1. Another indicator of your financial health is your ability to organize and prepare key documents to maximize your tax situation. Whether you prepare your tax return or take it to someone to prepare, you need to have all of the key documents to pay your “fair share.”

You also need to monitor your tax situation throughout the year. This means understanding your tax situation and being aware of any changes.

YOUR SITUATION: Do you owe taxes each year? Do you receive an excessive tax refund? Owing taxes each year could lead to underpayment penalties. Receiving a large tax refund could be hampering your savings ability. Paying your “fair share” in a timely manner is one of the foundations for progress toward financial independence.