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3 financial tips for couples

3 financial tips for couples

It is common for couples to have a hard time adjusting to a different way of life, especially when it comes to financial matters. As separate individuals, your spending habits will differ. This is why you both need to make certain adjustments to combine the household budget.

Here are 3 financial tips for couples on how you and your partner can make the ‘financial aspect’ of your partnership harmonious and organized:

1. Understand the way that you both look at money.

If you and your partner have different beliefs when it comes to money matters, sit down and discuss it. The key here is to be able to compromise. For some people, money is a security measure that needs to be saved. Other people spend it luxuriously and look at spending money as a means to reward themselves for their work. Still, other people have a drive that they hardly ever spend a cent of what they have earned.

Understand that the way that you both treat and spend money stems from how you were brought up by your parents. Think of everything that you need to discuss when it comes to your household budget. If possible, set rules on how you will spend your combined income on utility bills, food, mortgage, car maintenance, etc.

 2.  Set future financial goals.

If you are newly weds and you are planning to have a baby soon, consider this when organizing your finances. If you are a couple nearing the age of retirement, you can make plans on where you will spend your leisure years. Setting long-term and short-term goals will help you finalize your financial plans.

3. Share your money-saving skills with your partner.

If you have different family backgrounds, then you would have something to contribute towards organizing your joints assets. Make each other aware of your personal finances then think of ways on how you can further boost your money-handling tactics.

By following these tips, you will surely have your finances organized to lead a more comfortable lifestyle, while it makes your partnership everlasting in the meantime!

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Bookkeeping Basics

Accounting4
Most people probably think of bookkeeping and accounting as the same thing, but bookkeeping is really one function of accounting, while accounting encompasses many functions involved in managing the financial affairs of a business. Accountants prepare reports based, in part, on the work of bookkeepers. Today we see just the bookkeeping basics of this accounting phenomenon

Bookkeepers perform all manner of record-keeping tasks. Some of them include the following:

-They prepare what are referred to as source documents for all the operations of a business – the buying, selling, transferring, paying and collecting. The documents include papers such as purchase orders, invoices, credit card slips, time cards, time sheets and expense reports. Bookkeepers also determine and enter in the source documents what are called the financial effects of the transactions and other business events. Those include paying the employees, making sales, borrowing money or buying products or raw materials for production.

-Bookkeepers also make entries of the financial effects into journals and accounts. These are two different things. A journal is the record of transactions in chronological order. An accounts is a separate record, or page for each asset and each liability. One transaction can affect several accounts.

-Bookkeepers prepare reports at the end of specific period of time, such as daily, weekly, monthly, quarterly or annually. To do this, all the accounts need to be up to date. Inventory records must be updated and the reports checked and double-checked to ensure that they’re as error-free as possible.

-The bookkeepers also compile complete listings of all accounts. This is called the adjusted trial balance. While a small business may have a hundred or so accounts, very large businesses can have more than 10,000 accounts.

-The final step is for the bookkeeper to close the books, which means bringing all the bookkeeping for a fiscal year to a close and summarized.

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Personal Accounting

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If you have a checking account, of course you balance it periodically to account for any differences between what’s in your statement and what you wrote down for checks and deposits. Many people do it once a month when their statement is mailed to them, but with the advent of online banking, you can do it daily if you’re the sort whose banking tends to get away from them.

You balance your checkbook to note any charges in your checking account that you haven’t recorded in your checkbook. Some of these can include ATM fees, overdraft fees, special transaction fees or low balance fees, if you’re required to keep a minimum balance in your account. You also balance your checkbook to record any credits that you haven’t noted previously. They might include automatic deposits, or refunds or other electronic deposits. Your checking account might be an interest-bearing account and you want to record any interest that it’s earned.

You also need to discover if you’ve made any errors in your record keeping or if the bank has made any errors.

Another form of personal accounting that we all dread is the filing of annual federal income tax returns. Many people use a CPA to do their returns; others do it themselves. Most forms include the following items:

Income – any money you’ve earned from working or owning assets, unless there are specific exemptions from income tax.

Personal exemptions – this is a certain amount of income that is excused from tax.

Standard deduction – some personal expenditures or business expenses can be deducted from your income to reduce the taxable amount of income. These expenses include items such as interest paid on your home mortgage, charitable contributions and property taxes.

Taxable income – This is the balance of income that’s subject to taxes after personal exemptions and deductions are factored in.

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Basic Accounting Principles

AccountingII
Basic Accounting Principles

Accounting has been defined as, by Professor of Accounting at the University of Michigan William A Paton as having one basic function: “facilitating the administration of economic activity. This function has two closely related phases:
1) measuring and arraying economic data;
2) communicating the results of this process to interested parties.”

As an example, a company’s accountants periodically measure the profit and loss for a month, a quarter or a fiscal year and publish these results in a statement of profit and loss that’s called an income statement. These statements include elements such as accounts receivable (what’s owed to the company) and accounts payable (what the company owes). It can also get pretty complicated with subjects like retained earnings and accelerated depreciation. This at the higher levels of accounting and in the organization.

Much of accounting though, is also concerned with basic bookkeeping. This is the process that records every transaction; every bill paid, every dime owed, every dollar and cent spent and accumulated.

But the owners of the company, which can be individual owners or millions of shareholders are most concerned with the summaries of these transactions, contained in the financial statement. The financial statement summarizes a company’s assets. A value of an asset is what it cost when it was first acquired. The financial statement also records what the sources of the assets were. Some assets are in the form of loans that have to be paid back. Profits are also an asset of the business.

In what’s called double-entry bookkeeping, the liabilities are also summarized. Obviously, a company wants to show a higher amount of assets to offset the liabilities and show a profit. The management of these two elements is the essence of accounting.

There is a system for doing this; not every company or individual can devise their own systems for accounting; the result would be chaos!

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How to set up Family Budget ebook

family_budget Are you ready to start planning for tomorrow?

The Amazing Secret To Creating A Family Budget That Leads You Out Of Debt, Fills Your Savings Accounts, And Escorts You To Your Next Vacation!

Listen. It hits families all over the world like a punch to the stomach.

You don’t notice it at first, but soon you find yourself living in a paycheck to paycheck world. What you make one month is gone before you have any time to add it to your savings account…

Before you have time to fill your cupboards just one last time (while you wait for your next paycheck)… And definitely before you make any dent on your credit card balance.

Families all over are enslaved by their debt racked up over the years. The burden is immense. You don’t want anyone to know you’re having a hard time making ends meet – especially any kids that might be involved.

You’re afraid to answer the phone. It’s tough to sleep the night through. Life in debt is now a never-ending cycle of anxiety and fear.

How can you stop the seemingly endless cycle? How can you change the way you think about money? And discover financial discipline?

Let me tell you, it’s not too late with my tell-all guide…

How To Properly Set Up A Family Budget!

Ebook Table of Contents:

Family Budgets: A Brief Introduction 3

Why an e-book or how-to guide on setting up a family budget?
Why would or do you need a family budget?
The business case for and rationale behind family budgeting
Benefits and advantages of a family budget

Family Budgets Defined 12

What is a family budget?
What constitutes a good family budget?
What should it contain and look like?

The Family Budget Process 19

How to set up a family budget?
Some practical suggestions and a step-by-step summary of a family budget process
Hints, tips, tricks and tools for setting up a family budget
How should a family budget be used?

Final Thoughts On Setting Up A Family Budget 53

Greetings Friend,

If you have had financial problems in the past, you can feel relief when you start over with a (realistic) family budget.

Have you ever heard, “The first step is admitting there’s a problem?” You may or may not have a spending problem – but you can’t create a family budget without first being honest with yourself.

And let me tell you it feels good. No matter what you’re financial situation. Sitting down and figuring out exactly where you stand. How much money you owe. How much money you need to save up each month. How much money you get to spend each month.

Just putting it all down on paper lets you leave the stress behind you. And in the next hour or so, I’m going to show you how to do exactly that…

Give Me 50 Minutes And I’ll Have You On The Fast Track To A Family Budget That Erases Debt, Starts Piling Up The Savings, And Leaves You With Enough Left Over To Hit Disneyland With The Kids.

The relief is almost instant when you create a family budget. But you know what the best part is?

When sticking to your budget starts to pay off. Soon you will have a monthly surplus. Soon you will see your savings start to grow. Your debt will start to dwindle. And you’ll notice you’re still able to do the things you love!

Within my 50 page guide, “How To Set Up A Family Budget,” I’ll tell you exactly what you need to do to turn past money-management mistakes upside down. You’ll discover all my tricks, tips, and techniques for putting yourself on the fast track to financial security.

You can download my report straight to your computer. And you can have it in just minutes from now.
Here is just SOME of the information you will find inside:

=> The secret to why we can spend, spend, spend – and never know where the money went. (Page 6)

=> How to sit down with bank statements, checking accounts, stock portfolio’s and a list of assets to find out your true financial status. (Page 7)

=> 7 types of assets that have real value – that you may not know to include as part of your self worth. (Page 8)

=> Why this guide is different than other “budgeting” books. (It has to do with our “hands-on” approach.) (Page 8)

=> 5 main categories of spending that your budget will allow (don’t worry, this should make you happy!) (Pages 9-10)

=> 9 defenses of budgeting to tell your partner if they need convincing. (Page 10)

=> 26 simple tricks to help you keep to your budget (without grinding your teeth). (Pages 11-12)

=> 12 reasons why starting a family budget will empower you like never before (and help you sleep at night). (Pages 13-14)

=> 3 most common reasons why budgets fail. Know what to look out for and you’ll avoid these budget busters. (Pages 14-15)

=> What most financial advisors will tell you to keep motivated. Hint: It involves something good for you. (Page 16)

=> Why it’s important to set one main goal. (Page 17)

=> 11 successful characteristics of a family budget that you may want to make sure your budget has (if you want to turn your life around for the better) (Page 17)

=> 5 step-by-step actions to take on your way from financial mess to pillar of (wealthy) success. (Page 18)

=> 13 common expenses that you may forget to add to your budget if you’re not careful. (Pages 19-20)

=> 6 categories to separate your payment information into (to make sure there aren’t any unexpected bills that could bust your budget) (Page 21)

=> What to do if your expenses total more than your income. (Pages 21-22)

=> How to handle your paycheck strategically to make sure your bills get paid. Hint: This trick is so good, you won’t notice how responsible you are being. (Page 23)

=> Why it’s important to splurge every once in a while. (Page 23)

=> What does fiscal awareness mean? And why is it the first technique you should start applying. (Page 25)

=> The 17 rules to family budgeting. Print these out and post them on your refrigerator. (Pages 26-28)

=> 10 important processes creating a budget must provide for. (Page 30)

=> 11 secrets to budgeting found deep within the world wide web. (Pages 31-33)

=> 14 secret weapons for stopping the reach to your purse or wallet. Tried and tested, these are guaranteed to cut down your spending. (Pages 33-35)

=> 11 steps to changing your attitude towards money and turning yourself into a saver instead of a spender (with some fun exceptions). (Pages 37-38)

=> The secret to overcoming unforeseen obstacles. (Pages 39-40)

=> 10 reasons to stop spending now. (Or else it might be too late.) (Pages 41-42)

=> Why you must confront your debt now – and how to do it painlessly. (Pages 43-44)

=> 12 steps for curbing your debt. (Page 44)

=> 11 dynamite ways to have fun with little to no money. You may have forgotten about these. (Page 45)

And there’s MUCH more – guaranteed!

“Are You Ready To Leave Your Financial Problems Behind You?”
[purchase_link id=”938″ style=”button” color=”blue” text=”Buy now!”]

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What Is Accounting Anyway?

Accounting
Anyone who’s worked in an office at some point or another has had to go to accounting. They’re the people who pay and send out the bills that keep the business running. They do a lot more than that, though. Sometimes referred to as “bean counters” they also keep their eye on profits, costs and losses. Unless you’re running your own business and acting as your own accountant, you’d have no way of knowing just how profitable – or not – your business is without some form of accounting.

No matter what business you’re in, even if all you do is balance a checkbook, that’s still accounting. It’s part of even a kid’s life. Saving an allowance, spending it all at once – these are accounting principles.

What are some other businesses where accounting is critical? Well, farmers need to follow careful accounting procedures. Many of them run their farms year to year by taking loans to plant the crops. If it’s a good year, a profitable one, then they can pay off their loan; if not, they might have to carry the loan over, and accrue more interest charges.

Every business and every individual needs to have some kind of accounting system in their lives. Otherwise, the finances can get away from them, they don’t know what they’ve spent, or whether they can expect a profit or a loss from their business. Staying on top of accounting, whether it’s for a multi-billion dollar business or for a personal checking account is a necessary activity on a daily basis if you’re smart. Not doing so can mean anything from a bounced check or posting a loss to a company’s shareholders. Both scenarios can be equally devastating.

Accounting is basically information, and this information is published periodically in business as a profit and loss statement, or an income statement.

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Beat Credit Card Debt In Easy Steps

Credit_card_dept_2WOW, what ever happened to our economy? It seems like all of a sudden things went right down the tubes. Suddenly we are all swimming, and drowning, in debt. Now what? How do we fix our financial mess? How do we beat credit card debt once and for all? Easy, I’ll show you…

Unlike our parents generation when using credit was considered embarrassing and a sign of poverty, our society today encourages debt. No one thinks it’s wrong to use credit as a way to live way beyond our means. It’s even become something of a status symbol to have a lot of credit cards.

Unfortunately, that financial philosophy is proving to not be such a great idea after all. So many of us were living at the very brink of our financial limits and one tiny little push was all it took to send us teetering over the cliff.

We can’t go back and change the decisions we made yesterday but we can change what we do today so that we can be more secure tomorrow.

There are several things you can start doing today that can help you find a much more stable financial footing and can keep you on balance for the rest of your life, no matter what the economy decides it’s going to do.

To tame your credit card debt use these simple tips:

1) Consolidate your debt. This means that instead of paying $50 a month on 10 credit cards ($500/month) you combine all your debt into one loan and pay one smaller fee ($300/ month, for example) Most consolidation loans accrue interest differently than a credit card so you will be paying more in principle with every payment.

If you are only paying the minimum fee on your credit card bill you are paying only interest. You are not even touching the principle. You will have a very hard time ever paying your card down that way. There are many debt consolidation services available today. Start by asking your local bank who they recommend.

2) Do it yourself. Even if you can’t increase your income you can still pay off your debt yourself. It will take time and discipline but it has worked for thousands of people.

This method simply requires you to pay the minimum payments on all of your credit cards every month, focusing on the smallest debt and adding any extra money to that card every month. Remember that adding even a few extra dollars a month to your minimum payment will go directly to the principle.

After a while you will have the smallest debt paid off. When you reach that point you will take the money you were using to pay on that card and apply it to the next smallest debt. And so on, and so on, until all your credit card debt is paid off.

Getting yourself out of debt isn’t going to be easy. It’s always tough to change habits. But if you beat credit card debt once and for all you will have a much more secure financial future and it doesn’t matter what the economy does, you’ll be set!

Books on getting out of dept and dept management:
Dave Ramsey, The Total Money Makeover: A Proven Plan for Financial Fitness
Suze Orman, The Money Class: How to Stand in Your Truth and Create the Future You Deserve

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

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You Should Use A Debt Reduction Spreadsheet To Guide You

Dept reduction 3
If you’ve been looking for ways to get out of debt, then maybe a debt reduction spreadsheet might be the perfect tool for you. There are plenty of free downloads available, as well as some excellent professional debt elimination calculators designed for spreadsheets.

The idea behind using a debt reduction spreadsheet is to give you an accurate picture of your current financial situation. As you work towards repaying your debts, you enter the changes into the spreadsheet so you can track your progress.

It’s also a good idea to enter any changes to your income or expenses so the calculations inside your spreadsheet can make the necessary changes. Depending on the type of program you’re using, you might find that the calculation can change the estimated date that you could be debt free, or it might amend the amount of money you have to spend in your budget each week.

When you’re working hard to get rid of your debts, finding ways to keep yourself motivated so you’ll stick to your goals is important. This is where finding a good program to help you monitor and track your progress can be most beneficial. You can actually see the progress you’re making, which can help to keep you focused and on track.

Not all debt reduction spreadsheets are the same. Some are designed to work with very different debt reduction strategies. Perhaps the most popular of these is the snowball method. This is where you aim at paying down the debt with the smallest balance first, regardless of the interest rate you’re being charged. The object is to give you a sense of achievement to help motivate you to aim at the bigger debts in line. The snowball method works really well with the help of a spreadsheet designed to show you where you need to focus and what debt to pay down first.

Another popular method is opting for paying down the high interest debt first rather than the smallest balance.

The most important factor of using a debt reduction spreadsheet is remembering to enter any changes in your situation on a regular basis. The more often you remember to enter new balances or changes in interest charges or income levels, the more likely it will be that you’ll continue to find the motivation to keep going.

Many of the spreadsheets have in-built calculators that can show you how long it will take you to pay off your current debts based on the numbers you’re entered. This is usually a trigger for many people to look for ways to reduce their expenses a little further so they’ll have more income available to put towards debt reduction. When you make those changes in the spreadsheet, you’ll instantly notice how much faster those little changes will help you become debt free.

Of course, you can customize your debt reduction spreadsheet so you get to choose which debts you want to focus on paying off first. No matter what your preference, download a calculation tool that’s designed to help you get back in control of your finances today.

Books on getting out of dept and dept management:
Dave Ramsey, The Total Money Makeover: A Proven Plan for Financial Fitness
Suze Orman, The Money Class: How to Stand in Your Truth and Create the Future You Deserve

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

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Accelerated Debt Reduction – Save Money – Do It Yourself

Dept reduction 2
Accelerated debt reduction is usually advertised by debt settlement companies wanting you to believe that the only way to get rid of debt quickly is to negotiate with your creditors to accept a reduced amount of money as payment for what you owe them.

The truth is there really are ways to create an accelerated debt reduction plan on your own that could see you become debt free as well as teaching you important lessons about financial responsibility at the same time.

Before You Begin

Perhaps the best way to begin working on an accelerated debt reduction plan is to take a good look at your current budget and spending habits. Create a quick budget or write out a list of income and expenses so you know how much you’re spending. If you can see any areas at all where you might be able to cut back your spending, then work on this now.

Reduce Costs

Many people believe that trying to save 50 cents on a grocery bill is the right thing to do when they’re trying to reduce debt. Instead of worrying about your living expenses, take a look at how much your consumer debts are costing you. If you didn’t have to pay those every month, how much of your income would you have left over for yourself?

Work on finding ways to reduce the amount of interest you pay each month. This could mean catching up any delinquent payments to stop those penalty fees from accumulating. It could also mean consolidating some of the more expensive debts into a lower interest option.

If you have the option, then consider transferring the balance of a high interest credit card over to a low or no interest option. Once your interest costs have been reduced, take advantage of that introductory period to pay down as much of that balance as possible before normal interest rate charges start again.

Raise Income

While it’s not possible for everyone to walk into the boss and demand a pay rise, there are other things you can do to raise some extra cash to get rid of those debts. Millions of dollars worth of regular items are sold every day on eBay. Take a look around your home and put anything you don’t use any more on eBay.

If this doesn’t appeal to you, hold a yard sale and see if you can raise a little cash this way. Not only will you be un-cluttering your home, you’ll be un-cluttering your debts at the same time. Whatever money you raise, put this immediately towards paying down your debt balances. This will give you a huge head start and keep your motivation high.

Discipline

If you’re managed to reduce your monthly repayment costs, then the best accelerated debt reduction method is to have the discipline to allocate those savings towards making extra payments on your debts.

Whenever you receive a pay rise or a bonus or a little extra cash from any source, put it straight off the balance of your debts. Many people hate this part of the discipline stage, preferring to spend bonuses on treats.

Having the discipline to pay extra money off your debts now and go without those treats temporarily will mean you should have far more money to enjoy every month once those debts and the expensive repayments are gone for good.

Good luck with your accelerated debt reduction journey.

Books on getting out of dept and dept management:
Dave Ramsey, The Total Money Makeover: A Proven Plan for Financial Fitness
Suze Orman, The Money Class: How to Stand in Your Truth and Create the Future You Deserve

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

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A Financial Debt Reduction Plan Can Be Your Way Out

Dept reductionWorking out the right financial debt reduction plan to help you get out of debt can be tricky. Everyone seems to have all kinds of advice and they’re all convinced their method is best. How can you know which one is the right one to help you?

The problem with most financial debt reduction plans is that they don’t take into account your own unique financial situation. Only you have your level of income and expenses combined with your current debt balances. Your circumstances aren’t the same as anyone else, so why would you assume that a method that helped someone else with their financial difficulties will help you too? Work on a method that suits your own goals and your personal financial situation.

Before You Begin

Before you begin working on a debt reduction plan, ask yourself why you want to reduce your debts. You need to have a clear goal and a defined purpose in order to maintain the level of motivation you need to become debt free.

Think about how much of your hard-earned income you’ll have left over each week if you didn’t have to hand over so much of it to banks and credit card companies. What would you do with that extra money? Your answers to these questions will form the base of your own motivation.

Spending Habits

Most financial debt reduction tips begin by saying you should work out a budget and then scrimp and save and generally live like a pauper. This is the surest way to lose motivation and end up getting nowhere when you realize you’re not enjoying anything.

Instead, take a careful look at your own spending habits. Understand how you got into such a huge amount of debt in the first place. Did you buy a home that was too expensive for you? Is your car far too big and uneconomical for your needs? Are you the type of person who needs to have all the latest electronic gadgets the moment they’re released whether you can afford them or not?

There is a reason why your debts are mounting up and becoming uncontrollable. Take a careful look at your current lifestyle and how much it costs to maintain your standard of living today. In order to become debt free, you first need to fix your spending leaks. This means finding the discipline to stop charging anything else on your credit cards and only buying those things you have the cash to afford.

De-Clutter

Financial debt reduction can’t begin while your finances are cluttered, messy and disorganized. Spend some time working through an accurate picture of your total income after tax, your realistic expenses and your current repayments. Then work through some ways to reduce your costs.

This should include working on ways to reduce any repayments or interest charges on outstanding debts, avoiding penalty fees and finding ways to cut back the amount you spend on other living expenses.

Once you’re found the right level of motivation to become debt free and you’re de-cluttered your financial mess, you’ll find that working on a realistic plan for financial debt reduction will be much easier.

Books on getting out of dept and dept management:
Dave Ramsey, The Total Money Makeover: A Proven Plan for Financial Fitness
Suze Orman, The Money Class: How to Stand in Your Truth and Create the Future You Deserve

Image courtesy of patpitchaya / FreeDigitalPhotos.net