Lessons Learned from Years with Funds

Three Money Habits That Are Considered Illegal

In relation to money, there are some individuals who have habits that are viewed as bad. When it comes to financial management, some would spend money without clear thinking, others would keep money away from view when they should enjoy and spend it, and while others are plain and simply ignorant in managing their finances. These actions or decisions may not be dumb nor can be labelled as a crime, but there could be underlying reasons for these acts. There is an observation that the bad habits of people about their finances could range from fraud to tax avoidance. You may think this is not true but some can attest that this is occurring every day and others are doing it.

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

The number one habit we will tell you is not declaring money. Imagine you do some sideline jobs to earn extra money and being 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. Others may say this is just a small amount to warrant an investigation but if an audit will discover it, you will be put in a difficult position. 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.

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The next bad habit we can expose is when you sign a check in another name of an individual. Checks may not be as popular today as in the past but these are still legal tender used by mostly elderly people for their convenience. 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.

Another bad habit is to lie when filling up an application. Take a loan or insurance applications for example, where we know how some would falsify and change their answers whenever they find that the cost is not affordable to them. This act of obtaining property under false information is actually fraud, and may be not wrong for some, but actually is punishable under the law and can put you in prison or you will be charged of a big fine.

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