Kenneth Boyd's Blog, page 58

Short-Term Mortgage or a Long-Term Mortgage? What Makes Sense?

Your decision about a home mortgage may be the most important financial decision you will ever make.

For most borrowers, a mortgage is the largest amount of money they will borrow, and the interest rate and repayment terms of the note have a huge financial impact. Use these tips to decide on a long-term or a short-term home mortgage loan.

Here’s the critical issue:

A loan with a longer repayment date will require more total interest payments over the life of the loan. On the other hand, if you take out a mortgage that is too short-term, you may struggle to make the payments every month.

So, what to do?

The Short-Term Option

Choosing a shorter mortgage can make sense, but it depends on your financial situation.

Can you afford to make the higher monthly principal and interest payments, given your monthly income and expenses? In addition, you need to consider your career situation, because you’ll need a steady amount of income to make the mortgage payments.

A great personal finance book I highly recommend. Click below:

 

If you were to lose your job, you would not be able to afford the payments- and you wouldn’t be able to qualify for refinancing, either. This can put you in some serious financial trouble, so you want to think about how a higher mortgage payment will impact your goals for the future.

If you want to have your mortgage paid off so that you can leave something to your kids, you should look into a living trust law firm, as they will be able to work with you to make sure that you are making the best decision to facilitate this goal. By planning now, you can help to ensure the best results for the future.

Does Long-Term Make Sense?

Extending your mortgage or taking out a mortgage over a longer period of time does give you more room to save up some money, and you may even qualify for some tax benefits. If you’re comfortable paying off your home after retirement, a longer mortgage may make sense. Remember that you also have the option of paying it off sooner, if you’d like.

Get free sample chapters from my book: Not Another Personal Finance Book.

Taking out a longer mortgage may make sense if you are younger, or if you are buying your first house. Your life may change a lot over the next few years, and you may find that you are able to earn a higher income sooner than you’d think. You can use the higher income to pay down your existing mortgage loan at a faster rate, or to refinance your loan to a shorter term.

Need a Budget?

Regardless of which type of mortgage you choose, it’s critically important to create a monthly budget and stick by it. Take a look at your bank statements and credit card activity for the past three months, and use the information to create a personal budget. You can use a mobile app, or simply write down spending categories on a sheet of paper.

Your budget should include each spending category, and average dollar amount you’ve spent over the last three months. Some categories, such as your mortgage and car payment, will be fixed amounts, while meals and entertainment expenses will be variable.

Take a close look at your variable expenses and make some cuts. Maybe you go out to dinner once a month, rather than three times, or your start making coffee at home a few days a week, instead of Starbucks. Use your expense cuts to fund a savings account that you can use for emergencies.

With proper planning, you can stick to a monthly budget and find the right mortgage for your needs.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

 

 

 

The post Short-Term Mortgage or a Long-Term Mortgage? What Makes Sense? appeared first on Accounting Accidentally.

Personal Finance For Kids

Teaching your kids about money is one of the key responsibilities of a parent.

Creating good habits now will help them understand money and successfully manage “adult” financial issues for real. It’s never too early to get started, so read on to find out what you can do as a parent.

Start with Toys

 

First of all, you should find toys for your kids that will get them used to the concept of money and how it is used. Find toys that involve play, but also show how much is used and spent- a cash register, for example. This is something kids can interact with at an early age, so you can get them started on the right foot.

 

Piggy Banks?

 

Aside from the toys we mentioned above, you also need to find your child an adorable DIY piggy bank. This is when your child begins the transition from having pretend money to real money that they keep in their piggy bank. It’s a small item, but it might turn out to be one of the most important things that you ever give to your child when they’re young.

A great personal finance book I highly recommend. Click below:

 

Pocket Money

 

When they’re old enough to handle the responsibility, you should give your kids the chance to have some pocket money of their own. This is important, because they will learn about the responsibility that comes with having money, how to save it and what happens when you spend it.

Kids will feel good about having this new responsibility to manage.

When They Run Out

 

If your kids run out of cash after you’ve already given them pocket money, you shouldn’t hesitate to hold firm and wait until they’re next given pocket money. Don’t cave in to their demands for money, because that sends exactly the wrong message about how money should be managed.

Get free sample chapters from my book: Not Another Personal Finance Book.

It can be difficult to hold strong and say no, but sometimes you need to say it as a parent.

Change is hard

The reason that people don’t diet, don’t exercise, and don’t resolve bad personal relationships is that change is hard. As a result, we don’t really, truly change and grow unless we’re in real pain. When we’re at that point, the pain of change is less severe than that pain of not changing.

Kids need to understand this key human trait.

Gratification?

Some decisions are relatively small:

Dropping a subscription music service and just listening to the free version (Pandora, for example).
Making coffee at home two days a week, which means that you stop by Starbucks less often.
Buying afew more generic products when you go to the grocery store and Target. (I’m not going generic on salad dressing, however).

Since these are smaller decisions, the amount of gratification you’re delaying is small. You don’t mind listening the commercials on Pandora (I certainly don’t- I just turned down the sound), and the coffee at home isn’t bad.

Other decisions are much bigger. StudySoup wrote this great article on the average amount of money a college student saves by having a roommate. The average savings over four years is over $15,000. Now, having a roommate is a big sacrifice, because you lose a fair amount of privacy. If privacy is really important to you, it’s a true delay of gratification (until you graduate, get a job and can afford to live alone).

OK- so what do I get out of all this delayed gratification?

You build wealth- which can give you peace of mind. Another key concept that every parent needs to teach a child.

Cause and Effect

Over time, kids can learn about the importance of saving money and what happens when they don’t save it correctly. It’ll be an important lesson for them as they get older, because they’ll understand that spending money will have consequences. It’s a simple lesson in cause and effect, but it’s also a very valuable one.

Teaching your kids how to manage their money properly will help them to eventually get better at it when they’re older. It’s all about setting the right habits in motion from a young age, so that they can become financially capable adults later in life.

So, get started on all this today!

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

The post Personal Finance For Kids appeared first on Accounting Accidentally.

Critical Mistakes Entrepreneurs Can Avoid

Starting your business is exciting.

Having your website created, designing your user experience, setting up your invoice system, and cloud storage are just some of the things that need to be done. And if you’re a brick-and-mortar business, you’ll be in your store fixing up the decor, connecting the cashier systems, and stocking inventory on your shelves.

It feels good to finally open the doors to your very own business, and in the excitement, a few crucial things can easily get overlooked. Here are some critical mistakes that entrepreneurs can avoid.

How Do You Hire?

 

To grow your business successfully, you’ll need a team of dedicated and talented workers. Once you make the decision to hire a staff, keep these points in mind:

Your business needs to have an EIN, or The employer identification number in order to hire staff and correctly pay employee-related taxes. You’ll also held to employer standards, such as workers rights around safety, pay, paid leave, and possibly health insurance.

A great entrepreneur book I highly recommend. Click below:

Employers are required to verify if their workers are eligible to work in the US, and the EIN number is needed to file the proper forms to ensure no laws are being broken. There are also benefits that the employer must fund for workers, such as workers’ compensation insurance.

Work with an attorney to make sure that you comply with employer-related regulations.

What About Taxes?

Business owners must pay taxes as a business and not just as an individual, which is confusing for many people. To comply with federal laws, how do you make sure you’re properly following what the government has set out for a small business?

Get free sample chapters from my book: Not Another Personal Finance Book.

At a minimum, you need to find reliable and current tax software to comply with business tax requirements, so take a look at this 2018 Professional Tax Software Comparison Chart find useful software.

The chart reviews some of the best software out on the market. Each program is different, with varying degrees of usability, costs, and capabilities. A software package can help you keep track of your accounting records, help you to stay organized, and allow you to file your taxes on time.

What Is Effective Management?

When you’re trying to rush out of the gate, in the hopes of beating your rivals and having a fantastic year of bombastic growth, the needs of your staff can be overlooked. Entrepreneurs know they need and want all hands on deck. There’s no rest for the weary and if new clients and customers are going to be won over, then late nights and working weekends needs to become normal for a small enterprise looking to get off the ground.

Remember though, that your employees are only human, and they need rest and time off to remain productive.

Worker conditions are highly important for morale, so don’t overlook this key factor. Design a schedule so that staff may request time off and their absence is managed and accommodated. Determine a specific amount of time off that every employee is entitled to, and how many workers can be off at any one time.

Obviously you don’t want to have too many people off at the same time to keep the business running and optimally performing. However, you don’t want to deny time off to workers when they ask for it. Devising a schedule allows workers to see when they can ask for time off and who is going to be away from the office and for how long.

Stay Informed

Small business can be a hot topic, in terms of laws and legislation, so keep abreast of any news about government policies coming into effect. It’s always better to be one of the first to react to a new change, so you can have a head start on your competition.

Make the Effort

Every business owner is pressed for time, but make these issues a priority for your firm. If you make the effort to address these topics, you’ll avoid problems down the road.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

 

The post Critical Mistakes Entrepreneurs Can Avoid appeared first on Accounting Accidentally.

Best Practices For Money Management

Have you struggled with debt in the past, or are you more relaxed than you should be when it comes to controlling the purse strings?

Are you looking for ways to put more money aside, or do you long for more disposable income?

If you’re eager to get a grip on your finances and improve your situation, you’ve come to the right place! Here are some best practices you can use to improve your personal finances.

What About Debt?

It’s not uncommon to be in debt, but this doesn’t offer much reassurance if you’re struggling to pay bills or wondering how you’re going to make it through to payday.

The first step to improving your financial situation is facing up to debt. There are different types of debt, and often, if you owe money, this isn’t the end of the world. If you have a mortgage or a loan, for example, and you’re paying it off just fine, there’s nothing to worry about. Keep up with the repayment schedule, and you’ll find that your credit score will actually improve.

A great personal finance book I highly recommend. Click below:

Problems arise, however, when you can’t afford to clear debts, and you start to fall behind. If you’ve got final demands sailing through the mailbox, or you’re paying for everything on a credit rather than a debit card, you may find that your debts spiral out of control. If you’re in this situation, the first step is to admit that you have don’t a grip on your finances anymore.

The sooner you can do this, the better. The next step is to seek advice so that you understand what kinds of options are open to you, and you can start prioritizing debts.

Your Lifestyle

In this day and age, it’s very easy to spend more than you earn. Many adults rely on credit to get from one payday to the next. When you have cards in your purse or wallet, you can shop anywhere at any time, and you’re bombarded by special offers and discounts throughout the day, it can be very difficult to live within your means.

Get free sample chapters from my book: Not Another Personal Finance Book.

If you are guilty of overspending, it’s beneficial to adopt a budgeting strategy. If you don’t already make a budget at the start of every month, now is the time to start. Your budget will provide you with information about how much you earn and how much you spend.

If you stick to a budget, this will decrease your risk of overspending, reduce the risk of taking on more debt, and help you to identify areas where you could potentially save. There are templates you can use online, you can download apps, or you can stick to old-fashioned pen and paper and arm yourself with a calculator.

How to Borrow

There comes a time when many of us consider the option of borrowing money. If you need to repair your car, you’re hoping to make some home improvements, you may be exploring your options.

If you do want to take out a loan from a company like Bonsai Finance, it’s crucial to conduct thorough research, compare offers, and make sure you can afford the repayments before you sign on the dotted line. When you have an offer in front of you, check your budget, and then make a decision. If you’re already in debt, or you’re struggling to scrape by, it’s wise to avoid borrowing more money.

Do You Save?

If you’re keen to increase your bank balance, there are ways to do this without taking on an extra job or making dramatic sacrifices. Often, it’s possible to widen the gap between your income and your spending by changing the way you shop and ensuring you get more for your money.

Take the example of insurance. How many policies do you currently have? If you own or rent a property, you might have home or contents insurance or both. If you drive, you probably have car insurance, and if you have a pet, you might also have cover for vet fees. Other popular products include health and dental insurance, and life insurance.

If you have multiple policies, you may well spend a substantial amount of money on insurance every month. When was the last time you shopped around or switched provider? If you’ve been with the same company for years, you could be paying a lot more without even realizing it.

Next time your policies are due for renewal, use online comparison sites to see what other offers are out there. You may be surprised at how much you could save. It’s also worth comparing prices on TV, broadband and mobile phone contracts, and your utilities. If you learn to look for the best deal, this will benefit your balance for years to come.

You can also enjoy savings on household items such as pet food, clothing, and shoes by shopping around for the lowest prices and using discount codes and vouchers.

Take Action

Would you like to have more disposable income, or are you tired of worrying about money? If your bank balance is a cause for concern, there are ways you can improve your financial situation. Start by addressing debt, and don’t be afraid to seek expert help if you feel like you’ve lost control. Learn to budget, try and live within your means, and take great care when borrowing money.

You can also increase your bank balance by getting more for your money. Shop around for the best offers, look for lower prices, and take advantage of Internet sites that enable you to compare prices. If you can get a grip on spending and lower your outflows at the same time, you’ll improve your personal finances.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.

 

 

The post Best Practices For Money Management appeared first on Accounting Accidentally.

How to Protect Your Financial Assets Long Term

To stay on top of your finances, you need to understand money and its risks.

Whether you are running a business, investing in stocks, or buying property, you need have to control your costs and maximize your returns. Here are a few tips on how to get better with finances and secure your family’s financial future.

Become Savvy

It’s nice to splurge every now and then and treat yourself with a vacation. However, if you do it too often, you will not only lose productivity, but also money.

If you find yourself living from one vacation to the next and addicted to cruises, you might want to take a step back and ask yourself whether or not you can really afford all the luxuries. You will need to work hard first, then invest, and you can enjoy the fruit of your investments later.

Planning?

 

Successful people plan ahead. This doesn’t only apply to your personal life, but your business, too.

A great personal finance book I highly recommend. Click below:

If you know that your kids will need to go to college in a few years’ time, you might be better off starting to save up as soon as possible, or help them to get a part time job to cover the costs.

If your old car is on its way out, and you will need to get a new one sooner or later, don’t wait until you run it down completely; start putting money aside now.

How To Budget

Planning your personal finances means that you need a monthly budget. Review your bank statements and credit card activity for the past three months, and create a category for each area of spending.

Label your expenses as either fixed (car payment, apartment lease), or variable (meals and entertainment). Take a hard look at your variable expenses and cut some costs, then use the money to save to fund a savings account.

Why Insurance?

To protect your assets, it is also important that you get adequate insurance. If anything happened to your car, you wouldn’t be able to run your business or get to work. Go through the most probable scenarios and make sure that your car insurance policy covers it.

Get free sample chapters from my book: Not Another Personal Finance Book.

Likewise, protect your health and your family’s with a comprehensive medical insurance, and get a home policy to deal with emergencies.

Legal Advice

It might also be a good idea to have the contact details of various law firms handy. If you suffer an injury or an accident, you will have to contact a personal injury attorney as soon as possible, so you can get the compensation you deserve for the loss or earnings and the medical bills.

Credit Report Decisions

It is also crucial that you adopt a healthy personal finance mindset. You will have to monitor and manage your credit report and keep on top of your accounts, so you can secure finance whenever you decide to grow your company, cover emergency bills, or simply remortgage your home.

There are plenty of books on how to manage your credit rating and make the most out of the financial offers by being a good debtor.

Managing your finances better today will deliver loads of benefits in the future. Invest in your financial education and be prepared for the expected and the unexpected, too.

You got this!

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

The post How to Protect Your Financial Assets Long Term appeared first on Accounting Accidentally.

How to Motivate Yourself to Hit Your Savings Goals

Most of us need to save money.

Whether it’s to pay off debts, to save towards our retirement, for a special event, there are times when we need to save.

But, saving is tough.

Temptation constantly surrounds us. There’s something that we want to buy at every turn, and it can be hard to say no. We’re also often faced with unexpected bills and issues, and there’s nothing worse than saving hard for months, only to find that it’s all gone when the car breaks down or an unexpected home repair bill comes in.

A setback can put you back to square one, and you may find that any motivation that you did have has gone with your hard-saved cash.

Your Mood

Many people find that trying to save can have an adverse effect on their mood and even on their mental health. Staying in all the time, cutting costs, and budgeting carefully can leave you feeling like you are missing out. This can be upsetting, and make it harder than ever to find the motivation to keep saving.

A great personal finance book I highly recommend. Click below:

But, if you want to hit your goals, both determination and motivation are key. Here are some tips to help you to stay motivated to save long-term.

Mindset

Are you the kind of person that only saves for specific things? Spending the rest of your time living paycheck to paycheck, with nothing set aside for a rainy day? Many of us do.

The idea of saving if you are on a low income can be terrifying, and it might seem impossible.

The key is changing your mindset.

Instead of only saving when you need to, get into the habit of saving all of the time. If you can save for a few months before a holiday, what’s stopping you from saving the same amount the rest of the time?

Become a budgeter. Think of yourself as someone who is good with money, who always has something set aside and is financially sensible, and you might find that you soon become that person.

Goals?

Goals can help you to stay on track- and writing them down makes you more likely to stick to them.

Get free sample chapters from my book: Not Another Personal Finance Book.

So, get out some paper and write yourself a list. Think of everything that you’d like to save money for. Include distant plans, like how much you’d like to have set aside for your retirement, as well as things in the much nearer future, like a holiday or shopping for your summer wardrobe.

You might find it easier to separate your goals into long-term and short-term, but make sure you include how much you want to save and any deadlines. Then, display this somewhere that you can see, so you’ve got a constant reminder and something to power you on when you get the urge to spend more than you should.

Is It Manageable?

Big goals are great. But, all added up, the amount you need to save can be overwhelming. So, look at what you’ve got coming up, and calculate a total that you need to save this year.

Then, break it down into weekly savings.

Suddenly, it’s a much smaller amount. Set up a direct debit to transfer that amount into a savings account, then any extra that you can add is a bonus.

Think about the weekly amount. If you need to save $20 a week, what do you currently spend $20 on that you wouldn’t mind doing without? It might be cups of coffee on the way to work or paying for buses instead of walking.

Budget With Ease

Budgeting can seem complicated, because many of us earn different amounts each month, and few of us spend precisely the same week to week. This can make a household budget tricky.

Setting up a simple budgeting spreadsheet can help tremendously.

Sit down and print out your last three bank statements. Look at where you are spending money and include absolutely everything, right down to luxuries and small expenses that you might not think matter. Including so much detail is a lot of work, but it will make things easier to stick to, and less confusing going forward.

Treat Yourself?

Saving is a little bit like dieting. If you are too strict with yourself and deny yourself everything that you enjoy, you will eventually have a massive binge and feel terribly guilty. It’s better to find healthy treats that you enjoy and to let yourself have the odd naughty snack occasionally.

When it comes to budgeting and sticking to it, find treats that don’t cost money or that you can do cheaply. Look for vouchers and discounts online and save as much as you can. Then, now and then, if your budget allows, buy yourself a small treat.

Borrowing Risks

Sometimes, we need to borrow money. While we’d love never to have credit, it may be unavoidable.

If you need to borrow money, you want to read this site to make sure you are borrowing sensibly, in a way that won’t harm your savings plan or credit score.

Remember: it’s essential that you include the loan repayment in your budget, and that you try to pay any debts off as soon as you can.

The Unexpected

Unexpected expenses are frustrating.

So, avoid them. Make sure you save a little extra in your budget each week so that you are always prepared for the unexpected. You might find it easier to keep this money in a separate account.

You got this!

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

The post How to Motivate Yourself to Hit Your Savings Goals appeared first on Accounting Accidentally.

Are Personal Loans A Bad Idea?

Are personal loans always a bad idea?

Many people have this view, because predatory loan practices can harm borrowers who don’t have strong financial management skills. If you’re not careful, a personal loan can leave your with large amounts of interest and potentially lead to further financial difficulty.

With proper planning, however, some personal loan agreements can be a useful option to help you financially. This discussion will help you assess a personal loan, understand the risks involved, and allow you to make an informed decision.

Consider these tips:

Timelines

If you can’t meet the repayment schedule, a personal loan is a bad idea, and will damage your credit rating.

A great personal finance book I highly recommend. Click below:

 

To make an informed decision, create a personal budget, and separate your expenses into fixed (car payment, apartment lease) and variable (meals and entertainment) expenses. Your personal loan repayment must fit into your personal budget plan.

Be mindful that taking a loan is a long-term commitment, so plan for that commitment before you take out the loan.

Your first priority is to plan your loan repayments. Once that plan is in place, you can think about how you’ll use the personal loan dollars. There are dozens of useful financing websites where you can read more about the best terms possible for you.

Why?

Why are you taking out a personal loan?

Use loans to address your most important needs. This might be to help you sustain yourself in an emergency until payday, or to pay for a car repair. Never use a personal loan for an item that is a “want”, rather than a “need”, such as a new television or a brand new top of the line phone. You can do without these items until you can generate the income to pay for them in cash.

Remember, a personal cost comes with a cost. You’ll incur interest expense on the loan, and you’ll damage your credit rating, if you don’t make the payments on time.

Credit History

Repaying loans can be a fantastic means to rebuild credit history, as long as it’s not abused.

Get free sample chapters from my book: Not Another Personal Finance Book.

 

A personal loan, paid back in full and on time, can help build your credit rating, but it should never be the main reason for taking out a loan.

Loans may necessary, if you have a bad credit history and are in need of an emergency cash injection. Personal loan terms are less favorable than a traditional bank loan, in order to offset the higher risk the lender is taking, but paying back the loan can help you slowly build your credit history.

How Often?

Think about the frequency with which you’re taking out loans, and never take out an expensive personal loan to pay off a lower-interest debt. In the long run, you’ll pay a higher amount of total interest.

Remember, loans are not a bad or a good thing, and they should only be used occasionally. Take responsibility and ensure you’re emotionally and mentally calibrated for the burden of a loan before you take it.

Plan Carefully

If you can plan your loan repayments and only borrow money when absolutely necessary, a personal loan may be an option for you.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

 

 

 

The post Are Personal Loans A Bad Idea? appeared first on Accounting Accidentally.

Improving Your Finances – It’s All About The Mindset

 

Financial freedom is something that everyone wants to achieve.

Unfortunately, millions are trapped in a position where even a $500 unplanned expense would spell disaster. Don’t despair- you can transform things for the better.

It all starts with your mindset.

Use the following tips to get things back on track. You’ll be amazed at how quickly the results will start to show.

Remove The Negatives

Focus on the bad habits that you can change. Steering clear of financial banana skins will bring immediate and long-term rewards. Quitting expensive habits in your daily life – such as smoking – can work wonders,  too.

Take a hard look at your variable spending- those costs that you can control, such as meals and entertainment. With some self-discipline and planning, you can cut back on spending and use the money you save to fund a savings account for emergencies.

Removing the negative influences is the easiest and fastest way to start repairing your financial health.

Support?

 

When your finances are in a bad way, it’s easy to feel lost and alone. However, helping hands are out there, but you have to be the one to grab them.

A great personal finance book I highly recommend. Click below:

 

The Ascent by the Motley Fool is an excellent service that can connect you to the best deals. From finding better credit cards to cutting mortgage payments, knowing that the experts have put you on the right track is reassuring.

 

Are You Settling?

Settling is easy. Settling is comfortable.

Unfortunately, settling may prevent you from unlocking your full potential.

This is particularly true when dealing with financial matters. If you want to achieve more, increasing your earnings are the way to do it. If you genuinely believe that you deserve a pay rise, there are ways to talk to your boss about it in a productive manner. Write down a specific plan to justify your reasons for a raise, and rehearse that script before you talk to your boss.

Get free sample chapters from my book: Not Another Personal Finance Book.

Alternatively, the job sites on the web make it easy to find vacancies, so don’t be afraid to put yourself in the running for a new position.

Big Picture

 

Financial freedom isn’t simply about finding ways to see your bank balance increase.

Using investments and pensions to secure your financial freedom is equally essential. Likewise, boosting your credit score is a step that will actively secure better rates on a host of future credit agreements.

A free Annual Credit Report is the perfect way to see where things stand and discover how to change things for the better. Again, positive moves in this area can help you succeed in the long run.

What About Small Items?

While it’s only natural to focus on the most significant changes, you should not ignore the small upgrades that can improve your finances.

Making eco-friendly enhancements to the home, using grocery coupons, and cutting your waste can all help. Likewise, getting organized so that you avoid late payment charges will improve your financial health for many years to come. When supported by some of the bigger items mentioned above, you can see positive outcomes.

These tips won’t suddenly make you a millionaire. Still, with the right mindset, a brighter financial future is within reach.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

Image: Frustration, Jason Bolonski, (CC BY 2.0)

The post Improving Your Finances – It’s All About The Mindset appeared first on Accounting Accidentally.

What a Parking Garage Delay Teaches Us About Entrepreneurship

It’s that last step before the end of a long trip: leaving the airport parking garage.

Recently, a parking garage exit that normally takes 5 minutes lasted nearly an hour. It was frustrating not only to me, but also to dozens of drivers who were held up at the end of their trips.

And the problem was completely avoidable.

Consider how this situation was mishandled, and what it teaches us about growing a business as an entrepreneur.

Communicate the Problem

I was at Lambert Field in St. Louis, my hometown, leaving terminal 1. As I slowed down for the payment booth, I noticed 4 cars in front of me- unusual for late on a weeknight, I thought.

A great business book I highly recommend. Click below:

The terminal 1 exit on the top level has an automated, credit card only booth on the far left, and one ticket booth was being operated by staff. I tried the automated booth, which didn’t have a line- no luck.

After getting back in line, I noticed that the car at the second booth didn’t move for over 5 minutes. The person working the booth would occasionally lean out and speak to the person in the car.

The lesson

If you have a problem that is impacting customers, tell them. People are willing to have some patience (and still do business), if you alert them immediately that something isn’t working, and that you’re trying to resolve the problem.

At the airport, and sign should have been posted- immediately- at the credit card machine explaining that it wasn’t working. The people staffing the ticket booth should have also posted a sign explaining that there was a problem. Why not walk to each car in line to explain that there’s a hold up?

If you care about customers, this step makes common sense. 

Identify the Problem

As it turns out, the parking lot’s computer system has crashed, and cashier’s could process payments. The computer system affected the credit card machine.

Was this the first time that a computer crash happened?

Get free sample chapters from my book: Not Another Personal Finance Book.

It sure seemed like it, because no one seemed to be taking any action. I would have expected a parking lot official to show up to work on the problem. Instead, we sat there for 20 minutes- no one left the ticket booth, no one new showed up, and no one offered an explanation of the problem.

The lesson

Smart businesses of all types operate using a written procedures manual, which documents every routine task. Now, one of those tasks has to be: what do we do when a computer crashes? A tech issue may affect your website, the POS system in your retail store, on your online payment processing system.

What are you going to do when that happens? Who- specifically- will take action? How will you communicate the problem to customer, apologize, and start a process to solve the problem?

Write it down.

Creating and updating a procedures manual will help you get back to business faster, and minimize any loss of customer revenue.

Who Takes Responsibility?

Disgusted, I called the St. Louis Airport Police, who promptly showed up. Now, I may not have been the first person to call, but two officers arrived on the scene. They explained that the computer system had crashed.

Can you imagine if your customers had to call the police to understand your business problem?

“OK, great”, the guy in front of me said. “Just open the gate- we’ve been here for 45 minutes.”

“Not my call”, said the policeman.

Which I totally get.

It wasn’t the policeman’s problem.

I should also point out that a worker showed up for his shift, was told that the computer system was down- and stood for 10 minutes staring at all of us waiting in our cars.

No attempt to explain the problem, no apology, and no cell phone call TO SOLVE THE PROBLEM.

I used all caps, because I was fed up by this point.

Resolution

So guess what?

A parking lot manager finally showed up, had the gates opened, and let everyone out for free.

A nice gesture, but the problem was solved 45 minutes later than needed.

With proper training, a procedures manual, and some common sense, the problem could have been solved in 10 minutes.

Worker calls manager, manager tells worker to apologize and open gate- letting people out for free until the computer problem is fixed.

After all, it’s not the customer’s fault.

Effort

What I’m describing here as the right thing to do takes time and effort. If you know someone who is struggling in business, ask yourself: are they making the effort required to keep customers informed and happy?

If not, entrepreneurship is not for them. Food for thought- good luck!

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

The post What a Parking Garage Delay Teaches Us About Entrepreneurship appeared first on Accounting Accidentally.

Simplify Your Life? Spend Less.

 

One great way to reduce your anxiety is to make something simple.

Financial concerns are a big worry for many people, and we all face a financial challenge at some point in our lives.

The fast pace of modern life can mean it is easy to lose track and let your finances get out of control. This can lead to anxiety and stress, so step back and look at your spending. Create a plan to spend less moving forward, which will make life easier.

This could involve cutting something out of your life totally, or reducing things to make them more manageable. Think about what things are most important to you, and make those your priority. Everything else needs careful consideration.

A great personal finance book I highly recommend. Click below:

You need to take care of yourself, or you will not be in any fit state to care for your family or anyone else.

What to Cut?

There are several ways you can reduce your monthly spending, but the most obvious is to get rid of debts. Credit cards are the worst form of debt, because of their very high interest rates. To fix the problem, look for deals offering 6 months interest-free credit for changing to a new card provider.

Once you make the change, the key is to reduce your credit card use and pay down the principal balance over time. Alternatively, a bank loan to get rid of credit card debt may a cheaper option than trying to pay off a balance over a couple of years.

It might seem strange for a while, paying with cash instead of by credit card. However, you will be a lot less tempted to spend more than you have.

Dealing With Emergencies

You’ll worry a lot less about money if you have a savings account for emergencies.

Get free sample chapters from my book: Not Another Personal Finance Book.

Start by putting a little away each month, and it will soon reach a sizeable amount. Experts say you should aim to have 6 months living expenses that are kept separate from other money, and you do not touch unless an emergency arises.

You could even have a set amount transferred from your checking to your savings account each pay period. Make the process easy by using automation.

Downsizing

Do you really need such a big living space?

Some people have a lot of money tied up in their property, and releasing some of those dollars can reduce your mortgage payments and be used to clear other debts.

You might consider a smaller home, an apartment, or even mobile homes for sale. They cost less to maintain, and are often in communities where you can meet new people.

Say No

If you’re asked to spend money on something you can’t afford, such as an expensive night out, or a vacation with friends, you have to learn to simply say no. You have put yourself first, and enjoy the things that really matter in your life. Don’t let yourself be pressured into something that hurts you financially.

There are many ways to make your life simpler, but taking control of your finances is a huge step toward having more peace of mind.

This post is for educational purposes only.

 

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0

 

The post Simplify Your Life? Spend Less. appeared first on Accounting Accidentally.