Category Archives: finances

Tax day is a pain, and even more of a pain when you’re the one in charge of your own business. Trying to work out what you have to do and when can get very stressful, and we can put it off and off because of this, which can turn into a huge problem. So what can be done? Well, sometimes to deal with it effectively, we need to block out tax day to get down to the nitty gritty. Here’s a few tips and tricks for making sure you know what to do with your taxes.

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When you’re self employed, usually you go through one of two avenues: working as a sole trader as a freelancer, or in a business you own yourself with other people. So we’ll focus on those two options for now.

When You’re A Freelancer

This is one part of the freelancing lifestyle that people don’t think about, or don’t realise is what makes working as a freelancer quite hard. The fact that you have to do your own taxes can often put quite a lot of people off, and makes the end of the financial year a dreaded phase.

Sometimes you’ll owe money if you don’t sign up to the right things, but there’s no shame in this. A lot of people don’t know what they’re doing and have lost a bit of money as a result. So here’s a few handy tips on controlling your taxes, not the other way round!

Use an accountant, or the advice of someone who really knows their taxes. There’s a lot to get to grips with, and it’s practically impossible to do it yourself when you’re up to the tax batting mark for the first time in your career. It may cost you a bit of money, but it means you won’t lose any money on your job or other investments otherwise.

Do plenty of research also. Knowing what you have to pay doesn’t come naturally, and it isn’t an innate biological process no matter how much it seems to be when you talk to an expert. Practice makes perfect after all, and you’ll be paying self employment tax like an employer would at a job that just hands out paychecks to you. Don’t be afraid to take a day, or a good few hours, to get to know everything you need to, and take plenty of notes!

Operating On Behalf Of Businesses

If you’re in a partnership, or part of a group who own a company that’s run from home, you may need to operate on behalf of the business when it comes to tax purposes. Maybe you drew the short straw, or maybe it was agreed you have the most responsibility; however, anyone can prepare a tax return or file on behalf of someone else.

Make sure your business has a tax ID, and that you as the operator also have an ID that lets you file a tax return. It’s good to double up as both an owner and a tax representative, as at the end of the year, you need to make sure you made all the right decisions. Any mislaid blame will therefore not be stuck on you if something goes wrong as a result of dealing with someone else.

You also know your own credentials and where exactly you excel and where you need the aid. If you need to, be sure to hire someone to act on your behalf, but know where the trusted sources are. There’s a lot of tax offices out there!

If You Need Help

There’s no shame in needing a little help with your business needs if you don’t quite have the hang of it. There’s a lot of financial and legal aid available to you if you don’t know where to start at all with your tax issues. Having a lawyer to resolve a wide array of complex tax issues on side is a complete godsend, and saves a lot of hair being ripped out over simple issues, like not knowing which items you have to pay VAT for and tax on import and exports for a small business.

It can be frustrating and even a little scary to file your own taxes, so this was just a little and by no means comprehensive guide to get you started. Don’t let yourself be alone in something like this as you won’t do yourself any favours, and as you become experienced, you can even help others!

Listen, most of us aren’t financial experts and don’t know the ins and outs of certain financial things. Especially when we were younger, and we sort of went with the flow and did things without thinking. There are loads of people that got a credit card in their early twenties, used it wildly, and are now sitting on a mountain of credit card debt.

As far as debt goes, credit card debt is one of the worst you can have. It quickly piles up and can leave you feeling swamped. You start to wonder if you’ll ever get out of debt. Luckily, there are ways to completely clear your credit card debt and have one less financial thing to worry about.

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Consolidate Your Debt

This sounds like some highly technical financial wizardry, but it’s actually a fairly simple concept to get your head around. Essentially, you can take out a loan and use it to pay off all your credit card debt. If you visit various loan comparison sites, you’ll see how much it costs to borrow as much money as you need to cover your debt. Why do this, I mean, surely it just keeps you in debt anyway? This is true, but you’re in a much more manageable debt now. You’ve no longer got credit card bills and payments racking up all the time and piling the misery on your finances. Instead, you’ve got a simple loan payment plan to follow, which should be designed to fit your budget and make life easy for you. Consolidate your credit card debts, and you no longer have to worry about them.

Move Your Balance To A Different Card

Credit cards have different interest rates depending on which one you applied for. Often, you can rack up a lot of debt on your card, and get slapped with huge interest rates too. This makes the debt spiral out of control, and get bigger and bigger. One smart idea is to move your credit card balance from one card onto a new one with lower interest rates. This can stop your debt from bloating rapidly, and save you lots of money every month. It makes the debt more manageable, and you should be able to pay it off quickly without as much fuss. Of course, make sure you’re fully committed to paying off the debt, or else you’ll take too long, and the interest rates can skyrocket on the new card too.

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Lock Your Cards Away

If you’ve got credit card debt, stop using your credit card! Lock it away in a drawer, and you will make life so much easier. Pay by cash or using a debit card instead. Keep using your card, and you run the risk of increasing the debt every month. It makes it harder to get rid of, and you’ll be in debt for longer. But, stop using the card, and you have a fixed amount of money to pay off, and will stop racking up extra charges and more debt.

Credit card debt is like a financial fire. You need to stamp it out while the flames are small and manageable. Otherwise, the fire can grow into a beast that’s very hard to extinguish. Use my advice to help gain control of your financial situation and clear your credit card debt for good!

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It’s a harsh reality of life, but most people will face financial difficulties at one stage or another. Worse still, research suggests that over one in four aren’t in a position to withstand even a single financial emergency. So, when you find yourself on that slippery slope towards debt, it can feel like there’s no way out.

The road to financial recovery isn’t an easy one, and it will require a lot of time and effort. Nonetheless, it can lead you to a far happier destination. The first step on that journey is to stop stressing where possible. Clouded minds lead to clouded judgments, which will only slow your progress. Essentially, the human brain is the greatest tool at your disposal and keeping it in the right frame will make everything a little brighter.

Before achieving success in the bid for financial freedom, you must get your priorities in order. Frankly, debt repayments should always come first. After all, late payment charges and interest rates will cause ongoing problems. Even if it means taking a consolidation loan to minimize the overall repayment charges, reducing the level of wasted capital is key.   

Those significant changes to your financial outlook are one thing. But it’s the small lifestyle improvements that truly make the difference. Cutting waste in daily life doesn’t only accelerate your recovery, but it also puts you on the right pathway going forward. Learn about couponing at thekrazycouponlady.com while using price comparisons on household bills. Your monthly expenses will soon fall dramatically.

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Financial improvements shouldn’t only enhance your life on a monetary basis. When used correctly, they can transform your world on a comprehensive level. Getting fit and healthy may feel like an expensive lifestyle change. In reality, preparing meals at home and working out away from the gym will save you money. Better still, your increased health could also influence your need for medications.

The key is to throw yourself into the challenge fully. Do this, and you can start to see positive impacts almost immediately. For truly life-changing results, it’s vital that you make improvements designed for continued progress. A poor financial history can bring negativity by restricting your possibilities. Visit repair.credit to find out about rebuilding this score, and financial opportunities will look far brighter. After all, your financial health isn’t solely about the amount of money in your bank.

Using money in a more efficient manner is vital, but life will become a lot easier when you’re earning more. Getting a promotion at work would be great although it isn’t always possible. If you have some extra money, smart investments can be a great way to boost your capital. Alternatively, those who don’t want the risk can earn a little extra money from blogging, taking surveys, or freelancing on the side.

Money isn’t the most important thing in this world. Nonetheless, gaining that sense of financial freedom offers a sense of comfort that will boost your life greatly. Simply knowing that you’re back on the right track will provide the confidence needed to keep moving forward. Once this has been achieved, a brighter future is within touching distance.   

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These days, getting a bank loan isn’t the easiest process in the world. The recession is behind us, but some of the tight-pocketed sentiment still exists in the financial sector. Although things have improved, banks are still fairly strict in the criteria they want you to fulfil. There is a range of elements to a good loan application. Here are just a few important things to keep in mind when looking to getting a loan approved.

What do you need from your loan?

First of all, be fairly certain in what you want from your loan. It really won’t give off the right impression if you walk into your bank and say “Gimme some money!” Make sure you do some homework in advance. Have a set idea of the kind of loan you’re going for, what you can afford, and your plan for repayment. There are dozens of different packages out there. Within each different category, there are going to be a few other options available to you. If you start liaising with bankers, and don’t know what you’re looking for exactly, you’re not going to come off too well! You might already have one in mind which seems perfect. Even so, shop around!

Father and teenager signing loan contract

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Managing expectations

You should know what to expect from the process overall. Applying for a loan in a hurry, unless it’s absolutely necessary, isn’t a good idea. The people in charge of approving your loan are going to have some strict rules to follow, both in the approval and getting the money to you. Be sure to talk to an advisor, or someone at the bank, about all the different phases of the process.

Some loans can be pre-approved in advance. This is essential with mortgages; if you don’t get a mortgage pre-approved, you might miss out on some of the best homes for sale! With others, it can take a matter of weeks or even months between the approval and transfer. If you’re left waiting around, ask your loan officer about the process of following things up. Go about this the wrong way, and you’ll only hurt your position. If you apply repeatedly to loans, and barely get any of them approved, it can be extremely detrimental to your credit score.

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What you can and can’t do

While you’re browsing all your different loan options, be aware of what you can and can’t do. This may require you to check your credit report. Consider your history and your current score, and anything you can do immediately about it. The state of a credit score often means the difference between approval and denial.

Because of this, it’s not only important that you try to improve it, but also check that it’s accurate! If your credit rating upholds that you have an unpaid debt you paid years ago, act quickly to have this removed. I know that something so weighty and official has a “set in stone” air to it. Don’t be fooled though! You’d be shocked at how often there are discrepancies in credit reports.

Dealing with your finances is a pain but it’s something that we all have to do. It’s so complicated and it seems like you’ll never get your head around it. Nobody teaches you all that stuff when you’re younger, you just have to work it out for yourself when you get older. Making mistakes with your finances can land you in some serious trouble so it’s important that you know what you’re doing. One option is to seek professional advice but that comes with a hefty price tag a lot of the time and it just isn’t feasible for some of us. If you can’t afford professional advice then you’re just going to have to do things for yourself. There are so many great learning resources out there that can help you get to grips with all of that financial jargon and learn exactly what’s going on with your own money. If you’re clueless about finance, try some of these places to learn a bit more.

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Friends And Family

Now that you’re an adult, you probably don’t want to ask your parents for help with your finances but if you swallow your pride you could learn a lot. They’ve been through exactly the same thing as you but, now that they’re older, they’ve learned everything that they need to know about finance. Whatever issue you’re having, you can bet that they had the same problems when they were your age so they can give you good advice on how to deal with it. Any friends that you have will also be trying to tackle the same financial hurdles that you are, so if you talk to them you could try to learn about them together. That way, you can all protect your family finances and ensure that you don’t get into debt.

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Your first port of call when you’re trying to learn about finance is books. There are loads of great ones out there that can lay out all of the basics of personal finance in easy to understand language. ‘The Millionaire Next Door’ is one of the best-known books on finance and even though it is a few years old, it is still a trusted source for anybody that is starting to learn about finance. The bulk of the book charts how some of the richest people in the country got to where they are now. You’re probably not reading these books in the hope of building a business empire, but it’s still valuable because it starts by explaining all of the need-to-know information.

‘I Will Teach You To Be Rich’ is a more recent book that lots of young people are turning to for help. Author Ramit Sethi guides you through a six-week plan, aimed at twenty to thirty year olds, which promises to sort out all of your finances and leave you in a position to continue your financial life with ease. It’s become so popular because a lot of people have found that it works, and it gives simple step by step instructions on every aspect of personal finance.

‘You’re So Money’ is particularly popular amongst recent college graduates but it works for anybody. It focuses particularly on people that are in entry-level jobs that don’t pay particularly well. Farnoosh Torabi teaches uses her book to teach you how you can manage your money in such a way that you can still live a comfortable lifestyle and do everything that you want to do. With more and more people struggling with low wages, this book is a good one to have on the shelf.

‘Debt-Free By 30’ is a pretty obvious one. Focussing specifically on debt and how to quickly wipe it, this should be the first step in financial education for anybody that is struggling with loans. Once you have removed your debts, you can use the other books to start building a solid financial base.

Online Resources

The internet is an endless pool of information so if you’re trying to learn anything, it’s a great place to look. However, you should always be aware that anybody can put things up online and a lot of the people that are claiming to be experts don’t really have a clue what they are talking about. As a starting point, do some basic Google searches on whatever topic it is that you’re struggling with and see what comes up. Don’t just take what you read as gospel, try to back it up first. If a piece of information appears on trusted websites like the Fortunate Investor then you can act on that advice but if it is an unknown website then you’ll need to check more places to verify it.

Forums are also a good resource because they can put you in touch with a lot of other people that are experiencing the same financial issues. Hearing their account of how they dealt with those problems and whether their methods were successful or not can help you to avoid making bad decisions. Again, be careful when you are looking at this information because, more often than not, there’s no way to know if it’s reliable or not.

TV And Radio

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There are still plenty of resources on TV and radio that can help you to become a finance expert. ‘Mad Money’ airs on weeknights on CNBC and host Jim Cramer focuses mainly on helping you to learn how to invest your money properly. This is something you should be watching once you’ve got the basics down, so you can take your financial skills to the next level.

‘Your Money’ on CNN is a show that you should be watching every week if you want to keep up with the financial world. It gives you a weekly breakdown of the latest business news and, more importantly, how it is going to affect you day to day. That means you can preempt any financial developments that might cause you trouble and learn to combat them before it’s too late.

‘Squawk Box’ is a great way to get the advice of experts without having to pay for expensive consultations. It’s hosted by people that have worked in the business and each week sees new guests from the financial world sharing their stories and advice. In the past, the show has featured interviews with some of the biggest names in the business world including Bill Gates.

As well as watching these shows each week, you can also find backdated episodes online so if there’s anything that you’ve missed you can catch up easily.   

Radio Podcasts are also a great resource for anybody looking to improve their finances. Podcasts started out as a pretty niche format and people didn’t tend to trust them as much but don’t worry, they’re a lot more reliable these days since becoming very popular. ‘The Clark Howard Show’ is a brilliant podcast for anybody that wants to learn how to save money better. He also as some great tips on avoiding getting ripped off by stores.

‘The Dave Ramsey Show’ is another great show about clearing debt and making yourself more financially stable. His great advice and his books have made him something of a celebrity in the finance world. You can also call in and ask for advice on any financial problems that you’re having so instead of paying an advisor, you can get help from the best in the business for free.

Using a combination of these resources, you can make yourself an expert in personal finance in no time.

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Dealing with finances is stressful. Unless you’re lucky enough to have won the lottery, it’s likely that you are living to some kind of budget, no matter how big or small. Being able to budget your money isn’t just about knowing where every penny is going. While that is helpful, it doesn’t mean you are budgeting correctly.

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It’s said that you shouldn’t live to your means. Ideally, you need to have savings and some money left in your account each month to cover emergency expenses. If your washer broke down, could you immediately afford to cover it, or would you have to borrow? If you would have to borrow, it is fairly likely that you are not budgeting effectively. When you want to buy a big-ticket item like a house or a car, you have to learn to budget your money so you can make savings to afford a deposit or car finance repayments. You can Google “auto loan calculator for how much I can borrow”, but if you don’t have a deposit saved in the first place or understand how to make room in your current budget, there’s no use. So, how can you effectively budget your money so that if the need arises, you can afford a last-minute emergency?

• Have A Goal. The goal of budgeting isn’t to track every single bit of your cash, the goal is to learn how to control your spending so that you have a surplus. Even the richest person could live to the top of their means and therefore feel like they’re not getting anywhere with their money. It’s important to spend less than you make, and this is the goal of budgeting.
• Learn To Watch. While tracking every single purchase you make isn’t the goal of having a budget, it’s certainly a good way to learn where your money is disappearing off to each week. Spend a week writing down every single transaction you make, and you can then work out where you are going wrong with your budgeting.
• Deal In Cash. One of the biggest temptations is paying for things with a card. Plastic doesn’t tell you how much you are spending in any given transaction, it just feels like money in your pocket. By handling physical cash, you can see how much you are spending and watch the money shrink, which can make you think twice about purchases you make.
• Plan. Having a list of things that you need to purchase can really help you to budget. If you are purchasing a new car, you need to think about the price of the car, the insurance budget you have to spend and the tax you need to get it on the road. You also need to factor in gas money, expenses for repairs and even cleaning costs. Planning your budget correctly and allocating money will help you to understand what you can freely use at the end of each month. Once you understand this, your budget will fall into place.

It’s never pleasant to dwell on the worst-case scenarios of any situation. However, life isn’t a bed of roses. Unexpected emergencies can and do happen, and have the potential to turn your stable family life on its head. You may not have anything urgent to worry about at the moment, but it’s important to be prepared for life pulling the rug from under you. Here are some tips for protecting you and your family from a financial crisis…

Plan Out How You Can Cut Expenses Quickly

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If you suddenly lose your job, or find yourself faced with big, unexpected expenses, and you don’t
have an emergency fund to fall back on, you’ll need to cut back on some expenses quickly. However, when you’re in the throng of a financial crisis, it can be extremely hard to formulate a good cost-cutting plan in a hurry. Having a plan in place ahead of time can help you keep your head, will be an invaluable, practical tool. List all the non-essential services which you could cancel without incurring any big fees, and cancel them as soon as you find yourself in a financial emergency. You may also want to try cutting down your grocery budget for a week or two, and noting how you did this for later reference.

Get Insured

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Insurance is there more or less to help you with possible financial emergencies. If you’re not insured, and something like an injury suddenly puts a massive dent in your personal finances, you can often dig yourself out of this through services from companies like Ankin Law Office. However, if you’re holding good enough insurance policies, you won’t have to worry about this at all. Disability insurance will cover a loss of income if an illness or injury suddenly takes you out of work. Home insurance will cover any major expenses that can come from floods, fires and other big disasters. Health insurance will cover those hefty medical costs that accompany an accident or a sudden bout of illness. Yes, there are instances where insurance doesn’t come through nearly as much as the policyholder needs, but it’s still a very smart move for protecting your household against the impact of a major financial emergency.

Make Sure You Have Credit Available

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While everyone needs to be cautious about getting into debt, having some credit you can fall back on can make all the difference when you’re facing a financial emergency. If you don’t have a credit card, look into getting one now. You don’t have to use it until you need it. Just remember that the interest rates can be extremely high, so it’s important to take your time shopping around, and looking for a card that has the lowest annual percentage, or the best advantages and bonuses for your situation. If and when you start using one, it’s also very important to start paying down your debt as soon as possible. If you’re a homeowner, it may be worth looking into how you could leverage your home equity too.

It’s a sad fact of life that no one is totally immune to layoffs. It doesn’t matter whether you’ve been at your company for two years or twenty, there’s always a certain degree of possibility that you’ll find yourself out of work. Like so many others, you may have found yourself out of work unexpectedly, and may be feeling the panic closing in. If this is the case, here are some financial tips which should see you through…

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Look at your Spending Habits

When everything’s going good, very few people make a point of keeping tabs on their spending habits. Aside from the big ones like mortgages, rent and car expenses, many of us don’t pay enough attention to our other spending habits. What’s your average weekly grocery bill? How much do you spend on eating out? What about utilities, insurance and so on? Now that you’ve lost a major source of income, it’s essential to become more aware of your spending habits as a first step towards repairing your situation.

Look for Ways to Cut Back

If you’ve been laid off or you’re facing job loss in the future, you need to formulate a plan for cutting down expenses. Now that you’ve got a better idea of your spending habits, adjust them to a new budget that will eliminate as many unnecessary expenses as possible. Look for more affordable places to eat out, find days out closer to home, and try cutting your big nights a little short. Read a book rather than paying for another series. You shouldn’t cut out entertainment completely, as you’ll need to keep your spirits up to take a proactive approach to your problem.

Negotiate your Severance Package

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When you’re let go, provided it’s not over any kind of gross misconduct, you’ll be offered some severance pay. Ideally, you would have looked into this when you were first hired, and negotiated it then, as this is when you have the most bargaining power. However, you can still negotiate a better package when your contract is terminated. If you’ve been let go due to an injury, you should also look into negotiating this. Worker’s compensation pay-outs can often become quite complex, and commonly involve legal professionals like Taradash workers comp and injury lawyers. You should always start by talking to your HR department and finding out what your position is.

Find Part-Time Work

Obviously, you’ll start looking for a new position as soon as you know you’re losing your job. While it may not be what you’re capable of, don’t totally neglect the idea of part-time, possibly low-paying jobs. Yes, they may not be as satisfying as your last job or anything close to a long-term solution to your troubles. However, any amount of income will allow you to stretch your available financial resources that much further. While it would be best to find a part-time position that’s in your field, there may be opportunities somewhat tied to your hobbies or interests. Remember though, your main job is to find a new, full time job!