Category Archives: bookkeeping

Protect yourself from identity theft

As if you don’t have enough to worry about as an entrepreneur this tax season, there is one more thing you need to be very aware of: identify theft.

If you are a sole proprietor, everything about your business is tied back to you. Your livelihood not only depends on your good work habits, but on safeguarding your information — your clients’ information and your own. And as we slide into the middle of FY2016 tax season, you should also do what you can do to ensure your private information isn’t stolen and used to steal your tax return right out from underneath you.

The first thing to consider, if you haven’t already, is getting an Employee Identification Number (EIN). As a sole proprietor, you’re not legally required to get an EIN. But in addition to protecting your personal assets in the event your business hits a few bumps, having an EIN can also help protect your identity. With an EIN, you will not have to use your social security number for any business-related tax forms or credit or loan applications.

The best part about it is this: it doesn’t cost you anything.

Here are a few other tips to keep in mind:

Watch what you throw away.

The easiest and most common method thieves use to steal someone’s identity is simply going through their garbage. Be very careful about what you throw away. Just because you tie up your garbage bag and have a secure lid on your can or dumpster doesn’t mean you are being as careful as you could be. It wouldn’t hurt to invest in a paper shredder to ensure that any documents with potentially useful information for identity thieves are unusable.

(Here’s a little side tip if you also garden: depending on how much paper you shred and what kind of paper it is you can add shredded paper to compost.)

Watch where you handle financial matters

One of the big draws about being a freelancer or owning your own business is that, depending on what you do, you can literally take your business anywhere. We’ve all seen the gig economy articles with pictures of satisfied looking semi-professionally dressed people sipping a latte in some generic coffee shop while working on a laptop.

And there’s nothing wrong with that. But when it comes to doing your taxes, it’s a good idea to avoid public Wi-Fi hotspots for filing digitally. You should also avoid publicly accessible hotspots at hotels and fast food restaurants, even if it’s a secure spot that requires a password. Your best bet for filing digitally is to file from home or your business office, using a hardline connection or a secured connection where you control access.

Also, if you’re using a tax app on your smart phone that requires you to take a picture of your W-2, be sure to delete the photo after you’ve sent it.

Beware phone and email scams.

The IRS always sends documentation if there is an issue with your tax return. If you haven’t received any documentation, but are receiving phone calls and emails claiming you owe the IRS an excess of back taxes, be extremely cautious. They will sometimes give you fictitious but very real sounding badge or employee numbers. Sometimes they even know the last four digits of your social security number. If you receive a phone call from someone claiming to represent the IRS, immediately hang up and contact the IRS. If you receive an email, you can forward the IRS the email, but if possible, you should not open it as it may be part of a different phishing scam to install malware on your computer.

If you don’t prepare your own taxes, make sure you find someone trustworthy.

If your tax preparer asks you to sign a blank return, run – don’t walk – the other direction.

There are other ways to protect yourself

If you decide that protecting your identity is also a worthwhile financial investment, there are several programs available.

  • LegalShield © has a service called IDShield ©. They offer this in addition to other legal services for small businesses.
  • AAA also has two identity theft services they provide for members: ProtectMyID Essential and ProtectMyID Deluxe.

Marbles and monkeys: tracking your hours and expenses

Even though Richard Florida’s 2004 brain child, “the creative class”,  has come under fire in the last few years, many cities trying to redefine themselves in the wake of an increasingly dominant technological economy have still spent considerable time and capital trying to accommodate young urban creatives – freelance writers, graphic designers, computer programmers, artists, and media workers, as well as people working in healthcare, business and finance, the legal sector, and education.  As a matter of fact, a 2010 report predicted 40% of American workers will be earning their living as part of the “gig economy” by 2020.

 The next few blog posts will be focusing on accounting issues and challenges that face entrepreneurs whose work falls under the category of “the creative class” in a “gig economy.”

So either you’ve been sucked in by allure of being your own boss or you’re unable to find a single, stable job in your chosen career field. Now here you are. You are part of the gig economy. You have several clients with rotating deadlines, or you have a slew of single-project clients.  You get to work from home. You get to work in your pajamas. Sometimes you can grab your laptop and go to your favorite coffee shop and work. You might even be able to work from the beach! You have more control over your schedule than your parents did. And it’s awesome being your own boss.

But unlike the days of The Organization Man, you also have to shoulder the responsibility for tracking your hours and being more aware of your expenses. Even though sources like Forbes Magazine and Investopedia praise the gig economy and the idea of a mobile creative class, you know there’s a large part of your job that isn’t creative even if it is mobile.

Depending on the client, you will charge for your time differently: by the hour, by the project, or even by the word if you are a copy editor/copy writer. There are a lot of marbles to keep track of when you work for yourself. Different hours worked on different projects on any given day. Different hourly rates for different clients. Record keeping is essential. If you’re good with spreadsheets, that’s helpful. If not, consider finding some accounting software, cloud accounting, or — if you have a large enough client base – find an accountant to take the guess work out.

Not only do you want to keep a precise record of your work hours so you can bill your clients correctly, you also want to keep track of any taxes you will be required to pay. Why? Because now you’re now your own boss, without anyone in human resources or payroll to arrange for deductions. You are responsible for making sure Uncle Sam gets his cut. With all the joys and challenges of being your own boss in the “gig economy,” you don’t want that big angry monkey on your back weighing down your success.

Backing up your backups: Hemingway’s suitcase and cloud accounting

Record keeping is the key to any successful business. But it’s not just about crossing your t’s and dotting your i’s. It’s not just about making sure all your columns add up. With tax season coming, we will all be soon inundated with images of people trying to compile paper work dig through files and battle computer viruses that suspiciously only attack business and tax records.

But like any other business activity, record keeping is all about planning, which is why, if you haven’t looked into backing your data up in the cloud, now is as good a time as ever.

If you’re unfamiliar with cloud storage, it’s actually pretty simple. It’s a service that enables you to store records on remote servers. Unlike archival storage, having your data in the cloud means not only is it safe – because most cloud services use basic file encryption – but you can have access to it anywhere you are. This is especially helpful if your business requires you to travel. Rather than having to carry copies of client paperwork – which no one really does anymore anyway, I know – or having to rely solely on your laptop — you can streamline your business packing even further by saving copies of your files in the cloud.

Why should I store my important files in some cloud?

Let me answer this with a little anecdote. This story is primarily apocryphal… it gets told and retold, though no one ever seems to have a basis for it. It gets retold because the point of the story is sound regardless of whether it’s factually true.

Before Ernest Hemingway was a famous writer, he was a news stringer in Paris for American newspapers. Once he decided to leave Paris, he packed up all of his creative writing – years’ worth, including all of his carbon copies – in one suitcase. He packed up his wife and infant son, along with some clothes, a few possessions, and that one suitcase. They went down to the street to wait on a cab, but Hemingway ran back up because he forgot something – his favorite pen maybe.

When he made it back to the street, his wife greeted him with the news that one of their suitcases had been stolen. Which suitcase? Just the one that had all of his writing in it – years of work. All the drafts. All the carbon copies.  Gone.

Lucky for Hemingway, he embraced the setback and immediately after wrote The Sun Also Rises, the book that made his career.

My point is this: it’s unwise to keep all of your files and all of your copied, digital or otherwise, in a single place.  Computers, like anything else, can break and wear down. If you are a large business and can maintain your own servers, maybe you don’t think you need cloud storage. But if you are a small business or a sole proprietor, it’s important that you stay as lean and flexible as possible.

No-cost or low cost cloud storage could save you time, money. It can also help you communicate with clients and employees. As the account owner, you can allow or revoke access to partners, employees, and freelancers to suit your needs. There is no more effective way to transfer files too large for most email systems than a cloud service.

The cloud is great for accounting, too!

Stay connected to your business… from anywhere!

Many people who use cloud storage use it as a safe and affordable way to archive large files they don’t want to keep on local hard drives to improve computer performance. But did you know that as a small business owner you can also use cloud accounting to make your life a little easier?

Like with cloud based storage and file-sharing, you have several options. With Zoho, for example, not only can you maintain your books, but you can collaborate with clients directly via the client portal, pay out and get paid faster, track inventory and cash flow in real time, and be able to create the detailed kinds of reports any smart business owner needs.

Ok! So how do I go about getting started?

 There are many ways to go about doing it, and depending on your needs, cloud storage doesn’t have to add to your business’s bottom line. Zoho offers several plans starting at $9 per month. QuickBooks Accounting Software has cloud-based capabilities, but it comes at QuickBooks prices. Oracle’s NetSuite also gets good reviews, but you need to contact them through their website to get a tour and cost break down.

If you’re looking for something you can start using with low-cost and high value, though, something like Zoho is your best bet. You will thank yourself for making your business life go that much smoother.

Most cloud storage services – such as Google Docs, OneDrive (for Microsoft Office users), ICloud (predominately Apple users), and Dropbox, just to name a few – offer up to 5GB of storage for free. There are larger accounts for monthly or annual fees.

Signing up for an account is easy. Your User ID is your email address; your password can be as simple or as complex as you like it, within the parameters set by each site.

Please have a safe and happy New Year!

GrinchtoGlee

From Grinch to Glee – Make year end easier with these bookkeeping tips

It’s not that your heart is two-sizes too small like the Grinch, but rather that your head might explode from all the year-end bookkeeping tasks on your list. While these to-dos could certainly put your holiday spirit in short supply, we know how and Who can help.

It’s essential that your data is accurate, complete and organized for tax time and the year ahead. But where do you begin?

Like the Whos in Whoville helped Grinch, we offer tips to keep you and your books on the nice list.

  • Evaluate your financial standing

Review profit and loss, your balance sheet and general ledger. Make sure they aren’t mangled up in tangled up knots by checking that all transactions have been recorded and posted to the proper income, expense, asset or liabiity accounts. Also check the accuracy of your accounts receivable and accounts payable, and write off uncollectible debt so as not to overstate your income (especially if accrual based), and overpay the You-Know-Whos.

  • Complete bank reconciliations

Make sure your checking, savings and credit card accounts have been reconciled. Loan interest should be separated from the principal and accurately logged. And a decidedly, non-grinchy trick: reconciling monthly makes it easier to catch errors.

  • Review Personal Expenses

You shouldn’t, wouldn’t, oughtn’t, mustn’t mix your personal and business expenses (although for the Sole Proprietor it’s often a necessity), so look at your expenses closely and if that’s the case find receipts and/or cancelled checks and log the expenses in your books. Then watch your heart grow because you avoided paying extra taxes.

  • Review Subcontractor Services

If you’ve hired any Whos who are Sole Proprietor’s or LLC’s, for contract services totaling more than $600 during the year, you’ll be required to send them a 1099 Misc form. It’s a best practice to send each new subcontractor or vendor a W9 at the time of hire to ensure you have complete address information and either their Social Security Number or Federal ID Number information on file.

  • Take Inventory

Review your inventory during the last month of the tax year and make necessary adjustments to align the inventory account of floofloovers and whowonkas to match the items in stock.  Your inventory value should show the cost price or price paid rather that the selling price for your items.

  • Create a Filing System

It may sound overly simple and antiquated, but we know an organized system for easily accessing the documents you need, when you need them come tax time will make you happy as a Who.

As you celebrate the close of 2016, it’s also time to look to the year ahead. If one of your goals is to have more flexibility and time to achieve your personal and business goals, consider the advantages of having a Bookkeeper. Not only an excellent resource to simplify your financials and ensure accuracy, a Bookkeeper can also be a personal advocate, a partner as loyal as Max, and someone to help you make your Holidays mean a little bit more for years to come.

Make The Holidays Count!

My favorite time of the year is upon us… the season of thanksgiving and bestowing gifts upon others. It all starts with reflecting how grateful we are for our many blessings and successes over the past year. Whether these accomplishments were made through businesses endeavors or simply through our personal sweat-equity, we are grateful for those opportunities. We can profit from the many benefits that come from having a grateful heart such as improving our physical and psychological health. Gratitude also enhances empathy and reduces aggression and it can help people sleep better too. These are just a few good reasons how feeling grateful can improve our bottom line which allows for the next step.

Being grateful is only half of what stands out during the holiday season. As soon as the dishes have been cleared from the Thanksgiving feast, we are reminded that, “Hey, “Black Friday” is only a few hours away!!” In an instant, our thoughts go from being “grateful” to thinking about gifting and sharing with others. We can all understand how giving to others is good for our community and the world, but giving can also reap huge benefits in our own lives as well. Did you know that giving to others lowers our blood pressure and stress levels? This, alone, will help each one of us live longer and happier lives.

So, in honor of the season, I have put together a few examples where you can reach out to the community and show your gratitude by giving back.

For Businesses:

  • Choose a local Charity Event that is relevant to you and your business and donate money, be a sponsor or volunteer your time.
  • Encourage your business team to get involved in a fundraising event such as Toys-For-Tots.
  • If your company has a budget for donations, provide a Turkey Give Away program for families in need.

For Individuals:

  • Have a garage sale in your neighborhood and donate the profits to charity.
  • The local homeless shelter or soup kitchen could always use a helping hand.
  • Provide care-packages for people in need; For example… the troops, seniors, kids and teens in group homes, the homeless
  • Let us help our planet by recycling! The proceeds can once again go to a charity.

With all of the wonderful benefits that go along with being thankful and giving back, let’s make a difference in our communities through our valued time and efforts this holiday season.

Budgetary Moves That Will Move You Cross-Country

Planning a cross-country move can become your worst nightmare! For starters, organizing a move like this will feel impossible… I mean, where do you even start? It can also take a toll on your well-being (i.e. your mood and your health) and it can drain your bank account too!

The good news is, there are some simple steps you can take to alleviate the pain and put you back on the road to success… and it’s called having a strategy. Once you sit down to map out your move then it’s almost guaranteed to minimize your stress and maximize your financial savings.

To help you get started, here are a few steps:

  • Start an “Action Plan” – Be sure to write down your plan… better yet, find an app that will enable you to create a checklist of your moving to-dos. By staying organized and “on task” you will save money because you’re not having to buy things at the last minute.
  • Seek Relocation Assistance – Are you relocating due to your job? Many companies offer relocation assistance, to cover some of the costs for the move, so you may want to check with your new supervisor to see if this is available.
  • Collect Packing Materials – Companies like U-Haul charge premium costs like boxes, tape and rope so once you know that a move is going to happen, visit your local grocery or convenience stores and ask for any boxes they still have after restocking their shelves. Ask friends and neighbors to save their newspapers and any other packing materials such as old blankets.
  • Organize your Packing Priorities –
    • Have a “GO TO” Box: Priority 1
      Have one large box to the side where you will keep all of your must-have items such as packing tape, pens, markers, scissors, paper, important documents, medicines, toiletries, and anything you’ll need until you leave home. This will prevent having to buy new stuff every time you pack away or lose things you need. Keep this box with you at all times so you can get access to these important items when you reach your destination.
    • Have an “FIRST THINGS FIRST” Box: Priority 2
      This is like the “GO TO” box, but  will be the box of your priority items you may need when you arrive to the new location. In this box will hold what should be considered your 2nd on the list priority items.  Give some thought to what items you’ll need (or want) to have right when you get to your new home. Maybe you’ll want to include things like the coffee maker, coffee cups, toilet paper, towels, and toys to keep the kids busy.
  • Label Your Boxes – It can be really easy to skip this step or to just do it sloppily. Some people would actually rather go out and buy new items instead of searching through yet another box for something they need. Nip unnecessary spending in the bud by marking each box with a permanent marker noting what room it belongs in with a brief list of what’s inside. Try to avoid my technique that usually comes out at the end of the packing experience where I throw stuff into the boxes and just label them all MISCELLANEOUS…;)
  • Clean as You Go – When you pack up an area, give it a good cleaning immediately after the space has been cleared. This will keep things efficient and prevent you from having to hire cleaners to do your entire residence when you are sick of the moving process. Cleaning will also be beneficial if you rent and are counting on a security deposit refund.
  • Ditch the Junk – Keep a JUNK and GARAGE SALE box close by. While you’re boxing up your keepers, you’ll easily be able to toss your junk and garage sale items into their proper boxes. Moving is a great chance to clear out the stuff that finds a way to accumulate over the years. Plus, you’ll spend more money if you have to move boxes of stuff you don’t even want anymore. Sell anything that is still in good shape by having a moving sale when you near the end of your packing process. When you make your donation to the thrift store be sure to get a donation receipt because that will come in handy when tax time rolls around.
  • Check out Storage Options – For any family heirlooms or pieces you may want back at some point, consider renting a low-cost storage unit to house your items until you can have them set to your new place of residence and cheaper option is to consider asking trusted friends or family to house your treasures in their homes until you can arrange for transportation. If you do decide to go with the storage unit be sure that you don’t forget about it and continue to rack up $50 + a month in fees.
  • Get Moving Company Quotes – If you decide to have a moving company move your stuff be sure you get multiple estimates and quotes before making a decision. You want affordability, of course, but you also want reliability. Some will even store your belongings for FREE, up to 3 months!
  • DIY Packing – You may choose to have a moving company pack you up… but it will cost you! Use a company that will provide you with a truck and a driver. All you have to do is pack up the truck yourself and they’ll drive it across the country.
  • Be Truck Smart – If you plan to rent your own moving truck and haul your stuff across country on your own, make sure to only reserve the truck size you need. It will cost you a lot of extra money (in gas and truck rental fees) if you book a truck that is too large.
  • Overnight Stays – If you have friends and family along the travel route, ask them if you can borrow their couch for a night rather than spending your money on hotel lodging. If that’s not an option, you’ll need to consider where you will be stopping to rest. You can find valuable coupons in the books available for free at state welcome centers. Look for coupons for hotel deals and restaurants along the way and online before you leave. If you have fur kids, there are options that accept your pets… do your homework!
  • Utilize a Cooler – Depending on the room available in your vehicle you can save a good amount of cash if you pack your own snacks and drinks for the morning and afternoon. Then, only stop for dinner.
  • Finally… Don’t Buy until You’re Settled – Don’t rush out to the store to buy what you think you need… Give yourself time to sort through your stuff and get set up, keeping a list of ideas along the way. If you rush off to the store the 1st week you’re in town it will most likely lead to overspending, especially on things that you don’t really need. The only store you need to hit in the first few weeks is the grocery store.

By using some or all of these steps, your worst nightmare can be transformed into some wonderful memories that will allow you to embrace the next chapter in your life with some extra cash to boot.  See you on the road!

 

Spring Cleaning For Your Finances

OK, now breathe! That’s it, take a deep breath in and slowly release it… tax day is over, spring is in the air and summer is just around the corner. LIFE IS GOOD!

That is until you take a good look at the mess around your computer… the strewn trash piles along with the old financial records and leftover coffee cups and who knows how long that box of chow mein noodles has been siting there… right?!

But remember, it’s SPRING and what better time than to get started on a bit of spring cleaning? I’m not just talking about cleaning up from your deadline with the IRS or cleaning out the closets and under your bed, I’m talking about your financial spring cleaning.

Now, don’t get me wrong, spring cleaning your house goes a long way in helping you spring clean your finances too. By organizing your home, you are much more likely to know what you need to buy and may prevent you from purchasing something that you don’t need, simply because you misplaced it. Listed below are a few other ways that you can spring clean your finances:

  • Check Your Credit Score – Is there any incorrect or misleading information about you that could hurt your score? What can you do to improve your score?
  • Organize and/or Shred Old Financial Documents – Clean up your files and shred any old or no longer needed information.
  • Re-balance and Diversify Your Investment and Retirement Accounts – How are your investments doing? Are you on tract with your retirement goals?
  • Review Your Insurance Coverage – has there been any life event changes? Do you need any additional coverage or is any coverage obsolete?
  • Review Your Expenses and shop for better rates – Can you pay less if you switching to a different company? Are you using what you paid for like that gym membership?
  • Set up Automatic Bill Pay – Late fees undermine your financial goals, therefore put regular payments on automatic bill pay so this doesn’t happen.
  • Save without Thinking – How is your emergency fund? Are you saving enough each month?
  • Revisit Your Budget – Once you have reviewed your finances ensure that the new numbers are worked into your budget.
  • Record Your Financial Passwords and Store Records in a Safe Place – Or better yet, use a trusted online password storage system and be sure to use a different password for each of your financial sites changing the password on a quarterly bases.

Knowing where you stand with your finances will better enable you to make wise and prudent money choices and as a result, you will be better prepared for your next tax deadline in 2017.

Need A Raise? Then Read This…

What would you do with an extra $500 – $1500 of free money each year? Take a family vacation, put it in savings, add it to your college/retirement fund, pay down debt etc… In other words, there would be many uses for that money, right? OK, so now you are probably wondering, where do I go to find this “free” money?
Well let me start by telling you a story that I’m sure we can all relate too. Last January, my friend received a flyer in the mail from her cable company stating that because she was such a “loyal” customer, she was going to get 3 months of HBO for free! Well she thought, “How cool is that? I’m definitely going to take advantage of this and then I will call back and cancel it before my “free service” is up”. So for the next 3 months, she totally enjoyed “free HBO” and by the time came to cancel, she kept saying, “I’ll do it tomorrow”… even after she was sitting there watching the 110th viewing of “Grease” with John Travolta and Olivia Newton John! Then, life stayed busy and she just never got around to canceling, so over the last eight months she ended up adding $80 to her account… and they said it was free HBO!?
Almost every company that we have an account with, entices us with these low cost items throughout the year and we honestly think that we will try it “only once” and then we ultimately forget about cancelling, so much so that by the end of the year we are spending hundreds of dollars that we had no intention of spending in the first place! Plus, trying to remember everything that we signed up for gets so complicated that we just throw our hands up in the air and go on paying and paying…
Instead of giving up, there are two things you can do right now to stop putting money into their pockets and start putting it back into your own pocket:

  • Call your service providers and simply ask them to review your account to determine if there is any way you can reduce your bill. Most representatives tend to be very helpful with finding ways to reduce the money that you are spending because they want to keep your business.
  • Do a little research on how much you may be able to save by switching to another company. By knowing the competition’s rates you can either switch and save or you can let your company know that you want to stay with them but you may have to switch if they cannot offer you the same rates or find some incentive (less money) to keep your business.

By doing these two simple things with all of your accounts (phone, internet, auto insurance… etc.) you will be able to save some money. It took my friend about an hour to call both her cable and cellular company and when finished, she was able to get her bills reduced and will now be able to save a total of $250 over the next 12 months! By tightening up your budget, you will be able to put that extra money to better use… maybe even get out of debt that much quicker.

Make it a great day!
Marla J. Blanchard
MJB’s Bookkeeping Solutions

Don’t keep me a secret, if you know someone who could use a bit of Bookkeeping TLC let them know that they are not alone and have them call me 805-764-1MJB (1652).

Healthy Finances = Living Debt Free

A few months ago, we discussed how maintaining a “healthy budget” can keep everyone on course in reaching the lifestyle dreams of their future. It is also a great tool to help you get out of debt too, since debt is the primary reason that prevents most people from reaching their financial goals. So today we are going to discuss 2 types of debt and then go over 3 strategies that will help you stay on track towards eliminating that debt for good.

All debt is not the same and understanding the difference between secured and unsecured debt will help you prioritize your payoff strategy.

  • Secured Debt: Any money that is borrowed is attached to an asset that is considered collateral, meaning that if you don’t pay back the loan – the asset/collateral will be taken away and sold off to pay your debt. In addition, if the asset/collateral is sold for less than what you originally borrowed, then you may still owe the difference. Your home and car are examples of secured debt.
  • Unsecured Debt: Any money that is borrowed is not attached to an asset therefore you will not lose any tangible items – However, you are still held accountable for what you owe and creditors have a number of tools at their disposal to get their money paid back such as, reporting to the credit agencies which will lower your credit rating, garnishing your wages or by hiring a debt collector. Credit cards and medical bills are examples of unsecured debt.

Now that you understand the difference in each type of debt let’s look at a few strategies for paying down your debt.  But first, a must do before you add any new strategy…

            PAY YOUR MINIMUM BALANCE ON EACH OF YOUR BILLS EVERY MONTH!                                        

By paying your creditors the minimum balance each month, let’s them know that you are staying on track and it keeps your accounts from receiving any negative feedback with the credit bureaus. Once you have paid your minimums you can then take the extra cash to pay down your debt in one of the following ways.

  • Snowball System: In this plan, you will organize your debt from smallest to largest then pay any extra money toward the smallest debt each month. Then once you have paid of that bill then start paying down the next largest and so on. The benefits here are that you will see one of your debts being paid of sooner which is a great boost to your financial goal.
  • Avalanche System: This plan is much like the ‘Snowball” method instead you arrange your debts according to the interest rates from highest to lowest then pay the highest rate bill first until it has been paid off then move on to the next highest, and so on. By taking the interest rates into account, you are putting more money toward your higher interest rate debt first. Not only does this approach save you money, “it gets you completely debt-free faster.
  • Financial Fast/Debt Detox: Since we have been discussing how to get financially fit, why not take it a step further by doing an actual spending fast? With this method you will be required to honestly ask yourself, “What do I really need?” – vs – “What do I really want?” Then make a list for each question. Once you have your two lists… then for the life of your fast (1 yr.?, 18 mos.?, you decide), spend your money on only what you really need each month and then use the rest of the money to pay down your debt until it has all been paid off. Once you have accomplished paying off your debt, but your spending fast isn’t over yet, then start putting the monthly income into a savings account and continue this habit until your fast has been completed. At the end of your financial fast, I am sure that you will be super impressed on what you have accomplished!

As with any goal that you are trying to achieve, be it financial goals or health and fitness goals, you’re more likely to succeed if you have a good plan in place, a fair amount of willpower and a desire to change your habits.

Make it a great day!
Marla J. Blanchard
MJB’s Bookkeeping Solutions

Don’t keep me a secret, if you know someone who could use a bit of Bookkeeping TLC let them know that they are not alone and have them call me 805-764-1MJB (1652).