Permission to Spend: Why A Budget is This Couple's Secret To Reaching Their Goals
Your budgeting game is about to change.
Whatever it is, the way you tell your story online can make all the difference.
Welcome to this special episode of WorkParty titled Money Talks, a Budget Broadcast Series in partnership with You Need a Budget (YNAB), designed to educate everyone on the power of building a budget.
Whether it’s starting the business, going on the trip, or renovation projects at home, a budget (of all sizes) can help you accomplish those dreams. YNAB is the leading personal finance platform that has helped hundreds of thousands of people take control of their finances–including our guests today.
In the second episode of the WorkParty and YNAB Budget Broadcast Series, Jaclyn sits down with Chris and Julia Marcum, the duo behind the dreamy home renovation, DIY project and lifestyle blog, Chris Loves Julia, to chat about how to use a budget to plan, prioritize, and not only set–but actualize–your financial goals, and why you should start today.
Get your notepad ready and press play on episode one! Your budgeting game is about to change. Join the party on social @workparty and stay in-the-know at workparty.com.
Try YNAB Free for 34 Days
Subscribe to WorkParty and never miss an episode.
How to Stress Less, and Find Joy in Your Finances with Ashley Brooke
Your budgeting game is about to change.
Welcome to this special episode of WorkParty as part of our Budget Broadcast Series in partnership with You Need a Budget (YNAB), designed to educate everyone on the power of building a budget.
Whether it’s starting a business, saving for a trip, or taking control of your finances once and for all, a budget (of all sizes) can help you accomplish those dreams. YNAB is the leading personal finance platform that has helped hundreds of thousands of people take control of their finances–including our guest today.
In this third and final episode of the WorkParty and YNAB Budget Broadcast Series, I’m sitting down with Ashley Brooke to chat about money mindset–how to overcome common obstacles, manage money stress, and budget for fun–not just for fear. Join the party on social @workparty and stay in-the-know at workparty.com.
Try YNAB Free for 34 Days
Subscribe to WorkParty and never miss an episode.
How to Take Control of Your Finances and Cultivate Confidence Around Money
Your budgeting game is about to change.
Welcome to this special episode of WorkParty titled Money Talks, a Budget Broadcast Series in partnership with You Need a Budget (YNAB), designed to educate everyone on the power of building a budget.
Whether your financial goals are aimed at booking the vacation in Europe you’ve been dreaming about pre-lockdown, paying off your high interest credit card debt, or simply starting to save for the future—a budget (of all sizes) can help you accomplish those dreams.
To kick off our first of three Money Talks episodes, Jaclyn is joined by Jesse Mecham, the founder of YNAB, the app designed to be your best money-saving friend.
Get your notepad ready and press play on episode one! Your budgeting game is about to change.
Try YNAB Free for 34 Days
Subscribe to WorkParty and never miss an episode.
Bills, Bills, Bills: How to Stop Procrastinating and Organize Your Money
Get your finances in check.
Photo: Anna Shvets from Pexels
Gradually making the transition from side hustler to full-time self-employed freelancer is a great plan to be sure that you’re able to support yourself with your new business. That said, it can often lead to a bit of a messy overlap between personal and business funds.
You may keep pushing off getting organized until “tomorrow” and let the task of figuring it out, fall to the bottom of your to-do list. That was my story until I realized that I was losing money because of missing receipts and not planning for tax deadlines.
Follow my four steps below to make getting organized easier, painless, and dare I say it, maybe even a little fun. Let’s get started!
Step 1: Open a separate bank account for your business ASAP.
Is this something that you legally need to do for your business? Maybe. Is this something that you financially need to do for your business? Absolutely.
Even if you’re starting out as a sole proprietor, which is the default structure for anyone who earns income from self-employment, you should set up a separate bank account. Why? Because even if that’s the only thing that you do to get your money organized, you’ll be miles ahead of everyone else in the organization game. You won’t need to sift through a bunch of personal transactions to find business deductions and you won’t lose precious time looking through all of those same personal transactions to see if your client has paid you.
Don’t overcomplicate your business or waste any more time looking at a hodgepodge of transactions, hoping that you’re not missing something. Take 15 minutes to set up a separate account and you’ll be one big step closer to organized money management (congratulations!).
Step 2: Create a list of deductions you can take.
My mom is also a CPA, but unlike me, she actually does taxes for a living. She’s constantly sending me little reminders about deductions I can take because I often don’t catch everything. It’s awesome, but since she’s not with me every day to keep me on track, I’ve created a list of things I can deduct to make sure I’m not missing anything. I keep this list taped to the outside of a folder and store my receipts in there until I can get them entered into my bookkeeping system.
Everyone will have different expenses, but a good list to get started with is:
• Web hosting
• Vehicle mileage
• Work travel
• Courses, seminars, licensing, business-related books
• Shipping, packaging
• Office supplies and equipment
• Health insurance premiums
Step 3: Know what tax forms you need to file, and when.
During my first year in business, I wasn’t too concerned about filing my taxes because I had made no money. Well, it felt like no money. But technically in the eyes of the IRS, it was enough that I needed to file and pay quarterly estimated tax payments.
I think most people have the same cavalier attitude that I did because they don’t know the IRS rules and it’s just something they feel like they can take care of later. I can tell you from personal experience that those first few months of starting a business will fly by and you’ll be left scrambling the night before filing deadlines if you don’t pay attention to some key forms and dates.
To get this started here is some basic information for sole proprietors:
• Who has to file? Generally, anyone who has net earnings from self-employment of $400 or more needs to report this income at the end of the year. And anyone who is expected to owe more than $1,000 in taxes at the end of the year needs to make quarterly estimated income tax payments.
• What form to file? Most people start their business as a sole proprietor, and the forms that you need to file at the end of the year are Schedule C or Schedule C-EZ (profit and loss from business) and Schedule SE (self-employment tax).
• When to file quarterly estimated tax payments? If you’re rational, you would probably think these payments would be made quarterly. Well the IRS throws in just a little change-up, so your payments are actually due on an odd schedule. The non-quarterly, quarterly schedule that they’ve come up with is:
Jan 1 - March 31: estimated payment due by April 15th
April 1 - May 31: estimated payment due by June 15th
June 1 - August 31: estimated payment due by September 15th
September 1 - December 31: estimated payment due by January 15
Step 4: Set a weekly money date.
This won’t be your most fun date, but it’ll probably your most profitable. Set a time to check in every week and make sure that your money is on track. If you do this weekly, it’ll become so easy and quick. I save my money date for Friday afternoons when I’m at my least productive. Once I have this done, I know I’ve earned a glass of wine and a good weekend.
Some things that I do weekly are:
• Send any invoices that are due
• Look at who hasn’t paid me and send reminders (+ cash any checks!)
• Pay any outstanding bills
• Pay myself my weekly salary/stipend
Bonus step: Set up a bookkeeping system.
Oh, look at you, overachiever! You’ve got this organization thing down and you want a bonus step? You can feel even more legit and in control of your money by setting up an easy bookkeeping system. This doesn’t have to take a long time and it doesn’t need to cost a lot. There is a range of easy to use programs out there (some are even free!) that are better than that excel sheet you’re using. If you don’t need many bells and whistles but are looking for something free, try Wave. It’s pretty simple to use, and it’s free.
Now, set aside 30 minutes a week to work through this list and start feeling in control of the business you are creating.
About the Author: Erica Gellerman is a small business strategy and finance expert who has a passion for helping creative entrepreneurs start, launch, and grow their business. After getting her CPA and MBA and spending a decade working at some of the best finance and marketing companies in the world, she started her own small business. Realizing that there weren’t enough resources dedicated to helping solopreneurs build profitable, small businesses, she set out to share everything she’s learned through her site. Follow her on Twitter @ericagellerman.
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This post was originally published on March 2, 2019, and has since been updated.
MORE ON THE BLOG
Ask an Expert: How to Create Financial Wellness By Rebuilding Your Personal and Financial Life Post-Layoff
Money can be stressful. Not having money can be very stressful.
We’ve been spending a lot of time at Create & Cultivate HQ discussing how we can best show up for and support our community during this uncertain time. Community is at our core, and connecting with others through one-of-a-kind experiences is what we love to do. While the world has changed, our mission has not. We’re committed to helping women create and cultivate the career of their dreams, which is why we’re proud to announce our new Ask an Expert series. We’re hosting discussions with experts, mentors, and influencers daily at 9 am, 12 pm, and 3 pm PST on Instagram Live to cure your craving for community and bring you the expert advice you’ve come to know and love from C&C. Follow Create & Cultivate on Instagram, check out our Ask an Expert highlight reel for the latest schedule, and hit the countdown to get a reminder so you don’t miss out!
“
Taking the time to create a financial roadmap will help you feel more in control and take the uncertainty out of your future financial picture.”
-Kathy Entwistle, Senior Vice President of Wealth Management, UBS Financial Services Inc.
It happened. It’s not a drill. And you most certainly aren’t happy. Why would you be though? You were part of a major layoff, a restructuring, or some other term your company arbitrarily chose to deliver bad news, and now you are wondering what to do. You don’t want to spend time on a government web page endlessly scrolling for answers on unemployment, and you definitely don’t want to breach the subject with your friends or family yet.
That is exactly why Kathy Entwistle, the senior vice president of wealth management at UBS Financial Services Inc., has outlined clear, actionable steps for you to take because while it is always acceptable to ask your network for help, a little preliminary research can bring a sense of independence and the power to stay positive and keep moving forward. Consider this your go-to source for handling all things personal and financial wellness for the next 30 days.
Find your best Spotify playlist, give yourself a hug, and let’s get to planning your next act!
Put Yourself First
Take some time to process the fact that your day-to-day life has changed. Not only is social distancing starving the human condition for connectivity and engagement, but your routine and purpose will have to be redirected, too. Find time over the next few days to look inside, reflect, pause, and even try meditating if this is not something you normally do. There are many great mediation apps, and most are offering free trials.
Set Your Goals and Objectives
Whether you choose meditation or some other form of internal reflection, one important guidepost in your checklist and planning will be your purpose and intention. Setting an intention as to your schedule, routine, and plan to get yourself back on track will be crucial. The less intentional you are about your goals and objectives, the less effective you will be in pursuing them.
Let’s start with your career intention and work our way to your financial intention. LinkedIn just became your new best friend (or same old friend for some who use it often). Reaching out through messaging, connections, and coffee breaks will provide exposure to the people who can provide proper guidance, advice, and possibly even the interview you wanted all along.
A great book to read to help guide you on your new career path is called, “What Color Is Your Parachute?” It will give you some great questions to ask yourself when assessing your career intention, and possibly, a new career path.
Assess Your Resume
Find time to recraft your resume and ways to be a storyteller rather than a fact board. Make sure your resume tells your authentic story and is crafted to the right target audience for jobs you will now be applying to. Let’s not forget; your current connections at your company are extremely valuable. Reach out to both those who have been laid off and those who haven’t, but you know well. Their recommendations and willingness to help you on your next path are not to be overlooked!
Review Your Financial Plan
You want to first reacquaint and understand where you stand financially. How much you have, how much you need, and where you can pull cash flow from. Is it your portfolio kicking off dividends or coupons from stocks and bonds? Do you have an emergency fund with three to six months of easily accessible funds? Do you have anyone who is depending on you?
Make sure to take a look at your credit card statements or activity online. This will tell you where you might be able to cut costs, like shopping for clothes online or ordering takeout. Just as you would block off time on your schedule for meetings, block out time on your schedule to review your plan, we might even suggest you accompany it with a matcha or your favorite cold brew.
Review Your Severance
The standard is two weeks of severance for every year you have worked at the company, but that is not mandatory. Make sure you take the time to understand what they are offering you, you are even permitted to try and negotiate.
Also, check to see about your health insurance coverage. Will your employer be providing Cobra coverage and for how long? If you have a partner or spouse, make sure to account for yourself on their benefits when appropriate.
Not everyone’s package will be the same, so focus your energy on yourself and what you can control. While we are still in the assessment stage, we are already moving forward. Keep that playlist rolling!
Review Your Debt
If you have credit card, auto loan, or student debt, now might be the time to conserve and preserve your cash. Don’t pay anything other than the minimum until you get back on your feet and are in a better position to get back on track and put together a plan to reduce your debt. These are debts that you will want to be able to eliminate once you have your cash flow back in place and you have an emergency fund set aside.
Map Out a Savings Strategy
It might seem that much more difficult to worry about your day-to-day expenses let alone remember to stash away some for later, but it is important to keep saving, even if you have to decrease your contributions to your savings account. Ideally, you would not be selling any of your investments to fund your day-to-day expenses so you can continue to let your nest egg grow, however, we realize that you might need to sell some investments to get by.
Come Up With a Selling Strategy
You will want to be aware of any tax impacts of selling investments with unrealized gains. Unrealized gains are taxed at capital gains, instead of your higher ordinary income rates, and could cause an even larger burden if you don’t have the funds to pay the taxes. You will also want to keep in mind your long term investment strategy. If the investment has good prospects for future return or it is an investment providing cash flow, you might want to rethink selling that position just for liquidity.
Consider Borrowing
Think about borrowing, as long as the rate of return will outmatch the rate of borrowing and opportunity costs. For example, rather than selling your investments to access cash, think about keeping your long term investment strategy running and borrowing for short term liquidity. When you get back on your feet, you will be happy to see your nest egg was compounding for a longer time and without any tax drag or reduction in size.
Money can be stressful. Not having money can be very stressful. Taking the time to understand your financial picture and take the steps necessary to create a financial roadmap will help you feel more in control and take the uncertainty out of your future financial picture.
About the Expert: Kathy Entwistle is the senior vice president of wealth management at UBS Financial Services Inc., providing straightforward financial advice tailored to the life you lead. Kathy has been in the financial services industry for more than 25 years. A former stay at home mom who donated her time teaching local financial classes to women, she rose to the heights of being named a "Forbes America's Top Women Wealth Advisor" in 2017 and 2018. As a seasoned multigenerational practice within UBS Private Wealth Management, Kathy, along with her son and the rest of her team, has guided generations of sophisticated families as well as senior executives and entrepreneurs through complex financial challenges.
Tune in daily at 9 am, 12 pm, and 3 pm PST, for new installments of Ask an Expert.
Follow Create & Cultivate on Instagram, check out our Ask an Expert highlight reel for the schedule, and hit the countdown to get a reminder so you don’t miss out. See you there!
Finances Have you Frustrated? Have No Fear, Podcasts Are Here!
Money matters.
Written by Jackie Sedley.
Money. It’s a short word that stands for one of the most nerve-wracking aspects of our day-to-day lives. There is no denying that some of us are more money-minded than others, but by no means should anyone feel guilty or ashamed for having trouble with their finances. Thankfully, those of us who are more financially educated and experienced have taken to the oh-so-convenient world of podcasting to share their tips and tricks. From financial advice to financial slip-ups, these podcasts can inspire and motivate you to feel less ashamed and more capable.
Photo: Courtesy of Create & Cultivate
The Podcast: The Real Female Entrepreneur
Why We Recommend It: This podcast really hones in on the less-glorifying aspects of the business. Host Lauren Frontiera brings about conversations of failures, fears, triumphs and struggles, all packed into hour-long episodes. This podcast is great for anyone who feels insecure about their financial struggles, as it brings about a sense that you are not alone.
Best Money Tip: Prioritize passion over a paycheck. On TRFE 218: Follow Your Passion, Not the Paycheck with JJ Anderson they discuss the consequences of putting money on too high of a pedestal. “People prioritize monetary gain over enjoyment… especially as entrepreneurs” she told TRFE. “ I know the end goal is to make money, and it will come if you’re consistent and you’re strong in what you’re doing. But if your sole focus is making money, it’s not going to get you out of bed. What’s going to get you out of bed is your passion and your happiness in what you’re doing.” But this is our favorite JJ Anderson quote from the episode: ”The amount you’re being paid does not validate you.” Preach.
The Podcast: WSJ Secrets of Wealthy Women
Why We Recommend It: Every Tuesday, host Veronica Dagher enlightens listeners with empowering conversations revolving around finance and professional success. This women-centric podcast brings up a wide array of female success-stories, from self-made entrepreneurs to philanthropic advocates. With such a diverse assortment of guests, it isn’t hard to find an episode that you can relate to.
Best Money Tip: Stay true to you. In the episode Dr. Laura Forese: Changing the Future of Women’s Healthcare Dr. Forese advises, “Be true to your own brand. Be true to yourself. Don’t try and emulate anything else. I think having a distinct identity is very important when thinking of your brand, but ultimately making sure that your ethos makes sense and that it’s true to who you are. You’re not putting something out there just because you think people are going to love it, you’re putting it out there because you know it’s the right direction to go and it makes you happy.”
The Podcast: The Biz Chix Podcast: Female Entrepreneurs
Why We Recommend It: This podcast is less about learning from others’ stories, and more about uncovering your own methods to financial success. Host Natalie Eckdahl is a well-known author and coach and has used her background in business to promote the importance of growth, adaptability, and team-building.
Best Money Tip: Reset your mindset. According to Episode 360: Why We Create Our Own Glass Ceilings women are scared to charge more for their products due to fears of judgment and scarcity. In response to this issue, host Natalie Eckdahl feels as though, “our mindsets need to be continuously reset as we up-level and advance in our businesses.” She suggests that confidence is key in making a profit and continuing to know the worth of your project.
The Podcast: Inspired Money
Why We Recommend It: Hosted by financial advisor Andy Wang, this podcast brings inspiration and motivation into the financial success conversation. Aiming to shift listeners’ perspectives on money, the interviews that Wang conducts are both informative and captivating and will be sure to stick with you the next time you pull out your wallet.
Best Money Tip: Be thoughtful with your dollars. On Buy the Change You Want to See With Jane Mosbacher Morris, she emphasizes that “not only should there be alignment with your values and your purchasing decisions, but also knowing that how you spend your money and who you spend your money with can significantly impact the lives of others.”
What are your favorite money podcasts? Share the link below with your top money tip so we can all tune in!
