Last month, my friend Jess of No Real Jewelry wrote this amazing blog post on 2 Small Tricks That Help Me Save Big Money, that really got me thinking about the excuses we create for not saving money. In addition to that, since I was a college freshman I always wanted to help my community have a better relationship with money. So many women and men of color are not taught how to balance their checkbook, saving for an emergency, the importance of a credit score, life insurance and many other things of that nature. My goal was to open up a financial literacy program or something of that nature. Yes, I was rather ambitious at 17 years ago, and 15 years later my financial journey has been one heck of a rollercoaster. However, I feel that since my ride has not been smooth and I have had to learn the hard lessons over and over again, I can share something on how to start saving when you don’t know where to start.
Earlier this month, I wrote about how The First Half of 2017 Tested Me, But Grew Me In The Perfect Way, and I received so much positive feedback through emails, texts, direct messages and more. One of the main things people asked me about was how I was able to pay all my bills when income was coming slowly or not at all. A couple of years back, I would’ve had to ask my dad for money or take a part time job. To be honest, there were several times when it was getting close to paying bills time that I thought I was going to have to sit down with my dad and say I need help. Let me be honest; this is not something I wanted to do at all. I am beyond thankful that I have a parent who has the financial means to help me, but I told myself three years ago when I decided to get my finances in order I was not going to rely on my father to provide for me. My goal is to be self-reliant and be able to provide for myself and my mother. This gets us to earn more, save more and spend less motto that I instilled in myself when my business was earning $10,000 a month in digital revenue.
IRS has pushed tax refunds back until February which can be a good thing or a bad thing depending on you. Today, I wanted to break down how to invest your tax refund wisely so you are reaping the benefits not just for a couple weeks but throughout this entire year. Too many people receive refunds of a thousand or more and it goes to things like a trip, car or a tv. Things that truly do not hold their value or help you in the long run.
Running a small business is pricey compared to what social media teaches you. Even as a service based company, I still have serious overhead to run my company on a yearly. A plethora of the information I am sharing below are tax write offs you can utilize when filling your taxes. If you, have not called your accountant to file your taxes please make sure to add that to your schedule. I tend to call my accountant the first week of the year and schedule my appointment for around March. In addition to that, we meet at the start of the year to talk fisical goals, taxes and more. Just as it’s important to have a relationship with your business banker, you need one with a CPA or accountant in your city.
As someone who is self employed one of the biggest things that matters is keeping all my coins. Yes, my company mission matters and all that fine stuff, but truth be told if I am not retaining money, I am losing money. You’re probably thinking what does this have to do with Aldi the grocery store. Well, earlier this year when I introduced myself to the zero budget method I had to rearrange how I was spending money and allocate it better.
I know every time you log onto social media specifically Pinterest you see are bombard with graphics saying how to make $100,000 a year or some other large sum of money. Honestly, I do not want to just post one article on the subject of how to make that sum of money. Instead, I have decided to do a series on the subject matter. First, I want to share how to make $35,000 a year in sales. Then share how to make $50,000, $75,000 and finally $100,000.
If you’re running a small business or plan on launching one it is imperative for you to have a business checking and savings account that is separate from your personal accounts. Last month, in 5 Ways To Create Money Habits a commentator asked me to dig deeper into this topic matter.
While I’m growing my business, the main goal for my personal life right now is to be debt free from all student loans and commercial debt (credit cards). As mentioned in, Establishing A Better Relationship With Money and Nice Girls Don’t Get Rich, I have been working on this for some years now. Some people will say that when you start a business it’s okay to have business owner debt and others might say that they can’t afford to get out of personal debt while simultaneously starting a business. I just wanted to share with you all, how I have cut my debt in half and will be hopefully debt free by the end of 2016.
Three years ago, I was a horrible manager of my money. That’s putting it nicely. Money would come in and go out the same day. I had no self-control or balance to my finances. I just did what I wanted. This was a disaster in the making. To break it down, I had missed payments on my student loans and a few other bills. In addition to that, I had no real savings account.
A good majority of American’s are two paychecks away from being homeless. We have become a society that depends upon our checks to always come in and help me out. We rely daily on our credit cards to live. It shouldn’t be this way. So, I am going to get real transparent on what I did to change my finances. This is going to work for some people and not others.
For the last two weeks on Twitter, I have seen several W2 meme’s and people discussing what they will do once all their papers come in. There use to be a time when I got close to a thousand dollars back on my taxes. I was also a decade younger and naive to what handling my finances really meant. I wanted to share with my fellow business owners how they could maximize their tax refunds no matter the amount received.
If you are one of the millions of individuals trying to build wealth that last for generations, you are also one of those people looking to save additional funds every month. As I get closer to 30 years of age I realize that I need to have more money in my saving account. I’m no longer a teen or young adult who can depend on her parents to fund her lifestyle or take care of life expectancies such as new car, wedding, down-payment on a house, fix my washer and dryer, or other things that happen when you become a real adult.
It’s that time of year when millions of Americans start anticipating their government tax refund. As a small business owner, I am just praying I don’t owe Uncle Sam a penny. Last year I got back $21 and I was so excited. Previous years I was zeroed out or I owed less than $500. So, that gave me little joy.