Catch up on retirement savings. If you’re over age 50, you can make something called “catch-up contributions.” You can increase your 401(k) salary deferrals by up to $30,000 and up to $7,500 in your IRA. Look into this ASAP. The more you contribute, the more you’ll close the gap between what you have and what you’ll need.
Put together a sample budget. According to the U.S. Bureau of Labor Statistics, a household run by someone aged 65+ spends on average $4,345 a month, which is about $52,141 a year. Given this fact, it makes sense to take a look at your budget to see where you can cut back. Do you have numerous streaming services or magazine subscriptions? Can you use public transportation instead of driving? Must you buy name brands at the grocery store or would generic suffice? Review several months of expenses and ask yourself these types of questions. You might be surprised at what you discover and how you can save.
Utilize your Health Savings Account (HSA). This is a great tool to help you prep for health care costs when you retire. Once you enroll in Medicare at 65, you can still use your HSA investments, even if you no longer qualify to contribute. But you can get started on this early. Once you’re 55, you can contribute an extra $1,000 to your HSA each year on top of the maximum amount you’re using to catch up.
Consider part-time work. Having some supplemental income is a great idea when you retire. You’ll not only keep busy, which for some is critical, but also generate extra cash. You might even start a small business. What is it that you’ve always wanted to do? What are you passionate about? These questions are worth exploring.
Move to a less expensive city. There are some states that are simply less costly. And when you’re downsizing, which lots of people do when they retire, it makes a difference in your quality of life. For instance, Montana doesn’t have any sales tax, and state taxes are 33 percent less than the U.S. average. Here are a few others to consider.
These are just a few of the things you can do to prepare for one of the most important seasons of your life. No matter when or how you decide to retire, in the long run, it pays to start thinking about it before these years are even on the horizon.
Next year, something called Peak 65 is happening. This moniker refers to the fact that more Americans will reach the traditional retirement age of 65 in the same year than at any time in history. Crazy, right? However, many of these people don’t feel like they’ve saved enough to live comfortably after they retire. Here are some ways to maximize your savings and cut costs so you can be prepared and retire with less financial worry.
Use a retirement calculator. This is key. You’ll be able to see if what you have in retirement so far will be enough to actually live on. Here’s the tool. Once you know where you are, you’ll be able to determine your financial goals.
Catch up on retirement savings. If you’re over age 50, you can make something called “catch-up contributions.” You can increase your 401(k) salary deferrals by up to $30,000 and up to $7,500 in your IRA. Look into this ASAP. The more you contribute, the more you’ll close the gap between what you have and what you’ll need.
Put together a sample budget. According to the U.S. Bureau of Labor Statistics, a household run by someone aged 65+ spends on average $4,345 a month, which is about $52,141 a year. Given this fact, it makes sense to take a look at your budget to see where you can cut back. Do you have numerous streaming services or magazine subscriptions? Can you use public transportation instead of driving? Must you buy name brands at the grocery store or would generic suffice? Review several months of expenses and ask yourself these types of questions. You might be surprised at what you discover and how you can save.
Utilize your Health Savings Account (HSA). This is a great tool to help you prep for health care costs when you retire. Once you enroll in Medicare at 65, you can still use your HSA investments, even if you no longer qualify to contribute. But you can get started on this early. Once you’re 55, you can contribute an extra $1,000 to your HSA each year on top of the maximum amount you’re using to catch up.
Consider part-time work. Having some supplemental income is a great idea when you retire. You’ll not only keep busy, which for some is critical, but also generate extra cash. You might even start a small business. What is it that you’ve always wanted to do? What are you passionate about? These questions are worth exploring.
Move to a less expensive city. There are some states that are simply less costly. And when you’re downsizing, which lots of people do when they retire, it makes a difference in your quality of life. For instance, Montana doesn’t have any sales tax, and state taxes are 33 percent less than the U.S. average. Here are a few others to consider.
These are just a few of the things you can do to prepare for one of the most important seasons of your life. No matter when or how you decide to retire, in the long run, it pays to start thinking about it before these years are even on the horizon.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
Yes, attention spans in our world are woefully short, much like that of gnat. You have seconds to grab someone’s attention. Write your bio as if you were looking for an accountant. How would you word it? What would catch your eye? Of course, you’d start with your name and title, but what after that? Spend time thinking about this.
Don’t Use First Person
While social media is all about saying “I this” and “I that,” when it comes to bios, it’s best not to do that, use the third person as if you were talking about someone else. For instance, “John Davis is a CPA at Ernst & Young.” After that, you can launch into telling the world just how awesome you are.
Use Active Voice
And avoid passive voice. An example of this would be something like, “John’s team was involved in the overhaul of the payroll system.” For active voice, you’d write it like this: “John’s team overhauled the payroll system.” See the difference? You’ve cut out extra words and adjusted your verb to be active. A quick way to check your writing for passive voice is to do a search in your document for an “of.” If you spot these babies, fix them right away.
Update Your Social Media Profiles
While most people use LinkedIn, many others who are looking for a job include their bios on their social media pages. In fact, you might update your bio on your LinkedIn page and then share it on Facebook, Instagram, or other platforms you use. This way, when employers are casually scrolling, you’ll appear in their feed. And if they’re looking for someone, all the better.
End Strong
The abbreviation in the marketing world is CTA, or Call to Action. You see it on nearly every digital ad as a button. But if you reimagine it in terms of the last sentence of your bio, it can leave a lasting impression and, hopefully, trigger a response. You might end your bio with a short, friendly statement, your email, and your phone number: “John is actively seeking employment, can be reached at [FILL IN INFO], and is just a ping or phone call away.” No matter what you choose to end with, it should reflect you and your personality.
If you need a little help to get started, here are two different samples:
Sally Smith is a CPA and a Senior Accountant at ABC Company, a full-service tax and bookkeeping firm in Home Town, USA.
John Jones joined ABC Company in 2000. In his current role, he is a seasoned tax preparer with a focus on international taxes. This involves staying up-to-date with current and future tax regulations for foreigners living and working in the United States and abroad, as well as state tax regulations in California and Florida.
Writing an accountant bio that will stand out from the crowd will take a bit of time, but it is well worth it. You want to present yourself in the best possible light to your audience. When you do this, you’ll get more traction and, in turn, more business.
How to Write an Awesome Accounting Bio
September 1, 2023 · Blog, Tip of the Month
⏱ 4 min read
Even though numbers are probably the biggest thing in an accountant’s wheelhouse, getting people in the door with the right words in your bio can make all the difference in the world. Here are a few tips to make sure that how you present yourself to the public via your wording is powerful, succinct, and engaging.
Make it Short and Engaging
Yes, attention spans in our world are woefully short, much like that of gnat. You have seconds to grab someone’s attention. Write your bio as if you were looking for an accountant. How would you word it? What would catch your eye? Of course, you’d start with your name and title, but what after that? Spend time thinking about this.
Don’t Use First Person
While social media is all about saying “I this” and “I that,” when it comes to bios, it’s best not to do that, use the third person as if you were talking about someone else. For instance, “John Davis is a CPA at Ernst & Young.” After that, you can launch into telling the world just how awesome you are.
Use Active Voice
And avoid passive voice. An example of this would be something like, “John’s team was involved in the overhaul of the payroll system.” For active voice, you’d write it like this: “John’s team overhauled the payroll system.” See the difference? You’ve cut out extra words and adjusted your verb to be active. A quick way to check your writing for passive voice is to do a search in your document for an “of.” If you spot these babies, fix them right away.
Update Your Social Media Profiles
While most people use LinkedIn, many others who are looking for a job include their bios on their social media pages. In fact, you might update your bio on your LinkedIn page and then share it on Facebook, Instagram, or other platforms you use. This way, when employers are casually scrolling, you’ll appear in their feed. And if they’re looking for someone, all the better.
End Strong
The abbreviation in the marketing world is CTA, or Call to Action. You see it on nearly every digital ad as a button. But if you reimagine it in terms of the last sentence of your bio, it can leave a lasting impression and, hopefully, trigger a response. You might end your bio with a short, friendly statement, your email, and your phone number: “John is actively seeking employment, can be reached at [FILL IN INFO], and is just a ping or phone call away.” No matter what you choose to end with, it should reflect you and your personality.
If you need a little help to get started, here are two different samples:
Sally Smith is a CPA and a Senior Accountant at ABC Company, a full-service tax and bookkeeping firm in Home Town, USA.
John Jones joined ABC Company in 2000. In his current role, he is a seasoned tax preparer with a focus on international taxes. This involves staying up-to-date with current and future tax regulations for foreigners living and working in the United States and abroad, as well as state tax regulations in California and Florida.
Writing an accountant bio that will stand out from the crowd will take a bit of time, but it is well worth it. You want to present yourself in the best possible light to your audience. When you do this, you’ll get more traction and, in turn, more business.
Disclaimer
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
Open an HSA account. When you have one of these, it will help you pay for expenses that your health insurance plan doesn’t cover. If you’re enrolled in a high-deductible insurance plan, you and possibly your employer can contribute pre-tax dollars into this account, from which you’ll use funds you’ve stocked away for qualified medical expenses. Whatever money you don’t use will roll over to the next year, unlike FSA accounts.
Consolidate debt. Why pay a bunch of different interest rates on all your credit cards? If you have debt, find one card with a very low-interest rate and do a balance transfer. Some credit cards offer 0 percent APR as an introductory rate, which will be a big savings to get a jumpstart on becoming debt-free. Here are a few good ones: Bank of America® Travel Rewards Credit Card now offers 0 percent APR for 18 months. Discover it® Cash Back offers 0 percent APR for 15 months. Find other great deals here.
Cut how much you pay on car insurance. Have you shopped around lately? We know this might seem like a pain, as it takes a lot of time, but here’s some good news, and it’s called The Zebra. This amazing site has done all the heavy lifting for you. Here, you’ll find dozens of real-time comparisons from many trusted companies.
Max out your 401K. This year, the maximum yearly contribution limit has been raised by $200 to $22,500 (up from $20,500 in 2022). Even better, if you’re over 50, you can set aside catch-up contributions of $7,500, allowing a total contribution of up to $30,000. This allowance lets older workers add as much as they can so that when they retire, they’ll be in a better financial situation.
Update your W-4. No one likes a shock when it comes to paying taxes. That’s why this is such a smart idea. And the IRS actually has a tool that can help you: The Tax Withholding Estimator. Go here to find out if your employer is taking enough money out for taxes. If you’re falling short, you’ll know. Better to learn and fix this before it’s too late.
Create a net worth statement. When you have a realistic idea of your assets and liabilities, you’ll be able to see whether or not you’re on the right track with retirement. This way, you’ll be able to set up new goals for yourself if you feel you need to.
Keeping up with your finances, while time-consuming, really pays off. If you try one (or all) of these hacks, you’ll be better off in no time.
In light of our current economy, making sure your money works hard for you is one of the best things to do this year. Here are some ways you can navigate your financial situation, keep tabs on where you are, and adjust if you need to.
Shop for a higher return on savings. These days, every extra cent counts. That’s why it pays to look around for higher rates on savings accounts. Several places to check out are PNC (4.65 percent APY), Sofi (up to 4.4 percent APY), and American Express (4 percent APY). Here are a few others. Rates may increase even more with the Federal Reserve’s rate hike announcement on July 27.
Open an HSA account. When you have one of these, it will help you pay for expenses that your health insurance plan doesn’t cover. If you’re enrolled in a high-deductible insurance plan, you and possibly your employer can contribute pre-tax dollars into this account, from which you’ll use funds you’ve stocked away for qualified medical expenses. Whatever money you don’t use will roll over to the next year, unlike FSA accounts.
Consolidate debt. Why pay a bunch of different interest rates on all your credit cards? If you have debt, find one card with a very low-interest rate and do a balance transfer. Some credit cards offer 0 percent APR as an introductory rate, which will be a big savings to get a jumpstart on becoming debt-free. Here are a few good ones: Bank of America® Travel Rewards Credit Card now offers 0 percent APR for 18 months. Discover it® Cash Back offers 0 percent APR for 15 months. Find other great deals here.
Cut how much you pay on car insurance. Have you shopped around lately? We know this might seem like a pain, as it takes a lot of time, but here’s some good news, and it’s called The Zebra. This amazing site has done all the heavy lifting for you. Here, you’ll find dozens of real-time comparisons from many trusted companies.
Max out your 401K. This year, the maximum yearly contribution limit has been raised by $200 to $22,500 (up from $20,500 in 2022). Even better, if you’re over 50, you can set aside catch-up contributions of $7,500, allowing a total contribution of up to $30,000. This allowance lets older workers add as much as they can so that when they retire, they’ll be in a better financial situation.
Update your W-4. No one likes a shock when it comes to paying taxes. That’s why this is such a smart idea. And the IRS actually has a tool that can help you: The Tax Withholding Estimator. Go here to find out if your employer is taking enough money out for taxes. If you’re falling short, you’ll know. Better to learn and fix this before it’s too late.
Create a net worth statement. When you have a realistic idea of your assets and liabilities, you’ll be able to see whether or not you’re on the right track with retirement. This way, you’ll be able to set up new goals for yourself if you feel you need to.
Keeping up with your finances, while time-consuming, really pays off. If you try one (or all) of these hacks, you’ll be better off in no time.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
Do you have to travel in July? What about August? Are the fall and December holidays out of the question? If you aren’t stuck on a certain time of year, you’ll realize some significant savings. Also, must you leave town on a Friday? What about a Tuesday or Thursday? Choosing to fly on weekdays can dramatically change the price of your ticket. Plus, flights can be less crowded.
Create a budget – and Stick To It
While this is a challenge, it’s not impossible. That’s why it’s important to think about where you want to go. For example, San Francisco and New York City might be a little on the pricey side. Another thing to consider is how long you want to be away. If you’re thinking about a two-week-long vacation, you might want to be a little stricter with how much you spend each day. That said, don’t be too strict! The whole idea of a holiday escape is to kick back and dive into the culture of a new place.
Choose a Budget-Friendly Destination
As mentioned above, choosing a vacation destination that won’t break the bank is a strategic way to cut costs. Southeast Asia and South America are great places to start. If you’ve decided you must go to Europe, you might want to stay away from the Scandinavian countries. Although they’re crazy beautiful, they have some of the highest cost of living index scores. One way to get ahead of what you might spend is to check out cost of living sites, where you’ll find current stats, estimates, and calculations of how much you might spend each day.
Don’t Overpack
While it’s probably irresistible to overpack (I want to have choices!), if you can travel light, you’ll save on bag fees big time. Even better, if you can limit what you’re taking to just a carry-on, you’ll really avoid those pesky charges, plus it’ll give you the ability to breeze on and off the plane in no time. In terms of what you bring, this also requires some forethought. While packing multiple bathing suits and shorts (if you’re going somewhere tropical) is fun, these fashionable items might be taking the place of necessary gear like a raincoat, a warm hoodie or even a sweater. So take a breath, think through your days, and get packing – judiciously, that is.
Find Free Activities
Before you head out on your adventure, let your fingers do the walking over to your favorite search engine and get going. Search “free stuff to do” (or the like) at your intended destination. You’ll find things like free museums, parks, gardens, and festivals. Then let your feet do the walking! Getting outside, weather permitting, and strolling is one of the best ways to soak in a city.
When you can stay on budget and have a fabulous time with family and friends, you’ll not only come back with amazing memories; you’ll also return without a lot of debt. And that’s a fantastic feeling that will stick with you for a good while.
The thrill of summer travel is always invigorating, but the prices to get there can be a real bummer. But not to fear. We’re here with some smart tips that will help you navigate in this price jungle and have a wonderful, memory-filled getaway.
Plan Way Ahead
Even though you can sometimes find great deals at the last minute, if you can wrap your head around thinking in advance about your vacay (especially if you’re buying long-haul flights), it’ll pay off. For instance, if you’re traveling to Europe or Asia, you’ll find that buying your tickets early not only provides significant savings but also gives you a jump start on exploring other aspects of your trip, like hotels and excursions. Some helpful sites for comparing prices are Expedia, Kayak, and Priceline. Check these when planning so you can snag the best deals.
Be Flexible
Do you have to travel in July? What about August? Are the fall and December holidays out of the question? If you aren’t stuck on a certain time of year, you’ll realize some significant savings. Also, must you leave town on a Friday? What about a Tuesday or Thursday? Choosing to fly on weekdays can dramatically change the price of your ticket. Plus, flights can be less crowded.
Create a budget – and Stick To It
While this is a challenge, it’s not impossible. That’s why it’s important to think about where you want to go. For example, San Francisco and New York City might be a little on the pricey side. Another thing to consider is how long you want to be away. If you’re thinking about a two-week-long vacation, you might want to be a little stricter with how much you spend each day. That said, don’t be too strict! The whole idea of a holiday escape is to kick back and dive into the culture of a new place.
Choose a Budget-Friendly Destination
As mentioned above, choosing a vacation destination that won’t break the bank is a strategic way to cut costs. Southeast Asia and South America are great places to start. If you’ve decided you must go to Europe, you might want to stay away from the Scandinavian countries. Although they’re crazy beautiful, they have some of the highest cost of living index scores. One way to get ahead of what you might spend is to check out cost of living sites, where you’ll find current stats, estimates, and calculations of how much you might spend each day.
Don’t Overpack
While it’s probably irresistible to overpack (I want to have choices!), if you can travel light, you’ll save on bag fees big time. Even better, if you can limit what you’re taking to just a carry-on, you’ll really avoid those pesky charges, plus it’ll give you the ability to breeze on and off the plane in no time. In terms of what you bring, this also requires some forethought. While packing multiple bathing suits and shorts (if you’re going somewhere tropical) is fun, these fashionable items might be taking the place of necessary gear like a raincoat, a warm hoodie or even a sweater. So take a breath, think through your days, and get packing – judiciously, that is.
Find Free Activities
Before you head out on your adventure, let your fingers do the walking over to your favorite search engine and get going. Search “free stuff to do” (or the like) at your intended destination. You’ll find things like free museums, parks, gardens, and festivals. Then let your feet do the walking! Getting outside, weather permitting, and strolling is one of the best ways to soak in a city.
When you can stay on budget and have a fabulous time with family and friends, you’ll not only come back with amazing memories; you’ll also return without a lot of debt. And that’s a fantastic feeling that will stick with you for a good while.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
Inquire at your public library for free events and activities. Check out your local zoo and botanical gardens for free admission days. Go online to your local parks and recreation centers – many plan free, outdoor things to do. All you have to do is dig around a little!
Freeze Your Gym Membership
Chances are you’ll be spending a lot more time outside this summer, some of which might be working out. So why pay for a gym membership if you’re not using it? Instead of paying a hefty cancellation fee or initiation fee to rejoin, ask if you can freeze your membership for the summer. You might be charged a small fee, but in comparison to your monthly or yearly dues, you could save a lot. Plus, exercising outside is good for you.
Turn Down Your Air Conditioner When Away
After you’ve been out in the heat, coming home to an icy home undoubtedly feels great. But what doesn’t feel so great is looking at your A/C bill every month. You could turn down your A/C to a tolerable temp when you leave, then, of course, turn it up when you return. Or, you can get a programmable thermostat that will automatically adjust while you’re away. According to the U.S. Department of Energy, one of these devices can save you as much as 10 percent on heating and cooling costs.
Unplug Electronics When You Leave for Vacation
Before you head out for your summer adventure, make sure to unplug everything from your entertainment system – cable box, TV and speakers – to your small kitchen appliances like your toaster and coffee maker. These devices still consume energy when they’re plugged in. If you want to expedite this, get a power strip. With just one or two flips, you can save up to 5 percent on your energy bill.
These are just a few little things you can do to shave costs, but over time, they can add up to substantial savings. They’ll also help remove the stress that lack of money can cause. You deserve to have a relaxing, worry-free summer!
Summer is here, and so are all the activities. But as we know, these activities cost money. Here are a few ways you can still have fun and, while doing so, save some cash.
Look at Your Calendar
Summer months are filled with holidays, birthdays, cookouts, weddings – the list goes on. Take a look and make an estimate of how much you want to spend on each event. When you can plan ahead and figure out your budget, you won’t be faced with surprise expenditures at the last minute. Nobody likes that.
Go on a Spending Cleanse
We’re not talking for months on end – just a few weeks. During this time, make a point to spend only on necessities. It will force you to take a look at what you want versus what you need. The money that you might have otherwise spent on wants can go into a slush fund for future summer events.
Check Out Money-Saving Sites
If you want to go to an amusement park or, say, the movies, you know how quickly this can add up. Go to Groupon or LivingSocial for some serious price-slashing coupons. Other resources to check out are AAA or AARP. For instance, AAA members get up to 30 percent off tickets to Six Flags.
Take Advantage of Free Entertainment
Inquire at your public library for free events and activities. Check out your local zoo and botanical gardens for free admission days. Go online to your local parks and recreation centers – many plan free, outdoor things to do. All you have to do is dig around a little!
Freeze Your Gym Membership
Chances are you’ll be spending a lot more time outside this summer, some of which might be working out. So why pay for a gym membership if you’re not using it? Instead of paying a hefty cancellation fee or initiation fee to rejoin, ask if you can freeze your membership for the summer. You might be charged a small fee, but in comparison to your monthly or yearly dues, you could save a lot. Plus, exercising outside is good for you.
Turn Down Your Air Conditioner When Away
After you’ve been out in the heat, coming home to an icy home undoubtedly feels great. But what doesn’t feel so great is looking at your A/C bill every month. You could turn down your A/C to a tolerable temp when you leave, then, of course, turn it up when you return. Or, you can get a programmable thermostat that will automatically adjust while you’re away. According to the U.S. Department of Energy, one of these devices can save you as much as 10 percent on heating and cooling costs.
Unplug Electronics When You Leave for Vacation
Before you head out for your summer adventure, make sure to unplug everything from your entertainment system – cable box, TV and speakers – to your small kitchen appliances like your toaster and coffee maker. These devices still consume energy when they’re plugged in. If you want to expedite this, get a power strip. With just one or two flips, you can save up to 5 percent on your energy bill.
These are just a few little things you can do to shave costs, but over time, they can add up to substantial savings. They’ll also help remove the stress that lack of money can cause. You deserve to have a relaxing, worry-free summer!
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
Do you have stacks of old tax returns, bill stubs, and old ATM and bank deposit receipts collecting dust inside your filing cabinet? If so, spring is a good time to go through and shred them. For instance, you can toss tax returns after 10 years and ATM and bank receipts after just one year. If you don’t have a shredder, check to see if and when your city holds free shredding days. And don’t forget about your computer, external drives, and mobile devices that also might be getting full. A great resource to securely delete your personal documents is Eraser, a free software program for PCs. Last but not least, clean out your phone. Take a few minutes to delete any unused apps. Digital spring cleaning is always a great idea.
Review Recurring Charges
Do you really need that magazine subscription? How about the channel you bought to watch a show but forgot to cancel? These are the kinds of small charges that can really add up — and cost you over time. Take a look at your credit card statements, give them a good once over, highlight the ones that can go, and then start the process of canceling. If you want to help streamline this process, check out free apps like Rocket Money and Trim. It’ll feel so good when you’re finished.
Budget for Home Improvement Projects
During May, especially Memorial Day, you can find big discounts on materials for all those projects around the house you want to dive into this summer. It’s best not to wait because prices can climb in June and July. If you’re thinking of bigger projects like putting in a deck or repairing your roof, you might need help. That’s why buying the materials in May could help you stretch your budget when it’s time to hire people to do the work. Even if you aren’t 100 percent ready to get started, you can still measure how much decking or roofing you’ll need and take advantage of holiday sales.
Whether you’re saving up, cleaning up or clearing out, May is a great month to take stock of your finances. Who knows? It might put a little spring in your step.
Now that spring is here, it might be a great time to give your finances a fresh look. Here are a few key items to put on your May to-do list.
Say Bye-Bye to PMI
If you bought your home for less than 20 percent down, there’s a good chance you’ve been paying private mortgage insurance (aka PMI) on your loan, which is usually an extra 1 percent of what you paid. But here’s the good news: the rise in home prices over the past few years has meant one thing — a bump in your home equity. If your equity position is now at least 20 percent of the original purchase price, you might not have to keep paying your PMI. All you need to do is contact the company that services your mortgage and check things out. You might have to pay several hundred dollars for a new appraisal, but when you compare it to the thousands you could save in a year, it’s well worth it.
Take Advantage of 529 Day
That would be May 29, a day that has been reserved to remind parents of future college students to start saving in a tax-advantaged 529 savings account. Here’s how it works: whatever amount you put in it grows tax-free. And better still, you won’t pay any taxes on withdrawals used to pay for qualified college expenses. You can also use up to $10,000 tax-free for qualified K-12 expenses. How sweet is that?
Get Rid of Unnecessary Financial Documents
Do you have stacks of old tax returns, bill stubs, and old ATM and bank deposit receipts collecting dust inside your filing cabinet? If so, spring is a good time to go through and shred them. For instance, you can toss tax returns after 10 years and ATM and bank receipts after just one year. If you don’t have a shredder, check to see if and when your city holds free shredding days. And don’t forget about your computer, external drives, and mobile devices that also might be getting full. A great resource to securely delete your personal documents is Eraser, a free software program for PCs. Last but not least, clean out your phone. Take a few minutes to delete any unused apps. Digital spring cleaning is always a great idea.
Review Recurring Charges
Do you really need that magazine subscription? How about the channel you bought to watch a show but forgot to cancel? These are the kinds of small charges that can really add up — and cost you over time. Take a look at your credit card statements, give them a good once over, highlight the ones that can go, and then start the process of canceling. If you want to help streamline this process, check out free apps like Rocket Money and Trim. It’ll feel so good when you’re finished.
Budget for Home Improvement Projects
During May, especially Memorial Day, you can find big discounts on materials for all those projects around the house you want to dive into this summer. It’s best not to wait because prices can climb in June and July. If you’re thinking of bigger projects like putting in a deck or repairing your roof, you might need help. That’s why buying the materials in May could help you stretch your budget when it’s time to hire people to do the work. Even if you aren’t 100 percent ready to get started, you can still measure how much decking or roofing you’ll need and take advantage of holiday sales.
Whether you’re saving up, cleaning up or clearing out, May is a great month to take stock of your finances. Who knows? It might put a little spring in your step.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
Good news: eligibility rules for claiming your home office deduction has been loosened, so for small business owners, this is huge. And the rules apply even when you don’t have clients visit you in your office space. Here’s what you can write off:
Rent or mortgage interest
Utilities
Insurance
Repairs or maintenance
Depreciation
Housekeeping
Note: The percentage of these costs that are deductible is based on the square footage of your office within the context of the total area in your home.
Provide Dependent Taxpayer IDs
Don’t forget to enter Taxpayer Identification Numbers (usually Social Security numbers) for your children or other dependents. If you fail to do this, the IRS will deny you important credits, such as the Child Tax Credit, that might rightfully be yours. However, you’ll want to be careful if you’re divorced. Only one of you can claim your kids as dependents. If you and your ex both claim your child, your return process will be detoured, and they’ll contact you for more information. If you’re a new parent, get your child’s Social Security card as soon as possible so you’ll have it ready at tax time.
Consult a Professional
If you need help or your numbers aren’t where you’d like them to be, get in touch with your trusted tax specialist. You might be missing some critical info in your return that could help lower your tax obligation.
Taxes are a necessary part of life in the United States, so make sure you have all the right tools when diving in. When you’re well-equipped, chances are this process won’t be as much of a chore.
It’s that time of year again: tax time. And while many of your money-saving options might be limited after Dec. 31, you can still do a lot to help lower your taxes, save money, and avoid penalties. Here’s a quick snapshot.
Contribute to Your Retirement Accounts
Yes, doing this will help lower your tax bill. So, if you haven’t already maxed out your contribution for 2022, you can still do so up until April 18 for a traditional IRA (deductible or not) and a Roth IRA. If you have a Keogh or Simplified Employment Pension Plan (SEP), you can apply for a tax filing extension until Oct. 16; however, it’s best not to wait that long to contribute to those plans so you begin tax-free compounding. Plus, when you make a deductible contribution, your money will compound tax deferred. For instance, if you put away $5,000 a year for 20 years with an annual return of 8 percent, your $100,000 in contributions will grow to more than $250,000. Do you see these numbers? Gotta love this.
Itemize Your Deductions
While taking the standard deduction is much easier, you could save a boatload when you do this, especially if you’re self-employed, own a home, or live in a high-tax area. Here are a couple of ways to figure out if this option is right for you.
When your qualified expenses add up to more than the 2022 standard deduction of $12,950 if you’re single and $25,900 if you’re married.
If the portion of your medical expenses exceeds 7.5 percent of your 2022 adjusted gross income.
Take that Home Office Deduction
Good news: eligibility rules for claiming your home office deduction has been loosened, so for small business owners, this is huge. And the rules apply even when you don’t have clients visit you in your office space. Here’s what you can write off:
Rent or mortgage interest
Utilities
Insurance
Repairs or maintenance
Depreciation
Housekeeping
Note: The percentage of these costs that are deductible is based on the square footage of your office within the context of the total area in your home.
Provide Dependent Taxpayer IDs
Don’t forget to enter Taxpayer Identification Numbers (usually Social Security numbers) for your children or other dependents. If you fail to do this, the IRS will deny you important credits, such as the Child Tax Credit, that might rightfully be yours. However, you’ll want to be careful if you’re divorced. Only one of you can claim your kids as dependents. If you and your ex both claim your child, your return process will be detoured, and they’ll contact you for more information. If you’re a new parent, get your child’s Social Security card as soon as possible so you’ll have it ready at tax time.
Consult a Professional
If you need help or your numbers aren’t where you’d like them to be, get in touch with your trusted tax specialist. You might be missing some critical info in your return that could help lower your tax obligation.
Taxes are a necessary part of life in the United States, so make sure you have all the right tools when diving in. When you’re well-equipped, chances are this process won’t be as much of a chore.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
You don’t go on a trip without a guide. Starting a business is no different. In your roadmap – or business plan – you’ll want to generate a comprehensive picture of your business, which includes everything from an executive summary and market analysis to a mission statement and financial plan. Other items to include are a marketing plan and an exit strategy. When your business plan is complete, you can share it with potential investors and banks. Here’s a free simple business plan template you can use as a blueprint.
Choose Your Structure
Will you be an LLC (Limited Liability Company), LLP (Limited Liability Partnership), Sole Proprietorship or corporation? There are pros and cons to all of these. In addition, you’ll want to name your business, come up with your DBA (Doing Business As). Then, you’ll register your business, apply for an EIN (Employee Identification Number), and get the right licenses and permits.
Organize Your Finances
Open a business bank account – you’ll need your EIN when you do this. If you sell a product, you’ll need either a bookkeeper or good accounting software. Then determine your break-even point. What are your startup costs? What kind of supplies or professional services will you need? Will you operate out of your garage or rent a space? Here’s the equation to follow: Break-Even Point = Fixed Cost/Contribution Margin.
Fund Your Business
Knowing your break-even point, how will you fund your business? Do you have money saved? Do you have credit cards to use? Do you have cash from friends and family? Small business loans, grants and lines of credit, angel investors, venture capitalists, and crowdfunding are other solid avenues you can explore. Finally, consider buying business insurance to make sure that if something goes wrong, you’re covered.
Market Your Company
After you’ve acquired all the right tools, like accounting software, email hosting, and a credit card processor, you can hang a shingle and get the word out that you’re open for business. Bobby’s Bagels is now serving! You’ll need a website that explains everything you offer, as well as an e-commerce component. Then you’ll want to optimize your site for SEO and create content that is relevant for your target audience. The last step is creating a social media strategy.
All of these steps are high-level. When you’re in the process of gathering everything you need, other details will emerge. Starting a business might be hard work, but it will allow you to become your own boss and, best of all, realize your dream. Remember, you’ll never work a day in your life if you love what you do.
The idea of starting your own business is inherently romantic, if not exhilarating: You get to run the show, flesh out your ideas and live your dream. But where do you begin? Here are seven smart steps to get you started – and help improve your chances of success.
Come Up With a Concept
What’s your idea? Is it profitable and something you’re passionate about? Would others consider you an expert in this area and seek your advice? What kind of funding do you have? Will you partner with someone or go solo? When you can determine all of these things, then you’ll be off and running.
Know Your Competition and Market
Do your research. Learn about the industry you’re entering. Who are the leaders, and what is their USP – Unique Selling Proposition? Then figure out what yours is. Next, get to know your target customers with questionnaires, surveys, and interviews. Find out what they want. You might also conduct a SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats. After you synthesize and analyze all this data, you’ll have a clear picture of how your business will take shape.
Create a Road Map
You don’t go on a trip without a guide. Starting a business is no different. In your roadmap – or business plan – you’ll want to generate a comprehensive picture of your business, which includes everything from an executive summary and market analysis to a mission statement and financial plan. Other items to include are a marketing plan and an exit strategy. When your business plan is complete, you can share it with potential investors and banks. Here’s a free simple business plan template you can use as a blueprint.
Choose Your Structure
Will you be an LLC (Limited Liability Company), LLP (Limited Liability Partnership), Sole Proprietorship or corporation? There are pros and cons to all of these. In addition, you’ll want to name your business, come up with your DBA (Doing Business As). Then, you’ll register your business, apply for an EIN (Employee Identification Number), and get the right licenses and permits.
Organize Your Finances
Open a business bank account – you’ll need your EIN when you do this. If you sell a product, you’ll need either a bookkeeper or good accounting software. Then determine your break-even point. What are your startup costs? What kind of supplies or professional services will you need? Will you operate out of your garage or rent a space? Here’s the equation to follow: Break-Even Point = Fixed Cost/Contribution Margin.
Fund Your Business
Knowing your break-even point, how will you fund your business? Do you have money saved? Do you have credit cards to use? Do you have cash from friends and family? Small business loans, grants and lines of credit, angel investors, venture capitalists, and crowdfunding are other solid avenues you can explore. Finally, consider buying business insurance to make sure that if something goes wrong, you’re covered.
Market Your Company
After you’ve acquired all the right tools, like accounting software, email hosting, and a credit card processor, you can hang a shingle and get the word out that you’re open for business. Bobby’s Bagels is now serving! You’ll need a website that explains everything you offer, as well as an e-commerce component. Then you’ll want to optimize your site for SEO and create content that is relevant for your target audience. The last step is creating a social media strategy.
All of these steps are high-level. When you’re in the process of gathering everything you need, other details will emerge. Starting a business might be hard work, but it will allow you to become your own boss and, best of all, realize your dream. Remember, you’ll never work a day in your life if you love what you do.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
That would be “budget.” Jesse Mecham, founder of the app You Need a Budget aka YNAB, has a good explanation about why this is so. He says that this very term (budget) is among the reasons that people don’t follow through with setting one – and sticking with it. He says that generally, people think it means restriction, deprivation, or diet. What you need, he says, is a shift in perspective. If you think about a budget being a plan for intentional spending, no matter what year it is, you always want to be intentional. Makes good sense, right?
Some Budgets Might Even Cause Harm
Dana Miranda, founder of the “budget-free” financial ed website Healthy Rich, believes that budgets can do more harm than good. She says that people inevitably feel like they’re failing and aim for a fresh start at the beginning of the year, but no amount of recommitting to budgeting can make the realities of your life fit into the unrealistic restriction of a budget. Miranda says when people are stressed about money, they budget. When they succeed, it’s great. But when they fail, they feel like a failure and, consequently, are even more stressed, much like dieting.
Alternatives to Budgeting
Here are three other ways to get a handle on your finances in the New Year.
Track Your Goals
We’re not talking about counting every dollar but focusing on goals. Instead of not overspending, eating out less, or avoiding online shopping, find areas in your budget that can help you accomplish your goals – one at a time. For instance, if you want to save for college for your kids, buy an investment property, or create a vacation fund, set up a tracker with a defined timeline and work toward that. It’s easier to narrowly focus on one important goal than on everything all at once.
Create an Annual Budget
This is in contrast to a monthly budget. This helps you accommodate for variables – life stuff – that inevitably come your way and knock you off course. According to Harris, take time to map out monthly costs, travel plans, and home renovations, along with any one-time and variable recurring costs. The bills you pay regularly are easy to anticipate; it’s the ones you don’t that will throw you a curveball.
Look at Your Relationship With Money
Ask yourself things like:
Do I find joy in the way I make money?
Are the commitments I made (like a monthly savings amount) still working for me?
Am I achieving what I want?
Am I at peace with the way I spend?
Harris says self-awareness found through journaling, meditation, yoga, and prayer are great ways to harness conscious spending. They contribute, she says, to helping you become more intentional with the way you spend.
No one is perfect. Everyone makes mistakes. However, with a few helpful hints like these, you can get better and better every day.
Why You Might Not Need a New Budget for the New Year
February 1, 2023 · Blog, Tip of the Month
⏱ 4 min read
So, we’re a month into 2023, and the sheen might’ve dulled from all your shiny New Year’s resolutions. Though diet and exercise are the top things you might want to change, there’s one you might not need to touch – your budget. Here’s a discussion about who does and doesn’t need to revamp their finances.
Who Needs a New Budget?
Budgets are always a good idea. They help you save money and pay off debt. But only a few folks need to create a new one. According to Annette Harris, founder of Harris Financial Coaching, you need a new budget if you are:
Unable to keep up with expenses
Falling behind on debt payments
Borrowing money from others
Relying on credit cards
Using payday lenders
But on the flipside, some positive life events may also call for a fresh look at your budget:
Buying a house
Planning home improvements
Sending a child to college
Now, if you’re debt-free, saving, and investing, then a new budget probably won’t provide much value. Further, Harris says that if you don’t have children that you’re putting through college, don’t have any upcoming big purchases, continue to spend wisely and build your net worth, don’t bother changing what you’re already doing. In other words, of it’s not broke, don’t fix it.
The Stigma Around the ‘B’ Word
That would be “budget.” Jesse Mecham, founder of the app You Need a Budget aka YNAB, has a good explanation about why this is so. He says that this very term (budget) is among the reasons that people don’t follow through with setting one – and sticking with it. He says that generally, people think it means restriction, deprivation, or diet. What you need, he says, is a shift in perspective. If you think about a budget being a plan for intentional spending, no matter what year it is, you always want to be intentional. Makes good sense, right?
Some Budgets Might Even Cause Harm
Dana Miranda, founder of the “budget-free” financial ed website Healthy Rich, believes that budgets can do more harm than good. She says that people inevitably feel like they’re failing and aim for a fresh start at the beginning of the year, but no amount of recommitting to budgeting can make the realities of your life fit into the unrealistic restriction of a budget. Miranda says when people are stressed about money, they budget. When they succeed, it’s great. But when they fail, they feel like a failure and, consequently, are even more stressed, much like dieting.
Alternatives to Budgeting
Here are three other ways to get a handle on your finances in the New Year.
Track Your Goals
We’re not talking about counting every dollar but focusing on goals. Instead of not overspending, eating out less, or avoiding online shopping, find areas in your budget that can help you accomplish your goals – one at a time. For instance, if you want to save for college for your kids, buy an investment property, or create a vacation fund, set up a tracker with a defined timeline and work toward that. It’s easier to narrowly focus on one important goal than on everything all at once.
Create an Annual Budget
This is in contrast to a monthly budget. This helps you accommodate for variables – life stuff – that inevitably come your way and knock you off course. According to Harris, take time to map out monthly costs, travel plans, and home renovations, along with any one-time and variable recurring costs. The bills you pay regularly are easy to anticipate; it’s the ones you don’t that will throw you a curveball.
Look at Your Relationship With Money
Ask yourself things like:
Do I find joy in the way I make money?
Are the commitments I made (like a monthly savings amount) still working for me?
Am I achieving what I want?
Am I at peace with the way I spend?
Harris says self-awareness found through journaling, meditation, yoga, and prayer are great ways to harness conscious spending. They contribute, she says, to helping you become more intentional with the way you spend.
No one is perfect. Everyone makes mistakes. However, with a few helpful hints like these, you can get better and better every day.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
Next year, something called Peak 65 is happening. This moniker refers to the fact that more Americans will reach the traditional retirement age of 65 in the same year than at any time in history. Crazy, right? However, many of these people don’t feel like they’ve saved enough to live comfortably after they retire. Here are some ways to maximize your savings and cut costs so you can be prepared and retire with less financial worry.
