“What gets measured, gets improved.”
If you haven’t seen my debt freedom progress reports before, each month I bring you a recap of the previous month’s progress on paying off our debt.
Commit. Plan. Take action.
“What gets measured, gets improved.”
If you haven’t seen my debt freedom progress reports before, each month I bring you a recap of the previous month’s progress on paying off our debt.
Many of us have been in the position where a friend or family member is asking for financial assistance. If you’re like me, you’ve even gone into debt loaning that money. If the person is close to you, it may be hard to say no. However, there are plenty of reasons you have to say no without feeling bad.
Although I won’t be loaning you that money, I will still help, and you can help your friends and family in a financial crisis too. Here’s how:
Loaning people money is a sticky area. Don’t feel like you have to give anyone anything, especially if you truly don’t have the money to do so. Have you ever turned someone down for a loan? What was your reasoning?
Photo: The One Thing
Last week, I shared 20 expenses you can cut from your budget and how my family and I cut our grocery spending in half.
This week, we’ll look at some more ways to trim your spending to make room in your budget for paying off debt or saving up for your next financial goal.
[Read more…]
Hawaii, Ireland, and $49,000 of debt gone!
In this interview, Celeste and Rita share how they’ve balanced saving money with what’s truly important to them, the sacrifices they’ve made for their goal, and the unexpected result from their debt free journey.
Here is the interview:
ME: Thank you for sharing your story with Our Debt Free Family! Please tell us a little about yourselves so our readers can get to know you.
We are Celeste and Rita, and we are both 44 years old. We’ve been together for five years and married for two, and we live in Portland, Oregon.
Rita works in law enforcement. She enjoys listening to podcasts and the radio show from her hometown, running, and playing with our dogs.
Celeste works as a nurse part-time, volunteers, and enjoys making things with her hands: knitting, sewing, and crafting.
We have two dogs and two cats. We both love to travel, IPA craft beers, updating our 1957 home, and ’80’s music.
ME: Welcome! What made you decide to focus on becoming debt free?
Rita will be able to retire in about 11 years so the idea of enjoying our retirement without the weight of debt is a no-brainer.
ME: How much debt have you paid off, and how long has it taken you?
With your guidance, we’ve paid off $49,048.83 in the last 18 months. Woohoo!! We now have $279,604.76 left including our mortgage.
ME: Congratulations!! What kind of debt was it?
We have paid off three credit cards, a motorcycle, two cars, and a good portion of student loans, along with making our regular monthly payments.
ME: You’ve crossed off a lot of items from your debt snowball! What did you do for work while you’ve been paying off your debt?
We both worked our jobs mentioned earlier. About ten months ago, Celeste decreased her work hours from about 35/week to about 10/week, which also decreased our income.
ME: What has your annual income been during this time?
About $65,800.00, which includes both of our incomes and rental income from the attached apartment we rent out.
ME: Did you do anything to increase your income?
Rita volunteered for two work trips where she was able to earn overtime.
ME: What sacrifices did you make to reach your goal?
Rita going on those trips was a huge sacrifice for us. She was gone for 30 to 77 days. It’s tough to be apart and away from home for so long.
We also decided to downsize from two cars to one. Now we only pay insurance/maintenance/gas for one car and one motorcycle. It has forced us to think ahead and to limit those trips “for just one thing.” We also use public transportation and ride bikes or walk whenever we can.
ME: What are your best money-saving tips?
Perhaps the most important thing we do is buy with intention. We ask ourselves, “Do we really need this new item? Can we borrow or share an item? Can we purchase the item second hand?”
We would rather spend our money on experiences than “stuff.”
With Celeste not working as much, she’s explored DIY methods to save money and decrease toxins/plastics in our home.
She makes our laundry soap, hand soap, lotion, almond butter, shampoo, and toothpaste. She’s also made produce bags from old t-shirts and reusable hankies from an old sheet.
We buy most of our dry foods (i.e. spices, rice, beans, flour) in bulk to decrease packaging and save money.
Because we produce less trash we’re able to use “on-call” trash pick up about every 6 weeks.
We wash our clothes in cold water and use the clothesline whenever possible. We both take lunch to work, and Rita has her coffeemaker at work to cut down on runs to the coffee shops.
ME: You’ve done a lot to cut your spending! What advice would you give to someone considering starting their own debt free journey?
We haven’t stopped doing the things we enjoy in order to pay off our debt faster. Instead, we just do them less often to keep us sane. Everyone is different and has different ideas of happiness. This works best for us.
Also, don’t beat yourself up for slipping sometimes. Most people haven’t been taught about money management. It takes time to learn and of course, practice and patience. Taking little steps can make a difference.
ME: That is great advice! Have you made any big purchases with cash? If so, how long did it take you to save up?
Rita is from Ireland and goes back every year to visit family. In 2015, we both visited for about $5,000. We also took a vacation to Hawaii and spent about $3,000 on the trip.
We started saving for the trips about a year in advance, saving $100 of each paycheck ($400/month). We also used some money from Rita’s work trips for these vacations.
We bought a much-needed new mattress and box spring set for $1,700. We used money from Rita’s work trip and bought when it was on sale. Celeste made a cool headboard for $200 to go with it. The fabric for the headboard was discounted with coupons.
We also put in a small deck with used composite material for less than $200. The composite decking itself would have been $800 if we had bought it new!
ME: You’ve accomplished a lot in the last 18 months! What has been the best part about your debt free journey?
Learning about healthy financial habits has been really liberating!
An unexpected benefit is how it’s enhanced our relationship.
Combining our bank accounts and debt was really hard for Celeste due to her large amount of student loans. She didn’t think Rita should pay for the debt Celeste incurred before they were married.
It’s been a process, but through it we’ve become more of a TEAM. We’ve opened up our communication, and it’s brought us closer.
We are on track with each other and our goals are now in sync.
ME: Thank YOU, Celeste and Rita, for sharing your story with us!
What parts of Celeste and Rita’s story did you find most inspiring? Which tips can you apply to help you reach your financial goals faster? Share in the comments below.
Young people in their 20s don’t think of life insurance as something that’s a necessity for themselves. Yet they are at the perfect age to buy a term or whole life insurance policy to take care of outstanding debts in case they die prematurely. And because young people are far more likely to carry a heavy debt load straight out of college, they need something to protect family members who co-signed for the loan. Or leave money to cover any expenses including the funeral and unpaid credit card bills. These are thoughts that no one likes to think as they’re a bit morbid, but it is a reality of life.
Young adults have the benefit of being in what’s known as a low-risk pool for insurers. They’re far less likely to have serious or life-threatening illnesses, and insurers reward that with lower premiums. The same goes for term or whole life insurance. And even though term life insurance only lasts for so long, it’s still worth buying while young. One reason is that life circumstances change over time. Someone who’s single in their 20s may be married in their 30s and raising a family. In the event they have an untimely passing in their 50s, they may still have a term life insurance policy in effect that benefits those who survive.
Take the quiz below to see how much you know about the benefits of getting life insurance at a young age. You might be surprised at what you learn!
Artificial Intelligence (AI) has transcended its role as a futuristic concept to become an integral part of our daily lives. Beyond its applications in various industries, AI has proven a powerful tool in personal finance, offering innovative ways to save money and make more informed financial decisions.
Unknown to many, there are 10 impactful ways AI can revolutionize your finances and contribute to significant cost savings.
Traditional budgeting methods can be time-consuming and prone to human error. AI-powered budgeting tools like Mint and PocketGuard offer a more thoughtful and efficient approach.
These tools use machine learning algorithms to analyze your spending patterns, categorize transactions automatically, provide real-time updates on your financial status, and even find you the best loans like NetCredit. By automating budgeting and expense tracking, you gain a comprehensive understanding of your financial habits, allowing you to identify areas where you can cut unnecessary expenses.
Investing can be complex and intimidating for many individuals. AI-driven robo-advisors simplify the investment process by using algorithms to create and manage a diversified portfolio tailored to your financial goals and risk tolerance.
Platforms like Betterment and Wealthfront leverage AI to optimize your investments continually, ensuring that your portfolio aligns with market trends and adapts to changing conditions.
Using AI isn’t just about growing wealth. It’s also about managing debts intelligently. AI-powered debt management tools analyze your financial situation, identify high-interest debts, and create personalized repayment plans.
These plans may include strategies for debt consolidation and negotiation with creditors. By leveraging AI in debt management, individuals can make informed decisions to pay off debts strategically, saving money on interest payments and achieving financial freedom sooner.
Retailers and service providers increasingly use AI to offer personalized recommendations based on consumer behavior and preferences. Apps and platforms employ AI algorithms to analyze your spending habits and present tailored suggestions for discounts, promotions, and cashback offers. By taking advantage of these personalized recommendations, you can save money on everyday purchases without compromising your preferences or lifestyle.
AI significantly promotes energy efficiency in smart homes, leading to tangible cost savings. Smart home devices with AI algorithms can learn your behavior patterns and optimize energy consumption accordingly.
For example, smart thermostats adjust heating and cooling schedules based on your usage patterns, reducing energy bills. Investing in AI-powered smart home solutions enhances your lifestyle and reduces utility costs, leading to long-term savings.
Many individuals subscribe to various services, from streaming platforms to magazines, and it’s easy to lose track of these subscriptions. AI-powered subscription management tools like Truebill and Trim analyze your bank statements to identify and cancel unused or unnecessary subscriptions. By eliminating redundant subscriptions, you can free up funds previously spent on services you no longer need, contributing to significant savings over time.
Understanding financial concepts and making informed decisions is crucial for saving money. AI-driven financial education platforms, like Albert and Cleo, use machine learning to provide personalized financial advice and insights.
These platforms assess your financial situation, offer tips for saving money, and even provide guidance on investments and debt management. Incorporating AI-driven financial education into your routine gives you the knowledge to make sound financial decisions, ultimately leading to long-term savings.
AI excels at predictive analytics, and this capability can be harnessed for effective expense planning. By analyzing historical spending patterns and external factors, AI algorithms can predict future expenses with a high degree of accuracy.
This foresight allows individuals to plan and budget more effectively, avoiding last-minute financial stressors and enabling better control over their finances. Whether it’s planning for upcoming bills or setting aside funds for irregular expenses, predictive analytics can be a valuable tool for saving money.
Financial security is a top priority, and AI is crucial in safeguarding your assets. AI algorithms analyze transaction data to detect unusual patterns and flag potentially fraudulent activities in real-time. This proactive approach helps prevent unauthorized access to accounts, protecting individuals from financial losses and the hassle of resolving fraudulent incidents.
Tax season can be stressful for many individuals, but AI can simplify the process and potentially lead to significant savings. AI-powered tax optimization tools, like TurboTax and TaxJar, use advanced algorithms to identify eligible deductions and credits, ensuring that you maximize your tax savings. These tools stay up-to-date with the latest tax regulations, reducing the risk of errors and helping you navigate the complexities of the tax code more efficiently.
From automated budgeting and intelligent debt management to personalized recommendations and tax optimization, AI empowers users to make informed decisions that contribute to long-term financial well-being. With AI technology advancements, managing finances has become more accessible and less daunting. Using these tools and using them to their full potential, individuals can take control of their finances and achieve financial stability.
Credit cards can be a great financial tool for everyday expenses and building a healthy credit score. Sometimes it can be a tool of financial independence or an instrument of debt. This depends on how you use them. Here, we will explore some pro tips on How To Use Credit Cards Wisely to Avoid Debt.
Many credit cards offer rewards, cash back, and miles on purchases that make people spend more and more.
However, this convenience of credit cards leads to debt quickly. According to Nerdwallet’s annual report, around 47% of U.S. households have outstanding credit card balances.
In this blog post, we’ve covered some pro tips on how to use credit cards responsibly to take advantage of all benefits while staying debt-free.
Before considering a credit card, it is very important to create a monthly budget and stick to it. This will help you in tracking your income and expenses. This budget will be your financial roadmap of expenses and savings. Try to manage funds for everyday expenses like rent, groceries, utilities, or travel. Never spend more than you earn.
Once you determine your financial needs, you get a clear picture of how a credit card fits in your needs. Remember, a credit card is not a money machine. Use it carefully to avoid debt.
Paying your balance in full each month is the best way to use a credit card wisely and avoid extra charges every month. But, make sure you are able to pay the payment in full each month. This will not save your money but also put a positive effect on your credit score.
In case, if you leave a card balance, try to keep it under 30% of your credit limit. This is because minimum payment is a trap of temptation. However, it seems manageable, but over time it becomes an iceberg of debt.
If you keep paying only minimum, this can accumulate years of high-interest payments turning your small purchases into larger expenses.
Pay Your Balance in Full is the best way to use a credit card responsibly.
Have you ever thought about What Happens If You Stop Paying Credit Cards?
Do you skip payments or have a large credit card balance to pay? Paying you balance on time is the best way to use a credit card responsibly. If you keep skipping payments, it will ruin your credit score.
Build a debt repayment plan and pay as much as you can each month and don’t use your credit card until you pay off the whole balance. You should not carry a balance.
You can take advantage of balance transfer of any 0% intro offers to pay your debt faster. You can set up automatic payment reminders for your upcoming credit card bills. This will ensure you never miss a payment and keeps your credit score improving.
Most cards come with rewards programs that offer reward, cash back, points, miles, and other perks. Check the reward benefits and choose a card that best matches your needs.
Credit cards that offer rewards may help you save. If you spend a lot, you might get cash back and can build wealth from it. You can transfer your rewards as savings automatically deposited in a checking or savings account
Your credit card network can also be a great source of income as sometimes it refers you to special offers. This can be a smart way to use your credit card.
Checking your monthly credit card statements is very important for any fraud transactions, suspicious activity or billing errors. Regularly check your monthly for unauthorized charges, unusual spending or any fraud purchases from your credit card.
To monitor your credit card statements regularly, you can set up purchase notifications in your credit card mobile app. This can help you in spotting the transactions that you don’t recognize.
If you are unable to pay your balance in full each month. But, try to keep a low credit utilization ratio. Generally, the credit utilization ratio is the percentage of the credit amount currently in use. For example, if you have a credit limit of $1,000 and you spend $500 on purchases, then you have a 50% credit utilization ratio.
If you use a high percentage of your credit limit, it can be harder to pay off debt. If you skip payments, it can negatively affect your credit score. Plus, you will keep paying more and more interest over time.
So, keep your credit utilization ratio below 30% of your credit limit.
Many people prefer to keep more than one credit card because many credit cards offer attractive benefits, but keep in mind that applying or opening too many accounts of credit at once will open our doors for debt. Also, this will negatively impact your credit score. So, try to limit the number of cards you have.
Only apply for cards that you can manage responsibly.
If you have a large balance, multiple cards, and are struggling with high-interest rates, try to negotiate about interest rates with your credit card issuer. They may lower your interest rate, if you have a positive payment history.
However, cash advance is tempting, but it is a shortcut to debt. Because, the cash advance always comes with high interest rates and charges.
It seems like a quick fix, but the high charges will make you fall into a debt trap. Use cash advance facility if you are facing a real financial emergency, otherwise avoid cash advance at all costs.
It is very essential to learn how to use a credit card responsibly to manage your expenses. It can prevent you from debt and help you in earning rewards and other perks. By implementing above said strategies, you can master the art of using credit cards wisely.
To use a credit card wisely and avoid debt, don’t skip payments, make payments in full and reduce credit utilization ratio, etc.
Remember, credit cards are a financial tool, but like any other tool, they require responsible use.
There has been many glitches in Cash App’s system that has been exposed, raising concerns about the safety of users’ personal information, money, and transactions. So much so that Cash App has a Bug Bounty Program which provide cash awards for brining certain vulnerabilities to their attention. From understanding how glitches occur to learning about the potential risks and the steps you can take to protect yourself, we’ve got you covered.
Whether you’re a frequent user or just considering signing up for Cash App, this information is crucial for anyone who values their financial security and want to know if free money Cash App glitches seen on Reddit and other platforms are real or fake.
A glitch can be defined as a temporary malfunction or some form of irregular behavior which leads to a device or program not operating as intended. They are usually self-correcting and can often be rectified using a simple system reset. Some glitches are more serious and may be as a result of a bigger issue which will cause the glitch to repeat itself until the issue casing the glitch is fixed.
Cash App has faced various glitches in the past, each with its own set of consequences for users.
In June 2023, there was widespread reports of a duplicate charge glitch which caused users to be charged twice for the same transaction. Cash App responded publicly and stated that impacted users will be notified and refunded
One common type of glitch that users have reported is the failure of transactions to go through properly. In some cases, users have experienced delayed or failed payments, causing frustration and inconvenience.
Another glitch involves incorrect balance displays, where users notice discrepancies between their actual balance and what is shown in the app. This can lead to more confusion and uncertainty about the accuracy of their account information.
Account hacking has been a concern for some Cash App users. Although not always caused by a glitch, hackers have taken advantage of vulnerabilities to gain unauthorized access to users’ accounts. It is essential for Cash App users to be aware of these potential glitches and their consequences in order to take appropriate precautions.
A money glitch typically refers to an unintended flaw or loophole within a financial system, often within a digital platform or online service, that allows users to exploit it for financial gain.
Glitches can occur in cryptocurrency due to the inherent complexity of the software and hardware. Human mistakes, system updates, external factors, and errors during file transfer can all contribute. Even with rigorous testing, unforeseen interactions and vulnerabilities can arise.
Each Cash App bitcoin transaction is recorded on a public ledger, the blockchain. While general wallet addresses don’t directly reveal user identities, analysis and batch reports can easily trace transactions back to individuals. The point is that you’re conducting bitcoin transactions through Cash App, and with your personal information directly linked to your bitcoin address. You will more than likely find yourself in debt once Cash App identifies an unauthorized or erroneous deposit on your account.
There have been numerous reports such as this recent September 2023 case where a user spent funds that showed up in their account after a Cash App Glitch and to their surprise later had the funds removed by Square and left the account in a negative balance status.
Check Out: How to Unblock Someone on Cash App
Short answer, yes! Of course they are real, but don’t get too excited. It is quite possible that you may one day open your Cash App account to find that you have a greater than expected balance due to a glitch in the software. Computer programs glitch and can lead to unpredictable behavior. That behavior may be favorable in some cases. However, Cash App is a relatively app to use. Here are 6 steps to keep your Cash App account secure.
If a Cash App glitch left you richer, the last thing you should do is think that money belongs to you, or try to spend it. Do not make an attempt to repeat the steps to creating a untraceable free money Cash App glitch. Sadly, there is no such thing. There have been many cases where glitches in banking systems led to increased balances in some accounts. They usually end with the bank recovering those funds.
Do not waste your time with TikTok videos or websites promising Cash App free money glitch tutorials. They may claim to have a legit Cash App glitch to make money out of thin air but these outlets are often seeking to collect your personal information and in some cases look for vulnerabilities which may lead to them hacking your very own Cash App account. The claims are simply too good to be true.
If you knew of a Cash App vulnerability or glitch that would allow you to make money, would it be smart to publicly advertise this process? If the claims were true, Block Inc, formerly known as Square Inc, and Cash App would quickly shut it down and may even seek legal action.
Consider other means of income if you’re looking to make extra money. There are a large number of side hustle opportunities out there. For examples, you can get paid to write articles and blog posts or even testing apps and writing reviews. This this biweekly money challenge to boost your savings.
Trying to figure out if you have been affected by a Cash App glitch can be challenging, as not all glitches are noticeable. However, there are some signs which may indicate that there is a problem with your account.
If you notice discrepancies in your account balance, it is important to investigate further. Keep an eye on your transactions and verify accuracy. If you come across any suspicious transactions, it could be a sign of a glitch or security breach.
Another red flag to watch out for is an inability to complete transactions or delayed payments. If you encounter any issues while sending or receiving money through Cash App, it is worth considering the possibility of a glitch in the system.
If you receive any unusual notifications or emails from Cash App, especially those requesting sensitive information or account verification, proceed with caution. Legitimate communication from Cash App will never ask for your personal information or login credentials.
If you experience any of these signs or suspect that you have been affected by a Cash App glitch, it is crucial to take immediate action to protect your money and personal information.
The only legit way to make money on Cash App in 2024 is by inviting others using your Cash App referral code.
You and your friends can both get bonuses when they use your Cash App referral code to sign up to Cash App.
Your friend must sign up and link a debit card or order a physical Cash Card.
Next, send $5 within 14 days of using the referral code.
By understanding the nature of Cash App glitches, identifying signs of a problem, and implementing security measures, you can significantly reduce the chances of falling victim to a glitch or unauthorized access.
If it sounds too good to be true and its public information, then it is in fact too good to be true.
Remember to report any glitches or suspicious activity to Cash App’s customer support and consider diversifying your payment methods across secure platforms. Stay informed about Cash App’s efforts to improve security and be proactive in maintaining your financial safety.
In 2022, Cash App experienced a data breach which affected more than 8 million users. It is nearly impossible to completely remove risk when conducting electronic funds transfers regardless of the use of cutting-edge encryption and fraud detection technology that Cash App implements to keep users’ funds safe from scams and other fraudulent activity.
From data breaches to Cash App glitches, here are 6 steps to take to reduce the likelihood of being a victim of fraud or any kind of unauthorized access:
If you encounter unusual activity or suspect that your account may have been compromised due to a scam, report the issue to Cash App’s customer support immediately.
To report a glitch, visit the Cash App support center within the app or visit their official website. Provide a detailed description of the issue, including any error messages or unusual behaviors you experienced. Attach relevant screenshots or transactions to support your claim.
For your Cash App balance to be FDIC insured up to $250,000, you must have a Cash Card, or are a sponsor of any active sponsored account. Cash App also states that Bitcoin and investment balances are not insured by the FDIC.
Keep in mind that being FDIC insurance does not mean your account is protected from fraud on individual transactions. FDIC insurance covers your funds up to $250,000 in an event where Wells Fargo, the bank holding your Cash App balance, goes out of business.
There are other avenues for holding individual cases of fraudulent activity or scams.
Self Inc also offers a FDIC insured Credit Builder Account which allows you to build your savings and credit score at the same time by reporting your monthly deposits to the 3 big credit bureaus; Equifax, Experian, and TransUnion.
You may be wondering whether or not Cash App is safe considering the large number of scams out there as well as the possibility of a security breach. Rest assured that Cash App is relatively safe and there is a very low chance of you being a victim of a Cash App exploit if you take the 7 steps above.
Block Inc, formerly Square Inc., and owners of Cash App, meets the international standard for managing information security as indicated by their ISO 27001 certification. They also utilize industry-standard cryptographic protocols and message formats such as SSL/TLS and PGP to transfer data.
However, safeguarding your Cash App account data as if it was your very own bank account add an extra layer of protection.
Do you run a small business?
Do you struggle with managing your company’s finances? Are you able to set aside for yourself and your family without disrupting the cash flow of your business?
A recent survey revealed that about 41% of small business owners in the United States face cash flow struggles. These problems affect small business owners beyond the financial aspect. Around 56% said that the struggles had a consequential emotional impact.
There is also the question of how should you pay yourself as the business owner.
The answer can be very tricky. There are certain factors that you need to consider especially when you are the boss.
If you want to know how to pay yourself as a small business owner correctly, continue reading below.
Regardless if you are running a small business or a freelancer who works alone, you need to pay yourself. If you have people working under you, you need to set up a payroll system. If you are doing things by yourself, there is payroll for self-employed people.
First, you must consider the structure of your business.
The most common structures include sole proprietorship, partnership, limited liability company (LLC), corporation, and cooperative. The corporate structure has five types, namely, the C Corp, the S Corp, the B Corp, the close corporation, and the non-profit corporation.
If you’re starting small with a few trusted friends, an LLC might be the better option. It ensures everyone has a firm grasp on the company’s finances and ownership. This guarantees no one can out-profit the other, an issue that can happen in a traditional partnership.
We advise that you sit down with your trusted accountant regarding your payroll options in relation to your business’ structure.
There are two common types of payment methods that small business owners tend to use: the owner’s draw and the salary.
If the structure of your company falls under a sole proprietorship, LLC, or partnerships, the IRS considers you as self-employed. Hence, the owner’s draw is the one for you. This is because you are not paid through traditional wages.
Keep in mind, however, that you still need to pay your individual taxes even if the owner’s draw is not taxable upon withdrawal.
Traditional salaries, on the other hand, work for C Corps and S Corps. Salaries are recurring payments. Unlike the owner’s draw, the IRS imposes taxes on salaries.
Now that you have determined that suitable payment method, you can move on to the amount of pay you should receive.
To avoid overpaying or underpaying yourself, you need to look closely into your daily duties. Determine an amount that equates to your daily business tasks. You should also consider how the amount impacts your business’ long-term growth.
Review your profit and loss statements and zoom into your monthly net profit. Take out your desired pay from the net profit. Do you find the pay fair and justifiable?
Identify the major duties you have in relation to your business operations. Find out how much you would pay if you hire someone else to do those things. The amount can serve as a guide to how much pay you can take from the profit.
There are online resources you can use for your computations. You may also consider services that help manage business cash flow.
You should also consider looking at the standards set by the industry.
How much do your competitors pay for services? How much do they pay their employees? How do they break down salaries and how do factors like hours worked, experience, and seniority in the company come into play?
You need to follow a payroll schedule even if you only have one or two employees working for you. The usual pay schedules among companies in the United States are twice a month, bi-weekly, or weekly.
Majority of the states follow a basic payroll calendar. If your state enforces one, then you should abide by all means.
Not many companies consider one important factor: collaborating your schedule with local, regional banks. Some banks are strict in releasing credit cards or loans to employees and require a weekly or bi-weekly direct deposit account. You can support your business and manage cash flow by sticking to the schedule your local banks abide by.
Lastly, you need to determine how you are going to get your paycheck. You can deposit your salary directly into your bank account. You can also write a check if you wish to.
Which modes of payment should you prioritize?
Direct bank deposits should be the primary method available. You should also consider methods such as PayPal. PayPal is great for people hoping to save money since it’s always online and you can’t simply withdraw the cash from an ATM.
As mentioned, checks should be an option for those who prefer a more traditional method.
One extra tip is to fragment your own pay. It’s likely you already have a spreadsheet of different bills to pay, employees to pay, and personal desires to purchase. You should set your account to automatically pay these things out upon receiving your own pay.
This guarantees you won’t forget to pay out anything. The money left in the account is purely a surplus you can spend on business expansion and personal wants.
Taking your small business to the next level requires patience and the thirst for learning. The same thing goes for eliminating your family’s debt. Following these tips should help you pay yourself, keep your business afloat while also guaranteeing steady growth and expansion.
If you are struggling in both areas, we encourage you to get in touch with us. Simply fill out our contact form and take the first step toward becoming debt-free. Don’t hesitate to speak with the professionals to get back on solid ground!