. Set up a dedicated spot—a binder or a digital folder—to store all of it, and consider adding labeled dividers or folders for categories like inspection notes, expense receipts, and correspondence. Doing so makes it easier to reference details during future discussions.
Hurricanes can leave you overwhelmed, but a clear plan makes a big difference. Before you clean up, take lots of photos—those water-damaged floors and moldy cabinets are proof of what you’ve lost. Talk to a hurricane damage attorney early—they’ll help with confusing insurance stuff. Hire a structural engineer to spot hidden problems like cracks or a weak roof. Keep every receipt if you’re staying somewhere else—hotels, meals, even laundry. Don’t let well-meaning friends toss damaged stuff too soon. And ask your insurance company for copies of everything. Staying organized helps you protect your home, your money, and your peace of mind.
Market research is an absolutely vital part of product design, development, improvement, and marketing. It allows you to create the best products for your target market and then to make more sales and conversions. Market research isn’t an optional extra to boost the numbers, when it comes to good design and sales, it’s a necessity.
With this in mind, here are some ways that your company can improve its market research efforts.
Multiple Rounds of Research
One of the benefits of market research is that it allows you to get a consumer’s perspective on your product, and it can also help you to identify how successful your product will be. However, market research is a blanket term for what could be described as multiple rounds of research.
As mentioned before, there are a lot of different purposes for market research, which suggests that, for the best results, you need to keep on pushing for more data.
For example, you might need to identify your target market. Surveys and polls can help you work out the demographics of people who might be more interested in your product. Or you might need to work out what design would work best for your target audience.
More and more rounds of research will allow you to refine your product and your marketing strategy.
Using Social Media
When it comes to digital marketing, social media is one of the most effective tools that a company can use to reach more people. Social media allows you to release promotional content, show more adverts, and create content that people want to read and watch.
But social media can also be a powerful tool when it comes to market research. One of the best features of social media is that you can communicate with customers directly. This means that you can also undergo market research with polls and surveys that people can respond to at their leisure.
Social media is best for very short, simple polls, and it’s good to either incentivize people to respond to polls or to make it clear that they will benefit by responding. For example, you can enter users into a raffle so they can win a prize if they add their voice to the conversation.
Outsourcing Market Research
Another way to improve your company’s market research efforts is to outsource the bulk of your market research to experts. This takes a lot of the pressure from your workers, allowing them to implement the suggestions that might crop up during market research rounds.
For example, some survey providers use a 1-5 rating scale that is easy for people to understand and that allows you to get a clearer picture of the current market. It’s a popular format for a good reason, because it’s a simple way to quantify results. People also prefer the simpler format and choose it by default.
By outsourcing your market research, you can make sure that your product design and your marketing campaigns hit your target every time.
It’s important that you follow your passion in life and do what you love for your job. If you’re dedicated to fitness and helping others reach their wellness goals, then being a personal trainer is the perfect fit for you.
As a business owner and entrepreneur, you’ll have more flexibility with your schedule and will be in charge of making decisions about how you want to run your business. You may have a lot on your mind and are trying to figure out where to focus your time and energy. Here you can review some tips for launching a new personal training business.
Get the Proper Education & Certifications
You’re not going to be able to do your job well or attract clients unless you know what you are doing. You must take the time to get the proper education and training to ensure you can get your clients the results they desire. You also need to know how to train them safely so that they can avoid getting injured or hurt. Obtain the right certifications based on your interests and niche and brush up on your business acumen since you’ll be in charge of important matters such as business finances and hiring other staff.
Use Technology to Your Advantage
There’s a lot to keep track of and many moving parts as a personal trainer. You want to make sure you’re not wasting time with mundane and repetitive tasks and can focus on each client’s goals and progress. Therefore, consider using technology to your advantage to help you work smarter and save time. Look into using personal trainer software that allows you to accept payments, automate workflows, and communicate with your clients. You can also use its features to build customized training programs and assessments.
Learn More About Nutrition
Being able to get into better shape and lose weight isn’t just about working out. A significant part of the process has to do with proper nutrition and guiding your clients on what foods to eat. If you want your personal training business to be successful then you should focus on learning more about nutrition. You want to be able to coach your clients on what to eat and not eat and how they can make lifestyle changes that will help them transform their bodies.
Launch A Website & Market Your Services
No one is going to know about your business or what you can do for them unless you spread the word. It’s important to launch a website for your personal training business and include all pertinent information such as contact details, pricing, and the advantages of working with you. Be proactive in marketing your services to your target audience or niche by using both online and offline tactics. This is your chance to build your personal brand and make a name for yourself in the industry that people come to know and trust.
Conclusion
These tips are going to help you launch your new personal training business. It’s a great endeavor and can be quite a rewarding career in the long run. You’ve come this far to get to where you are in your professional life so don’t let off the gas now. Keep going and pushing forward to complete these tasks so you can truly thrive.
Owning a home has always been seen as a financial milestone, the “American Dream”. But with today’s rising prices, interest rate volatility, and increased mobility, it’s worth wondering whether you should rent instead of buying.
According to recent data, the average American could spend an estimated $333,065 on rent by their mid-thirties alone, without building any equity in return. This is enough to make anyone stop and rethink their perspective.
So, let’s look at key factors that can help you make an informed and financially grounded decision.
The Real Situation
Homeownership typically becomes worthwhile only when you stay put for at least five to seven years. That’s how long it usually takes to recoup the upfront costs of buying: closing fees, moving expenses, and the early years of interest-heavy mortgage payments.
If you’re unsure where you’ll be in a few years, need job flexibility, or might move for family or lifestyle reasons, renting may give you the freedom to make those changes without penalty.
This is where adopting the right mindset can help you make smarter, data-driven decisions. Thinking like a long-term investor means evaluating location trends, job markets, population shifts, and your own future plans before you commit to a mortgage and where you commit to it.
The Real Cost of Homeownership
Many buyers compare rent to a mortgage payment and assume that if they’re paying $2,000 in rent, they can afford the same in mortgage. But homeownership costs go far beyond principal and interest.
Here’s what else you’ll be paying for:
- Property taxes and homeowner’s insurance
- Maintenance and unexpected repairs
- HOA fees (if applicable)
- Increased utility bills in larger spaces
It’s not unusual for homeowners to spend 1-3% of their home’s value on upkeep every year. A leaking roof or a failed water heater can turn a good deal into a budget buster fast. That’s why you need to make sure your buying budget includes a maintenance buffer.
Flexibility vs. Control
Renting offers more freedom to move, change jobs, or scale your lifestyle without major financial entanglements. It’s often a better fit for people in transitional phases or those building up other areas of their financial life.
But owning a home gives you something renters don’t have: control. You can paint, remodel, build equity, and stay as long as you want.
In some cases, homeownership might come from less traditional routes, like family gifting or relationship-based transfers. In those scenarios, you might encounter legal tools like a quitclaim deed, which allows ownership to be transferred without a traditional sale. It’s a common solution in estate planning or when adding a spouse or relative to the title.
Think Long-Term Wealth
Renting may feel easier, especially if you value convenience and flexibility. But over time, ownership is still one of the most powerful ways to build wealth. Every mortgage payment increases your equity. Every renovation you fund builds value for you.
That said, the right choice is the one aligned with your goals, risk tolerance, and time horizon. While buying makes sense for most, depending on your goals in life, it may not be the right approach.
In conclusion, renting isn’t always throwing money away. Buying isn’t always the better option. Both can be smart—if you know your numbers, know your goals, and take the long view.
Use data. Stay flexible. And make your housing choice a financial strategy, not just a milestone.
Photo by Nataliya Vaitkevich on Pexels
Dealing with outstanding tax debt owed to the Internal Revenue Service (IRS) can be a significant source of stress, impacting financial stability and peace of mind. Fortunately, the IRS provides several avenues for taxpayers to resolve their liabilities.
Among the most common are the Offer in Compromise (OIC) and the IRS Payment Plan, also known as an Installment Agreement. While both programs are designed to help taxpayers manage and eventually clear their tax debts, they operate under distinct principles and suit different financial circumstances.
Choosing the correct path is crucial for a successful financial recovery and maintaining future compliance with tax obligations. The IRS continues its efforts to improve taxpayer services and streamline operations, making it more critical than ever for taxpayers to address their debts proactively.
Understanding IRS Tax Debt and Your Options
The accumulation of tax debt can occur for various reasons, including underpayment, unfiled returns, or unexpected financial hardships. In Fiscal Year 2024, the IRS collected approximately $5.1 trillion in gross revenues, indicating its significant collection capacity.
An Offer in Compromise allows certain taxpayers to resolve their tax liability with the IRS for a lower amount than they originally owed, primarily when they can demonstrate that paying the full amount would cause significant economic hardship. Conversely, an IRS Payment Plan permits taxpayers to pay their full tax debt over an extended period through monthly installments, making it a more accessible option for those who can afford to pay the full amount over time but not as a lump sum.
What is an IRS Offer in Compromise (OIC)?
An Offer in Compromise program can provide substantial relief to taxpayers facing overwhelming tax debt they cannot realistically pay. An agreement between a taxpayer and the IRS resolves the taxpayer’s tax liabilities for a lower amount than the total sum owed initially. The IRS carefully evaluates each case to determine if accepting a lesser amount is the most it can reasonably expect to collect. This program is typically considered when there is doubt as to the collectibility of the full debt, doubt as to the liability itself, or if the collection of the full amount would create an economic hardship (Effective Tax Administration).
Defining the Offer in Compromise
An OIC is a settlement with the IRS based on the taxpayer’s current ability to pay and their Reasonable Collection Potential (RCP). The RCP is the amount the IRS believes it could collect from a taxpayer’s assets and future income. When evaluating an OIC, the IRS considers factors such as income, expenses, asset equity, and future earning potential. The IRS will likely reject the offer if the offered amount is less than the RCP.
It’s important to note that the IRS requires taxpayers who receive an OIC to remain in full tax compliance for five years after the offer is accepted; failure to do so can result in the OIC being defaulted and the original tax debt reinstated, plus interest and penalties.
Who is Eligible for an OIC?
Eligibility for an OIC is stringent and depends on several factors. Taxpayers must have filed all required tax returns and made all estimated tax payments for the current year. They cannot be in an open bankruptcy proceeding. The primary grounds for an OIC are:
Doubt as to Collectibility: This applies when the taxpayer’s assets and income are less than the full amount of the tax liability, making it impossible to pay the full amount through a lump sum or installments.
Doubt as to Liability: This applies if there’s a genuine dispute regarding whether the taxpayer owes the tax debt. This basis is less common than other avenues, like audit reconsideration, which often exist for such disputes.
Effective Tax Administration (ETA): Invoking the full tax liability when collecting would create economic hardship or be unfair due to exceptional circumstances. For example, in 2023, the IRS accepted 12,711 Offers in Compromise out of 30,163 offers submitted.”
The OIC Application Process
The OIC application process is comprehensive and requires detailed financial disclosures. Taxpayers must submit Form 656, Offer in Compromise, and Form 433-A (OIC) for individuals or Form 433-B (OIC) for businesses, which provide a snapshot of their financial situation. A non-refundable application fee of $205 (as of 2024) and an initial payment (either 20% of the offer amount for a lump-sum offer or the first proposed periodic payment) are typically required. The application fee and initial payment can be waived for low-income taxpayers who meet specific criteria.
The IRS then conducts a thorough investigation, which can take six to nine months or longer. During this time, the IRS will verify all financial information. Accuracy and completeness are crucial, as discrepancies can lead to rejection.
Pros of an OIC
The most significant advantage of an OIC is the potential to settle your tax debt for substantially less than the full amount owed, providing a fresh financial start. Once an OIC is accepted and the agreed-upon amount is paid, the IRS releases any federal tax liens associated with the settled debt, which can improve creditworthiness and relieve financial burdens. Additionally, an OIC stops most IRS collection actions, such as levies and wage garnishments, while the offer is being considered and, if accepted, during the compliance period. For many, an OIC resolves long-standing debt and offers significant peace of mind.
Cons of an OIC
The OIC application process is complex, lengthy, and requires extensive financial documentation, which can be daunting for many taxpayers. There is no guarantee that an OIC will be accepted, as the IRS applies strict criteria, and many applications are rejected. If an OIC is rejected, the application fee and initial payment are generally non-refundable (though the initial payment may be applied to the tax debt). While an OIC is pending, the statute of limitations on collection is typically suspended, and a federal tax lien may remain until the OIC terms are fully met. Taxpayers must also comply with all tax laws for five years post-acceptance; failure to do so may result in the default of the OIC and the reinstatement of the full tax debt, along with penalties and interest.
What is an IRS Payment Plan (Installment Agreement)?
An IRS Payment Plan, officially known as an Installment Agreement, allows taxpayers to pay their full tax liability in smaller, more manageable monthly payments over an extended period. This option is available to taxpayers who cannot fully pay their tax debt by the deadline but can cover it over time. Unlike an OIC, an Installment Agreement does not reduce the principal amount owed; however, it does stop aggressive collection actions such as levies, provided the taxpayer adheres to the agreement. Individuals owing a combined total of under $50,000—covering tax, penalties, and interest—may be eligible to set up a payment plan online without needing direct contact with the IRS.
Defining the IRS Payment Plan
An IRS Payment Plan is a formal agreement with the IRS to pay the full amount of tax debt over a set period—typically up to 72 months (6 years). While the underlying tax debt is not reduced, establishing a payment plan prevents the IRS from pursuing enforced collection actions like bank levies or wage garnishments as long as the taxpayer makes all agreed-upon payments and stays current with future tax obligations. However, interest and penalties continue to accrue on the unpaid balance, meaning the total amount paid will exceed the original debt.
Who is Eligible for a Payment Plan?
Eligibility for an IRS Payment Plan is generally broader and less complex compared to an OIC. Taxpayers must have filed all required tax returns. For streamlined installment agreements, individuals owing $50,000 or less in combined tax, penalties, and interest, and businesses owing $25,000 or less, can often receive automatic approval when applied online. Additional financial information may be required for larger debts or longer payment terms. Still, the primary standard is the taxpayer’s ability to afford the proposed monthly payments until the debt is fully repaid. Even taxpayers with considerable assets or higher incomes, who might not qualify for an OIC, can often secure a payment plan. The IRS offers various installment agreements, including guaranteed, streamlined, and partial payment installment agreements (PPIAs).
The Payment Plan Application Process
Applying for an IRS Payment Plan is relatively straightforward, especially for those who qualify for a streamlined agreement. Taxpayers can apply online using the IRS’s Online Payment Agreement (OPA) tool, by phone, or by mail using Form 9465, Installment Agreement Request. For debts under $50,000, online approval can be nearly immediate. Short-term payment plans (up to 180 days) are available for taxpayers who owe less than $100,000 in combined tax, penalties, and interest. Setup fees vary depending on the application method and payment type. For example, direct debit applications online are generally cheaper than those set up by phone or mail without direct debit. The IRS advises taxpayers to respond promptly to notices to avoid further complications.
Pros of a Payment Plan
The primary advantage of an IRS Payment Plan is its accessibility and the more straightforward qualification process compared to an OIC. It allows taxpayers to manage their debt with predictable monthly payments, easing budgeting concerns. By setting up a payment plan, most aggressive collection actions—such as bank levies or wage garnishments—are halted as long as payments are made on time. Although interest and penalties continue to accrue, regular payments prevent the balance from ballooning due to additional non-payment fees. Taxpayers can often choose their payment date and method, such as direct debit, which helps ensure deadlines are met. Additionally, streamlined agreements mean that, in many cases, there is no extensive investigation into your finances if you qualify for the simplified process. Recent IRS data indicated an increase in various forms of taxpayer assistance in fiscal 2024, reflecting enhanced service capabilities, with payment plan options remaining a critical component of debt resolution services.
Cons of a Payment Plan
The most significant drawback of an IRS Payment Plan is that the full tax debt and ongoing interest and penalties must eventually be paid in full. An Installment Agreement does not reduce the principal amount owed, so the repayment will exceed the original liability. Failure to adhere to the payment schedule or maintain current future tax filings can result in a default of the agreement, potentially reactivating aggressive IRS collection actions. Although setup fees are generally lower than OIC application fees, they remain an added cost. Furthermore, the IRS may file a Notice of Federal Tax Lien while a payment plan is in effect, which can negatively impact your credit and future loan eligibility. Interest continues to accrue on the unpaid balance, increasing the total cost.
OIC vs. Payment Plan: Making the Right Choice
Choosing between an Offer in Compromise and an IRS Payment Plan requires carefully assessing your financial situation, the total debt amount, and ability to meet long-term payment and compliance obligations. An OIC offers the potential for significant debt reduction but features a complex application process and strict eligibility criteria. A Payment Plan is more straightforward to secure but ultimately requires full debt repayment, accrued interest, and penalties. Understanding these fundamental differences is essential for making an informed decision that aligns with your financial reality.
Your ability to consistently make future payments is paramount for both options, especially for an OIC, which mandates a strict five-year compliance period. The Collection Statute Expiration Date (CSED)—the time the IRS must collect a tax debt—is another critical factor. The CSED is generally ten years from the tax assessment date, but certain events, such as submitting an OIC or an Installment Agreement request, can suspend this period. If the CSED is approaching, the IRS might be more inclined to negotiate, favoring an OIC or a Partial Payment Installment Agreement. However, if the CSED is many years away, the IRS may push for a complete payment plan.
The Importance of Professional Guidance: Consult Silver Tax Group
Navigating IRS rules and procedures for OICs and Payment Plans can be complex and intimidating. Before engaging with professionals, many taxpayers find it beneficial to utilize an online Tax Debt Calculator to gain preliminary insights into their situation.
This initial assessment can streamline the process when consulting tax professionals, such as those at Silver Tax Group, who possess specialized expertise in dealing with the IRS. They can help you understand your rights, accurately assess your financial situation, and determine the most suitable resolution strategy while correctly preparing and submitting the necessary documentation.
This is especially vital for OICs, where the application process is detailed and subject to strict scrutiny. Professional representation can significantly increase the likelihood of a favorable outcome. Expert guidance simplifies the process and alleviates the stress of dealing with the IRS, ultimately steering you toward a more favorable outcome.
Take Control of Your Tax Debt Today
When confronted with IRS tax debt, understanding the differences between an Offer in Compromise and an IRS Payment Plan is the first step toward choosing a viable solution. An OIC can provide substantial relief by allowing you to settle for less than you owe, though it comes with stringent eligibility requirements and a complex application process. A Payment Plan, while more accessible, requires full repayment of the debt along with accruing interest and penalties.
Your income, assets, total debt, and ability to maintain future payments are critical factors in determining the right path. With the IRS continuing its collection efforts, making an informed decision is more crucial than ever. The guidance of experienced tax professionals can significantly aid you in achieving financial recovery and long-term tax compliance.
Investment properties often involve multiple ongoing costs, including maintenance and management expenses. Depreciation allows for the gradual allocation of a property’s construction cost over a period of time, which can help balance out taxable income related to rental earnings. It serves as a financial reflection of wear over time.
Property owners frequently prepare documents that break down what can be accounted for over time. A depreciation schedule for investment properties outlines the relevant details for different assets within a property. This schedule supports the reporting process and keeps everything organized for annual filing. Here are some important considerations to keep in mind when reviewing depreciation during tax time.
Identifying Eligible Property Assets
Certain parts of a property qualify for depreciation. The structure itself, such as walls, doors, and ceilings, is commonly factored into long-term allocation. Fixtures within the property, such as light fittings or ventilation units, may also be listed if they meet certain conditions. Land is not included in depreciation, while structural elements and internal assets are grouped based on type. Categorizing these properly contributes to clarity and provides a useful framework for consistent reporting across tax years.
Consider the Age and Modifications of the Property
The construction date helps determine how long an asset can be depreciated. Properties completed during different periods follow specific guidelines based on applicable timeframes. Each category supports a structured method of value distribution over time. Renovations and updates may be considered when determining depreciation. Accurate records of those modifications, including costs and completion dates, allow for better alignment with financial tracking and provide insights into the property’s overall financial performance.
Selecting the Suitable Depreciation Method
Several methods are available for calculating depreciation, and each offers a unique approach. One method allocates value evenly, while another focuses on greater distribution in earlier years. Selection depends on overall planning preferences and asset details. Each asset category may be suited to a different method. Assigning the appropriate approach supports accurate calculations and reinforces consistent asset tracking over the years.
Key Features of a Reliable Depreciation Schedule
A complete schedule contributes to organized reporting and outlines expected deductions across future tax periods. Each asset listed includes its value, expected life span, and depreciation rate. These structured elements make annual planning more efficient.
A well-structured depreciation schedule can include:
Individual breakdowns for assets grouped by type
Clearly defined rates based on lifespan
Identification of assets eligible for short-term allocation
Year-by-year summaries for easier tracking
Cross-referencing with renovation dates and installation records
Reviewing Schedules Annually for Accuracy
Asset values and property features may change due to updates or new additions. Reviewing the schedule annually ensures that records match the current state of the property. Regular reviews help maintain consistency and accuracy in financial documentation. Adjusting for newly added or retired items strengthens ongoing reporting. Keeping the information current helps ensure all eligible items are included each year.
Consulting With Professionals for Compliance and Detail
Professionals experienced in property-related documentation can offer guidance through the preparation process. Their support contributes to accurate asset categorization and ensures alignment with applicable standards. They also assist in structuring schedules according to specific property details. Working with the right professional adds efficiency to the process and helps maintain consistent documentation over time.
The use of a structured depreciation schedule for investment properties plays a key role in preparing for tax season. It helps outline asset values, track eligible deductions, and support clear, consistent reporting year after year. Staying informed, maintaining accurate records, and reviewing schedules regularly contribute to smooth financial planning. With thoughtful attention to each asset and a well-organized approach, property owners can navigate tax responsibilities with greater confidence and clarity.
The world has embraced digital banking. From instant transfers to remote check deposits, nearly everything can be done with a few taps on a screen. But for all the convenience, there’s something missing. Human connection.
As banking becomes more automated, the role of real people in this space is being questioned. Some argue that automation is enough. Others believe we’re losing something valuable when banks remove the human touch.
Here’s the truth. Technology may make things faster, but it doesn’t replace empathy, trust, or reassurance. And in financial matters, those three things still matter.
The Missing Piece in Digital-Only Banking
Digital banking is efficient. No waiting in line, no paperwork, no need to speak to anyone unless absolutely necessary. But not everyone is comfortable navigating financial decisions alone, especially when the stakes are high.
A customer buying their first home, a retiree managing savings, a parent opening a college fund — these situations come with questions, hesitations, and emotions. It’s in moments like these that a human presence makes a difference.
AI can calculate figures. A chatbot can send links. But when it comes to judgment, reassurance, or sensitive conversations, human interaction creates a sense of security. It feels personal, not just transactional.
Why Personal Connection Builds Trust
Financial services are built on trust. If people don’t feel secure, they won’t stay loyal. Human interaction gives banks the chance to build that trust face-to-face or voice-to-voice, not just screen-to-screen.
Even when the process is digital, people appreciate knowing there’s someone they can call. A name. A voice. A real person who listens and doesn’t just follow scripts.
That trust leads to loyalty. And loyalty keeps people from jumping to the next app or service that offers slightly better rates or flashier features.
Real Conversations, Real Value
Here’s something that doesn’t get talked about enough — people often don’t know what they don’t know. A human representative can spot gaps, ask the right questions, and guide customers toward smarter choices. That kind of proactive support doesn’t come from an app.
And when issues come up, speed isn’t the only thing that matters. Sometimes, it’s about clarity. Or feeling heard. Or getting help from someone who understands the context, not just the data.
It’s in these interactions that customer service banking still plays a vital role. While the bulk of banking can be digital, the emotional layer that comes from talking to a person remains incredibly valuable.
When People Still Want People
Not every moment in banking requires human help. Routine transactions are fine without it. But some moments do call for a personal touch. Here are just a few examples where people still look for a real human:
- Major life changes – Buying a home, getting married, having a baby, or preparing for retirement
- Complex financial decisions – Investment planning, tax strategies, or inheritance questions
- Problem-solving – Fraud issues, account mistakes, or disputes that need nuanced handling
- Emotional reassurance – When someone is anxious or unsure, a calm voice can change the experience
In all these cases, a chatbot can’t provide what a human can. It’s not about the volume of information. It’s about empathy and clear communication.
Automation Isn’t the Enemy
Let’s be clear, automation has its place. It makes banking faster, simpler, and more accessible. Many people now expect 24/7 access, instant updates, and no-hassle transactions.
However, automation should enhance human service, not replace it entirely. The best systems are those where the two work together. Machines take care of the routine. Humans step in for the important, complex, or emotional moments.
That balance keeps operations efficient while preserving the customer relationship.
What Real Service Looks Like Today
Modern customer expectations are different than they were even ten years ago. People want flexibility, speed, and simplicity but they also want accountability.
Here’s what matters to customers today:
- Responsive help – Fast replies are expected, but human help should still be available when needed
- Clarity – Simple explanations that make sense, especially with financial products or changes
- Empathy – Understanding tone and thoughtful solutions, not robotic replies
- Consistency – A smooth experience across digital and human channels
Banks that get this right don’t choose between tech and people. They use both thoughtfully and strategically.
The Role of Frontline Staff is Evolving
The job of a bank employee isn’t disappearing. It’s shifting. Less time is spent on routine tasks, and more time is spent on meaningful conversations.
Rather than being information providers, frontline staff are becoming advisors, listeners, and problem-solvers. They step in when context matters, when emotion matters, and when trust is on the line.
That’s not something an algorithm can replace.
Final Thoughts: The Human Edge Still Wins
Banking will keep getting more digital. That’s not a bad thing. It helps with access, speed, and convenience.
But human interaction is still a competitive edge. It’s what makes someone feel supported, respected, and confident when handling their finances, especially during stressful or important moments.
As more services move online, it’s the human element that keeps banks connected to the people they serve. Keep the tech. But don’t lose the people.
Image Credit: Tim Gouw from Unsplash.
Starting a business is a dream for countless people. You’ll want to become an entrepreneur for more than a few reasons, like taking on more control of your future. But, this isn’t a step you should take lightly. Make sure you do it right.
There’s quite a bit involved in the process, and you’ll need to set it up for success. As complicated as it is, it’s not impossible.
The right startup tips help with this more than you’d think. With the impact they’ll have, there’s no reason why they shouldn’t help. It’s worth diving into some of the more helpful of these going forward.
Sort Out the Legalities
You’ll have plenty of legalities to sort out when you’re starting off. Your business has to be legal to operate, after all. Get these out of the way as early as you can. It’s always worth using a professional with this, like GDH Law. That way, you can get through any potential hurdles relatively easily.
Research Your Competition
You’ll already know you’ll have plenty of competition once you start your business. This doesn’t always have to be a negative. Instead, you could use it to your advantage. Researching your competition lets you figure out where they’re going wrong and what you can do better. Even learning from what they’re doing right can help you move forward.
Understand Your Starting Budget
Starting a business costs quite a bit of money. You’ll already know that, and it’s worth putting the time into creating a starting budget. Don’t just slap one together without putting much time or effort into it. You’ll need to understand where all of your money’s going and what it needs to be spent on. It’ll be more than worth the time and effort it takes.
Plan For Challenges
Starting and running a business has its challenges, and you’ll need to be prepared for this. While many of these can depend on your specific circumstances, many business challenges can be relatively common. Plan ahead for these before they come up. That way, they’ll have a relatively minimal impact on your business going forward.
Spend Time on Marketing
Your business needs to start bringing in customers as early as possible. Marketing is an essential part of this. It generates brand awareness, encourages potential customers to buy from you, and more. Make this a priority going forward. The earlier you get started on this, the better it’ll be for your business.
It’s easy to see why starting a business is so appealing. You’ll take greater control over your life, and there’s the potential to make quite a bit of money with it. But, you’ll need to know what you’re doing with it. The right startup tips can help with this.
Putting the time and effort into them helps you start your business the right way. You’ll be better set up for success as time goes on. You’ll see this more and more as time goes on. You’ve no reason not to put the effort into them.