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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by Solange Lopes | Mar 12, 2018 | Make More Money
One of the biggest obstacles women face at work and in life has everything to do with money. From not being paid on an equal scale with our male counterparts, to managing our own finances, dealing with money can present serious challenges for the modern woman. If you add to it the common stereotypes affecting women in all areas of work and life, establishing good financial habits can be quite the daunting prospect. Hence the need for some solid financial advice, as well as inspirational quotes about money from women who have mastered their own finances.
Here are 12 powerful quotes from famous women who have lived and shared some of the most inspirational money advice:
12 Quotes about Money From Famous Women that’ll Make You Financially Savvy
“Never work just for money or for power. They won’t help save your soul or help you sleep at night.” Marian Wright Edelman, Children’s Rights Activist
“I truly believe that women should be financially independent from their men. And let’s face it, money gives men the power to run the show. It gives men the power to run the show. It gives men the power to define value. They define what’s sexy. And men define what’s feminine. ” Beyonce, American singer and actress
“A woman’s best protection is a little money of her own.” – Clare Booth Luce, American Author and US Ambassador.
“Being rich is having money; being wealthy is having time.” – Margaret Bonnano, Author
“You can only become truly accomplished at something you love. Don’t make money your goal. Instead, pursue the things you love doing, and then do them so well that people can’t take their eyes off you.” – Maya Angelou, Author, Poet, and Civil Rights Activist
“Money follows art. Money wants what it can’t buy. Class and talent. And remember while there’s a talent for making money, it takes real talent to know how to spend it.” – Candace Bushnell, Author and TV Producer.
“There are people who have money and people who are rich.” Coco Chanel, French Fashion Designer
“By definition, saving – for anything – requires us not to get things now so we can get bigger ones later on.” Jean Chatzky, Journalist, Author and Motivational Speaker
“I do not think I am successful just because I have money. I’m successful becauseI love who I am and I have no regrets“. Suze Orman, Author and Financial Advisor
“People say that money is not the key to happiness, but I always figured if you have enough money, you can have a key made.” Joan Rivers, American Talk Show Host
“Automating some of your finances can be incredibly convenient and is a great way to save time, but automating everything makes it too easy to go on autopilot and forget to pay attention to your personal finances.” – Alexa Von Tobel, Founder of LearnVest.com
“To attract money, you must focus on wealth. It is impossible to bring more money into your life when you are noticing you do not have enough, because that means you are thinking thoughts that you do not have enough. ” Rhonda Byrne, Author of “The Secret”
What other powerful quotes from women about money would you recommend?
To Your Success,
The Corporate Sister.
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by Solange Lopes | Mar 9, 2018 | Make More Money
If you’ve ever considered paying off your debt, you may have balked at the thought of depriving yourself and living like a hermit for the rest of your life. Little luxuries like your Starbucks latte or your not-so-small shoe habit may seem like they would become distant memories on the horizon.
Yes, we could certainly start the business, pay the mortgage off, squash that credit card debt with a few financial sacrifices. Yet, for many, if not most of us, making a harsh and not necessarily realistic plan for our finances ends up having us hating life and splurging on the most expensive pair of Louboutins you can slide your feet in.
This is why it’s so important to tackle paying off debt in a realistic and sustainable way.
Here are 7 ways to get you on the path of debt repayment, minus the intense stress and social isolation:
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Start with a reality check
Ok, let’s begin at the beginning. It all starts with understanding and realizing where you stand financially. This means looking at your credit and debt history straight in the eye. While it can be easy to turn a blind eye to your debt situation, getting a reality check will get you started well on your debt repayment process.
Credit Karma provides you with a free credit report, in addition to detailing your credit history. It allows you to see your debt amount, as well as any debts in collection, and even your monthly payments and interest rates.
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Earn extra income
Here’s the thing: when you already are in debt and still have to pay for your normal expenses, saving money to pay off your debt can be challenging. This is where making extra income comes into play.
For many, if not most of us, one of the best ways to pay off debt is to have a profitable side hustle. Whether it’s selling Avon products, have a side blog, or being in network marketing, finding ways to create additional income can go a long way towards squashing your debt.
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Start with the highest interest rates
Once you have money available to pay off your debt, start looking at the interest rates on your credit cards and other debt instruments. You will notice that some of them have much higher interest rates than other, at times up in the 20% range. The cards or debt instruments with the highest interest rates will cost you more in the long run, as you will be stuck paying insane amounts of interest rather than directly paying off the principal or main balance you owe. This is also how credit card companies are making money, by having us pay loads of interest, which is basically free money for them.
My preferred approach is to tackle the cards or debt instruments with the highest interest rates first. For these cards, I plan to increase my monthly payments, and when I can, even double or triple them to pay them off faster. This allows me to limit how much interest I have to pay in the long run, and reduce my debt bill overall. The trick is to pay these off, and once you’re done, go on to the next credit card with the highest interest rate. And so on and so forth…
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Or pick the lowest debt amount
Another approach is to tackle the cards or debt instruments with the lowest amount to repay. This can be a gratifying process as it allows to eliminate small debt amounts first and faster. Many people are encouraged by this system, as it lets them see the result of their efforts earlier on.
Here too, the point is to reimburse your lowest debt amounts first, and move on to the next lowest amount.
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Put your savings on auto-pilot
Apart from earning extra income and choosing an approach for debt repayment, saving money also plays a role. However, when it comes to saving, automating the process can be more effective.
The Digit app monitors your spending habits, and easily withdraws money from your checking account into a rainy day savings account. The amount saved varies from person to person. The app takes into account your unique financial situation through your spending habits to do this. Another alternative is Stash.
Another tool that helps you save money is the Trim bot. It’s basically like a financial assistant in your phone. From canceling subscriptions you’re not using, to helping you negotiate your bills down, it just assists you in making better financial decisions and saving.
Another way to trick yourself to save on your credit card purchases is to use the Debitize app. Basically, you make purchases on your credit card, and the purchase amount is automatically deducted from your checking account in order to pay your credit card bill at the end of the month. This way, you reap the credit card rewards without the associated headaches.
Last but not least, earning cash back on your purchases and expenses is another way to save. Apps like RetailMeNot, Groupon, and Living Social, for instance, can help you score deals and save.
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Sell your extra stuff
Most of us have more stuff that we could possibly use. Sometimes, it takes a bit of humility and a lot of financial sense to use that extra stuff for the purpose of debt repayment. For bookworms like myself, Bookscouter lets you sell your old books.
Letgo is a great app to help you sell second-hand stuff on the go.
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Get it for free
Having fun while you’re trying to pay off your debt can be quite the challenge. For many of us, having fun is directly linked to spending money. Whether it’s a $5 latte or a $100+ night out with the girls, entertainment often comes with a bill.
However, there are many ways to enjoy life without getting off track when it comes to paying off your debt. You can enjoy public parks, public and free attractions at no cost. Instead of dropping your coins on books, how about going to your local library? Even better, you can become a mystery shopper and get paid to enjoy things you would normally have to pay for.
How do you manage to pay off your debt quickly and realistically?
To Your Success,
The Corporate Sister.
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by Solange Lopes | Mar 8, 2018 | Make More Money
Many of us wonder how we can make more money without having to switch jobs, have a gazillion gigs, or sell our souls for that matter. Especially as working women, facing the glass ceiling is daunting enough without having to think about increasing our financial status right at our workplace. Yet, without the prospect of bettering our financial lives, our career, business and even lifestyle choices end up being very limited.
How many of us have thought about investing in a new business, buying a home, or putting our kids in private schools or extra-curricular activities, and have been limited by our bank balances? How many of us feel that we cannot pursue our passions, or take proper care of ourselves, because of money constraints?
While we may think that our financial status is limited to our job earnings, there actually are ways to make more money while at your job. It’s also important to keep in mind that increasing your financial worth at work doesn’t just have to be linked to your salary or pay. Basically, anything that can put money back in your pocket in the context of your work, whether it’s more vacation time, more flexibility, or even better health and work-life integration, counts. However, it takes more of a conscious effort to start thinking about and planning these in order to take advantage of these opportunities.
Here are 7 ways we can all make more money without leaving your job:
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Create more value in your work
Instead of feeling stuck at your current job, you have a choice. You can add more value to your work that makes you more marketable and increases your professional and business value. Don’t get caught into the vicious cycle of thinking that your current job determines your financial worth! The point here is to provide more than what is expected of you at your current level. If you’re not sure how you can do this, you may ask your manager and higher-ups. A good way to gauge how you can go above and beyond is to consider what is required of your next professional position or level, and start performing accordingly.
Take extra assignments, develop yourself, take classes, network more, learn an extra language, get a certification! These are only a few of the ways you can boost your professional value, and be in a position to ask for more, whether it’s money, time, or perks! As long as your presence at your job creates more value for your company, your financial worth is bound to go up!
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Score those promotions and raises
In line with creating more value, you can also increase your financial worth at work by scoring promotions and raises you rightfully deserve. It starts with performing at a higher level than expected. However, you must also be willing to ask for what you deserve.
As working women, we’re often afraid to negotiate for the salaries we deserve, or even the appropriate compensation package for us. With the advent of the new law that bars employers from asking about salaries in some states, it is easier for women to negotiate higher salaries with less pressure.
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Don’t be afraid to start that side hustle
Got an idea, a passion or hobby that you could turn into a side hustle? Why not start it? Many successful and very profitable businesses were started this way. It could be as easy as starting a blog you could monetize, or teaching classes at your local gym.
You can even use your current credentials to do business on the side, as long as it doesn’t infringe on your current job. Make sure to check in your company’s policies and procedures first. As a CPA, I started helping people with taxes and accounting matters, for instance.
This is a great way to make more money, without the pressure of having to find another job or taking a significant financial risk.
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Pay off that debt
Paying off your debt is one of the most powerful ways to increase your financial worth. Without even realizing it, you may be flushing your entire financial capital into simply paying interest. Not only are you putting extra money back into credit card companies’ pockets, but you are also not reducing whatever amount you owe.
By committing to, and working on, paying off your debt, you’re actually keeping more of your money. This in turn increases your financial balance. Additionally, you’re improving your credit score, which in turn gives you access to better credit deals on essentials such as mortgages, car payments, etc. All of this without leaving your cubicle or office…
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Save, save, save!
Repeat after me: “It’s not about how much money I make, it’s about how much money I keep!” Saving money is a surefire way of making more of it, without having to wave good-bye to your current occupation. Your job may actually be allowing you to save more, through its 401k programs, its health benefits and incentives, or other savings programs it may offer.
Saving on costs associated with your job, such as commuting expenses (why not carpool?), food expenses (bring your own lunch), or clothing costs (become a savvier shopper), can also help. At the end of the day, the less you have coming out of your take-home pay, the more money you’re actually making!
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Give more!
This may sound counter-intuitive, but giving money can help you make more money. Not only are you able to deduct any donations to qualifying charities, but you can also use what I like to call the “spiritual karma” of giving. Some of the wealthiest men and women in the world practice giving, whether through tithing, charity donations, or other forms of financial support.
Consider dedicating a portion of your earnings to causes, businesses or people you believe in. It goes a long way towards multiplying what you already have.
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Ask for more flexibility
As working women, flexibility is key to achieve our goals and dreams. As such, it is putting money back in our pockets in some way. Having the flexibility to work from home, for instance, allows us to save money on childcare.
Consider asking for more flexibility as a way to increase your financial worth at work. You will soon realize how much money it can help you save in the long run.
In what other ways do you save money without leaving your job?
To Your Success,
The Corporate Sister.
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by Solange Lopes | Mar 6, 2018 | Make More Money
Having a solid and reliable budget is considered to be a financial must-have. However, it also requires to have a certain level of discipline, as well as time to keep track of several expense streams. When you’re a busy working woman looking for extra hours in the day, managing a budget may not exactly rank high on your list of favorite things to do.
Don’t get me wrong, budgeting works extremely well for many people. However, for others, it may feel like getting ready for a root canal. When you work hard for pretty much everything in your life, sometimes the last thing you want to do is work harder at your budget.
Even as an accountant by trade, I never particularly enjoyed rigid and conventional budgets. I resented having to check my budget often and monitoring my expenses closely. Doing it for work was enough. I had no desire to do it for myself. Instead, I thought managing the money I worked hard for should be more enjoyable.
If you happen to be an extremely busy working woman who resents rigid budgets yet still want to keep on top of your finances, here are some realistic, and even fun, tips:
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Start with your non-negotiables
Whatever you do, begin your budgeting process with your non-negotiables. These include your rent or mortgage, basic living expenses, utilities, emergency savings, debt payment, and retirement. While many may not consider emergency savings and retirement as non-negotiables, they actually are and should be accounted for in priority. These can be paid right at the beginning of the month or automated for ease of processing.
Starting with these essential expenses allows to get critical expenses out of the way. This takes a massive weight out of the process, freeing up time and resources to focus on other pursuits. Whatever money you have left over can be used more flexibly.
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Think about what will help you accomplish your goals
Once your non-negotiables are taken care of, focusing on your future goals should be the next step. It’s also more fun to think about what you want to achieve with your money. Make a list of your financial goals, according to what’s important to YOU.
Some of your financial goals may include setting aside some money to travel or bolstering your emergency savings. You may also be considering investing as a way to generate extra income in the long-term and build wealth.
This will require you to delay gratification and instead focus on how long it will take to reach your goals. Based on this, you can make a commitment to devoting your funds to these.
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Distinguish between your wants and needs
You may not have the time, or even the desire to spend more time than necessary on your budget. However, even for a realistic and flexible budget, it’s important to make the difference between what you want and need.
This distinction will help you save time in making financial decisions, and reduce the need for adjusting or constantly checking on your budget.
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Make a list of what you enjoy spending money on
Last but not least, make a list of what you enjoy spending money on. This is the last part of building a flexible and fun budget. It’s also a motivating factor when budgeting your money. However, this doesn’t mean you should be wasting money. The point of it is to spend money on things and experiences that truly bring you joy.
You will also feel more comfortable doing this as you would have already taken care of your essential expenses, addressed your financial goals and distinguishing between your needs and wants.
In Conclusion
Yes, you need a budget to manage your finances efficiently and productively. However, you don’t have to abide by a complicated budgeting model that takes all the fun out of earning (and spending) money.
Instead, you can still take care of your essential expenses. You can also satisfy your goals and be more intentional as to your wants and needs, while still being able to use your money for your enjoyment.
Do you have a hard time sticking to your budget? How can you make your budget more realistic?
To Your Success,
The Corporate Sister.
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by Solange Lopes | Feb 17, 2018 | Find Your Purpose, Start Your Business
For many of us, the dream career is a business to call your very own. Making the rules and doing it your way has a certain appeal to a large chunk of the population. Yet, when it comes to leaving Corporate America and creating our own path, deciding when the time is right and how to do it presents a dilemma to many.
Life in Corporate America can be a slog for the free spirits among us. Millions of people catch themselves daydreaming during their corporate jobs of a life of freedom – free of cubicles and boardrooms.
There are thousands of talented and brilliant minds working for the countless companies and firms out there. Why do so many of them stay when they hate their jobs? The answer is not so simple.
Living a life of freedom is alluring, but the realities and obligations of modern life are important, too. Leaving a cushy job with income stability and benefits is no easy task – they call it the “golden handcuffs” for a reason.
Many of us stay within the office walls to keep things stable at home. Regular income and a clear path forward through life are a comfort to most people. Being your own boss with all the responsibility and risk can be terrifying.
A career with a big company and consistently working in an office doesn’t come without risks though – downsizing, takeovers, bad bosses, and bad luck. Overall, it’s a “safer route” for most people, especially when they are afraid to break out on their own and risk failure at the helm as captain of the ship.
People are more comfortable working for an employer who lays out the path forward. Regular promotions, career plans, “progression,” and a clearer vision of the future are enticing to some. It’s all very hard to resist, and most of us never take the jump to strike out on our own.
Who’s Leaving and Why?
Thousands do leave Corporate America to become entrepreneurs every year – professionals of all incomes, career aspirations, and fields of expertise. Leaving the cubicle behind is a common thing today, especially given the opportunities in self-employment and a global online world.
Whether it’s basket-weaving, a hot new app, or a boutique firm to call your own, it is possible to follow your dreams and find success with a little luck and a lot of planning. You have to make sure you are prepared for all of the obstacles that are sure to come your way so that you can have a smooth transition into your new life.
Small and medium business ownership offers countless opportunities in America, the hub of capitalism. Modern technology offers a new way of doing business, and it’s often an advantage to be new, small, and sick of doing things the same as always.
It doesn’t matter what you do – there is an opportunity to shake things up and earn a good living in your industry or profession. The hardest part is finding the courage to jump and the right time to do it.
So You’re Inspired, But How Do You Make the Leap?
If you are serious about making a change away from Corporate America into the world of entrepreneurship and being your own boss, there are a few tips compiled below to help you along the way. Planning, timing, and execution are all important on your path out the door and onto the open road. The details make a difference.
It’s not a binary choice (like most things in life). There are many ways to make the transition from Corporate America to life on your own. Millions of Americans have two jobs including a self-owned business that operates outside of their regular nine-to-five.
You can always take it slow and do two things for a while. Once the passion project becomes a big hit, it gives you options instead of going all-or-nothing with your corporate career. It’s not always the right choice, but try not to frame the decision as two choices: stay or leave.
Conversely, if you’re really feeling inspired, then you could make the giant leap into full entrepreneurship. This is a lot more risky, but it’s also got the potential to be highly rewarding, especially if you need to get ahead with your idea.
What You Need to Start a Business
A big leap into the unknown is a scary thing for most people, but thought and planning makes all the difference. One of the most important traits in an entrepreneur is vision. You’ll need to have a path forward to get the ball rolling.
One of the most important things in any business venture is capital, or money. Seed financing, operating expenses, equipment leasing, office locations, registration, branding, licenses, inspections, and other startup costs are a regular shock to many entrepreneurs. It all takes cash to make it happen. It’s important to think about your finances early in the process.
There are a couple ways to make the finances work. The first one involves you paying out of pocket which is almost always very hard to do. Second, if you have an attractive idea, you could reach out to potential investors who are willing to contribute to your idea, though you may need to give up part of your business. Finally, small business financing from a bank or lender is the next step towards finding capital. Talk to outside professionals or find a mentor if you can. Don’t be afraid to ask stupid questions at this stage!
Needless to say, starting out as an entrepreneur is hard. After all, over 90 percent of startups fail, so you can assume that it will be hard. However, successfully starting a business is the epitome of the American dream. If you can make it as a legitimate business, then you stand to make your mark in the world.
Good luck!
Tom FIRE – Founder of FIREd Up Millenial blog
Tom Fire is a millennial Personal Finance blogger and the founder of FIRed UP Millenial blog. When he’s not working as an engineer, Tom shares his passion for financial independence on his blog. His hope is to achieve financial freedom by the age of 35.
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