When a couple shifts from one shared budget to two independent households, the financial transition can feel overwhelming. Daily expenses change, responsibilities shift, and long-term plans may need to be reimagined. Careful planning can make this new chapter more manageable for both adults, and especially for any children involved.

As a financial counselor, my role is to help families reduce conflict, gain clarity, and build sustainable financial systems during major life changes. Below is a practical guide to navigating the shift from a joint household to two separate budgets, along with how my services can support you along the way.

1. Rebuilding Your Budget for Two Separate Households

Moving from a shared household to two individual ones means your income and expenses now support two sets of living costs instead of one. Without thoughtful planning, this shift can quickly strain finances.

Key considerations:

• Housing: rent/mortgage, utilities, furnishings, and child-related needs in each home
• Duplicated essentials: clothing, toiletries, school items, medications
• Transportation: commuting, exchanges if co-parenting, extracurricular activities
• Daily living expenses: groceries, household supplies, and maintenance

How I can help: I work with clients to design realistic, customized two-household budgets that account for duplicated expenses, new obligations, and lifestyle adjustments, helping both partners maintain stability during the transition.

2. Defining Shared and Separate Expenses Early

Even when a couple separates their finances, some expenses, especially when children are involved, don’t fit neatly into “mine” or “yours.” Without clear agreements, misunderstandings can escalate into conflict.

Common shared-expense categories may include:

• School fees
• Medical and dental costs
• Childcare or after-school programs
• Extracurricular activities
• Technology needs (phones, laptops)

How I can help: I facilitate structured conversations to create expense-sharing agreements that outline:

• Who is responsible for which expenses
• What will be shared, and at what percentage
• How reimbursements will be handled
• How unexpected or new expenses will be discussed

This reduces tension and brings transparency to everyday financial decisions.

3. Planning for Child Support and Income Changes

If child support is part of your separation, it may affect each household’s budget differently. Income changes over time can also influence future support arrangements.

Important considerations:

• The impact of support payments on each household’s cash flow
• How income fluctuations may trigger recalculations
• How support fits into long-term goals
• Whether you want additional agreements for large future expenses (e.g., braces, summer camps, college)

How I can help: I provide neutral, numbers-focused guidance to help both parties understand their financial landscape, prepare for changes, and avoid unnecessary financial strain or legal complications.

4. Building Emergency Savings for Two Separate Homes

When one household becomes two, so do the opportunities for unexpected expenses. A strong emergency plan becomes even more important.

Examples include:

• Urgent medical needs
• Last-minute childcare changes
• Transportation or travel disruptions
• Home repairs affecting living arrangements

How I can help: I assist clients in creating or rebuilding emergency funds tailored to their new financial realities, helping them stay prepared.

5. Staying Focused on Long-Term Financial Goals

A separation can feel like everything is on pause, but long-term planning remains essential. Your future still matters.

Key long-term considerations:

• College savings
• Life insurance and beneficiary updates
• Wills and guardianship plans
• Retirement planning
• Large future expenses such as vehicles or specialized programs

How I can help: I support clients in balancing immediate financial needs with long-term goals, ensuring they continue building security and stability for themselves and their children.

6. Creating a Financial Communication System That Works

When finances split, communication often becomes the biggest challenge, not the money itself.

Together, we can establish:

• A shared system for tracking joint expenses
• Predictable reimbursement timelines
• A digital tool strategy (apps, spreadsheets, etc.)
• Communication boundaries that reduce stress and confusion

These systems improve accountability and preserve emotional bandwidth for more important things, like parenting and rebuilding your life.

How My Financial Counseling Services Support Families During Separation

When working with couples transitioning from one household budget to two, I provide:

• Personalized budgeting for two separate homes

• Guided conversations to reduce financial conflict

• Expense-sharing plans and reimbursement systems

• Cash-flow and child-support planning

• Long-term financial goal setting

• Tools, templates, and ongoing support to stay organized

Whether you’re preparing to separate or already navigating a two-household reality, the right financial structure can bring calm to your home life, clarity to your decisions, and stability to your child’s experience. Contact Walters Financial Wellness for a free consultation today!

**NOTE: 

This content is intended for educational and informational purposes only. It does not provide legal, tax, or investment advice and should not be relied upon as such. Laws related to custody, child support, and financial responsibilities vary by state and may change over time. Readers should consult with a licensed attorney, tax professional, or financial counselor to obtain advice tailored to their individual needs. The examples provided are general in nature and may not reflect your specific situation.

In today’s gig economy, many people supplement their primary income with side hustles. Whether it’s freelance writing, ride-sharing, Etsy sales, or consulting, earning extra money can be exciting, but it can also complicate your finances. Properly tracking side-hustle income is essential for budgeting, paying taxes, and building long-term financial stability.

As a financial counselor, I help clients navigate this often-overlooked area of personal finance. Here’s how you can manage your side-hustle income effectively:

1. Separate Your Finances

One of the easiest ways to stay organized is to keep side-hustle money separate from personal funds. Open a dedicated checking account or savings account for your side income and use a separate debit or credit card for side-hustle expenses. This separation makes tracking income and expenses straightforward and reduces confusion when tax time arrives.

2. Keep Detailed Records

Maintaining accurate records is crucial for both budgeting and taxes. Document every payment received from clients or platforms and track related expenses (such as supplies, software, travel, or marketing costs). Consider using spreadsheets or bookkeeping software to record income and expenses consistently.

3. Use Accounting Tools

Several apps and tools make tracking side income easy here are a few:

• QuickBooks Self-Employed: Automatically categorizes income and expenses.
• Wave: A free platform for small businesses and freelancers.
• Excel or Google Sheets: For those who prefer manual tracking.

These tools help clients generate reports, track profitability, and prepare for taxes.

4. Set Aside Money for Taxes

Side-hustle income is taxable, even if it’s small. Calculate estimated taxes on side income. Then, set aside a percentage (typically 20–30%) in a separate account for taxes. Consider quarterly estimated tax payments to avoid penalties.

5. Track Time and Projects

For freelancers or hourly side hustlers, tracking time is essential. Use apps like Toggl or Clockify to log hours worked. Associate hours with specific clients or projects to see which gigs are most profitable.

6. Review and Analyze Regularly

Review your side-hustle finances monthly. Compare actual income to goals or projections, identify trends in income and expenses, and make informed decisions about scaling, pricing, or cutting back on certain gigs.

7. Consider Professional Guidance

Even with diligent tracking, managing side-hustle income can be complex. A financial counselor can help. 

Final Thoughts

Side hustles can provide financial freedom, but without proper tracking, they can create stress and missed opportunities. By keeping finances organized, documenting income and expenses, and planning for taxes, you can enjoy the benefits of your hard work without the headaches.

At Walters Financial Wellness, we guide clients in turning their side hustles into a source of long-term financial growth. Proper tracking is the first step toward making every extra dollar count. We can help you: 

• Set up bookkeeping systems.
• Plan for taxes.
• Align side income with broader financial goals, such as debt repayment, emergency funds, or investments.

Contact us for a consultation, today!

**Note:

We are not sponsored or affiliated with the companies mentioned in this post.

Marriage is the start of a long-term partnership built on trust, communication, and shared values. While couples spend months preparing for the wedding day, many overlook an equally important piece of the journey: planning financially for the marriage itself.

Unfortunately, money is one of the leading causes of relationship stress and even divorce, in the U.S. But, that doesn’t need to be the case. With intentional planning and open conversations, couples can enter marriage with confidence, clarity, and a shared financial direction. This post discusses how couples can set themselves up for long-term financial success.

Why Financial Planning Before Marriage Matters

• It sets expectations early: Discussing financial habits, responsibilities, and goals before the wedding helps avoid misunderstandings later.
• It builds transparency and trust: Knowing each other’s full financial picture, including debts, income, assets, credit scores, creates a solid foundation.
• It protects both partners: Things like insurance, emergency savings, and estate planning ensure you’re prepared for life’s uncertainties.
• It supports long-term goals: Buying a home, starting a business, raising children, and planning for retirement all require clear financial alignment.

Key Money Topics Every Couple Should Discuss

• Your individual financial histories: Share debts (student loans, credit cards), assets, income, and credit scores. Honesty is the first step toward making informed decisions together.
• Your budgeting style: Talk about spending habits, personal money values, and comfort levels around saving or investing.
• How you’ll manage accounts: Fully joint? Fully separate? A hybrid model? There’s no one “right” approach, just the one that fits your relationship dynamics.
• How you’ll divide bills and responsibilities: Equal? Proportional to income? Alternating bills? Decide in advance to prevent frustration.
• Your financial goals for the next 1, 5, and 10 years: Aligning on the bigger picture keeps both partners motivated.
• Expectations around big purchases: Decide together what dollar amount requires a discussion before spending.
• Plans for children, caregiving, or major life transitions: These decisions have long-term financial implications worth talking through early.

Professional Support Makes a Difference

A neutral, trained financial counselor can help couples navigate these conversations productively and create a structured plan that fits their unique situation. It’s one of the most powerful ways to build financial harmony before saying “I do.”

How I Support Couples Preparing for Marriage

At Walters Financial Wellness, we aim to help couples start married life on solid financial footing. Here are a few ways that we can help:

• Joint Financial Assessment: Review income, debt, credit, spending habits, and money personalities (often called a “money mindset”).
• Customized Couples Budgeting Plan: Build a sustainable, realistic monthly budget that suits both partners.
• Debt Management Strategy: Organize outstanding debts and create a plan to pay them down as a team.
• Savings & Emergency Fund Planning: Establish savings goals and systems to avoid future stress.
• Financial Communication Coaching: Learn tools for having productive, calm money conversations.
• Goal-Setting Sessions: Map out short- and long-term goals such as buying a home, traveling, or starting a family.
• Review of Accounts & Systems: Help decide how to structure joint, separate, and shared-expense accounts.
• Wedding Budget Planning: Create a realistic plan for the wedding without harming financial health.
• Cash-Flow & Income Planning: Optimize how money flows between partners to reduce tension.
• Financial Check-Ups for Newlyweds: Ongoing support after the wedding to keep both partners aligned.

Final Thoughts

Marriage is a partnership. And, money plays a central role in how that partnership operates day-to-day. Preparing financially before the wedding isn’t just smart; it protects your relationship, strengthens communication, and sets you up for a lifetime of shared success. If you’d like support navigating these conversations or building a customized financial plan as a couple, I’m here to help. Schedule a consultation today.

There’s been talk in the news about the possibility of 50-year mortgages making their way into the U.S. housing market. While nothing is finalized, the idea has been circulating, which raises a lot of questions for families who are trying to buy a home or build a long-term financial plan. This post focuses on what you need to know from a financial perspective, so you can make informed choices if longer-term mortgages ever become widely available.

Understanding the Basics

30-Year Mortgage (This is the current standard)

• Most common mortgage term in the U.S. 
• Balances monthly affordability with long-term interest cost
• Builds equity faster than extended-term loans

50-Year Mortgage (Hypothetical in the U.S.)

• Currently used in parts of Europe and Japan
• Lowers monthly payments by stretching the payoff timeline
• Greatly increases total interest paid
• Builds equity much more slowly

A Financial Breakdown

To see the real difference, let’s compare both loans using the same numbers:

Loan Amount: $400,000

Interest Rate: 6.5% (fixed)

30-Year Mortgage Breakdown:

• Term: 360 months
• Monthly Payment: $2, 528
• Total Paid Over 30 Years: $910,080
• Total Interest Paid: $510,080

50-Year Mortgage Breakdown:

• Term: 600 months
• Monthly Payment: $2,283
• Total Paid Over 50 Year: $1,369,800
• Total Interest Paid: $969,800

What This Means For the Borrower

Over the life of the loan, the 50-year mortgage costs $459,720 more in interest than the 30-year mortgage. You do save on monthly payments (about $245 per month), but the long-term cost is dramatically higher.

Side-By-Side Comparison

                                                                      30-Year Loan                                                     50-Year Loan

Monthly Payment:                                      $2,528                                                                $2,283

Total Interest Paid:                                  $510,080                                                          $968,800

Total Lifetime Cost:                                $910,080                                                           $969,800

Interest Cost Difference:                            –                                                                      +$459,720

Equity Growth:                                            Faster                                                              Much Slower

Affordability:                                              Moderate                                             Lower Monthly Payment

Wealth-Building:                                       Better                                                                    Weaker

Pros & Cons of 30-Year Mortgage

Pros                                                                                                  Cons

Builds equity faster                                                                  Higher monthly payment

Saves hundreds of thousands in interest                   Harder to qualify for depending on debt-to-income ratio

Better for long-term wealth

More stability and faster payoff

Pros & Cons of 50-Year Mortgage

Pros                                                                                                   Cons

Lower monthly payment                                                       Much higher total interest cost

More accessible for buyers in high-cost areas       Equity builds very slowly

May help renters become homeowners.                    You may stay upside-down longer if home values dip

                                                                                                             You could still have a mortgage payment into retirement

Who Might Consider Each Option:

A 30-year loan may be a good fit if:

• You wan to build home equity sooner
• You want the best long-term financial outcome
• You can comfortably afford the higher payment

A 50-year loan may be a good fit if (hypothetically): 

• You need a lower payment to enter the housing market
• You expect income growth over time
• You plan to refinance later if interest rates fall (fees apply)
• You expect to sell before paying off the loan

In Closing

So far, a 50-Year mortgage is completely hypothetical in the U.S., but at Walters Financial Wellness, we want our clients to feel informed and empowered about even the hypothetical. If you need help comparing currently available mortgage options, you can reach out to make a consultation.

**Sources:

Forbes Advisor

AInvest

National Association of Home Builders

Urban Institute

Whether you’re a service member, a military spouse, or a civilian contractor supporting forces overseas, deployment can change which income is taxable, which deadlines apply, and which deductions or credits you can claim. Here are tax rules that are most likely to affect deployed service members.

1) Combat pay and the combat-zone exclusion

If you serve in a designated combat zone or qualifying contingency operation, some or all of your pay may be nontaxable under the combat-zone exclusion. That nontaxable combat pay is reported on your pay statements but excluded from taxable income, however, you can elect to include it for certain benefits (see EITC below). Check the IRS list of recognized combat zones and Publication 3 for the exact rules that apply to your dates of service and the amounts excluded. 

Tip: Keep orders and deployment records. Exclusion eligibility is based on the service dates and location.

2) Filing and payment deadline extensions during deployment

If you are serving in a combat zone or are otherwise covered as a service member abroad, the IRS generally provides automatic extensions for filing, paying, and certain other tax actions for the period you are in the combat zone plus additional days in some cases. These extensions also can apply to certain civilians serving in support roles and, in many cases, spouses, but there are exceptions, so confirm your status. If you miss the regular filing deadline because you were covered, you will not be charged penalties for late filing or payment for the covered period.

Tip: Even with an extension, any tax owed after the covered period will accrue interest from the original due date, so estimate and pay if possible.

3) Earned Income Tax Credit (EITC) and combat pay

Nontaxable combat pay can affect eligibility and the size of the Earned Income Tax Credit. The IRS lets eligible service members choose whether to include nontaxable combat pay in the EITC calculation. In some cases including it increases your EITC; in other cases it does not, so it’s worth running both calculations (with and without the combat pay) to see which is better for you. Publication 596 and the Armed Forces guidance explain the options.

Tip: Try both calculations when preparing returns (software usually does this automatically if you indicate combat pay).

4) Moving expenses for active-duty service members (PCS)

The 2017 Tax Cuts and Jobs Act eliminated the moving-expense deduction for most taxpayers, but active-duty members of the Armed Forces who move because of a permanent change of station (PCS) may still deduct unreimbursed moving expenses (Form 3903). Keep receipts for transportation, storage (within IRS time limits), and allowable travel costs. Check the current Form 3903 instructions to confirm eligible expenses and documentation requirements.

Tip: If your move is fully reimbursed by the military, you generally cannot claim a deduction for reimbursed items. Track reimbursements carefully.

5) State residency & the Military Spouses Residency Relief Act (MSRRA)

Deployment often raises the question “Which state taxes me (or my spouse)?” Federal protections and the MSRRA help reduce state tax burdens caused by temporary moves. Generally: A service member’s military pay is taxed only by their state of legal residence (domicile), not by the state where they are stationed.

The Military Spouses Residency Relief Act prevents many states from taxing a spouse’s income simply because the spouse is residing in that state solely due to military orders, but there are procedural steps and exceptions, and states differ in implementation. Because states differ and rules change, check your state tax authority’s military guidance and preserve your domicile documentation (driver’s license, voter registration, tax returns) if you intend to retain a particular state as home. 

Tip: If you or your spouse change domicile while deployed, document it: rental/lease agreements, voter registration, driver’s license, or an executed state residency form can matter later.

6) Other issues to watch

• Social Security/Medicare and retirement pay: Retirement and certain benefits have special rules. Plan distributions should be reviewed with a counselor.
• Injured service members: Special extensions or waiver rules can apply if you were hospitalized or injured while serving.
• Contractors & civilian employees: Some contractors or civilians working overseas may qualify for the Foreign Earned Income Exclusion (FEIE) or other relief; rules differ from military-specific rules. Consult Publication 54 and IRS pages for details.

Quick checklist of what to consider

• Save deployment orders, travel records, and pay statements.
• Note exact deployment dates and locations (for combat-zone eligibility).
• Track reimbursements vs. out-of-pocket expenses (moving, travel).
• Review state residency/domicile documentation and MSRRA rules.
• Run EITC calculations both ways if you received combat pay.
• If you qualify for extensions, file as soon as practical after you return to avoid interest on unpaid taxes.

What we can do for you

At Walters Financial Wellness we help service members, military families, and civilians affected by deployment by offering:

• Year-round tax planning (retirement distributions, estimated payments, and tax-efficient pay/reimbursement strategies) tailored to frequent relocations and deployments.

Contact us today for a consultation!

**Disclaimer: The information provided in this blog post is for educational and informational purposes only and should not be considered tax, legal, or financial advice. Tax laws and regulations can change and may vary based on individual circumstances, including military status and deployment details. You should consult with a qualified tax professional, financial advisor, or legal expert before making decisions related to your personal finances or taxes. The author and publisher assume no responsibility for any actions taken based on the information contained herein.

**Sources

• IRS — Tax exclusion for combat service / Combat zones and related guidance. IRS+1
• IRS — Filing extensions and tax-return assistance for military personnel stationed abroad or in a combat zone. IRS+1
• IRS — Publication 3, Armed Forces’ Tax Guide (current edition). IRS
• IRS — Form 3903 instructions (moving expenses for members of the Armed Forces). IRS
• IRS — Military and clergy rules for the Earned Income Tax Credit (EITC) and handling of nontaxable combat pay. IRS
• Military OneSource / official military resources — Military Spouses Residency Relief Act (MSRRA) guidance and state implementation notes. Military OneSource+1

Running your own small business requires smart tax planning. There are several deductions for small businesses in 2025, but rules change, so staying up-to-date is critical. 

What Does “Deductible” Mean in 2025?

A deductible business expense lowers your taxable income if it is ordinary (common in your trade) and necessary (helpful and appropriate for your business). Maintaining good records such as receipts, invoices, mileage logs is important to validate those deductions.

Key Deductible Categories for Small Businesses

• Operating Expenses: These are your day-to-day costs, like rent, utilities, office supplies, marketing, insurance, and professional services (bookkeepers, lawyers, etc.). These costs are generally fully deductible if they’re for business.
• Home Office: If you’re using part of your home regularly and exclusively as your business base, you may qualify for a home-office deduction. You can choose between: Simplified method: $5 per square foot, up to 300 sq ft (maximum $1,500) and the Regular method: Deduct actual business-portion of expenses (mortgage interest, utilities, property taxes, etc.) Always keep documentation of how you calculated the business-use percentage.
• Vehicle & Mileage: For 2025, the IRS optional standard business mileage rate is 70 cents per mile for business driving. Alternatively, you can deduct actual vehicle expenses (fuel, maintenance, depreciation) proportionate to business use. It’s important to note that if you use the standard mileage rate in the first year of a vehicle’s business use, you may be limited in future years if you switch to actual costs.
• Equipment & Depreciation: In 2025, Section 179 allows businesses to immediately expense up to $1,250,000 of qualifying property. The phase-out threshold begins at $3,130,000 of total qualifying property placed in service in that year. Bonus depreciation is currently at 100% for 2025, meaning you may be able to depreciate (i.e., deduct) the full cost of qualifying property in the first year, after Section 179, subject to rules. Business use must be more than 50% to qualify. 
• Payroll Expenses: Wages and salaries paid to employees, payroll taxes, and employer-paid benefits can generally be deducted. If you hire independent contractors, payments of $600 or more typically require issuing a Form 1099-NEC.
• Interest, Insurance & Professional Fees: Interest on business loans (for working capital, equipment, etc.) is generally deductible. Business insurance (liability, property, etc.) premiums are deductible. Fees paid to accountants, lawyers, consultants, and other professionals for business services can also be written off.
• Business Meals: Generally, 50% of business meal costs are deductible if they meet IRS rules: business purpose, who attended, and documentation. Make sure to note the business reason and keep receipts (and any relevant calendar or meeting notes).
• Retirement Plan Contributions: Setting up a retirement plan for yourself and employees not only helps save for the future, but contributions are often tax-deductible.
• Education & Training: Costs for business-related education, training, or continuing professional education (CPE) may be deductible if they maintain or improve skills required in your business.

Recordkeeping Tips

• Use accounting software (QuickBooks, Xero, etc.) to separate business vs. personal transactions.
• Keep digital or physical receipts and invoices, and link these to your accounting system.
• Maintain a mileage log (or use a mileage-tracking app) that records date, purpose, starting point, destination, and miles driven.
• Document business purpose for meals, travel, and large purchases.
• Review your financials with a tax advisor to ensure you are capturing all possible deductions.

Pitfalls & Common Mistakes to Avoid

• Mixing personal and business expenses: using separate bank accounts and credit cards is more than good practice, it’s essential.
• Failing to document business use: no matter how obvious an expense seems, if it’s not documented, it may not pass IRS scrutiny.
• Misclassifying workers: incorrectly labeling an employee as an independent contractor can lead to back payroll taxes and penalties.
• Overestimating deductions: not every “business-like” expense is deductible; it must be ordinary and necessary.

Year-End Strategies to Maximize Deductions

• Consider prepaying deductible expenses (insurance, subscriptions, rent) if doing so makes sense for your cash flow.
• Evaluate major capital purchases now. Run the numbers for Section 179 vs. bonus depreciation to see which gives you the biggest after-tax benefit.
• Make retirement plan contributions before year-end to lower taxable income.
• If you have a new or existing vehicle, revisit whether you should use the standard mileage rate or actual-expenses method based on your 2025 mileage and cost estimates.

How Walters Financial Wellness Can Help You

• 2025 Tax Deduction Assessment: Review current expenses and identify all possible deduction categories
• Recordkeeping System Setup

**Sources

• IRS Notice 2025-5 — Standard mileage rates for 2025
• IRS mileage rate increase announcement. 
• IRS: Section 179 and bonus depreciation limits for 2025. 
• U.S. Bank guide on Section 179 + bonus depreciation. 

Tax season can be stressful, but it doesn’t have to be. Many people leave money on the table every year simply because they aren’t aware of all the deductions and credits available to them. Even small oversights can mean missing out on hundreds, or even thousands, of dollars. Here are a few of the most commonly missed tax deductions:

1. State and Local Taxes (SALT)

If you itemize deductions, you can deduct either your state income taxes or your state and local sales taxes. Many taxpayers forget the sales tax option, which can be particularly beneficial if you’ve made big purchases like a car or major home improvements.

• For 2025, the SALT deduction cap is $40,000 per return ($20,000 if married filing separately). The deduction begins to phase out for taxpayers with a modified adjusted gross income (MAGI) over $500,000.

2. Student Loan Interest

You can deduct up to $2,500 in student loan interest, even if someone else (like a parent, paid it) provided you are legally responsible for the loan.

• Keep in mind that the deduction phases out for higher-income filers: $80,000–$95,000 for single filers, $165,000–$195,000 for joint filers. Always check IRS Publication 970 for the exact thresholds for the tax year.

3. Home Office Deduction

If you’re self-employed or run a small business, your home office could save you money. To qualify:

The space must be used regularly and exclusively for work.

• You can calculate the deduction using the simplified method (fixed rate × square footage) or the actual-expense method (a percentage of home expenses). Note: W-2 employees generally cannot claim this deduction under current law.

4. Charitable Contributions

Donating cash is the most obvious way to save, but don’t forget about: Non-cash donations like clothing or household items, and miles driven for volunteer work with qualifying organizations.

• Keep detailed records and receipts, including fair market value for items donated.

5. Medical and Dental Expenses

You may be able to deduct qualified medical and dental expenses that exceed 7.5% of your AGI if you itemize.

This includes: Doctor visits and prescriptions, dental and vision care, travel to medical appointments, and home modifications for health reasons.

6. IRA Contributions

Even after December 31, you can make contributions for the prior tax year up until the filing deadline in April.

• These contributions may reduce your taxable income if you meet eligibility requirements.

7. Educator Expense Deduction

Teachers and eligible school staff can deduct out-of-pocket classroom expenses such as books, supplies, and professional development materials.

8. Energy-Efficient Home Improvement Credit

This is a tax credit, not a deduction, meaning it reduces your tax bill directly. 30% of qualifying expenses can be claimed for improvements like insulation, energy-efficient windows, doors, heat pumps, and more. There is an annual limit of $1,200 for most building improvements and $2,000 for certain high-cost items.

• Improvements must be placed in service by December 31, 2025.

9. Health Savings Account (HSA) Contributions

If you have a high-deductible health plan the 2025 contribution limit is $4,300 self-only, $8,550 family coverage, and a $1,000 catch-up for age 55+.

• Contributions are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses are tax-free.

Tips to Maximize Your Deductions

• Keep detailed records: Receipts, mileage logs, and donation documentation.
• Review IRS updates each year: Thresholds, caps, and credits change regularly.
• Work with a professional: A financial counselor or tax preparer can help you identify deductions you may overlook.

How We Help You With Tax Planning

At Walters Financial Wellness, we help clients save money and reduce stress during tax season:

• Tax Review & Optimization: Identify all deductions and credits available to you.
• Year-Round Planning: Make strategic moves to lower taxes before filing.
• Record-Keeping Guidance: Track receipts, mileage, and other deductible expenses efficiently.
• Small Business Support: Home office, business mileage, and freelancer deductions.
• Financial Goal Integration: Combine tax planning with budgeting, investing, and debt management.

Contact us today for a consultation!

**Disclaimer: This post is for informational purposes only and reflects IRS rules as of November 2025. Tax laws change; always consult a tax professional for advice tailored to your situation.

**Sources

• IRS — Energy Efficient Home Improvement Credit (2025)
• IRS — Energy Efficient Home Improvement FAQs
• CNBC — SALT deduction cap 2025
• IRS Publication 970 — Student Loan Interest Deduction
• IRS Publication 587 — Business Use of Your Home
• IRS Publication 502 — Medical & Dental Expenses
• IRS Publication 969 — HSA Contributions & Limits

When it comes to budgeting, the 50/30/20 rule is one of the most popular and easy-to-follow methods. It offers a simple framework for managing your money and can be a great starting point for anyone looking to get control over their finances. But as with any financial strategy, it’s not one-size-fits-all. Let’s break down what this rule means and explore whether it’s the right fit for you.

What Is the 50/30/20 Rule?

The 50/30/20 rule divides your take-home income into three main categories:

• 50% for Needs: These are your essential expenses (housing, utilities, groceries, insurance, transportation, and minimum loan payments)
• 30% for Wants: This category includes the non-essentials that make life enjoyable (dining out, entertainment, vacations, subscriptions, and hobbies)
• 20% for Savings and Debt Repayment: This portion goes toward building your future (emergency funds, retirement savings, and extra payments on debt)

The idea is to create a balanced approach to spending, saving, and enjoying your income.

Why It Works for Many People

The 50/30/20 rule is effective because it’s simple and flexible. It gives you clear guidelines without requiring tedious tracking of every penny. For people who are new to budgeting, it helps establish healthy spending habits and highlights areas where money may be slipping away unnoticed. It also encourages consistent saving, something that’s often neglected. Allocating 20% to savings ensures you’re preparing for both short-term goals and long-term financial stability.

When the 50/30/20 Rule Might Not Fit

While the rule is a great guideline, it doesn’t work perfectly for everyone. If you live in an area with a high cost of living, your “needs” may exceed 50% of your income, leaving less for saving or discretionary spending. On the other hand, if you’re aggressively paying off debt or saving for a large goal, you might want to allocate more than 20% toward savings or debt repayment. The key is to treat the 50/30/20 rule as a flexible framework, not a rigid standard. Adjust the percentages to fit your income, goals, and lifestyle.

How We Can Help

At Walters Financial Wellness, we help clients create personalized financial plans that work for their unique situations. Whether you’re trying to get out of debt, save for retirement, or simply gain better control over your spending, our financial counselor provides the tools, education, and accountability you need. We go beyond general rules to design a strategy that fits your income, priorities, and future goals.

Ready to take charge of your finances? Contact us today to schedule your free consultation and start building a budget that truly works for you.

Building an emergency fund is one of the smartest and most empowering financial decisions you can make. Once you’ve set aside those funds, the next step is deciding where to keep them. Two of the most common options are high-yield savings accounts and money market accounts. Both are safe, interest-bearing options, but each offers distinct advantages depending on your needs, habits, and lifestyle.

What Is a High-Yield Savings Account?

A high-yield savings account (HYSA) is a savings account that offers a higher interest rate than traditional savings accounts. These accounts are typically offered by online banks, which can pass on savings from lower overhead costs to customers through better rates.

• Pros:

Competitive interest rates

FDIC-insured (up to $250,000 per depositor, per bank)

Low or no minimum balance requirements

Easy online management

• Cons:

Funds may take 1–3 business days to transfer to your checking account

Usually no check-writing or debit card access

• Best for: Those who want to maximize interest earnings and don’t need same-day access to their emergency funds.

What Is a Money Market Account?

A money market account (MMA) blends features of both checking and savings accounts. It typically offers interest rates that compete with high-yield savings accounts, along with limited transaction capabilities such as checks and debit cards.

• Pros:

Easy access to your funds via checks or debit card

FDIC-insured

Potentially competitive yields

• Cons:

May require a higher minimum balance

Possible monthly fees if balance falls below requirements

Interest rates may vary based on the bank or balance level

• Best for: Those who want quicker access to their emergency funds and prefer a balance between safety, convenience, and return.

Which Account Is Right for You?

Both account types serve the same purpose: to keep your emergency savings safe, accessible, and earning interest. The right choice depends on what matters most to you:

• Choose a high-yield savings account if your goal is to earn more interest and you’re comfortable managing your money primarily online.
• Choose a money market account if you prefer easier access through a local bank or want the flexibility of checks and debit card access.

Ultimately, the most important thing is that your emergency fund is in place and separate from your everyday spending account, so it’s there when you need it most.

How Walters Financial Wellness Can Help

At Walters Financial Wellness, we guide individuals and families in building solid financial foundations through personalized financial counseling and planning. Our team helps you:

• Understand your unique financial goals and risk tolerance
• Create a savings strategy that supports your lifestyle and long-term security
• Choose the right banking and investment tools for your needs
• Develop a practical plan to grow your wealth and reduce financial stress

We believe financial confidence starts with clarity and action. Contact us today to schedule a consultation and discover how we can help you strengthen your finances, one smart decision at a time.

When life throws you a curveball: a job loss, medical bill, or major car repair; an emergency fund can be the difference between a small setback and a financial crisis. But how much should you really have tucked away? Let’s discuss!

The Classic Rule of Thumb

Financial experts often recommend saving three to six months’ worth of living expenses. This guideline works well for many people because it covers most short-term emergencies without tying up too much money in cash. Start by calculating your monthly “must-pay” expenses. These include things like rent or mortgage, utilities, groceries, insurance, and transportation. Multiply that number by three to six, and you’ve got your target emergency savings.

Tailor It to Your Life

Your ideal emergency fund size depends on your lifestyle and financial situation. Single-income households or those with variable income (like freelancers) may want to aim closer to six to nine months. Dual-income households or those with stable employment might be comfortable with three months. Families with children or high medical costs should consider saving extra for peace of mind. It’s also worth thinking about how quickly you could find new work, the stability of your industry, and whether you have other safety nets, like a partner’s income or accessible investments. All of those factor into your ideal emergency savings range.

Building Your Fund Step by Step

If the full amount feels overwhelming, start small. Aim for $1,000 first. This amount is typically enough to handle minor surprises. Then, set up automatic transfers into a high-yield savings account each month for consistency. Even if your automatic transfer amount varies, consistency is key;  $50 or $100 a month adds up over time.

Where to Keep Your Emergency Fund

The best place for your emergency fund is somewhere safe, easy to access in an emergency, and separate from your everyday spending money. A high-yield savings account or money market account allows your cash to grow a little while still being easy to access when you need it.

How Walters Financial Wellness Can Help

At Walters Financial Wellness, we help clients create personalized financial plans that fit their goals, lifestyle, and peace of mind. Whether you’re building your first emergency fund, managing debt, or planning for retirement, our financial counseling services provide expert guidance, accountability, and strategies tailored to you. Let us help you take control of your finances, one smart step at a time!