What You Should Know About Money This Year

Three Money Habits That Are Considered Illegal

It is a fact that every person, when it comes to money, has some bad habits. 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. It may be that these actions are not crimes nor these people are stupid, only, there could be other reasons behind these actions. 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.

Below are habits that can be considered unlawful, stupid or a mixture of the two actions, even if they appear to be benign.

The number one habit we will tell you is not declaring money. For example, you work odd jobs to earn extra income and be paid in cash. When you have your extra money, you spend it for whatever your purpose, and when it is time to file your tax return, not a mention of this extra income on your file. 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. To avoid being in this situation, note that there is a free check stub template printables found online that will make sure you have receipts for all money you make.

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. So if someone like your parents would ask you to sign under their name, if you do, you are actually forging a document and committing a crime unless you are granted a power of attorney.

Another bad habit is to lie when filling up an application. With regards to loan or insurance applications, it seems that everybody knows the so-called tricks of the trade where they perform digital trickery and change some answers when the cost is more than they can afford. 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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