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Here's How to Use 2019 as a Chance to Save More Money Than Ever in the Long Run
Personal Finance
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A new year is nothing if not a new opportunity – and one that it would be an absolute shame not to take full advantage of. Every January, people make countless New Year’s resolutions. Some want to lose weight; others want to become more productive. One of the most common, however, involves boosting your savings – or lack thereof. The most critical thing to keep in mind is that saving more money, especially in the long run, is not impossible. It’s probably not even as difficult as you think it’s going to be. It only seems challenging because you’re not sure of the best way to do it. Finding that approach will be a unique process that works for you and you alone, but it always requires you to keep a few key things in mind. The Journey of a Thousand Miles Begins With a Single Step… If you truly want to use 2019 as an opportunity to start saving more money, the first thing you need to do is to gain some critical perspective. Saving doesn’t have to be restrictive, or even difficult. You don’t need to stop spending at all – you just need to make sure you’re spending in the smartest ways possible. Case in point: Most experts agree that the 50/30/20 budget breakdown is one of the most forward-thinking ways to save from a money management perspective. Devote 50 percent of your income and total earnings to absolute necessities, like food, your rent or mortgage, insurance and other things of that nature. Devote 30 percent to “wants” — like that nice dinner at your favorite restaurant or a trip to the cinema to see the latest Hollywood blockbuster. Put the remaining 20 percent directly into your savings account and forget that it even exists for the time being. Think About the Bigger Picture Another important way to save more effectively involves giving yourself a purpose that you’re working toward. Saving “aimlessly” is fine, but it often causes people to lose perspective sooner rather than later. You’re less likely to dip into your savings for basic “wants” if you’ve got a larger goal in mind, like saving for retirement. Sit down and come up with a written plan for how much you’d like to have saved by when, and then break the process down into a series of smaller, more manageable steps. If you have your long-term financial plan in place, it’s easier to track your progress – and you’re more likely to feel like you’re accomplishing something as well. Remove Those Obstacles There’s an old saying that reminds us that “you’ve got to spend money to make money.” In the case of saving more effectively, this is absolutely true – particularly when it comes to your debt. Oftentimes, people don’t realize how much those minimum monthly credit card payments are actually costing us in the long run by way of increased interest and other financial aspects. Therefore, to start saving the maximum amount of money that you can as soon as possible, you should make becoming debt-free a priority. Pay off whatever balances you can afford and consolidate the rest to a credit card with a lower interest rate. The amount of money you’re saving each month can then go directly into your savings, without actually affecting your current budget in any way. Everyone wants to be able to save more, but not everyone is sure where to begin. When you’re at the start of the process, it can seem like an insurmountable challenge – but it really isn’t. It simply requires the right approach, some savvy forward-thinking and the right perseverance to get the job done.
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Tax and Financial Insights
by NR CPAs & Business Advisors
2026 IRS Mileage Rates: Key Updates and Insights
The IRS has rolled out the inflation-adjusted mileage rates for 2026, offering taxpayers an efficient way to claim deductions for vehicle-related expenses incurred for business, charity, medical, or moving purposes. These adjustments reflect the continued economic shifts impacting car operation costs.
Effective January 1, 2026, the new standard mileage rates are established as follows:
- Business Travel: Increased to 72.5 cents per mile, inclusive of a 35-cent-per-mile depreciation allocation. This marks a rise from the 70 cents per mile rate set for 2025
- Medical/Moving Purposes: Reduced slightly to 20.5 cents per mile, down from 21 cents in the previous year, reflecting the variable cost considerations.
- Charitable Contributions: Consistent at 14 cents per mile, a fixed rate unchanged for over a quarter-century.
As is typical, the business mileage rate considers the integral fixed and variable costs of automobile operation. Meanwhile, the medical and moving rates remain contingent on variable expenses as determined by the IRS study.
It is critical to note that the One Big Beautiful Bill Act (OBBBA) held firm on disallowing moving expense deductions except for specific cases within the Armed Forces and intelligence community, marking a substantial shift since 2017.
When engaging in charitable work, taxpayers might opt for a direct expense deduction over the per-mile method, covering gas and oil costs. However, comprehensive upkeep and insurance costs are non-deductible expenses.
Business Vehicle Use Considerations: Taxpayers can alternatively compute vehicle expenses using actual costs, which might benefit from shifting depreciation rules, particularly through bonuses and first-year advantages. Keep in mind, however, reverting from actual cost calculations to standard rates in subsequent years is restricted, particularly per vehicle protocol and when exceeding four vehicles in concurrent use.
Additionally, parking, tolls, and property taxes attributable to business can be deducted independently of the general rate, an often-overlooked advantage by many business owners.
Tax Strategies for Employers and Employees: Reimbursements based on the standard mileage framework, providing the right documentation is in place, remain tax-free for employees. Meanwhile, the elimination and continued prohibition of unreimbursed employee deductions continue, with particular exceptions offered to qualified personnel across specific occupations.
Opportunities for Self-employed Individuals: Entrepreneurs remain eligible for deductions on business-related vehicle use via Schedule C, with potential to account for business-use interest on auto loans.
Heavy SUVs and Deduction Advantages: Heavier vehicles exceeding 6,000 pounds but under 14,000 pounds open opportunities for substantial tax deductions through Section 179 and bonus depreciation avenues. The lifecycle of such a vehicle bears implications on recapturing initially claimed deductions, urging cautious tax planning.
For professional guidance on optimizing your vehicle-related tax deductions and understanding their implications on tax strategies, contact our office in Coral Gables, Florida, where expert advice and strategic insights are just a call away.
Educator's Deduction Reform: Key Changes Under OBBBA
The One Big Beautiful Bill Act (OBBBA) introduces significant enhancements for educators' tax deductions starting in 2026, offering both strategic opportunities and planning considerations for educators who qualify. With the reinstated itemized deduction for qualified unreimbursed expenses, educators have a broader spectrum of financial relief. This is complemented by the retention of the $350 above-the-line deduction, allowing educators to maximize their tax benefits by selectively allocating expenses between these avenues.
Understanding the nuances of these changes is crucial for educators and financial advisors alike. The dual-option deduction strategy can potentially enhance tax efficiency, thereby aligning with broader financial planning goals.
At NR CPAs & Business Advisors, based in Coral Gables, Florida, our expertise in tax preparation and planning provides invaluable support to educators navigating these changes. Our comprehensive approach, combined with personalized advice from our experienced team, ensures compliance and optimization in line with the latest tax legislations.
Given these updates, it is imperative to engage with seasoned professionals to fully leverage your deduction strategies. Contact us today to streamline your tax planning under OBBBA's new guidelines and maximize your deductions for upcoming tax years.
