Tips to get your finances back in order

Money worries can be solved by cutting expenses or increasing income. In practice, it appears that many taxpayers do not fully utilize allowances and discounts. Saving money by keeping a close eye on your expenses is worth it. In addition, people often do not realize that there may be rights to discounts and allowances. You can only find this out by becoming aware of your financial affairs. Most people don’t go through bank statements for fun to look for possible savings. Most people pay so little attention to their charges on their bank statements that incorrect charges go unnoticed at all. You should check your financial housekeeping at least once a month. Have you paid everything you are supposed to pay and you also need to determine your financial position.

Are you entitled to allowances?

The Tax Authorities have made an excellent calculation tool available on toeslagen.nl to calculate the extent to which you are entitled to benefits. By entering a number of details, you can find out within a few minutes whether you are entitled to additional benefits. You must be aware that you cannot receive unlimited retroactive money back from the tax authorities. To be entitled to an allowance, you have until April 1 of the year following the tax year in question to apply for the allowance.

Provisional refund from the Tax Authorities

You can receive an annual refund in June or July, but you can also choose to receive part of the refund every month. This way you will have more to spend each month. You would be wise not to count yourself rich in the event of a provisional refund. It is better to round down the deductions to avoid having to pay back money afterwards for the tax year. An excess monthly refund of 20 means that you have to repay 240 in excess tax money received over the tax year, plus the interest they charge for it.

Save money by limiting monthly costs

By paying close attention to your expenses, you can easily save a few tens of euros per month. You can cancel subscriptions to magazines that you don’t read, and to the gym that you hardly go to. An average family can also save on insurance. For example, is it necessary that you have expensive additional coverage on your health policy, or that the car still has third party liability/casco insurance. You can also save a lot of money by switching energy supplier to a cheaper party. Nowadays it is also possible to save money on television, internet and telephone by bundling the products with one supplier.

Withdraw large amounts of money for daily expenses

You must reserve a certain part of your income for fixed monthly expenses. The remaining amount can be spent freely. You should still save part of this amount and you should keep sufficient money in your current account for fixed costs. You can maintain good control over your budget by withdrawing the freely disposable amount in cash every month. This way you can keep track of how much you can still spend without getting into the red.