A tax refund can feel like a financial win, but it’s important to remember that it’s not free money, it’s money you’ve already earned. Using your tax refund strategically can help you build financial stability, reduce debt, and achieve your long-term money goals.

If you’re wondering how to use a tax refund wisely, this guide will give you financially beneficial options.

Why Your Tax Refund Isn’t Free Money (and why that matters)

Build or Boost Your Emergency Fund

One of the smartest ways to use a tax refund is to strengthen your emergency savings. Even a small emergency fund can provide peace of mind and protect you from unexpected expenses like car repairs, medical bills, or job interruptions.

Many financial experts recommend aiming for three to six months of living expenses, but any contribution is a step toward financial security.

How to Build an Emergency Fund (Even On A Tight Budget)

Pay Down High-Interest Debt

Using your tax refund to pay off high-interest debt, such as credit cards or personal loans, can save you money in the long run.

Paying down debt helps to:

• Reduce interest costs
• Lower monthly payments
• Improve cash flow
• Reduce financial stress

Focus on the highest-interest debt first to get the most impact.

Debt Consolidation vs. Debt Settlement

Catch Up on Essential Expenses

Your tax refund can also help you cover overdue or essential bills. This may include:

• Utilities
• Insurance premiums
• Medical expenses
• Vehicle maintenance

Using your refund to catch up ensures that you avoid penalties and extra fees, keeping your finances on track.

4. Build a Sinking Fund

Some expenses don’t happen every month, but they still need to be planned for. Your tax refund can be a great way to build a sinking fund for those expenses. Sinking funds can be used for:

• Car insurance or property taxes
• Back-to-school costs
• Holiday spending
• Professional or licensing fees

Setting aside money for these expenses can reduce reliance on credit later in the year.

How to Plan for a Sinking Fund in the new Year

Invest in Your Financial Goals

A portion of your tax refund can also support long-term financial goals, such as:

• Retirement savings
• Home purchases
• Education or professional development

Aligning your refund with meaningful financial goals makes it a tool for growth, not just temporary relief.

How Long Will $500K, $1M, OR $2M Last In Retirement?

Leave Room for Enjoyment, With Intention

It’s okay to enjoy part of your tax refund, as long as it’s intentional. Setting aside a small portion for personal spending, like a treat, hobby, or family activity, can keep your financial plan sustainable and enjoyable.

How Walters Financial Wellness Helps Clients Use Their Tax Refunds Wisely

Walters Financial Wellness guides clients in seeing their tax refunds as part of a bigger financial picture, not just a one-time bonus.

We work with clients to:

• Decide the best use of their tax refund based on priorities
• Create personalized spending, saving, and debt payoff plans
• Improve cash flow and reduce financial stress
• Set realistic short- and long-term financial goals
• Build confidence around money decisions

Whether you want to make the most of this year’s refund or plan better for the future, Walters Financial Wellness provides practical, judgment-free guidance.

Why Hiring a Financial Counselor When You Are Financially Struggling Makes Sense

Final Thoughts

A tax refund can be a powerful financial tool when used intentionally. By prioritizing savings, reducing debt, planning for irregular expenses, and supporting long-term goals, you can turn your refund into real financial progress.

Disclaimer

The information provided in this blog post is for educational purposes only and does not constitute financial, tax, or legal advice. Individual financial situations vary. Readers should consult with a qualified financial or tax professional regarding their specific circumstances. No client relationship is established through this content.

Every year, millions of people look forward to receiving a tax refund. For many, it feels like a bonus or extra money to spend, save, or use to catch up on bills. But here’s the truth:

Your tax refund isn’t free money.

Understanding what a tax refund really is, and what it isn’t, can help you make smarter financial decisions and improve your overall money management.

What a Tax Refund Actually Is

A tax refund is not a gift from the government. It’s simply the return of money you already earned.

When too much money is withheld from your paycheck for federal or state taxes throughout the year, the IRS sends the excess back to you after you file your tax return. In other words, a refund means:

• You overpaid your taxes
• The government held onto your money interest-free
• You’re getting back your own earnings

Understanding Your Paycheck

Why Big Tax Refunds Feel So Good

There’s a psychological reason tax refunds feel like “free money.” Because the funds arrive in a lump sum, they don’t feel connected to your regular income, even though they are.

This often leads people to:

• Spend the refund quickly
• Use it on non-essential purchases
• Miss opportunities to improve long-term financial stability

While there’s nothing wrong with enjoying part of your refund, it’s important to understand the bigger picture.

The Hidden Cost of Overpaying Taxes

Receiving a large tax refund may actually signal a missed opportunity.

When too much is withheld from your paycheck:

• Your monthly cash flow is lower than it could be
• You may rely more on credit cards or loans
• You lose the chance to use that money throughout the year for savings or debt payoff

Adjusting your tax withholding could allow you to keep more of your money each paycheck, instead of waiting for a refund.

How to fix Cash Flow Problems Without Making More Money

When a Tax Refund Can Be Helpful

That said, tax refunds aren’t inherently bad. They can be useful when used intentionally, such as to:

• Build or replenish an emergency fund
• Pay down high-interest debt
• Cover irregular or annual expenses
• Jump-start financial goals

The key is having a plan for your refund instead of treating it like unexpected income.

Common Tax Refund Myths

Let’s clear up a few misconceptions:

• “A big refund means I did well financially.”
  Not necessarily. It often just means you overpaid taxes.
• “I should aim for the largest refund possible.”
  A more balanced approach usually supports better monthly budgeting.
• “Refunds are extra income.”
  Refunds are returned income, not additional earnings.

How to Use a Tax Refund: Smart Ways to Strengthen Your Finances

How Walters Financial Wellness Helps Clients Make Better Use of Their Tax Refunds

Walters Financial Wellness helps clients understand how taxes fit into their overall financial picture.

We work with clients to:

• Review tax refunds and withholding patterns
• Improve monthly cash flow through budgeting
• Create plans for using refunds strategically
• Align tax decisions with long-term financial goals
• Reduce reliance on refunds as forced savings

Whether you receive a large refund or a small one, Walters Financial Wellness helps you make intentional choices that support financial stability and confidence.

What is Financial Counseling and How it Can Help You

Final Thoughts

A tax refund can be a useful financial tool, but it’s not free money. When you understand where it comes from and plan how to use it wisely, you can turn your refund into a stepping stone toward better money management instead of a temporary spending boost.

Disclaimer

The information provided in this blog post is for educational purposes only and does not constitute tax, legal, or financial advice. Tax laws and individual financial situations vary. Readers should consult with a qualified tax professional or financial advisor regarding their specific circumstances. No client relationship is established through this content.

Managing money can feel overwhelming, especially when it seems like your paycheck disappears before the next one arrives. If you’re looking for a clear, intentional way to manage your finances, zero-based budgeting may be the solution you’ve been looking for.

Zero-based budgeting is a budgeting method that helps you assign purpose to every dollar you earn. It’s not about restriction, it’s about control, clarity, and confidence.

What Is Zero-Based Budgeting?

Zero-based budgeting is a budgeting approach where every dollar of income is assigned a job, so your income minus expenses equals zero.

That doesn’t mean you spend everything. It means your money is intentionally allocated toward:

• Bills and necessities
• Savings, emergency, and sinking funds
• Debt repayment
• Variable expenses like groceries or gas
• Personal spending and fun

When your budget “zeros out,” you know exactly where your money is going.

How Zero-Based Budgeting Works

Here’s how the process typically looks:

1. List your monthly income
   Include all reliable sources of income, such as paychecks or consistent side income.
2. Write out all expenses
   Start with fixed expenses (rent, insurance, utilities), then variable ones (food, fuel, entertainment).
3. Assign every dollar
   Give each dollar a purpose until your income minus expenses equals zero.
4. Track and adjust
   Track spending throughout the month and adjust categories as needed.

Benefits of Zero-Based Budgeting

Zero-based budgeting is amazingly effective. Here’s why:

• Increased awareness of spending habits
• Better control over impulse spending
• Faster progress toward savings and debt payoff
• Reduced financial stress
• Clear alignment between money and personal goals

Many people find that once they start zero-based budgeting, they feel more empowered and less anxious about money decisions.

Who Should Use Zero-Based Budgeting?

Zero-based budgeting works well for:

• Individuals living paycheck to paycheck
• Families managing variable expenses
• Anyone focused on getting out of debt
• People who want a proactive financial plan

If your income changes month to month, this method can still work. It just requires updating your budget regularly.

Common Zero-Based Budgeting Mistakes to Avoid

To get the most out of zero-based budgeting, avoid these mistakes:

• Forgetting to budget for irregular or annual expenses
• Not adjusting the budget when life changes
• Being too strict and not allowing flexible spending
• Skipping savings categories

Remember, budgeting is a skill, it improves with practice.

Walters Financial Wellness Helps Clients With Zero-Based Budgeting

Walters Financial Wellness clients create realistic, personalized zero-based budgets that fit their lifestyle.

We work with clients to:

• Build sustainable monthly budgets
• Identify spending leaks and opportunities for savings
• Create debt payoff strategies
• Set meaningful financial goals
• Develop long-term money confidence

Whether you’re just starting out or need help refining your current budget, we provide judgment-free support and practical guidance every step of the way. Contact us today at: [contact@waltersfinancialwellness.com].

Disclaimer

The information provided in this blog post is for educational purposes only and does not constitute financial, legal, or investment advice. Individual financial situations vary, and readers should consult with a qualified financial professional before making any financial decisions. No client relationship is established through this content.

Cash flow problems can feel overwhelming, especially when your income already feels stretched thin. But here’s the good news, you don’t always need to earn more to gain control of your finances. In many cases, improving how money flows in and out of your life can make a bigger impact than a raise.

In this blog post, we’ll walk through practical, proven strategies to fix cash flow issues without increasing your income, so you can reduce stress, stay current on bills, and start building financial stability.

What Is a Cash Flow Problem?

A cash flow problem happens when your expenses regularly outpace your available money, leaving you short before your next paycheck. This can lead to:

• Living paycheck to paycheck
• Relying on credit cards to cover essentials
• Falling behind on bills
• Constant financial anxiety

The solution isn’t always earning more, it’s often about better systems, clearer awareness, and smarter priorities.

1. Track Every Dollar Coming In and Going Out

You can’t fix what you can’t see. Start by tracking your spending for at least 30 days. This includes:

• Fixed bills (rent, car payment, insurance)
• Variable expenses (groceries, gas, eating out)
• Subscriptions and memberships
• Cash purchases

Many clients discover they’re leaking money in small, unnoticed categories. Once you see the full picture, you can make informed decisions instead of guessing.

2. Prioritize Essential Expenses First

A common cause of cash flow problems is spending on non-essentials before covering priorities. Try paying expenses in this order:

• Housing
• Utilities
• Food
• Transportation
• Minimum debt payments
• Savings (even small amounts)
• Discretionary spending

This approach, sometimes called a priority-based budget, helps ensure your most important needs are always funded first.

3. Reduce (or Eliminate) Hidden Spending Leaks

You don’t need to live on rice and beans, but you do need to be intentional. Look for:

• Unused subscriptions
• Convenience spending (delivery fees, impulse purchases)
• Bank fees
• Overpriced insurance policies
• Automatic renewals

Cutting just $10–$20 from several categories can quickly free up hundreds of dollars per month.

4. Adjust Due Dates to Match Your Pay Schedule

Sometimes the issue isn’t how much you spend, it’s when bills are due.

Many lenders and service providers allow you to change due dates. Aligning your bills with your paycheck can:

• Reduce overdrafts
• Prevent late fees
• Make cash flow smoother month to month

This small administrative change can make a big psychological and practical difference.

5. Use a Simple Cash Flow System

Instead of relying on willpower, use systems that make money management easier. Here are some options:

• Separate accounts for bills and spending
• Weekly spending limits instead of monthly
• Envelope or digital envelope budgeting
• Automatic transfers for savings

The goal is to create a structure where your money flows intentionally, not accidentally.

6. Communicate Early If You’re Struggling

If you’re falling behind, silence often makes things worse. Many companies offer:

• Hardship programs
• Payment plans
• Temporary deferments
• Reduced interest rates

Reaching out early can protect your credit and give you breathing room while you stabilize your finances.

You Don’t Need More Money, You Need a Better Strategy

Fixing cash flow problems is less about deprivation and more about clarity, structure, and support. With the right plan, many people find they can go from overwhelmed to confident without changing their income at all.

How Walters Financial Wellness Helps Clients

Walters Financial Wellness helps clients create realistic budgets, develop personalized cash flow systems, reduce financial stress, and build long-term money habits that actually stick. Whether you’re struggling with inconsistent income, debt overwhelm, or simply don’t know where your money keeps going, we offer judgment-free guidance and practical tools tailored to your unique situation. Our goal is to help you feel confident and in control of your finances, not restricted or ashamed.

Disclaimer

This article is for educational purposes only and does not constitute financial, legal, or tax advice. Individual financial situations vary, and readers should consult with a qualified professional regarding their specific circumstances before making financial decisions.

Many small business owners feel successful when their income looks strong on paper. Sales are coming in, invoices are going out, and revenue reports look promising. But, despite healthy income, too many businesses still struggle to pay bills, make payroll, or handle unexpected expenses. The reason? Cash flow matters more than income.

Understanding the difference between income and cash flow and managing your cash effectively can be the difference between a business that survives and one that thrives.

What Is the Difference Between Income and Cash Flow?

-Income (or profit) is what’s left after you subtract expenses from revenue on your financial statements. It’s an important measure of performance, but it doesn’t tell the whole story.

-Cash flow, on the other hand, refers to the actual movement of money in and out of your business bank account.

A business can be profitable on paper and still run out of cash. 

For example:

• You send a $10,000 invoice, but the client won’t pay for 60 days
• Your expenses (rent, payroll, software, taxes) are due this month
• Your income statement shows a profit, but your bank account is empty

This is how profitable businesses get into financial trouble.

Why Cash Flow Is the Lifeblood of Your Business

Cash flow keeps your business operating day to day. Without consistent positive cash flow, you may struggle to:

• Pay employees and contractors on time
• Cover rent, utilities, and subscriptions
• Purchase inventory or supplies
• Invest in marketing and growth
• Handle emergencies or slow seasons

Strong cash flow gives you flexibility and peace of mind. It allows you to make decisions strategically rather than reactively.

Common Cash Flow Problems for Small Businesses

Many small business owners run into cash flow issues because of:

• Late-paying clients or customers
• Poor invoicing systems
• Taking on too many expenses too quickly
• Not setting aside money for taxes
• Relying on inconsistent income
• Lack of cash flow forecasting

These issues are common, but they are fixable with the right systems and guidance.

How Better Cash Flow Improves Your Financial Stability

When you prioritize cash flow management, you can:

• Build a reliable financial cushion
• Reduce stress around money
• Avoid relying on credit cards or loans
• Plan for growth with confidence
• Make smarter hiring and investment decisions

Cash flow clarity turns your finances from confusing and overwhelming into organized and empowering.

Simple Ways to Improve Your Cash Flow

Here are a few practical strategies that help most small business owners:

• Send invoices immediately and follow up consistently
• Offer multiple payment options to get paid faster
• Track your income and expenses weekly
• Create a monthly cash flow forecast
• Separate business and personal finances
• Build an emergency fund for your business

If these feel overwhelming, that’s where professional support can make a big difference.

How Walters Financial Wellness Helps Small Businesses

Walters Financial Wellness helps clients understand their numbers, build realistic cash flow systems, and create sustainable financial habits. Together, we work on improving cash flow, reducing financial stress, and building confidence around money decisions. Our goal is to help you feel in control of your business finances so you can focus on growth instead of constantly worrying about your bank balance.

If you’re ready to take control of your business finances, contact us for a free consultation.

Disclaimer

This blog post is for educational purposes only and does not constitute financial, legal, or tax advice. Every business’s financial situation is unique. Readers should consult with a qualified financial professional regarding their specific circumstances before making financial decisions.

Running a small business in 2026 requires more than passion and a great product. Small businesses need smart financial management, efficient operations, and real-time insights. Fortunately, today’s business apps make it easier than ever to stay organized, profitable, and compliant, without needing a full back-office team.

Whether you’re a solo entrepreneur, freelancer, or growing small business owner, the right digital tools can help you manage cash flow, track expenses, handle invoicing, and make informed financial decisions. Below are some of the best apps to help manage your small business in 2026.

1. QuickBooks Online: Accounting & Bookkeeping

QuickBooks Online continues to be one of the most widely used accounting platforms for small businesses.

Key benefits:

• Income and expense tracking
• Automated bank and credit card syncing
• Financial reports (profit & loss, balance sheet, cash flow)
• Invoicing and sales tax tracking
• Integration with payroll and payment platforms

Best for: Small businesses that want cloud-based bookkeeping with room to scale.

2. Wave: Free Accounting for Small Businesses

Wave remains a popular option for startups and very small businesses looking for cost-effective financial tools.

Key benefits:

• Free accounting and income/expense tracking
• Customizable invoicing
• Receipt scanning
• Basic financial reports

Best for: Freelancers and early-stage businesses with simple finances.

3. FreshBooks: Invoicing & Time Tracking

FreshBooks is designed with service-based businesses in mind and is especially helpful for managing client billing.

Key benefits:

• Professional invoicing
• Time tracking and project tracking
• Expense categorization
• Client payment portals
• Financial summaries and reports

Best for: Consultants, creatives, and service providers.

4. Gusto – Payroll & HR Management

Payroll compliance continues to be a major concern in 2026, and Gusto simplifies the process.

Key benefits:

• Automated payroll processing
• Tax filings and compliance support
• Contractor payments
• Employee benefits
• HR tools and onboarding

Best for: Small businesses with employees or contractors.

5. Expensify: Expense Tracking & Reimbursements

Tracking business expenses accurately is critical for budgeting, profitability, and tax deductions.

Key benefits:

• Receipt scanning with AI categorization
• Expense reports
• Reimbursement workflows
• Integration with accounting software

Best for: Businesses with frequent expenses, travel, or team reimbursements.

6. Stripe: Payment Processing & Cash Flow Tools

Stripe remains a leader in digital payment processing for online and service-based businesses.

Key benefits:

• Secure online payments
• Subscription and recurring billing
• Invoicing and payment links
• Revenue tracking dashboards
• Integration with accounting tools

Best for: Online businesses, coaches, and service providers accepting digital payments.

7. Notion or Trello: Business Organization & Planning

While not financial apps specifically, organization tools play a key role in business success.

Key benefits:

• Task and project tracking
• SOP and document storage
• Financial planning notes and goal tracking
• Team collaboration

Best for: Business owners who want clarity, planning, and operational efficiency.

How the Right Apps Improve Financial Health

Using the right small business apps in 2026 can help you:

• Improve cash flow visibility
• Reduce financial stress
• Avoid missed deadlines and penalties
• Make data-driven decisions
• Prepare for tax season year-round

However, apps alone don’t replace a financial strategy. Knowing how to use the data these tools provide is just as important as collecting it.

How Walters Financial Wellness Helps Small Businesses

At Walters Financial Wellness, we help small business owners turn numbers into clear, confident decisions. I work with clients to:

• Set up and optimize financial systems and apps
• Understand cash flow, profit margins, and pricing
• Create realistic budgets and financial goals
• Reduce debt and improve financial stability
• Prepare for taxes and long-term growth

If you’re using business apps but still feel unsure about your finances. or don’t know which tools are right for you, I provide personalized guidance to help you build a financially healthy business. Reach out to connect.

Disclaimer

This blog post is for educational and informational purposes only and does not constitute financial, tax, or legal advice. App features, pricing, and availability may change over time. Always consult with a qualified financial professional regarding your specific business situation.

One of the most common questions service members ask about the Thrift Savings Plan (TSP) is: Should I contribute to Roth TSP or Traditional TSP?

The right choice depends on your income, tax bracket, career stage, and long-term goals. Choosing the wrong option, or never revisiting your decision, can cost you thousands in unnecessary taxes over time.

This guide breaks down Roth vs. Traditional TSP, explains how each works, and helps you understand which option may make the most sense for your career.

What Is Roth TSP?

Roth TSP contributions are made with after-tax dollars, meaning you pay taxes now.

Key Features:

• Contributions are taxed upfront
• Qualified withdrawals in retirement are tax-free
• Earnings grow tax-free
• No Required Minimum Distributions (RMDs) during your lifetime
• Government matching contributions (under the Blended Retirement System, BRS) go into Traditional TSP, even if your contributions are Roth

Roth TSP is often ideal for service members who expect to be in a higher tax bracket in retirement or who want tax-free income later in life.

What Is Traditional TSP?

Traditional TSP contributions are made with pre-tax dollars, meaning you defer taxes until retirement.

Key Features:

• Contributions reduce your taxable income today
• Withdrawals in retirement are taxed as ordinary income
• Earnings grow tax-deferred
• Required Minimum Distributions (RMDs) apply later in life
• Government matching contributions are always Traditional

Traditional TSP works well for service members in higher current tax brackets or those seeking immediate tax relief.

How to Decide: Roth vs. Traditional TSP by Career Stage

Early Career (Lower Income Years)

• Roth TSP is often the preferred choice because of lower current tax rates
• Tax-free growth over decades can be powerful
• Common for junior enlisted and early officers

Mid-Career (Rising Income)

• A blend of Roth and Traditional contributions often makes sense
• Tax diversification provides flexibility later
• Promotions and bonuses may push you into higher tax brackets

Late Career / Pre-Retirement

• Traditional TSP may help manage current tax exposure
• Roth contributions can still be valuable for tax-free income in retirement
• Planning around pensions, VA benefits, and future RMDs becomes critical

Common TSP Mistakes to Avoid

• Choosing Roth or Traditional once and never reviewing it
• Ignoring how tax brackets change over time
• Assuming Roth is always better (or always worse)
• Forgetting that government matching is always Traditional
• Not planning for Required Minimum Distributions

Why Tax Diversification Matters

Many financial planners recommend holding both Roth and Traditional balances. Tax diversification helps you:

• Control taxable income in retirement
• Reduce the impact of RMDs
• Manage Medicare premiums and Social Security taxation
• Adapt to future tax law changes

Tax diversification is often more important than trying to predict future tax rates.

How Walters Financial Wellness Helps Clients

Walters Financial Wellness, helps service members and military families:

• Decide between Roth vs. Traditional TSP
• Build custom TSP contribution strategies based on rank and years of service
• Coordinate TSP with IRAs, pensions, and spouse benefits
• Plan for military retirement, separation, or transition
• Reduce long-term tax exposure and avoid costly mistakes

If you want a TSP strategy tailored to your career, income, and goals we can help. Contact us today.

Disclaimer

This article is for educational purposes only and does not constitute tax, legal, or investment advice. TSP rules, IRS contribution limits, and tax laws may change. Consult a qualified professional for guidance specific to your situation.

The Thrift Savings Plan (TSP) is one of the strongest retirement benefits available to service members, but only if it’s used strategically. The way you should approach TSP contributions at four years of service looks very different from how you should approach them at twenty.

If I were building my TSP strategy from day one, here’s  what I’d do at 4, 8, 12, 16, and 20+ years of service to maximize long-term benefits, while avoiding common mistakes that can cost tens of thousands of dollars over a career.

Years 0–4: Build A Habit and Claim the Match

Primary goal: Build consistency and get free money

During the first enlistment, my top priority would be to earn the full government match under the Blended Retirement System (BRS).

What I’d do:

• Contribute at least 5% of basic pay to receive the full government match
• Prioritize Roth TSP if my income is relatively low
• Use a Lifecycle (L) Fund aligned with my expected retirement year or a simple C/S fund mix
• Increase contributions with every promotion, raise, or reenlistment

At this stage, the most powerful factor is time in the market, not complexity.

Years 4–8: Increase Contributions as Income Rises

Primary goal: Accelerate my TSP growth

As income increases, so should savings.

What I’d do:

• Gradually raise contributions toward 10–15% of base pay
• Continue prioritizing Roth TSP unless I’ve moved into a significantly higher tax bracket
• Review my investment allocation annually (without reacting emotionally to market swings)
• Avoid TSP loans whenever possible

Many service members plateau at this stage, but those who continue increasing contributions gain a significant long-term advantage.

Years 8–12: Start Thinking Like a Long-Term Investor

Primary goal: Optimization and tax awareness

This is often the point where careers stabilize and retirement becomes a reality.

What I’d do:

• Aim for 15–20% total retirement savings (TSP plus any IRAs)
• Begin evaluating Roth vs. Traditional TSP contributions based on my tax bracket
• Learn how close I am to the annual IRS contribution limit
• Stay disciplined during market downturns

This is when small decisions begin to have large tax consequences later.

Years 12–16: Prepare To Max Out Contributions

Primary goal: Maximizing contributions efficiently

Now I’d be positioning myself to maximize annual contributions.

What I’d do:

• Calculate the correct per-paycheck contribution needed to reach the annual IRS limit
• Ensure contributions are spread across the year so I don’t miss any government matching
• Use bonuses and special pay carefully to avoid front-loading errors
• Coordinate TSP planning with spouse retirement accounts (if applicable)

At this stage, mistakes often come from over-contributing too early or misunderstanding matching rules.

Years 16–20+: Maximize, Diversify, and Prepare to Retire

Primary goal: Retirement readiness and tax control

These years can dramatically impact post-service financial freedom.

What I’d do:

• Max out my TSP each year, if cash flow allows
• Take advantage of catch-up contributions once age-eligible (rules vary by age and tax year)
• Maintain tax diversification between Roth and Traditional balances
• Plan around military retirement pay, VA benefits, and post-service income
• Review beneficiaries, withdrawal rules, and future Required Minimum Distributions (RMDs)

At this point, it’s less about growth alone and more about how income will be accessed later.

Why This Strategy Works

This strategy:

• Maximizes government matching
• Adjusts for changing tax brackets
• Preserves long-term compounding
• Avoids common contribution and matching mistakes
• Aligns retirement savings with real military career milestones
• It’s flexible, because no two military careers look the same.

How Walters Financial Wellness Helps  Clients

At Walters Financial Wellness, we help service members and military families:

• Build custom TSP contribution strategies
• Decide between Roth vs. Traditional TSP
• Prepare for military retirement, separation, or transition
• Coordinate TSP savings with IRAs, pensions, and spouse benefits
• Avoid costly errors with contribution limits, matching, and withdrawals

If you want a personalized TSP strategy based on your rank, years of service, and long-term goals, we can help you create a plan that actually fits your life. Contact us today.

Disclaimer

This article is for educational purposes only and does not constitute tax or investment advice. Contribution limits, tax laws, and TSP rules may change. Always consult a qualified professional for guidance specific to your situation.

Starting a small business is exciting, but managing your finances correctly from day one can make the difference between long-term success and ongoing stress. Many new business owners focus on sales and branding while overlooking foundational financial systems that protect cash flow, reduce tax surprises, and support business growth.

This guide walks through the most important financial steps to take when starting a small business, so you can build with confidence and avoid common pitfalls.

Separate Business and Personal Finances Early

One of the most critical steps when starting a business is keeping personal and business finances separate.

Why This Matters

• Simplifies bookkeeping and tax reporting
• Helps preserve liability protection for LLCs and corporations
• Makes it easier to track profitability
• Reduces audit and compliance risk

What  Accounts You Need

At a minimum, new business owners should open:

• A business checking account
• A business savings account for taxes or reserves

Understand Your Startup Costs and Cash Flow

Many small businesses fail not because they lack profit, but because they run out of cash. Here are a couple of key financial questions to ask yourself:

• What are your one-time startup costs?
• What are your ongoing monthly expenses?
• How long can you operate before revenue becomes consistent?

Creating a simple cash-flow projection helps you understand how much money you need to keep the business running during the early stages.

Create a Realistic Business Budget

Here are a few common budget categories for a business budget:

• Operating expenses (software, supplies, marketing)
• Professional services (legal, accounting, insurance)
• Taxes and licenses
• Owner pay or draws

Reviewing your budget monthly allows you to adjust spending and respond quickly if revenue changes.

Plan for Taxes from the Beginning

Taxes are often the biggest financial shock for new business owners. Here are important tax considerations:

• Self-employment taxes apply to most business income
• Federal and state estimated taxes may be required quarterly
• Sales tax obligations depend on your products and location

Setting aside money regularly (20–30% of net income) can prevent year-end surprises.

Pay Yourself Intentionally

New business owners often struggle with how (and when) to pay themselves. Here are a few common options:

• Owner draws (sole proprietors and many LLCs)
• Payroll (S-corps and corporations)

Paying yourself consistently is important because it helps stabilize personal finances and reduces burnout.

Build a Business Emergency Fund

Just like personal finances, businesses need an emergency cushion. A business emergency fund can help cover:

• Unexpected repairs or equipment replacement
• Slower-than-expected sales months
• Client payment delays

Many advisors recommend setting aside 1–3 months of operating expenses once cash flow allows.

Use Simple Financial Tracking Systems

You don’t need complex systems when starting out, but you do need consistency. Here are some helpful tools to consider:

• Basic bookkeeping software
• Separate expense tracking for personal vs business purchases
• Monthly financial check-ins

Accurate records make it easier to make decisions, apply for funding, and file taxes correctly.

Common Financial Mistakes New Business Owners Make

• Mixing personal and business finances
• Underestimating taxes
• Not tracking cash flow regularly
• Overspending early on branding or tools
• Paying themselves inconsistently

Avoiding these mistakes can significantly improve your long-term business stability.

How Walters Financial Wellness Can Help

As a financial counselor, I help new and small business owners build financial systems that support both their business and personal lives. I can:

• Help you separate and organize business finances
• Create realistic budgets and cash-flow plans
• Plan for taxes and irregular income
• Set up owner pay strategies
• Align business income with personal financial goals

Strong financial foundations allow you to grow your business without constant financial stress. Walters Financial Wellness can help! Contact us today.

Disclaimer

The information in this blog post is for educational purposes only and does not constitute legal, tax, or financial advice. Business structures, tax obligations, and financial strategies vary depending on your specific circumstances. Always consult a qualified accountant, attorney, or financial professional before making business or financial decisions.

Filing your taxes while deployed can be stressful, especially when you’re dealing with limited internet access, time zone differences, and the demands of military service. Fortunately, the IRS provides special tax rules, exclusions, and automatic extensions for deployed service members, particularly those serving in combat zones.

This guide explains how filing taxes while deployed works for the 2026 tax season (the 2025 tax year), what benefits may apply, and how military families can avoid common mistakes.

Do You Have to File Taxes While Deployed?

Yes, deployment does not eliminate the requirement to file a federal tax return if you meet IRS filing thresholds. However, your deployment status can affect:

• When you must file
• Whether certain income is taxable
• Who can file on your behalf

Your tax obligations depend on whether you are deployed to a combat zone, your marital status, and your income sources.

Combat Zone Tax Benefits

Service members deployed to a designated combat zone or qualified contingency operation may qualify for significant federal tax relief.

Combat Zone Tax Exclusion (CZTE)

For the 2025 tax year:

• Enlisted service members and warrant officers may exclude most military pay earned in a combat zone from federal income tax
• Commissioned officers may exclude pay up to the monthly statutory limit
• Hostile Fire Pay / Imminent Danger Pay is also excluded. This exclusion can substantially reduce taxable income and may increase refunds.

Note: Allowances such as BAH and BAS are already non-taxable and are not affected by combat zone status.

2026 Tax Season Deadlines for Deployed Service Members

Federal tax returns for the 2025 tax year are generally due on April 15, 2026, but deployed service members may qualify for automatic extensions.

Automatic Extension for Service Members Stationed Overseas (Not in a Combat Zone)

If you are serving outside the United States or Puerto Rico, but not in a designated combat zone:

• You receive an automatic two-month extension
• New filing deadline: June 15, 2026
• Penalties are waived, but interest may accrue on unpaid taxes after April 15
• A brief statement explaining overseas service should be included if filing after April 15

Combat Zone Extension

If you are serving in a designated combat zone, you receive at least 180 days after leaving the combat zone to:

• File your tax return
• Pay any tax owed
• No penalties or interest accrue during this period
• The extension also applies to many other IRS deadlines, including estimated payments and certain claims
• You do not need to file IRS Form 4868 to receive this extension.

Filing Options While Deployed

Electronic Filing

E-filing is typically the fastest and most secure option. Refunds can be deposited directly into your bank account

Power of Attorney (POA)

You may authorize a spouse or trusted individual to file on your behalf using IRS Form 2848.

This is common for married service members filing jointly during deployment.

Free Military Tax Resources

Military OneSource offers free tax preparation software and professional assistance. Installation tax centers may provide support before or after deployment.

Special Considerations for Military Families

Married Filing Jointly

A non-deployed spouse may file jointly with proper authorization. Combat zone exclusions still apply to the deployed service member’s eligible income.

State Taxes

State tax treatment varies:

• Some states do not tax military pay at all
• Others exempt pay earned while stationed out of state
• Residency protections under the Servicemembers Civil Relief Act (SCRA) may apply

Because state rules differ and change frequently, it’s important to review your specific situation each year.

Common Tax Mistakes During Deployment

• Forgetting to claim the combat zone tax exclusion
• Missing deadlines due to misunderstanding automatic extensions
• Filing jointly without proper authorization
• Misreporting special pays or bonuses
• Overlooking state tax requirements

Avoiding these mistakes can prevent delayed refunds, IRS notices, and added stress after returning home.

How Walters Financial Wellness Can Help

As a financial counselor, I help service members and military families prepare for tax season before, during, and after deployment. I can help:

• Explain how deployment affects your taxes
• Review taxable vs. non-taxable income
• Help plan for refunds or balances due
• Coordinate tax planning with PCS moves and budgeting
• Support spouses filing during deployment

When tax planning is aligned with your financial goals, you gain clarity and confidence. Reach out to connect with Walters Financial Wellness.

Disclaimer

The information in this blog post is for educational purposes only and does not constitute legal, tax, or financial advice. Always consult a qualified accountant, attorney, or financial professional before making decisions.