Category: Ideas

free meal

The Benefits of a Free Meal: How Giving Away Food Can Change Lives

Posted on by Arturo

How Free Meals Can Help Those in Need

You’ve probably seen them. The lines of people waiting for a free meal at a local shelter or community kitchen. Maybe you’ve even wondered why they don’t just get a job and buy their own food. But it’s not always that simple. A free meal can mean so much more than just a full stomach. For many, it’s a chance to take a break from the struggle to survive another day. A moment of comfort and community. An opportunity to be seen as a human being again, not just another nameless statistic. Sure, a meal alone won’t solve larger societal issues like poverty, unemployment and homelessness. But it can nourish the body and soul in profound ways. In this article, we’ll explore the powerful benefits and ripple effects that giving away free food can have on individuals, communities and society as a whole. It may just change the way you see that line of people waiting their turn.

The Ripple Effect of Giving Away Free Food

Provides Nutrition

For those struggling with food insecurity, a free, nutritious meal can make a big difference. Many people rely on food banks and soup kitchens to get vital nutrients they might otherwise lack. A good meal gives energy and helps support health and well-being. 

Offers Community 

Sharing a meal together fosters connection. For people who are homeless or isolated, a free community meal provides an opportunity to socialize and find fellowship.  Conversations bloom, friendships form, and people gain a sense of belonging. 

 Restores Dignity

Knowing where your next meal will come from is something many of us take for granted. For those in need, a free meal offered with kindness and respect can help restore a sense of dignity. It signifies that someone cares and values them. 

Provides Relief

For families struggling to make ends meet, a free meal means one less worry and expense. It provides relief from stress and financial burden, if only for a little while. Parents can breathe easier knowing their children will have full bellies, and resources can be directed to other essential needs.

A simple meal may not solve all problems, but for those in need it can make a meaningful difference. Free meals nourish the body and the spirit, providing sustenance in more ways than one. Communities that offer these gestures of goodwill reap rewards that also feed the soul.

Free Meal Programs Making an Impact in Communities Across America

 

When you donate meals to those in need, the impact ripples outward in powerful ways. Feeding the body feeds the mind. Having enough nutritious food to eat leads to improved health, concentration, and cognitive ability.  Kids can focus better in school, and adults can perform better at their jobs. 

Reduced stress and improved well-being.  Not having to worry about where your next meal will come from relieves an immense burden.  This can help reduce toxic stress levels and allow people to think more positively about their future.

Stronger communities.   Free meal programs bring people together and foster human connection.  Relationships form between volunteers, donors, and recipients.  People from diverse backgrounds bond over a shared meal.  These social connections lead to a stronger, more cohesive community. 

Multiplied generosity.  The kindness of giving freely often inspires others to give in turn.  When people witness the impact of donated meals in their local community, they frequently become donors and volunteers themselves.  This cycle of generosity spreads goodwill that nourishes entire neighborhoods. 

Giving away free, nutritious food may seem like a small act of kindness, but its effects spread outward powerfully.  From feeding bodies and minds to building community and spreading generosity, the ripple effects of this simple act can change lives in meaningful ways.  What starts as a single donation or meal often multiplies into a movement that nourishes communities from the inside out.

Jason Vanclef

What Americans Should Do With Their Stimulus Checks

Posted on by Arturo

Americans will soon receive stimulus checks from the United States due to the coronavirus update. Although many people will want to spend the money quickly on essentials, it might be worth considering a portion aside.

Consider Making Investments

Investing during a crisis is never a calming idea, but it may be worth considering putting some money away for the future. Consider some of the ideas that experts like Jason Vanclef think are useful.

  • Equal-weighting all sectors is a way to speculate on a broad comeback.
  • Utility stocks will continue to provide stable yields.
  • Consumer staples will lead the way as people continue to need supplies, especially if they’re staying home more.
  • Health care will be necessary to fight any pandemic.

There are as many strategies as investors, and none of them bring guarantees. Never use the money for investments that you need for crucial supplies.

Tackle Your Credit

If possible, you might also consider paying down your highest-interest credit lines. Being defensive is likely to be a winning strategy when credit contracts. Indeed, you don’t want to deal with credit rate hikes. That’s why it pays to monitor what’s going on with the economy and your finances carefully.

If you have extra time because of the coronavirus, spend some of it dealing with your finances.

Search for Discounts

Become even a better shopper. With money in your hands, one way to hang onto more of it is by choosing bargains. It’s easier than ever to locate discounted, high-quality products. Being thrifty empowers you to keep more cash, which is always a fantastic thing.

Take power over your finances because managing through a crisis requires a powerful mindset. An emergency generally causes some asset classes to dump very low in price. When that happens, having some cash is a way to pick up items at low rates. Set alerts and check shopping sites often to see if something you want comes for sales.

Read the Economy

The economy must serve as your guide moving forward. If you guess wrong, you will get punished as a result. Instead, focus on the sectors in the U.S. that are most likely to grow due to coronavirus. That will likely mean healthcare companies and household supply manufacturers. You can pick up ETFs if you don’t want to play individual stocks.

You will also likely find many bargains in the stock market. It may be worth picking up heavily discounted shares in companies if you have the patience to wait for their comebacks. If the main problem they’re having is related to coronavirus, they’ll bounce back fast when the threat leaves.

Spend It on Training

American workers who are out of work due to coronavirus should consider spending their checks on training. Find out which are the hottest industries for hiring and then get the certification necessary to begin a career. An event as significant as this one is a time to reflect on goals, and it’s an ideal moment to change directions.

Now could be the time to make new moves, on a personal or financial front. You may be feeling slightly different about many subjects since the outbreak started. If that’s the case, it’s worth doing some soul-searching for clues about what chapter is next in your life. Jason Vanclef is a big proponent of improving your life through education.

Don’t Neglect Self Care

Extra spending money may provide you with the opportunity for some long-needed self-care. It never hurts to invest in yourself. If you have wanted something for a long-time, your stimulus check may be the best way to get it. The stimulus only works when you help the economy by making purchases.

It’s your decision on what to spend your money on, but it’s possible to use it in several ways. Mix it up how you like and put money behind the ideas you cherish most. The amount of the check won’t be life-changing, but the extra money is always helpful. It may even be a start towards your future if you remain conservative when spending.

Many Americans will be spending at the same time, so the impact should prove useful for pushing the economy upwards. That many people all shopping will help stimulate demand and should bring most people back to work. At least that’s what experts are expecting.

Savings are always worth adding to, even if with only a share of the money. A small nest egg can grow over time, which will be essential for dealing with the next major crisis. Although a stimulus check is never a sign of good news, putting the money to good use is helpful

taxconnex

5 Tax Deductions For Your Business

Posted on by Arturo
taxconnex

Running a business can be quite expensive and lead to a pretty hefty tax bill. The good thing is that there are quite a few deductions a business can get to help make this bill a little smaller. Some businesses might get deductions that are figured out based on things like sales tax nexus, while others won’t qualify. Since it’s very important to know what you can and can’t qualify for, here are 5 common deductions that businesses can get.

Sales Tax

The first type of deduction a business can get is called a sales tax deduction. These types of deductions are for the sales tax you pay on items for your business. It does not include every single purchase you make over the year, especially for things you are buying for your personal use. If you aren’t really sure whether you qualify or want to know more about your tax situation, you can try to hire a sales tax outsourcing company. These are companies that will prepare and file sales tax returns for your business.

Business Meals

You can also get deductions for any business meals you have. These are for any meals you had that related to work. Keep in mind, this doesn’t only mean meals you had on your lunch break. If you take out clients to discuss business, you can get those meals deducted. Remember, it’s important to keep receipts and other paper trails that relate to these meals, just to ensure you won’t run into any issues or hang-ups while you’re actually filing your return.

Salaries and Benefits

With any business comes the need to pay salaries and benefits to employees. During tax season, this can become daunting, especially if your business is large and has hundreds of employees. There are some requirements in order to get these amounts deducted, but it includes normal wages, benefits and vacation time. With that being the case, it’s extremely important to keep a detailed and clear record of any and all amounts paid out.

Vehicle Expenses

You can also get deductions for any vehicle expenses. Most people use vehicles quite a bit for their businesses. The deduction for this includes any vehicle that’s specifically used for business, as well as personal vehicles used for the same purpose. If you use your personal vehicle for both business and personal use, you want to make sure you keep receipts and documentation to prove the times it was used for business. The good news is that these things are pretty easy to collect, so you shouldn’t have too many issues.

Travel Expenses

Finally, you can get deduction on any travel expenses your business gets. This includes things like rental vehicles, meals, hotels and parking fees. With this being the case, it’s important to keep all your receipts and papers from your business trip, so you can refer back to it and give any additional information if needed.

Besides the special circumstances, like sales tax nexus, there are quite a few other deductions that a business can qualify for. It’s a good idea to hire a professional to ensure that you get the most deductions you possibly can, so your tax bill won’t be more than what it needs to be. You might be surprised at the deductions you actually qualify for.

How to Go From Whistleblower to Millionaire

Posted on by Arturo

Picture this, you are a lowly accountant for a large corporation. Let’s say this is an international corporation worth several billions of dollars. You as an accountant, are tasked with filing tax returns for your boss who is in middle management, shall we say. You are an accountant in your forties, female and single, living in a world where gender and age can sometimes stop you from getting a job or from transitioning into another career. You have done the taxes for your boss for 5 years under the fear of being fired for not doing what he asks and you have helped him to commit tax fraud every year. 

Because you do his taxes, you know all of his information including bank account details for the account he is using to hide millions of dollars from his wife in the Cayman’s and how he’s been embellishing the taxes so that he doesn’t have to pay his fair share to the taxman. During the annual Christmas party, you are tasked with preparing all the food and are not given one iota of thanks or even a gift from your boss or anyone else in the corporation. This paired with the prospect of facing another lonely Christmas alone because you can’t afford to go back to Minnesota for the holidays, (and other soul-destroying issues that make up your tragic life) you find you’ve reached your breaking point and decide this tax season you are going to show your boss what it feels like to be you… You are going to turn him in to the taxman, oh and amend his returns for the last 5 years!

Now, because you are a seasoned accountant, you know that the IRS rewards whistle-blowers with 30% of the tax penalty of the person that you turn into the authorities. With your boss making 6.5 Million dollars a year you add up the figures in your head and see dollar signs. As you sit in the office late into the night diligently undoing the wrong of the past five years by amending the tax returns of your wonderful boss, you are struck with fear. Asking yourself what could happen to you if he finds out that you were the person who reported him to the IRS. Could you face any legal ramifications you think to yourself? You decide in your wisdom, that you should seek the advice of an attorney before proceeding to blowing the whistle and draining your bosses bank accounts in the Cayman Islands. 

In instances of whistle-blower cases, it is imperative that you have a lawyer to protect you and guide you through the process of blowing the whistle and receiving your cash award. A good attorney will make sure that your identity is kept secret, and your safety is secured as is required under the law. Douglas Healy can help you with your whistle-blower case and ensure that you get the money you deserve for doing the right thing and that you are not prosecuted or threatened prosecution for coming forward and helping your boss commit the fraud. it is important to note that he must sign his own return and as such once he is signed it he is agreeing that the information that was put on the return is correct and truthful under pain of prosecution. It doesn’t matter if you prepared the paperwork.

After filing the whistle-blower paperwork, it can take several months if not years for you to receive any cash award issued by the IRS. Also, the payout you receive is subject to tax and other fees at the federal and possibly state level. 

Even though in this scenario you are a seasoned accountant you still have to seek the advice of an attorney. This is because you may never have filed such paperwork and you do not want to make a mistake or unwittingly out yourself to your employer. With Douglas Healy, you will have access to a top-quality lawyer who is abreast of all tax laws and regulations, including state and federal. With Doug on your side, you can rest easy knowing that in blowing the whistle you are doing the right thing and are protected under the law

The Differences Between Data Governance and Data Management

Posted on by Arturo

One of a company’s most important assets to protect is their data. Data is extremely important as is used to make a variety of important business decisions. In terms of how the data is used, there are several ways that a business can go about protecting it and ensuring it is of the highest quality. Two of these processes are known as management and governance. Both are very important, but also have distinct qualities that separate one from the other.

What is Data Governance?

Essentially, data governance defines how exactly the data will be treated and accessed within a broader management initiative. This is a key component for any business management strategy, and it refers to how data will be protected and preserved as an asset.

The concept of governance can best be understood as the practical application of technology, people and policies to create an appropriate way for data to be used. There are many tangible benefits to utilizing governance, and it will be primarily reflected in the data’s security.

Some of the more immediate benefits of implementing a strong governance strategy includes improving the security of the data by verifying requirements to access the data and enforcing accountability for its management.

In addition, data governance can also establish a set process to improve performance and reduce costs and inefficiencies in the process. This is all important because businesses are understanding in the modern era how important it is for an organization to understand who should access and use the data.

A proper governance framework will help ensure that security and privacy controls are put in place.

What is Data Management?

Unlike governance, data management refers to the implementation of tools to achieve the objectives that the data is intended for. The very concept of data management dates back to when computers started to become commonplace in the 1980s, and since then, businesses across the world have made it a point of emphasis to make proper data management a part of their strategy.

Management has a more broader range of functions, as management relates more to the supervision, execution and development of many data assets.

There are many aspects of data management that businesses have to consider. While it can be a tedious process, managing data in a proper manner will ensure efficiency and less errors when it is ready for use.

How Governance and Management Work Together

These two concepts are very important in order to ensure businesses protect data, and they have to work together in order to ensure maximum protection and quality.

Management procedures are required so that data can be stored in appropriate ways. In this sense, a governance framework cannot be implemented unless data classification, architecture and metadata management is already in place.

Data cannot be governed if a business cannot define what the data is, where it is stored, what manner it was collected in and how it can be accessed. Management and governance are two important processes that businesses have to undergo in order to ensure that data can be readily available for use

Wink Capital Shares 5 Options for Financing Your Startup

Posted on by Arturo

In order to make money, it will cost you money. Any business venture can be a rewarding endeavor to undertake, but it will not come with a cost. In this case, you will need capital in order to adequately fund business operations and get it off the ground.

Fortunately, there are plenty of ways to go about achieving this finance, although each method carries with them different requirements or dynamics that you will have to be prepared for. You can visit Wink Capital as an expert in this industry for any added concerns.

Venture Capitalists

Venture capital is when an outside group takes a part-owner of the company in exchange for capital. While the percentage that the venture capitalists take can be negotiated, the final number is typically predetermined based on the valuation of a company.

This is an ideal choice who lack the physical collateral for bank loans. Going with venture capitalists also provides you with more than just the capital. Some firms provide entrepreneurs with hands-on assistance along with a team of advisors.

Partner Financing

Strategic partner financing can serve as another effective means of getting the capital necessary for a startup. This is where a partner in your industry will fund the growth in exchange of special access to distribution rights, staff, and the signature product.

The company that you are partnering with is typically a large company. It doesn’t even have to be in the same industry as yours. It could simply be an organization that has an interest in your business.

There is a mutual benefit here because the larger company will gain the special rights listed above, and the smaller startup (yours) will have not only necessary capital but a cohort of customers and marketing that you can instantly tap right into.

Crowdfunding

Crowdfunding can be a viable option for those looking for a shot in the arm financially. These are sites that permit businesses to combine small investments together from a variety of investors.

Crowdfunding sites typically have specific terms to bear in mind, so this should be considered before making a choice. Certain sites require processing fees to be paid or for businesses to raise a certain goal in order to keep any of the money that they are able to raise. You can learn more about the importance of money, potential interest rates and other pertinent financial information from Wink Capital.

Grants

If a startup has a particular focus on research or science, grants may be received from the government. The Small Business Administration provides grants through the Small Business Innovation Research and Small Business Technology Transfer programs.

Those who are recipients of these grants need to meet certain developmental and federal research goals in order to be eligible to receive the funds. There also has to be a high potential for commercialization as well.

Angel Investors

Angel investors often get grouped together with venture capitalists, but there are staunch differences between the two. Venture capitalists are typically big, established companies that invest in businesses that trade capital for equity. An angel investor is an individual who invests in a startup.

Finding an angel investor works for many companies because a personal relationship can be more heavily established and it can be more difficult maintaining effective communication with an entire company.

As you can see, there are many ways to go about getting external funding for a startup. Examine each of these five options and see if any of these options will be right for you and your business

Tuck Associates Discusses 4 Surprising Costs That Come With Starting a Business

Posted on by Arturo

Starting a business can be a great way to build a source of residual income. However, you will have to be ready to account for some of the costs that come along with the venture. Here are four costs of starting a business that you will need to be aware of.

Loans

In order for any business to get off the ground, a great supply of capital will be needed to do so. Usually, this capital comes in the form of a loan from banks. It sounds simple enough, but it can be a very cumbersome process if you are a novice in starting a business.

If you do not have any experience with the proper documents, then that means you will have to apply for a loan based on your credit. In turn, this means that if your personal finances are not in order, you will either get refused a loan or get a loan with high-interest rates. The high-interest rates on loans will be a burden to carry because you will be less likely to make monthly payments.

Insurance

Insurance will also be another cost that you will have to consider when starting a business as well. Businesses will often find themselves in need of protection such as liability insurance, small business insurance, cyber insurance, workers compensation insurance and even error and omissions insurance.

As you can see, that’s quite a lot of security that you will have to invest in. Unfortunately, it may be necessary for your business because untimely events will happen. When they do happen, it can have a direct effect on your company’s bottom line. In order to avert a potential financial catastrophe, you will want to have your bases covered should things go awry. The importance of managing finances is one of the many things that companies such as Tuck Associates focus on.

Administrative Costs

Perhaps you did not consider this at first, and unfortunately, many small business owners do not take into account the costs that it will take to actually run the business. If you want a more proper perspective entails, consider what you may have seen in an office when you worked under someone else.

You surely saw phones, computers, printers, specialized software, filing cabinets, and other office supplies that are needed in order to perform essential business functions. No one will be reimbursing you for all of this unless you happen to come across a generous donation.

Depending on the scale of your business and how big a team you will probably need, the costs of all of these supplies could easily range into the hundreds of thousands of dollars. If you are intent on making a business successful, you will need the technology and tools to do so. Managing finances are incredibly important, especially when it comes to running a business. It is also a part of what makes companies like Tuck Associates renowned.

Shrinkage

Retailers lose approximately 45 billion dollars annually on shrinkage alone. Intentional or otherwise, shrinkage can be a devastating cost for businesses to come into contact with. You must be prepared for the worst-case scenario. Shrinkage is something that cannot be completely avoided, but it can be mitigated to an extent. Take interventions to stop the damage early

How to Harness The Power of Customer Success

Posted on by Arturo

If you’re keeping up with the latest trends in business growth, chances are you’ve heard about customer success (CS). CS is now one of the ways modern businesses ensure that they attract and retain clients for the long haul. Although a relatively new concept, this system of strategies continue to grow in popularity amongst business owners.

In this post, we will be learning about what CS is and how we can harness is power in business growth.

What is CS?

This concept is simply defined as being able to forsee challenges that potential clients may face. By doing this, companies can provide solutions to these problems ahead of time while giving answers to inquiries as well. Having an efficient customer success system ensures that present clients are satisfied with your product or service as you attract new ones over time.

CS is the implementation of strategies post-purchase in various stages such as:
Adoption: This is the process of how customers adjust to the product or service provided. Are your offers user-friendly? Do they bring satisfaction or help with the needs of your client?
Retention: Some companies offer loyalty programs for repeat customers. By providing a roster of products, you can encourage customer retention.
Expansion: Business can also expand their scope of expertise while keeping their loyal customer base. This may be challenging but possible through a strategic plan.
Advocacy: Providing high-quality products and services while improving the CS system can help present clients to recommend your business to others.

These stages are essential, but as a business owner who is new to this concept, it may be a challenge to implement them right away. Below are some easy strategies to get started with CS.

How to Harness The Power of CS

Identify the potential challenges that your customer may face.

The first step in getting started with CS is identifying potential problems that could hinder the goals of your potential clients. Identifying and anticipating your client’s problems may be done in several ways.

Firstly, you can gain a clearer insight by disseminating surveys from present customers. Other strategies include doing A/B experiments on your website interface and see which formats get the better response.

You may also ask suggestions from your team members and other experts about their idea of potential client problems that you can solve beforehand.

Find a solution for each of the problems identified

After identifying challenges faced by your customers, create a chart of an equivalent solution for each.

A great example of effective CS strategy can be found in the online retailer giant, Amazon. Amazon has several tactics on customer success, which includes on-site, social media marketing, and e-mail marketing strategies.

Within their website, you can find customer reviews and product suggestions based on previous searches. Customers can also find items which are purchased together. Recently, there is also a comparison chart included of similar products. These strategies are all based on the concerns of potential customers, and to increase their chances of purchasing an item from Amazon.

Discuss each strategy with your team and create a plan on how you will integrate each solution to improve CS.

Capitalize on automated business solutions

It can be very time-consuming to pinpoint each problem while thinking of an appropriate solution for your customers.

Most businesses nowadays can take advantage of automated business solutions that can do all the hard work of ensuring CS. Finding web-based solutions can require hours of coding and experimenting.

There is a rising trend of business solutions available for companies to improve CS through a simple installation or integration of a customer success software tool.

CS is an indispensable concept, and its power can be harnessed by implementing these effective strategies. Growth is possible through anticipation of consumer problems, finding solutions, and integrating an automated software

Second City Advisors Discusses The Best Ways to Pay Off Your Business Credit Card

Posted on by Arturo

According to The National Small Business Association, 36 percent of all small business owners had to resort to using credit cards to finance their small business endeavors in 2014. In fact, credit cards were the most used method of financing a small business, according to the report. Business owners were paying an average of 13 percent interest on the cards. During that period of time, 76 percent of small businesses were carrying debt.

Second City Advisors, financial advisors on debt, would like to remind business owners that business credit card debt can easily snowball and cause set-backs to your business. If your business has a lot of credit card debt, it is important to put a plan in place to pay off the debt.

The Problems With Business Credit Card Debt

Interest Rates Are Often Too High: We are in a time where the rates on credit cards of any kind are exorbitant. This makes it tough to get the debt paid down.

Your Personal Credit Score Can Suffer If You Get Behind in Payments: According to Nerdwallet, most business owners have signed a clause within their business credit card agreement that is a personal guarantee. That means the business owner will be personally liable if they fail to make the payments on the business credit card. Thus, their own credit can suffer, and the card issuer can sue them personally if they fail to make the payments on the business credit card. This personal guarantee, since it is an agreement you sign when you applied for the card, supersedes the protections that you have against personal liability that your entity normally enjoys as an LLC or corporation.

There Are No Consumer Protections on Business Credit Cards: Even if you are floating along, paying the credit card payment each month, Forbes states that these cards do not have any of the consumer protections enacted for other types of credit cards. Thus, the interest rate can spike up within a billing cycle, or you can be double-billed within a billing cycle.

It is Too Easy to Overspend With Credit Cards: It is all too easy to use credit cards on impulse and make purchases that do not help your bottom line and do not support your business plan.

If you end up with poor credit because you do not pay the business credit card debt on time, you will end up with more headaches than could stymie the growth of your business:

  • You will not be able to get more credit when you need it in order to grow.
  • Suppliers will not give you 30 to 60-day lines of credit.
  • You will likely have trouble leasing office or warehouse space.
  • It will be tough to get utilities turned on without fronting a deposit.

How to Pay Off the Cards

Lower Expenses

Nerdwallet advises that business owners consider minimizing the costs of office space, especially if your work is online. They also suggest not buying too many items to resell at first because you will have a better idea of what will sell over time. Another way to save money is to create your own website for your business. There are many good platforms today that help business owners quickly and painlessly create a website that tells their story. Anything you can do to lower expenses can go towards making larger payments on business credit card debt.

Try to Qualify for a Small Business Loan

Small business loans are often at lower interest rates, but Nerdwallet advises that you usually need to be in business for some time and have a track record.

Get the Credit Somewhere With Lower Interest

If you have good credit, consider a personal loan or a debt consolidation loan. Both are forms of personal loans often can be used to consolidate debt on high-interest cards. With a personal or debt consolidation loan, you will end up with one payment each month. These loans are often at a more forgiving interest rate than what you can get with a credit card. By lowering your interest rate, you will be attacking the principle and paying it down faster than if you are suffering under the higher interest rates on your plastic.

The caveat here is to realize that this type of loan is personal and can impact your personal credit score.

Secure a 0 Percent Interest Business Credit Card With Balance Transfer

If you can’t get a personal loan in order to reduce your interest rate, you might likely qualify for a 0 percent interest rate business credit card, if you have been making regular payments on your current card. These rates don’t last forever, though. Most of these balance transfer offers are only for 12 to 18 months, so you really have to try to up the ante on the payments each month in order to take full benefit of the interest-free ride. Just be aware of what your interest rate will revert to at the end of the 0 percent period.

If you are trapped in high-interest payments on a business credit card, call Second City Advisors. Our team is here to help you find the best path to pay off your high-interest credit card debt that may be threatening the growth of your business

Hornet Partners

Hornet Partners Provide Tips on How to Establish a Budget

Posted on by Arturo

When it comes to building wealth, anyone can become wealthy because wealth is always accumulated slowly over time. Building wealth is simply a matter of following good financial disciplines, habits and practices day in and day out for years. While it is true that sometimes people experience large, sudden windfalls, if they don’t have good financial disciplines in place to take advantage of that windfall, they will lose it just as quickly as they got it. One of the most basic financial disciplines is setting and living within a budget. Here are 4 steps to establishing a budget based on the experience of Hornet Partners. 

1. Track your spending

One of the very first things you need to do before you create a budget is to get an accurate picture of exactly where every dime of your money is going. You probably have a few large bills that eat up a significant portion of your income each month, such as a mortgage, rent, or car payments; but then you can literally have hundreds of small bills that add up to a staggering amount of money. If you add up all of the small amounts you are paying for everything from Netflix to Birchbox to Apple Music to your health club membership, you may discover you are spending hundreds of dollars each month on services you may not even use. Similarly, it is very easy to spend $6 a day on a coffee, yet if you add that up over the course of a month, you are spending nearly $200 a month just on coffee. 

2. Set financial goals

The chances are high that there are things you want to do that you don’t currently feel you have the money to do. Chances are also good that you do have the money, you are just spending it on other things. Setting a budget is all about priorities. In other words, it’s about spending less on things that mean less to you so you can spend more on things you want more. For instance, you may want to travel but don’t feel you have the money. Once you start tracking your spending, however, you may realize you are spending over $200 a month on coffee and $800 a month just on eating out. If you simply made your own coffee every day, you might cut your coffee expenditures down to $50 a month. If you start taking your lunch to work and eating at home more often, you might cut your food expenditures by half. Those two cuts alone would free up $550 a month to save towards traveling. 

3. Set a budget

Setting a budget is a much larger chore than just deciding how much money you are going to spend on certain things each month. The truth is, whatever money you have, you are already spending in some way. If you want to save any money or have any money for things you don’t already have, you are going to have to make cuts somewhere so you can reallocate that money somewhere else. You can’t generally make budget cuts, however, without also making lifestyle changes. This is why the first step to making a budget is not making a budget, it’s examining your spending and then deciding what your financial goals are. Budgeting is about deciding what is most important and what is least important, then cutting your spending on the things that are least important so you have more to spend on the things that are more important. 

4. Pay off debt

These days, savings may generate a one percent return interest rate if you’re lucky, but credit cards and other types of debt will generally cost you between 13 percent and 29 percent interest. There are very few ways to earn that much in interest each month, which means that until you pay down or pay off your debt, you will always be paying more in interest than you are earning. While you should certainly have enough in savings to carry you through a few months of crisis, it won’t do you a whole lot of good to start saving more than that until you pay off debt that is accumulating interest. Thankfully, there are a few ways of doing this. Debt consolidation through Hornet Partners is a great way to pay down debt and possibly even reduce the total amount that you owe.

 
Establishing a budget isn’t simply about reallocating your finances, although that is a good place to start. Eventually, however, the goal of setting and living within a budget is to free up much-needed capital to give you the ability to do what you really want to do.