by Solange Lopes | Aug 15, 2018 | Make More Money
Growing up in a single-parent household led by a single mom, my family wasn’t exactly wealthy. We had food on the table, and in many ways, I was very fortunate to be given a wonderful education and opportunities. However, when it came to money, the underlying messages were clear: “We need to be very careful about money” and “There’s never enough money!”
Related: 12 quotes about money from famous women that’ll make you financially-savvy women
As for me, this cautionary message turned into a scarcity mindset that made me fearful of never having enough money for the longest time. There was no amount of savings that would be enough. To say that I became financially conservative and risk-adverse was an understatement, despite my past (pretty serious) shoe and cheese collector habits.
Related: Why you should mind your mindset at work
You may also be facing constant money worries, even if your financial situation is stable. Or you may be living paycheck to paycheck, praying to the gods of Visa and Mastercard every time you tender your debit or credit card. Better yet, you may be holding on to a job you hate, or delaying your career and life dreams, as a result of your money fears.
It took me a long time to even begin detaching from my financial fears, and actually stop compulsively looking at every price tag. It’s still a process, one through which I’ve learnt to be more financially confident. In turn, it has actually helped me set up a better financial foundation, despite (or maybe as a result of) taking more risks, being more fulfilled, and being less obsessed with price tags.
Related: 10 smart financial management rules for women
If you’re dealing with financial fears, whether you’re compulsively checking your bank accounts, staring at your lofty balances, or incurring overdraft fee after overdraft fee, there are a few steps you can take:
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Ditch the scarcity mindset
The most important money lesson I’ve learnt over time is that money is first and foremost a mindset! Not a bank balance, a budget, or even the sum of your net worth. It’s how you think about yourself, and what you’re allowing yourself to possess and enjoy!
Related: Ace your performance at work by adopting this mindset
One of the books that started my mindset shift when it comes to money is “Think and Grow Rich” by Napoleon Hill. What it taught me is to stop thinking in terms of scarcity and instead adopt a mindset of abundance and openness to the infinite possibilities that surround us. Before you start thinking this is all woo-woo theory, consider the types of expenses you incur when you’re in a negative mindset as opposed to a positive one. Do you see how a simple shift of your thoughts can help you attract better opportunities while making less financial mistakes?
Ask yourself if you’ve been having a scarcity mindset. Do you feel like you can never have enough money? Have you watched your parents struggle with money and as a result, believed that you also would struggle with money? Do you not consider yourself worthy to deserve and have everything you desire? If so, you may be suffering, like I was, of acute “Scarcity Mindset” syndrome. Thankfully, it can be cured.
Start with simple thoughts and affirmations of abundance, such as: “Money comes to me easily”. Start believing that with hard work, dedication and faith, you can have as much money as you need and beyond. And watch your money fears diminish and pretty soon stop, being instead replaced with more confidence in your financial future.
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Re-evaluate your budget
Your budget is a like a compass for your financial health. It helps you understand and pick the right direction to take in your financial journey. However, many times, we fail to have realistic budgets that reflect who we are and how we live, as opposed to how others want us to live.
Related: How to budget realistically as working women
You can follow a gazillion finance gurus, read a million money blogs, and have the best budgeting apps on your smartphone. If your budget is not realistic enough to paint a picture of what your life really is and where you intend to take it, you’re wasting your time.
Instead of building hypothetical budgets, be as honest as possible about what your expenses and revenues look like. I used to build budgets that reflected my own financial fears and worries, in which I would underestimate my expenses and overestimate my savings. The result? Added stress and frustration, in addition to hardly ever meeting my financial goals. Today, I have what I call a “real” budget. It’s simpler, more efficient, but also more honest.
Take a look at your budget and ask yourself if it really represents your personality and lifestyle. If it doesn’t, it’s ok to scratch it and start fresh. From an honest and authentic foundation, you can re-direct it towards what you really want out of your finances.
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Live below your means
Most millionaires (at least those who stand a chance to remain so) live below their means. Warren Buffett is said to drive the same car for years, and has lived in the same house for the longest time. In a society where the Fear of Missing Out (FOMO) and social media comparisons rage among us, we can be tempted to book the latest hot vacation spot, buy the fancy car, or score the best name brands. Which in turn digs our financial graves deeper and deeper…
Although I was struggling with a scarcity mindset earlier on, there was a time when I still wanted the latest, most fashionable things. Despite being able to afford them, what I didn’t realize then was that every time I allocated money on a high-ticket item, I also missed out on opportunities to save and invest for the future.
This is not to say that you shouldn’t splurge and treat yo’self every now and then. However, living below your means gives you the option of leveraging the accumulation factor. This is where you accumulate your savings, investments, and other financial safeguards to help you and your family afford the lifestyle you want in the short and long-term. Besides, I’d rather sleep well at night knowing I have coins in the bank in case of emergency, than live fearful of anything dreadful happening.
RELATED: 7 BEST APPS TO HELP YOU MANAGE YOUR MONEY
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Meet with a financial advisor
When I made the decision to meet with a financial advisor to discuss my short and long-term financial goals, I was a bit skeptical. However, I knew enough to know that the more you can get professional financial advice, the better off you’ll be. The meeting did not disappoint. I was fortunate to deal with an extremely knowledgeable and kind-hearted individual, which also helped.
Yet, what I valued most was the amazing knowledge and power this gave me over my finances. There are so many options that most of us don’t realize and avail ourselves of for lack of education in certain areas. It’s normal, since we’re not experts in every field.
Consulting with a financial advisor helped me get an honest and clear picture of my financial situation, goals, and possibilities. As I continue on this journey, it’s also opening up a wealth of options as to how I can better manage my money and resources to afford a lifestyle that fulfills my family and I. Besides, it’s a great way to put your financial worries aside and instead have a plan to tackle your financial present and future.
RELATED: HOW TO BUILD GENERATIONAL WEALTH AS A WORKING WOMAN
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Make a long-term plan
It’s one thing to have a few months’ savings for emergencies. It’s another to think about what you want your life to look like in the next five or ten years, or even after retirement. How about what would happen to your family and loved ones if you were to suddenly disappear? What would occur if you or your spouse were hurt or unable to work? These are all difficult questions to ponder. It’s also why most of us avoid thinking about them. That is, until something irreversible occurs…
One of the events of my youth that marked me the most was the disappearance of my grand-parents on both sides of my family. Their passing not only brought pain to our families, but also great financial worries due to lack of adequate advance planning. I never knew the details, yet I could sense the distance and grief this created.
As you’re thinking about money, have you thought about making a long-term plan? Have you considered life insurance, possibly a will, and other financial arrangements that would set a secure financial foundation for yourself and your loved ones? While these can be daunting to think about, they can also help ease your financial concerns as you commit to building a solid financial base for you and yours.
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Give your money a purpose
You know what they say, that “money is the root of all evil”. Right? Wrong! Money is only evil if used for the wrong purpose. When used for legitimate reasons, it can actually be a source of positive impact in your life and others’. With the right purpose, your money can help you accomplish your dreams, live the lifestyle you desire, and help others do the same.
Yet it starts with giving your coins a WHY! This is a personal process that begins with understanding yourself and what you’re about. What is the WHY behind your money? Is it to build a legacy, care for your children, assure your retirement? It can be a medley of various reasons and motives, which is more than ok. However, being clear about it can make the difference between not having a strategy for your money, and moving intentionally and clearly forward with your financial goals.
As for me, I like security and being able to say yes to my family when financial needs arise. Building a legacy and leaving a fruitful financial basis for my loved ones is part of my goals. What are yours?
RELATED: 7 QUESTIONS YOU MUST ASK YOURSELF TO FIND YOUR PURPOSE
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Relax! It’s going to be ok
Last but not least, be kind to yourself. When it comes to money, we all have some level or another of financial concerns. None of us can predict what’s going to happen tomorrow. The market can crash, we can incur losses, and we may be out of a job. Or all three combined, all at once, as you also deal with a sudden onset of teenage acne in our 30’s.
Life simply happens, and it also goes on. Which means that since we’ll never have 100% control over circumstances and events, we might as well take a deep breath and enjoy the moment. Money matters, but it’s not everything.
Make a plan, do your best, and enjoy the things that truly matter in life. For me, it’s my relationship with God, my family and loved ones, my work, people in general, and a good Brie on some delicious, hot French bread! What matters to you, and how can money help you create the lifestyle you desire?
Bonus tip: Surround yourself with like-minded people
You truly are the sum of the people you surround yourself with, especially when it comes to your money. If your four friends are broke and living paycheck to paycheck, chances are you’re well on your way to becoming the fifth. Which also means you must be careful who you hang around with.
This is not about being or feeling better than anyone else. Rather it’s about seeking to improve yourself, starting with your relationships. Look around you. Who are your friends and acquaintances? Do you share money goals, or any goals in general? Can they help you better your financial situation? Can you help them? What do you talk about when you’re together? Relationships are supposed to make us better, in all areas of our lives. If they’re setting us back, they it may be time to re-consider.
RELATED: NETWORK LIKE A GIRL: 10 WAYS TO SUCCESSFULLY NAVIGATE THE WORLD OF NETWORKING AS A WORKING WOMAN
All in all, your financial worries or concerns don’t make you an exception. Neither do they make you a victim. However, they’re a strong reminder to take charge of your financial situation, while still reminding yourself what your priorities and your WHY are. Aligning your money with who you are and what you desire is the most powerful way to increase your net worth and create the life and work you deserve! So why not get started today?
Now your turn: How do you face your financial fears?
To Your Success,
The Corporate Sister
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by Solange Lopes | Apr 11, 2018 | Make More Money
As a taxpayer, you may suffer from a tax refund delay in many cases. These include computational errors, incomplete tax returns, and incorrect deposit information. You may also observe refund delays in case of social security number mismatches, early or late tax filing returns, and tax return amendments.
However, there are ways that you can avoid these delays. Here are some of them:
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Keep copies of your prior tax records
Inaccuracies and incomplete information in returns cause many tax refund delays. Having and using information from prior years’ tax returns can help you minimize these as much as you can. Ideally, you should maintain copies of your prior tax records for at least three years.
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Be well prepared
If you’re not well prepared to file your tax return, you may experience delays in getting your tax refund. This is why you should strive to create a file of all necessary tax forms such as W-2s, as well as 1099s, and other mandatory forms. You should get these from the related institutions and banks throughout the month of January.
If you have received all the forms you need to file your taxes accurately and completely, you can attempt contacting your employers or the related institutions.
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E-filing
You can minimize the amount and extent of computing errors on your tax returns by electronically filing your taxes. Keep in mind that more than 90 percent of all tax returns filed nowadays are filed electronically.
It is much easier for the e-filing software to spot and check for errors. This is in contrast to paper returns which increase the likelihood of mistakes. Many, if not most tax professionals also have the ability to e-file returns.
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Direct Deposit
You also have the option of having your refund check deposited directly into the bank account of your choice. This reduces the chances of your refund check getting lost, stolen or undeliverable. However, you must check your bank’s routing number and account number to avoid that your refund be deposited in the wrong account.
In addition, the IRS requires you to indicate whether you had an individual health insurance plan throughout the course of the year in order to electronically file your return. You are also required to indicate if you qualify for an exemption or are under an individual mandate penalty.
To Your Success,
The Corporate Sister
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by Solange Lopes | Apr 5, 2018 | Make More Money
Most of my initial knowledge about money came from my childhood. I was raised in a single-parent household where money was not necessarily in abundance, and as a result I was made to understand that money is to be valued and comes from hard work. As I grew up and learnt more about money, I also realized that there’s a whole mindset around the concept of money. I’m sure you have received many messages about money as a child as well.
For many, if not most of you your entire mindset about money still comes from those childhood experiences and messages that you may have received. Some of us have added to this knowledge from our childhood through books, seminars, as well as more formal training. Others have transcended those messages and earlier experiences about money with their own acquired knowledge. The point here is that the way we treat money and the way we think about it largely comes from our childhood. Hence the importance of teaching children the right mindset and helping them develop the right habits around money.
It’s not until I became a parent myself that I started thinking about money, and the effect it has on families as well as entire generations. Thinking about money not just as a tool, but also as an ideology and a mindset helped me recalibrate my own understanding of finances. This in turn allowed me to teach my children a more positive and empowering message about money. From my experience as a parent, career and business woman, I have extracted various money lessons to pass on to my children. These are the lessons I would like to share with you today.
It’s important for us as working women to understand our own view of money, and adopt the right mindset and habits around my knee. Not only is it crucial for our own development and success as women but it also matters a great deal to our children and our families as they get a large part of their own understanding of money and practice of money from us.
Here are seven tips I would like to share that I have learned to myself about how we can as successful and driven working women teach our children about money:
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Start with your childrens’ mindset
As a child, my circumstances as well as the messages I received from well-meaning adults taught me that money is simply this tool we use to make purchases or live in certain conditions. As an adult, I was fortunate to learn that money is a mindset first. One that is rooted in abundance and not in lack. One that is based on the profound belief that we are always provided for.
However, this mindset should be rooted in positive action. As a matter of fact, no mindset can stand alone without the positive effect of consistent and persistent action. Begin by teaching your kids to form their own beliefs about money. You can do this through conversations and positive messages around the belief that we as people have resources, means and ways to provide for our own and those around us. Instead of having conversations rooted in limiting beliefs such as “We only have a certain amount of money” or “We don’t have enough money” or “Money is limited”,for instance.
Instead, try to foster positive messages such as “You are always provided for”, “Money comes to you easily”, or “You have the power to create the money you need at all times”. These are the same beliefs I grew up in, and I’m still having to learn the hard way. You can foster this by repeating affirmations with your children around money and abundance. You can also do this by involving them in the process of your family finances and challenging them to come up with innovative ways to create money, whether it’s through business ventures ,chores or allowances. The point here is to instill in them the clear belief that money is rooted in a mindset of abundance rather than lack.
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Teach your children about value.
One of the first concepts we often have to deal with as children and growing adults is that money is but a thing. For many of us, it’s just that thing that is included in our paychecks after one, two or four weeks of hard work. It’s just that thing that we use to buy the stuff we want or need. Very rarely do we learn to see money for the value it actually provides. This is because many of us don’t understand the concept of value to begin with. This is also because many of us have not been taught about this concept as children.
As a child, I was taught about money as a commodity. Yet, as I grew up and became an adult, I learnt about the precious principle of value, or receiving something in exchange for something else not just as a simple means of exchange but as a way of providing something that can serve the greater good. Today I teach my children to look less at the money then at the value they can provide through it. For instance, I strive to make them understand that the point of them doing chores and receiving an allowance is not just for them to get and spend money. It’s for them to be able to deliver a work of value that makes a difference and serves the greater good. In our family this greater good is the well-being of the family, and the fact that we can all benefit from the chores they partake in. When I discuss the work I do with them, I don’t discuss it in terms of doing something that can bring me money. Rather, it is something that I see as benefiting the greater good, as is the case for all of us.
Instilling in our children a sense of value for the greater good will not only turn them into proactive citizens who desire to make a difference. It will also help them not put money above the real value that it is providing. You can do this by attaching every purchase that you make together and for which you use money to the value it is providing. For instance, when you buy a toy for them, help them understand the value of that toy beyond its monetary value. Another example would be when you involve them in the finances of the family. For instance when you take them to the supermarket, help them understand the value behind grocery shopping, from feeding the family to staying healthy, and creating value for society by caring for ourselves. All of these are examples of simple things you can do to help you children understand that what is important is not just the money, but the value behind it.
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Teach your children to give
As a child growing up in a predominantly Muslim country, every Friday we had the tradition of giving away alms to the poor. This could be in the form of food, money or whatever we could provide to less fortunate people. Growing up as a Christian, I also learned of the spiritual importance of giving.
Later on in life, as I was learning about wealth and money, I learned about the concept of giving more specifically through tithing. The famous and incredibly wealthy Rockefeller used to give away 10% of anything he made. This taught me a precious lesson about giving that I tried to instill in my children as much as I can.
Giving multiplies what you have while serving the greater good. When you have a mindset of abundance, you cannot afford to see giving as something that diminishes yourself or your value. As a matter fact, the very wealthy tend to give away a lot, whether for philanthropic or strategic purposes. For example I make it a monthly practice in my family for us to openly give of what we have, whether we go to the Salvation Army or give alms to people on the street.
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Involve your children in the family finances
We often think that family finances belong to adults. We believe that because kids are too young, they’re not able to comprehend how we as adults manage the money that comes into the household. As well-meaning adults, we are tempted to think that it’s in their benefit to shield our children from the most delicate and difficult aspects of managing money as a family. However, this is a mistake. It is important, if not crucial for our kids to learn about the way money is managed in the family. The reason for this is that kids learn better by example.
An easy way to do this is to invite them to be part of the family budgeting process. While they may not be privy to all the intimate financial details you may deal with, they can still be part of the process. This will help them better understand the impact of expenses and revenue, and where they fit in within the whole process. Assigning responsibilities and chores to children can also foster a sense of value and self-worth, while teaching them the importance of money.
How do you teach kids money skills?
To Your Success,
The Corporate Sister.
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by Solange Lopes | Mar 28, 2018 | Make More Money |
Whether you have a side hustle or a full-blown business, you may be running into challenges when it comes to managing your small business finances. From keeping track of your expenses to deciding how much to pay yourself, dealing with money in your small business can be quite the challenge.
It’s well-known that one of the major obstacles to succeeding in business for anyone is money. This is even worse for women, who face significant challenges ranging from not being taken seriously to the lack of access to investors.
Learning to manage my own business finances has been a process. Even as a Certified Public Accountant (CPA), I had to set up some new financial habits and processes in order to effectively manage the money in my small business.
If managing your small business finances is on your list of business concerns, here are 7 tips you may want to consider:
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Track your business expenses by separating them from your personal expenses
Managing your business finances starts with tracking them properly. As working women, we handle so many responsibilities at once that we can be tempted to mix our personal and business expenses. In order to understand where your money is going, you must sort out which expenses are associated with your business.
What to do: Instead of dipping into your personal bank account, open a business account. Pay all your business bills from this account, as this will allow you to effectively track your expenses.
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Pay your business bills on time
As you do with your personal bills, take care of your business expenses as readily as possible. This is especially important if you’re just starting a business and you, like many other women, don’t have access to large sources of funding. Don’t allow credit card late fees and tax penalties to ruin your business’ financial stability.
What to do: Set reminders to pay your bills on time and avoid late fees. Set aside some time to go over your finances on a weekly basis to ensure that you’re staying on top of your expenses.
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Set money aside for your taxes
One question that many women entrepreneurs ask is how to manage their money, once they start making a profit. One of the first priorities when it comes to utilizing the profit you make in your business is to set money aside for your taxes.
What to do: Take into account your marginal tax rate and tentatively calculate the tax you may owe. Set money aside towards these tax payments as soon as you can. This will eliminate the stress many business owners face at tax time.
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Decide what you will reinvest in your business
Another concern of women entrepreneurs is how much to re-invest in their businesses, especially when they do not have access to large sources of funding.
What to do: Depending on the extent of your expenses as well as the money you set aside for taxes, determine how much you will need to re-invest in your business.
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Don’t forget to pay yourself!
While you should set money aside for taxes, business expenses as well as to re-invest in your business, you should also not forget yourself. Consider paying yourself out of the profits that your business is making as well. How much you should pay yourself will depend on your outstanding expenses as well as your current needs.
What to do: Carefully evaluate how much you need to set aside for taxes, expenses as well as business re-investment. Based on this, decide how much you can afford to pay yourself.
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Learn more about small business accounting
One of your greatest business powers is in understanding your business’ accounting. Whether you choose to take classes, or hire an accountant, commit to learning more about how your money works for you in your business.
What to do: Make the commitment to understand the basics of accounting as related to your business. Start by taking available classes or consult with accountants and bookkeepers, for instance.
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Minimize your expenses
It costs money to start and run a business. It took me a few months into my business to realize that some expenses were unnecessary or could be combined. As a result, I saved a large amount of money, which I was able to put back in the business and pay myself too in the process.
What to do: Comb through your expenses periodically and assess whether they are necessary.
To Your Success,
The Corporate Sister.
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by Solange Lopes | Mar 21, 2018 | Make More Money
When I look at all the brilliant and encouraging statistics about women starting businesses, rising to the top of their careers, or just breaking barriers and boundaries, I realize how powerful we truly are, as women. What I also realize is that as women, this also means we hold the keys to building generational wealth.
The concept of generational wealth didn’t mean much to me until I started having kids. Looking at my children, and wondering what types of financial struggles they would have to go through as they grow up, prompted me to think more about money and wealth. I would look around at some wealthy families, wondering what it took to creating the type of wealth that doesn’t just benefit us, but benefits family generations.
As a first-generation immigrant from West Africa, raised in a single parent household, I did not come from money. However, my mother strived to offer me a private education, which exposed me to some of my peers who came from wealthy families. From an early age on, while I didn’t’ fully understand the meaning of wealth, I could already see its many advantages. As a child, I could already understand that rich parents tend to have rich kids who tend to be (and act) rich.
Decades later as I started my own family, I didn’t forget my first thoughts about wealth. I kept asking myself how we, as working women, can build the kid of wealth that can be passed down to future generations. According to financial expert Tonya Rapley of MyFab Finance, setting a good example as to our relationship with money is invaluable.
Here are 7 other tips that you can apply as working women to build generational wealth, regardless of your current financial situation:
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Start with mindset
When it comes to money and wealth, it all starts with mindset. Wealth really starts in your mind! For many of us, a mindset of lack can be as detrimental, if not more, than blowing through your savings.
I personally had to do some work to cultivate a mindset of abundance instead of lack. Feeling worthy and deserving as a woman is the beginning of a healthy relationship with money. Unless you can see yourself as wealthy, you will not achieve true wealth.
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Study
Contrary to public opinion, wealth building can be learnt. You don’t have to be born with a silver spoon in your mouth. Instead, you can attend seminars and workshops, many of which are now offered online.
There are numerous personal finance and wealth-building books for women. Some of my favorites include Smart Women Finish Rich by David Bach, Women & Money: Owning the Power to Control Your Destiny by Suze Orman, and You Are a Badass at Making Money by Jen Sincero.
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Invest, invest, invest!
Only 45% of the 62 million salaried women participate in a retirement plan. Yet, women tend to be better investors than men. According to President of Personal Investing at Fidelity Kathy Murphy, “women have a long-term plan, and they stick with the plan”. However, many women are fearful to invest in the stock market.
Investing constitutes a large part of building generational wealth. Don’t be afraid to learn about investing, and applying your money to stock and property investments.
Investing in your children’s future is also crucial. Establshing a 529 plan for each child. to be regularly funded can avoid a lot of financial headaches in the long run.
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Teach your children about wealth
From an early age on, my mother instilled in me a strong appreciation of money. I believe it’s thanks to her teachings that I always took budgeting and wealth-building very seriously. However, I wished we had more candid conversations about money to prepare me to the various aspects of managing and growing money.
Now with my own children, I insist on having honest talks about money and wealth. Both their father and I make it a point to teach them the value of earning money through allowances and responsibilities. We also take them inside the bank so they realize the meaning of this institution. Entrusting them with some money to budget and grow through chores and side jobs, as appropriate, can also go a long way towards teaching them about the power of wealth.
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Diversify your income streams
As a child, I grew up with the notion that your income should solely come from your day job. Fast forward a few decades, I started making money through side hustles as well as my main job. This made me curious about diversifying my income streams. As it turns out, true wealth is built from a variety of sources. It is said that the average millionaire has at least seven streams of income.
Whether it’s through side hustles, building businesses, or generating passive income, creating and maintaining diversified streams of income is the key to wealth-building.
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Get a Life Insurance Policy
A life insurance policy could be a valuable asset, especially for those who do not have many assets. It can be a relief in case of an untimely death, and replace financial payments which could otherwise no longer be made.
Additionally, the payout could be used to invest in opportunities or even fund a business venture. However, you may want to invest in a whole term policy, as opposed to one that may expire, in which case you may lose the money invested.
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Don’t forget your will
When my grand-father passed away unexpectedly, he unfortunately did not leave a will. As a result, this negatively impacted the family’s inheritance. It taught me that as uncomfortable as planning for one’s passing can be, it is necessary to do so, as early as possible. It may be best to consult with an attorney if in doubt.
What other tips would you add to create generational wealth as working women?
To Your Success,
The Corporate Sister.
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by Solange Lopes | Mar 17, 2018 | Make More Money |
While you may love it when money piles up in your bank account, managing it to last and grow despite the onslaught of expenses you may face is challenging. If you add to it quite the busy schedule, keeping up with family, friends and the (not so) occasional social media binge, and you’re easily financially in over your head…
However, keeping track of your budget doesn’t have to make you wish for a root canal instead. Actually, successfully handling your finances in general may be right within your smartphone’s reach. As a Certified Public Accountant and a budget-conscious shoe-lover, managing money has always been on my radar. However, after marriage, a couple of kids, a busy career and business, I’ve had to find ways to streamline my money management process, while still paying close attention to my coins. That’s where my smartphone comes in.
Here are 7 of my most favorite apps to help you manage your money, minus the stress, overdraft charges and financial diets:
I can’t rave enough about my favorite digital saver friend. If you tend to “forget” to save, or just need more motivation to do so, this app will change your life! It basically monitors your spending habits, and puts away money for you in a savings account based on your financial patterns. It’s so refreshing to log into Digit and realize how much money you’ve saved, without even really trying!
Mint
You may have seen this app listed just about…everywhere! The simple reason for this is that Mint is simply one of the best, and most intuitive, budget apps out there! It helps you stay on top of your bills, all in one place. What I really like about it is that it’s personalized for you, and even allows you to get your own free credit score.
Acorns
Not sure how to invest? The Acorns app helps you save more by rounding up your expenses, and sending the extra change to an investment fund. It’s a great (and mindless) way to save and invest, especially when you have no time to do so.
Pocket Guard
Sometimes you just need someone to tell you how much you can spend without breaking the bank! The Pocket Guard app does just that. It will show you how much money you can actually use, after taking account of your bills, savings and spending goals.
YNAB
The YNAB app is your budgeting friend. It will import your transactions for your bank account, and helps you categorize every dollar you spend. This is more for the committed savers among us. While it does require an investment of $83.99 a year or $6.99 a month, after an initial free trial, it will help you deal with your money in a productive and efficient way.
Gas Buddy
If you commute quite a bit, then the Gas Buddy app will help you track the cheapest gas stations nearby. All you have to do is put in your location, and wait for the least inexpensive gas stations around you.
Honeyfi
For the couples around, the Honeyfi app is a collaborative tool that will help you and your partner stay on the same wavelength when it comes to your finances. It allows you to create a household budget, as well as link your individual and household accounts to the app.
Bonus:
Joy
Want to spend and save with joy? That’s what the Joy app can help you do. It uses a psychology-based approach to assist you in saving money. This in turn allows you to build a more positive, and happier, relationship with your money.
Which are your favorite financial apps for working women?
To your success,
The Corporate Sister.
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by Solange Lopes | Mar 13, 2018 | Make More Money
Congratulations! You’re ready to start your own business. Before you start planning for your upcoming millionaire status, you may want to consider the various tax implications of beginning your new journey as a business owner.
Understanding the basic tax consequences, as well as the benefits, that come with creating your own business can save you lots of money, and headaches, in the long run. From business deductions to startup costs, not to mention the effect on state and federal income taxes, here are some of the most important tax implications of becoming your own boss:
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Mind your deductions!
Good news! Most business expenses are tax-deductible, which also means that you can use them to reduce your gross and taxable income. Translation: less taxable income, less taxes to pay!
However, you may want to keep in mind that not all business expenses are deductible. Make sure whatever business expense you claim as deductible should be legitimate. Additionally, incurring an expense merely because of tax reasons isn’t always justified. Consider other factors before deciding to spend money in your business!
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Startup Costs
Got startup costs? Well, you may be pleased to hear that you can actually deduct up to $5,000 of start-ups and organizational expenses in your first year of business. The only caveat is that if your start-up and organizational costs exceed $50,000, any amount over $50K will reduce this deduction.
Now what are start-up costs and organizational costs? Start-up costs are costs you incur before you start operating the business. These include market analysis costs, training costs, as well as travel and ad costs related to new customers, suppliers and distributors.
As for organizational costs, they are made of accounting and legal fees, as well as licensing fees and any other fees involved in forming the entity.
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Depreciation
If your business has assets with a useful life of more than one year, these are considered capital assets which must be written off, i.e. depreciated over time. What’s important to remember as you start your business is that depreciable capital assets may allow your new business to take advantage of the Section 179 election.
This election means that you could expense up to $1,000,000 starting in January 2018 as a result of the Tax Cuts and Jobs Act of 2017 for qualifying purchases of capital, up to a limit of $2.5 million. After 2018, these limits will be indexed to inflation. It’s a particularly profitable election for new businesses, as the money can be re-invested in the business and used to avoid incurring additional income taxes.
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State Income Taxes
When it comes to state taxes, keep in mind that each state has its own tax rates and regulations. Make sure to check in with your local and state governments to ensure that you’re in line with the rules.
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Federal Income Taxes
As you create your own business, remember that a lot depends on the type of business you’re starting. Whether you elect to have a partnership, sole proprietorship, Limited Liability Company (LLC), S Corporation, or C Corporation, your choice will determine how your business is taxed.
For instance, if you elect to operate your business as a partnership or S Corporation, the business profit or loss will be passed through to you as an owner and included on your tax return. Be mindful of these distinctions when picking your business type.
Now your turn: Have you considered all the tax implications of starting your own business?
To Your Success,
The Corporate Sister.
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