Looking On The Bright Side of Money

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What Do You Know about Money Habits That Are Illegal – There are Three of Them

It is undeniable that some people have bad habits especially when it comes to money. Different people have various actions when it comes to money, like they throw it away without thinking, or save it when they should spend, and others are just simply financially ignorant. These actions or decisions could have reasons behind them, even if cannot be accused as crimes nor a dumb action. It is said that the bad habits of some people could stem from their financing concerns like fraud and tax avoidance. This may not be the case for some, but there is a good chance that others are practicing it on a daily basis.

Let us present some habits which may seem harmless but can be unlawful or dumb or even a mix of both.

Not declaring money is the first habit that we will present. For example, you work odd jobs to earn extra income and be paid in cash. Then, when you receive your money, you spend it to whatever you like, but when filing of your income tax return comes, you do not mention this extra income. An investigation may not be conducted considering this involves a small amount, but if an auditor will discover it, you could face a vulnerable situation. Be aware of the free check stub template printables found online that will ensure you have a receipt for all money you earned, and thus you will not have fear when a tax office personnel will visit your home.

The second bad habit about money is to sign a check in another name. Checks are still used today as legal tender, although not as popular before, and are used by some who find these convenient or just being used to the mode of payment. An example is if your parents would ask you to sign their name, even if you are actually doing them a favour, you are actually forging a document and committing a crime, unless they have a power of attorney for you.

The third bad habit that we can tell you is when you lie on an application. An example is during loan or insurance applications where it is a common knowledge that people perform digital trickery and change a few answers especially when the cost is much more than they can afford. It may seem to others that there is nothing wrong with it when they have the car or property on their name, but this application to gain money can theoretically put you in prison or at the very least a fine because you have committed fraud.