With the current writer's strike, there must be a few others out there hungry for a new Top 10 list. So, from the home office in Portsmouth, New Hampshire, here are the:
(followed by the reasons these excuses are lame)
1. I'll save more later (when I make much more money).
2. But I really do need this.
3. Life is too short.
4. What's another $X?
5. But I don't want to be cheap!
6. My friends don't save.
7. Mom and Dad help with all that.
8. I wouldn't have any idea what to do with any money I saved.
9. I have so much debt!
10. My husband/wife/partner/accountant/financial planner/mailman/crazy roommate/barista/dog is in charge of my household finances.
And now the matching top 10 reason those excuses are lame:
1. Did you remember saying that two promotions ago?
2. When was the last time you used it? Okay, how about where you put it? Do you even own it anymore? Do you remember what it was?
3. Then your retirement may be too long.
4. Depends on how long it takes to pay it back. Could be many times $X.
5. Me neither. Instead, be fiscally responsible.
6. Do you really need me to respond to this? Didn't you have a parent say to you 1,000 times growing up "If all your friends jumped off the bridge, would you?"
7. Good for you. Count your blessings. When you're done, hit 'em up for something else, like a financial education.
8. That's what we call a good problem. When it comes to investing, remember: how you invest matters far less than how much you save.
9. Then you already know that you need to pay it off. The only way to do so? Spending less than you make. Doesn't that kind of sound like saving?
10. You can outsource love/tax prep/technical expertise/postal delivery/loud music/a mean espresso/love. But you can never delegate financial responsibility.
Creat a Working Budget for You
A budget is the key to getting yourself back on track financially. If you follow the steps I am outlining for you then you should be able to create a budget that is designed for you.
The first thing that you need to do is agree to write down everything you spend for the next month. This mean everything even a soda from 7-eleven. Every time you spend money on anything you need to write it down.
I suggest that you do this either on the computer using word or excel, or in a note book. The first thing to do to get yourself organized by creating spending categories. I am going to list out categories for you in just a moment but before I do that I want to stress that you write everything down and this is why.
In order to truly understand what you spend your money on and what things you are willing to curb and what things are essential to your lifestyle it is important to first see where all the money goes. You may know what you spend your money on but I guarantee after a month of writing it all down you will see you spend more than you should.
Okay here are the categories for spending. You may have others or not even use some but this is the list I have used personally and with my clients when I worked as credit counselor.
Mortgage,,
Condo/association fees,
2nd mortgage,
Equity loan,
Car payments,
Student loan,
IRS payments,
Personal loan,
Other loans,
Credit card payments (list each separately),
Groceries,
Eating out (this includes 7-eleven and such),,
Tuition,
Daycare,
Medical/dental expenses,
Health and beauty (manicures. pedicures, haircuts, ex....),
Heat/oil,
Electric,
Cable,
Satellite,
Phone,
Internet,
Cell phone,
Water/sewer,
Clubs/organizations (usually monthly dues),
Gym,
Entertainment,
Holidays (estimate yearly and divide by 12),
Birthdays (estimate yearly and divide by 12),
Gas for vehicles,
Tolls / easy pass,
Newspapers / magazines (add total and divide by 12),
School expenses (sports, lunches),
Clothing
Some of these categories might be an expense only a few times a year. The reason I include them is that I want you to get in the habit if living within your means. This may take time and practice like anything else you need to learn how to spend money, but it will come with time and patience.
Take the time to write down everything you spend for the next 30 days. I suggest that you begin with the first of the month and then go from there.
Once you have 30 days worth of data you can begin to look at it and see where the money is being spent. You will need to look at the list and decide where you are going to trim the spending. Perhaps you eat out too often or spend too much money at the mall.
Start with expenses that you cannot control such as the fixed ones like the car and mortgage or rent. Then move to the ones you have some control over such as food and entertainment. There may even be some categories you need to eliminate such as eating out.
The first thing that you need to do is agree to write down everything you spend for the next month. This mean everything even a soda from 7-eleven. Every time you spend money on anything you need to write it down.
I suggest that you do this either on the computer using word or excel, or in a note book. The first thing to do to get yourself organized by creating spending categories. I am going to list out categories for you in just a moment but before I do that I want to stress that you write everything down and this is why.
In order to truly understand what you spend your money on and what things you are willing to curb and what things are essential to your lifestyle it is important to first see where all the money goes. You may know what you spend your money on but I guarantee after a month of writing it all down you will see you spend more than you should.
Okay here are the categories for spending. You may have others or not even use some but this is the list I have used personally and with my clients when I worked as credit counselor.
Mortgage,,
Condo/association fees,
2nd mortgage,
Equity loan,
Car payments,
Student loan,
IRS payments,
Personal loan,
Other loans,
Credit card payments (list each separately),
Groceries,
Eating out (this includes 7-eleven and such),,
Tuition,
Daycare,
Medical/dental expenses,
Health and beauty (manicures. pedicures, haircuts, ex....),
Heat/oil,
Electric,
Cable,
Satellite,
Phone,
Internet,
Cell phone,
Water/sewer,
Clubs/organizations (usually monthly dues),
Gym,
Entertainment,
Holidays (estimate yearly and divide by 12),
Birthdays (estimate yearly and divide by 12),
Gas for vehicles,
Tolls / easy pass,
Newspapers / magazines (add total and divide by 12),
School expenses (sports, lunches),
Clothing
Some of these categories might be an expense only a few times a year. The reason I include them is that I want you to get in the habit if living within your means. This may take time and practice like anything else you need to learn how to spend money, but it will come with time and patience.
Take the time to write down everything you spend for the next 30 days. I suggest that you begin with the first of the month and then go from there.
Once you have 30 days worth of data you can begin to look at it and see where the money is being spent. You will need to look at the list and decide where you are going to trim the spending. Perhaps you eat out too often or spend too much money at the mall.
Start with expenses that you cannot control such as the fixed ones like the car and mortgage or rent. Then move to the ones you have some control over such as food and entertainment. There may even be some categories you need to eliminate such as eating out.
Are You Frugal or Cheap?
A lot of families are facing tighter budgets right now. It's not just rising gas prices. It's mortgages they didn't realize they could afford. It's jobs lost to downsizing. It's a tough economy in many places right now.
Times like these make living a more frugal lifestyle not only more appealing, but more necessary for many families.
Frugality is not just about being cheap. In fact, being cheap is one of the traps of trying to be frugal. Choosing things that really aren't of a reasonable quality can quickly derail your frugal efforts to spend less.
Sometimes the situation is urgent enough that it makes sense to buy flat out cheap. If money's tight and that's the only way you're going to get what you need, what other options are there, really? But when you can afford to spend the extra to buy something that will last, and that's reasonable to your need, it makes a lot of sense to do so.
You should also figure out what you're paying for that you aren't making enough use of. Long distance phone plans, for example. You may have one and not be making enough use out of it, or you can find one that better suits your needs. Go through your phone records to figure out how much you really need. Don't under buy, but don't get the biggest plan just because it has the most minutes.
Being organized can also help you to be frugal.
For example, running as many errands as possible on one day can help you to save money on gas. If you do as I do, and try to have that day be on the day you know you can get your best discounts on shopping, you'll save even more money. My local grocery store has double flyers on Wednesdays, so there are more specials to choose from.
Keeping your home organized means that you will have a better idea as to what you really need to buy when you shop. It can also help to keep things around the house in better condition. And of course being organized can save you tons of time in just looking for something that isn't where it belongs.
Buying clothing is a great area to remember to be frugal rather than cheap.
Which is better? A $10 shirt from Walmart or one bought from a thrift store? If you're good at shopping, you can get some amazingly inexpensive clothes from thrift stores that look like new and are higher quality than you would get buying "cheap" elsewhere. You may even pay less. It's just a matter of finding the right thrift stores for your area. Some carry amazing merchandise at great prices. Others have those gems more rarely.
Times like these make living a more frugal lifestyle not only more appealing, but more necessary for many families.
Frugality is not just about being cheap. In fact, being cheap is one of the traps of trying to be frugal. Choosing things that really aren't of a reasonable quality can quickly derail your frugal efforts to spend less.
Sometimes the situation is urgent enough that it makes sense to buy flat out cheap. If money's tight and that's the only way you're going to get what you need, what other options are there, really? But when you can afford to spend the extra to buy something that will last, and that's reasonable to your need, it makes a lot of sense to do so.
You should also figure out what you're paying for that you aren't making enough use of. Long distance phone plans, for example. You may have one and not be making enough use out of it, or you can find one that better suits your needs. Go through your phone records to figure out how much you really need. Don't under buy, but don't get the biggest plan just because it has the most minutes.
Being organized can also help you to be frugal.
For example, running as many errands as possible on one day can help you to save money on gas. If you do as I do, and try to have that day be on the day you know you can get your best discounts on shopping, you'll save even more money. My local grocery store has double flyers on Wednesdays, so there are more specials to choose from.
Keeping your home organized means that you will have a better idea as to what you really need to buy when you shop. It can also help to keep things around the house in better condition. And of course being organized can save you tons of time in just looking for something that isn't where it belongs.
Buying clothing is a great area to remember to be frugal rather than cheap.
Which is better? A $10 shirt from Walmart or one bought from a thrift store? If you're good at shopping, you can get some amazingly inexpensive clothes from thrift stores that look like new and are higher quality than you would get buying "cheap" elsewhere. You may even pay less. It's just a matter of finding the right thrift stores for your area. Some carry amazing merchandise at great prices. Others have those gems more rarely.
Have Your Early Retirement
Are you planning to work for another 30 years in order to have your own retirement? 95% of people are using the 30 years plan in order to have their retirement.
Many people believe that this is normal and this is the only way to have your retirement. They strictly follow this formula, study hard, get a good result, join big companies, work hard for 30 years and enjoy their life with their retirement fund.
I am not saying that this is not true and giving any comment for this retirement formula. What I want to highlight here is in fact, you have many choices in getting your retirement.
Imagine, you work hard and smart for 5 years and the result from your hard and smart work is, you will be paid each month for life regardless whether you're working or not! Just work for another 5 years and you will be totally financially free and get your early retirement without working hard for 30 years!
It's true! In fact, almost everyone who has a burning desire to have their early retirement can easily achieve the goal of financial freedom within 5 years.
This is not impossible mission. Internet is the tool which will help you to get your early retirement in next 5 years. Internet not only shorten the distance of communication around the world but also shorten the gap of rich and poor.
If you have no money to start a business, you can consider to start your business online. You don't need to have your own product or service, by just become a reseller or affiliate, you can start your internet business immediately with some little money (normally less than $100)
Some affiliate programs even offer you a free affiliate sign up. In other words, you don't have to pay any single cent to get a reseller licence, and they even offer you an automated marketing system to auto-pilot your internet business. Now, you can even earn money 24 hours even you sleep! No kidding!
Currently, I'm personally using a system to fully automate my marketing process. This system is easy and simple for everyone to use. The best is, with this system you can easily earn a residual income each month which will help you to have your early retirement.
Of course, this is not the only way to your early retirement. There are over thousands of programs online which show you how to make money, earn residual income from their programs. Be aware of some scam programs, especially those programs promise to earn you 1,000% of return in one year!
Many people believe that this is normal and this is the only way to have your retirement. They strictly follow this formula, study hard, get a good result, join big companies, work hard for 30 years and enjoy their life with their retirement fund.
I am not saying that this is not true and giving any comment for this retirement formula. What I want to highlight here is in fact, you have many choices in getting your retirement.
Imagine, you work hard and smart for 5 years and the result from your hard and smart work is, you will be paid each month for life regardless whether you're working or not! Just work for another 5 years and you will be totally financially free and get your early retirement without working hard for 30 years!
It's true! In fact, almost everyone who has a burning desire to have their early retirement can easily achieve the goal of financial freedom within 5 years.
This is not impossible mission. Internet is the tool which will help you to get your early retirement in next 5 years. Internet not only shorten the distance of communication around the world but also shorten the gap of rich and poor.
If you have no money to start a business, you can consider to start your business online. You don't need to have your own product or service, by just become a reseller or affiliate, you can start your internet business immediately with some little money (normally less than $100)
Some affiliate programs even offer you a free affiliate sign up. In other words, you don't have to pay any single cent to get a reseller licence, and they even offer you an automated marketing system to auto-pilot your internet business. Now, you can even earn money 24 hours even you sleep! No kidding!
Currently, I'm personally using a system to fully automate my marketing process. This system is easy and simple for everyone to use. The best is, with this system you can easily earn a residual income each month which will help you to have your early retirement.
Of course, this is not the only way to your early retirement. There are over thousands of programs online which show you how to make money, earn residual income from their programs. Be aware of some scam programs, especially those programs promise to earn you 1,000% of return in one year!
Judgments-Liens-and Other Legal Issues
In the field of debt collection and delinquencies, judgments and judgment risk factors are a very real concerns. Will a creditor sue and seek legal judgment against me? If he does, what type judgment might it be? What exactly is a judgment and what can I do about it? These are just some of the questions answered in this judgment article. But please note. The content of this article is for consumer knowledge of judgments and legal lawsuits only and it is assume the reader will act responsibly towards his/her debt.
RISK FACTORS
Collectors must abide by the their state's Statute of Limitations (SOL) for the amount of time to sue a debtor for payments. Therefore a consumer's first step is determine if the SOL for collecting a debt has past. If the SOL has not passed, the consumer must weigh the risk factor of a judgment against them when determining if they should pay a delinquent debt. A judgment could allow the creditor to garnish wages or hire an authority to come get your property. However, it is possible it may not be in the creditor's best interest to do so. Sometimes it is simply too much time and expense for a creditor to take action against you. But the possibility does exist.
As stated at Credit Info Center: "The risks of judgments, garnishments, and property seizures must be properly balanced against the likelihood that such drastic collection measures will ever happen. The risk, and the decision to take that risk, are entirely yours if you're in such a position."
DEFINITIONS
JUDGMENT - a decision issued by a court at the end of a lawsuit. If in the favor of the creditor it not only verifies the debt but can increase the debt by adding interest, court costs, collection fees, and attorney fees an may extend up to 20 years on a credit file. A decision in favor of the debtor makes the debt uncollectible and may include reimbursement of legal costs to the debtor.
JUDGMENT PROOF - a debtor has little or no property that a creditor can legally take to collect in the foreseeable future.
PRE-JUDGMENT ATTACHMENT - a legal procedure which lets an unsecured creditor tie up property before obtaining a court judgment.
DEFAULT JUDGMENT - If a consumer is sued and does not file papers in response to the lawsuit in the prescribed time limit, the plaintiff can ask the court to enter a judgment against the debtor and is an automatic loss of the case. A default judgement can be set aside but this is unusual and circumstances must be notable to justify such a turn.
LIEN - a lien is a notice that a creditor has attached property. The consumer cannot sell the property without paying off the creditor because the lien makes the "title" cloudy.
SECURED DEBT Property that is purchased using the property itself as collateral on the loan is considered secured. Credit cards are considered unsecured but tax debt is considered secured.
What can a creditor do?
Creditors from secured debts may be able to obtain a judgement for repossessions. Mortgagors can depose and landlords can evict. Garnishment or taking of wages is an option of any creditor. The decision to sue a debtor is usually based on the amount owed (usually over $500), the cost of getting it back, and whether there is a reasonable expectation that something can be collected.
If the matter can be sorted out with the person making the claim before it goes to court, it will be cheaper. If you lose in court, you risk having to pay the other side's costs. Even if you agree that you owe the money but don't agree on the amount, you can try to negotiate the matter before it goes to court. If you reach an agreement, you will need to submit an agreement as to judgement form in the court, which tells the court that there is no need to have the matter heard.
Some judgments can be fought by challenging their validity. For example default judgments at times can be reversed by claiming the debtor was never served or was ignorant of the facts. Before reversal, however, you must back up the claim with facts. Judgments which include selected stipulations can be reversed if the debtor can prove coercion or misrepresentation. Of course winning an appeal in a higher court can reverse a decision as well.
Payment of Judgments
Once a judgement has been issued, settlement may still be an option if the debtor and creditor can come to terms. This is often the case when dealing with a temporary judgement-proof debtor who will have assets freeing in the future. The creditor might want the debt cleared sooner and might be willing to settle.
Contrary to popular belief, a judgement can be removed from a credit file by the creditor. This requires a fair amount of work and therefore the creditor would have to be motivated to do so in some way.
RISK FACTORS
Collectors must abide by the their state's Statute of Limitations (SOL) for the amount of time to sue a debtor for payments. Therefore a consumer's first step is determine if the SOL for collecting a debt has past. If the SOL has not passed, the consumer must weigh the risk factor of a judgment against them when determining if they should pay a delinquent debt. A judgment could allow the creditor to garnish wages or hire an authority to come get your property. However, it is possible it may not be in the creditor's best interest to do so. Sometimes it is simply too much time and expense for a creditor to take action against you. But the possibility does exist.
As stated at Credit Info Center: "The risks of judgments, garnishments, and property seizures must be properly balanced against the likelihood that such drastic collection measures will ever happen. The risk, and the decision to take that risk, are entirely yours if you're in such a position."
DEFINITIONS
JUDGMENT - a decision issued by a court at the end of a lawsuit. If in the favor of the creditor it not only verifies the debt but can increase the debt by adding interest, court costs, collection fees, and attorney fees an may extend up to 20 years on a credit file. A decision in favor of the debtor makes the debt uncollectible and may include reimbursement of legal costs to the debtor.
JUDGMENT PROOF - a debtor has little or no property that a creditor can legally take to collect in the foreseeable future.
PRE-JUDGMENT ATTACHMENT - a legal procedure which lets an unsecured creditor tie up property before obtaining a court judgment.
DEFAULT JUDGMENT - If a consumer is sued and does not file papers in response to the lawsuit in the prescribed time limit, the plaintiff can ask the court to enter a judgment against the debtor and is an automatic loss of the case. A default judgement can be set aside but this is unusual and circumstances must be notable to justify such a turn.
LIEN - a lien is a notice that a creditor has attached property. The consumer cannot sell the property without paying off the creditor because the lien makes the "title" cloudy.
SECURED DEBT Property that is purchased using the property itself as collateral on the loan is considered secured. Credit cards are considered unsecured but tax debt is considered secured.
What can a creditor do?
Creditors from secured debts may be able to obtain a judgement for repossessions. Mortgagors can depose and landlords can evict. Garnishment or taking of wages is an option of any creditor. The decision to sue a debtor is usually based on the amount owed (usually over $500), the cost of getting it back, and whether there is a reasonable expectation that something can be collected.
If the matter can be sorted out with the person making the claim before it goes to court, it will be cheaper. If you lose in court, you risk having to pay the other side's costs. Even if you agree that you owe the money but don't agree on the amount, you can try to negotiate the matter before it goes to court. If you reach an agreement, you will need to submit an agreement as to judgement form in the court, which tells the court that there is no need to have the matter heard.
Some judgments can be fought by challenging their validity. For example default judgments at times can be reversed by claiming the debtor was never served or was ignorant of the facts. Before reversal, however, you must back up the claim with facts. Judgments which include selected stipulations can be reversed if the debtor can prove coercion or misrepresentation. Of course winning an appeal in a higher court can reverse a decision as well.
Payment of Judgments
Once a judgement has been issued, settlement may still be an option if the debtor and creditor can come to terms. This is often the case when dealing with a temporary judgement-proof debtor who will have assets freeing in the future. The creditor might want the debt cleared sooner and might be willing to settle.
Contrary to popular belief, a judgement can be removed from a credit file by the creditor. This requires a fair amount of work and therefore the creditor would have to be motivated to do so in some way.
Money - Financial Vagueness
Financial vagueness what is that is it a new kind of food you eat?
When you are vague about our finances, you push away the things that can improve them.
Excessive debt
One of the ways financial vagueness is showing up each day for you is in the debt that you are carrying.
Staying in debt hurts you and not the banks.
The banks are happy to collect a very high interest and if you cannot pay they can take away part of your salary.
Of course this will affect your credit rating which will make it difficult to obtain credit in the future. Some will go as far as declaring bankruptcy.
Resistance
Resistance to change is one of the many (big) difficulties that many people have in getting out of financial vagueness.
Unpleasant emotions
When you start looking at your financial debts you may bring to the surface unpleasant buried emotions. Most people will say that they did not know that these emotions were even there.
You may fear being embarrassed in front of others like family, friends, colleagues or the neighbours.
Poor money decisions
It is not always easy to accept and move on once you realize that you have made a poor money decision.
It is not healthy for your future to blame yourself or love ones because you were afraid to say stop.
Not having a solid love relationship where decisions to buying big items are not discussed can result in lots of arguing.
Financial awareness
Financial awareness starts with the willingness to break out of the cycle of financial vagueness.
Becoming financial aware is taking responsibility for how you have been treating yourself.
Choosing to become an adult and start putting aside 10% then 15% of your earnings can rebuild your sense of security.
Getting passed the discomfort
You can get control of financial vagueness when you start to get passed the discomfort and taking the time to look at all your bills.
Small steps
If you were to go to the gym and started working out, your trainer would suggest starting slowly. This is the same with finances. Start reading articles in financial journals even though you may not understand the terms used.
Conclusion: Breaking out of financial vagueness starts with a willingness to change and accepting to create a new identity.
When you are vague about our finances, you push away the things that can improve them.
Excessive debt
One of the ways financial vagueness is showing up each day for you is in the debt that you are carrying.
Staying in debt hurts you and not the banks.
The banks are happy to collect a very high interest and if you cannot pay they can take away part of your salary.
Of course this will affect your credit rating which will make it difficult to obtain credit in the future. Some will go as far as declaring bankruptcy.
Resistance
Resistance to change is one of the many (big) difficulties that many people have in getting out of financial vagueness.
Unpleasant emotions
When you start looking at your financial debts you may bring to the surface unpleasant buried emotions. Most people will say that they did not know that these emotions were even there.
You may fear being embarrassed in front of others like family, friends, colleagues or the neighbours.
Poor money decisions
It is not always easy to accept and move on once you realize that you have made a poor money decision.
It is not healthy for your future to blame yourself or love ones because you were afraid to say stop.
Not having a solid love relationship where decisions to buying big items are not discussed can result in lots of arguing.
Financial awareness
Financial awareness starts with the willingness to break out of the cycle of financial vagueness.
Becoming financial aware is taking responsibility for how you have been treating yourself.
Choosing to become an adult and start putting aside 10% then 15% of your earnings can rebuild your sense of security.
Getting passed the discomfort
You can get control of financial vagueness when you start to get passed the discomfort and taking the time to look at all your bills.
Small steps
If you were to go to the gym and started working out, your trainer would suggest starting slowly. This is the same with finances. Start reading articles in financial journals even though you may not understand the terms used.
Conclusion: Breaking out of financial vagueness starts with a willingness to change and accepting to create a new identity.
Reasons to Keep Your Personal Finance Separate from Your Business
One of the least understood of small business principles is how to keep your personal finances separate from the business's financial figures. Keeping them separate is not about strict requirements but more about maintaining an attainable comfort level. It isn't your comfort either you need should be concerned with. It's the comfort level of the auditors at the IRS you should be most concerned with cause they love nothing more than clear business records.
It's as simple as this type of thinking: If your records are clean, your audit will be easy. Separate business and personal accounts keeps the IRS carefully focused on the tax audit they were assigned to do. When you have business and personal funds in one account, those same business records are now suddenly right out in the open before an auditor who may discover problems quite to what they were looking for. Here are some ways you can keep them separate:
* Your business is a hobby - There are several federal and state government policies that stipulate only businesses are allowed to deduct business expenses. Now let's say your business is more of a hobby and not a means to make considerable money. You may have a difficult time telling the government that you are indeed running a business and not a side hobby. Many business owners compound this problem by using a personal bank account too.
* Tax season is a nightmare - Your accountant might hate you more for this reason because it causes quite the mess. If you are a small business owner it is important that you keep your personal finances separate from the business. This includes all types of transactions. The reason why your accountant will really dislike you is because by not separating them, you creating an awful lot of work for him to figure everything out.
* Limited audit paper trail - While it is recommended that you keep all your business and personal finance accounts separate, that doesn't mean you need to keep all your records and paperwork separate. You still should, however. Everything you have on file needs to be accurate, complete, permanent and showing a clear record of income and deductions. The last thing you want is a jumbled mess that causes nothing but IRS problems for you. Keeping separate business statements and records from your personal account establishes a clear audit trail.
* Lack of professional attitudes - The only way people will take your business seriously is if you do too. Accept checks made out to the business and not your own personal name. This establishes a divide between you and your business.
* Forgotten deductions - Don't even get me started with the disaster which will be your account statement. Doing all of your small business banking on your personal account becomes a mish mash of different transactions. You then need to spend time decipher which goes to what account. You run the risk of miss deductions you are entitled to. This kind of record keeping will cost you more in time, money, and missed deductions.
It's as simple as this type of thinking: If your records are clean, your audit will be easy. Separate business and personal accounts keeps the IRS carefully focused on the tax audit they were assigned to do. When you have business and personal funds in one account, those same business records are now suddenly right out in the open before an auditor who may discover problems quite to what they were looking for. Here are some ways you can keep them separate:
* Your business is a hobby - There are several federal and state government policies that stipulate only businesses are allowed to deduct business expenses. Now let's say your business is more of a hobby and not a means to make considerable money. You may have a difficult time telling the government that you are indeed running a business and not a side hobby. Many business owners compound this problem by using a personal bank account too.
* Tax season is a nightmare - Your accountant might hate you more for this reason because it causes quite the mess. If you are a small business owner it is important that you keep your personal finances separate from the business. This includes all types of transactions. The reason why your accountant will really dislike you is because by not separating them, you creating an awful lot of work for him to figure everything out.
* Limited audit paper trail - While it is recommended that you keep all your business and personal finance accounts separate, that doesn't mean you need to keep all your records and paperwork separate. You still should, however. Everything you have on file needs to be accurate, complete, permanent and showing a clear record of income and deductions. The last thing you want is a jumbled mess that causes nothing but IRS problems for you. Keeping separate business statements and records from your personal account establishes a clear audit trail.
* Lack of professional attitudes - The only way people will take your business seriously is if you do too. Accept checks made out to the business and not your own personal name. This establishes a divide between you and your business.
* Forgotten deductions - Don't even get me started with the disaster which will be your account statement. Doing all of your small business banking on your personal account becomes a mish mash of different transactions. You then need to spend time decipher which goes to what account. You run the risk of miss deductions you are entitled to. This kind of record keeping will cost you more in time, money, and missed deductions.
How To Make Exponential Financial Progress By Focusing On Simple Things
There's a guy I know who is always banging his head against the same wall... ouch!
He just doesn't get it. Each month he reads a new financial book or attends a new "get out of debt" seminar, but his results are always the same -- zilch.
This has been going on for years and his debt continues to grow, along with personal and family frustrations.
Do you know someone like that? Are you like that?
The way he's going now, a month of one-on-one with Dave Ramsey wouldn't help.
I used to be on a similar path. But then everything started to change -- for the better.
I started to do exactly the opposite of my friend and my debt started to go down and my peace started to go up.
Here's what I did and here's the advice I'd give you. There's a way to get out of debt and grow financial peace exponentially.
And this way always works.
When you apply this advice, your relationship with God and those closest to you will get better, your earnings will grow, your debts will diminish, and your lifestyle will improve.
Your life will quickly transform when YOU start to apply this principle.
Here it is.
WHEN YOU BUILD YOURSELF CONSISTENTLY, MONEY FREEDOM WILL GROW EXPONENTIALLY.
Remember this: every level of income DEMANDS a different you. Every step along the path to Debt Fr.ee Living God's Way REQUIRES a different you. You can't get to where you want to be by staying where you are.
It's really simple. The fastest way to get out of debt and begin to enjoy Debt Free Living God's Way is to learn and APPLY faster. Ask yourself this: What is one financial habit I can start improving RIGHT NOW?
Start small. Take one step at a time.
Write this "one way" on a note and put it on your refrigerator.. What will you write? What is the one small step you can take today?
Honestly, you don't need anyone to give you any suggestions. You already know what it is. You just haven't decided to do it. Maybe you've tried. But you've never done it.
By the way, I hate it when someone says they're going to "try" to change a financial habit. Why? Let me show you.
Look at the desk in front of you. Fix your eyes on something you are able to pick up.
Ready? Now "try" to pick it up.
What did you do? Did you pick it up or did you NOT pick it up? You picked it up, right?
It's the same with financial habits. Don't "try" to do it, just start doing it. "Trying" to change a habit will most likely mean that habit won't change.
You have to decide. "I'm finally ready to ACT on what I know I should do. It's time! I've had enough of this debt stuff. I've had it with being out of God's will in this area. I'm tired of feeling guilty before God and those I love. I'm no longer going to try. I'm just going to do it. God please help me because I'm just going to DO IT."
Build yourself consistently by increasing your knowledge and understanding of what God has to say about finances. Then START to apply. Don't TRY. Just DO IT.
Take action NOW on one financial principle or one practical application and stay with it until it becomes a habit (about three weeks) then move on from there.
You can and will begin to get out of debt. You can and will learn to experience Debt Free Living God's Way.
------
Bob Louder is considered a leading biblical finance expert, and has been working in the area of biblical finance for 20 years. He's been endorsed by some of the most high profile and successful Christian authors and teachers like Larry Burkett, Ron Blue, Dave Ramsey and others.
Bob is the creator the "4 Weeks Money Mentoring Program", a unique online training for transforming money management and wealth building efforts into a highly effective financial strategy - in 4 weeks flat. Its power comes from focusing on biblical principles combined practical application, delivered in a format and pace that makes it easy to get results.
He just doesn't get it. Each month he reads a new financial book or attends a new "get out of debt" seminar, but his results are always the same -- zilch.
This has been going on for years and his debt continues to grow, along with personal and family frustrations.
Do you know someone like that? Are you like that?
The way he's going now, a month of one-on-one with Dave Ramsey wouldn't help.
I used to be on a similar path. But then everything started to change -- for the better.
I started to do exactly the opposite of my friend and my debt started to go down and my peace started to go up.
Here's what I did and here's the advice I'd give you. There's a way to get out of debt and grow financial peace exponentially.
And this way always works.
When you apply this advice, your relationship with God and those closest to you will get better, your earnings will grow, your debts will diminish, and your lifestyle will improve.
Your life will quickly transform when YOU start to apply this principle.
Here it is.
WHEN YOU BUILD YOURSELF CONSISTENTLY, MONEY FREEDOM WILL GROW EXPONENTIALLY.
Remember this: every level of income DEMANDS a different you. Every step along the path to Debt Fr.ee Living God's Way REQUIRES a different you. You can't get to where you want to be by staying where you are.
It's really simple. The fastest way to get out of debt and begin to enjoy Debt Free Living God's Way is to learn and APPLY faster. Ask yourself this: What is one financial habit I can start improving RIGHT NOW?
Start small. Take one step at a time.
Write this "one way" on a note and put it on your refrigerator.. What will you write? What is the one small step you can take today?
Honestly, you don't need anyone to give you any suggestions. You already know what it is. You just haven't decided to do it. Maybe you've tried. But you've never done it.
By the way, I hate it when someone says they're going to "try" to change a financial habit. Why? Let me show you.
Look at the desk in front of you. Fix your eyes on something you are able to pick up.
Ready? Now "try" to pick it up.
What did you do? Did you pick it up or did you NOT pick it up? You picked it up, right?
It's the same with financial habits. Don't "try" to do it, just start doing it. "Trying" to change a habit will most likely mean that habit won't change.
You have to decide. "I'm finally ready to ACT on what I know I should do. It's time! I've had enough of this debt stuff. I've had it with being out of God's will in this area. I'm tired of feeling guilty before God and those I love. I'm no longer going to try. I'm just going to do it. God please help me because I'm just going to DO IT."
Build yourself consistently by increasing your knowledge and understanding of what God has to say about finances. Then START to apply. Don't TRY. Just DO IT.
Take action NOW on one financial principle or one practical application and stay with it until it becomes a habit (about three weeks) then move on from there.
You can and will begin to get out of debt. You can and will learn to experience Debt Free Living God's Way.
------
Bob Louder is considered a leading biblical finance expert, and has been working in the area of biblical finance for 20 years. He's been endorsed by some of the most high profile and successful Christian authors and teachers like Larry Burkett, Ron Blue, Dave Ramsey and others.
Bob is the creator the "4 Weeks Money Mentoring Program", a unique online training for transforming money management and wealth building efforts into a highly effective financial strategy - in 4 weeks flat. Its power comes from focusing on biblical principles combined practical application, delivered in a format and pace that makes it easy to get results.
Great Ways To Save Money
Everybody wants to save money, but the way you do it versus the way someone else does it may be very different. There are lots of ways to go about saving a little extra money every month and we are here to give you a few ideas.
Try to figure out what you purchase every month that you do not need and scrap it. Get a 20 ounce soda every day after work? Get out your calculator and multiply the number of days a week you work by how much that soda costs you every time you buy it and see how much money you are throwing away. Do you smoke? With packs of cigarettes averaging over $4 per pack, you probably spend over $1,000 to $1,800 per year just on this habit alone! That is enough for a decent vacation or in a lot of cases, a full house payment! Ditch smoking as soon as possible if you are money-minded.
Take a look at your subscriptions and ask yourself if you really need them. I have a World of Warcraft subscription that is billed to my credit card every month, yet I have not actually played it in a month and a half. Cancel any recurring subscriptions that you have that you are not making use of or, if possible, simply purchase the item whenever you do find that you need it.
Something else that is good to practice is paying yourself. As soon as you get your paycheck, take some of it and put it into your savings account. Pay yourself before you do anything and trust me, you will manage to get by. After all, how much does $20 to $50 really help or hinder anything?
Depending on what you want to save your money for, set a savings goal. If it is a small purchase, all you really have to do is find out how much the item costs and by when you want to be able to purchase it. If it is a larger purchase, such as a car or a house, determine how much you want to spend, how much of a down payment you want to have, and by when you want to be able to make this purchase. Be sure that you can attain the goal that you are setting for yourself within the amount of time that you set, because if it is unattainable, you will only become discouraged in the end.
And last, but certainly not least, the best way to save money in the long run is to simply live below your means. This means that you should not extend yourself financially even close to what you are capable of. Make sure that by the time you add up your housing, food, transportation, tax, and health care expenses that you will have more than enough left over to put in the bank. Remember that rich people did not get that way by overextending themselves financially. They were cheap and always hunted for a bargain and so should you.
Try to figure out what you purchase every month that you do not need and scrap it. Get a 20 ounce soda every day after work? Get out your calculator and multiply the number of days a week you work by how much that soda costs you every time you buy it and see how much money you are throwing away. Do you smoke? With packs of cigarettes averaging over $4 per pack, you probably spend over $1,000 to $1,800 per year just on this habit alone! That is enough for a decent vacation or in a lot of cases, a full house payment! Ditch smoking as soon as possible if you are money-minded.
Take a look at your subscriptions and ask yourself if you really need them. I have a World of Warcraft subscription that is billed to my credit card every month, yet I have not actually played it in a month and a half. Cancel any recurring subscriptions that you have that you are not making use of or, if possible, simply purchase the item whenever you do find that you need it.
Something else that is good to practice is paying yourself. As soon as you get your paycheck, take some of it and put it into your savings account. Pay yourself before you do anything and trust me, you will manage to get by. After all, how much does $20 to $50 really help or hinder anything?
Depending on what you want to save your money for, set a savings goal. If it is a small purchase, all you really have to do is find out how much the item costs and by when you want to be able to purchase it. If it is a larger purchase, such as a car or a house, determine how much you want to spend, how much of a down payment you want to have, and by when you want to be able to make this purchase. Be sure that you can attain the goal that you are setting for yourself within the amount of time that you set, because if it is unattainable, you will only become discouraged in the end.
And last, but certainly not least, the best way to save money in the long run is to simply live below your means. This means that you should not extend yourself financially even close to what you are capable of. Make sure that by the time you add up your housing, food, transportation, tax, and health care expenses that you will have more than enough left over to put in the bank. Remember that rich people did not get that way by overextending themselves financially. They were cheap and always hunted for a bargain and so should you.
Do You Need To Save Grocery Money?
We would all like to save money on our grocery bill every week, but many of us have full schedules and we do not have much time to think about just what we can do to spend less money. The smallest actions can really add up over the long haul.
I know we all hate the idea of clipping coupons to save money, but they can actually help a lot as long as you know which ones are worth clipping. Do not bother clipping coupons you are not likely to use or those that have expiration dates that are sooner than you will be going back to the store. If you have the time and the energy, you can even double your savings with coupons if you keep track of when your store is going to have the items that you have coupons for on sale. Try not to use your coupons unless the item is on sale to get the maximum savings, but when you use them is up to you.
Cut out the cigarettes. We all know that cigarette smoke is bad for us and the people around us, but think about just how much money you spend every month on the habit. Sheesh! A pack of cigarettes costs on average around $4.50, including the taxes. If you smoke a pack a day, then you will spend around $30 per week or close to $1,600 per year! That is a lot of money that you are basically rolling up and setting on fire each year. Not only that, but if you smoke while driving or even inside your own home, you are ruining its interior. Selling either your vehicle or home later will cost you extra in cleaning fees. Do your budget a favor and kick the habit.
Do yourself a favor and leave the kids at home when you go grocery shopping. Kids are pretty persuasive, especially when they are misbehaving in the store, so they may try to get you to buy them things in exchange for being quiet. If you have to, make a list of things the kids want before you go so they will get what they want without having to argue with you over it in the store. Let each child pick one item and if they can't think of anything they want before you leave, then there is nothing they need.
Create a grocery budget every month. Go back and look at what you have spent on groceries the past 3 months and see how much you have spent on average. Determine how much you want to shave off that bill and shoot for it. The only way to know how much you are saving is to know how much you were spending before.
I know we all hate the idea of clipping coupons to save money, but they can actually help a lot as long as you know which ones are worth clipping. Do not bother clipping coupons you are not likely to use or those that have expiration dates that are sooner than you will be going back to the store. If you have the time and the energy, you can even double your savings with coupons if you keep track of when your store is going to have the items that you have coupons for on sale. Try not to use your coupons unless the item is on sale to get the maximum savings, but when you use them is up to you.
Cut out the cigarettes. We all know that cigarette smoke is bad for us and the people around us, but think about just how much money you spend every month on the habit. Sheesh! A pack of cigarettes costs on average around $4.50, including the taxes. If you smoke a pack a day, then you will spend around $30 per week or close to $1,600 per year! That is a lot of money that you are basically rolling up and setting on fire each year. Not only that, but if you smoke while driving or even inside your own home, you are ruining its interior. Selling either your vehicle or home later will cost you extra in cleaning fees. Do your budget a favor and kick the habit.
Do yourself a favor and leave the kids at home when you go grocery shopping. Kids are pretty persuasive, especially when they are misbehaving in the store, so they may try to get you to buy them things in exchange for being quiet. If you have to, make a list of things the kids want before you go so they will get what they want without having to argue with you over it in the store. Let each child pick one item and if they can't think of anything they want before you leave, then there is nothing they need.
Create a grocery budget every month. Go back and look at what you have spent on groceries the past 3 months and see how much you have spent on average. Determine how much you want to shave off that bill and shoot for it. The only way to know how much you are saving is to know how much you were spending before.
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