Budgeting is the little plan in 2019 that will keep you financially organized and stress-free. However, to make an accurate budget you must have a clear picture of what your goals are.

For example, aside from paying bills this year, you will also like to travel and buy a home. Both are achievable but will take some discipline in your part.

Before you start, go through find ways to reduce your bills.

Reduce Your Bills 

We can thank the internet for making research and price comparison a lot easier. Basically, your first job is to review how to lower your main bills. You should try to reduce your car insurance, phone bill and internet payment. Take around 2 to 3 days to make accurate research and try not to fall for hidden fees.

Second, make a list of any additional expenses you have. These expenses are your wants. They will probably include coffee trips, friend dinners, splurge shopping and any expense you simply do not need to do. Minimalism is key when it comes to sticking your budget. After you have written these out find a way to cut them by 80%. Start making coffee at home and have a home-made breakfast with your friends instead.

Prioritize your Bills

Your budget will be divided in 3 parts. Your goals, emergency fund and everyday living.

Set aside 5% of your income after taxes and make this number your emergency fund goal. You will not touch this money unless you absolutely need too.

Then write down every expense you have. Starting with your groceries and ending with your favorite leisure expense.

If your end result shows more income than expenses, you are off to a good start. This means you can prioritize this excess to areas of your budget such as traveling and retiring. If you are showing a higher expense column than income, it means some changes will have to be made.

Make adjustments to expenses.

 If you have accurately identified and listed all of your expenses, the ultimate goal would be to have your income and expense columns to be equal. This means all of your income is accounted for and budgeted for a specific expense or savings goal.

If you’re in a situation where expenses are higher than income, you should look at your  “wants” to find areas to cut. Since these expenses are typically non-essential, it should be easy to shave a few dollars in a few areas to bring you closer to your income.

Review Your Budget Monthly

It’s important to review your budget on a regular basis to make sure you’re staying on track. After the first month take a minute to sit down and compare the actual expenses versus what you had created in the budget. This will show you where you did well and where you may need to improve.

Most importantly, keep yourself organize. A budget only works if you are willing to follow it and put in the work.

How to ensure that your business taxes are filed safely

As a business owner, your number one priority is safeguarding the interests of your enterprise, which is why you should take extra precaution to ensure that your information is protected when filing your business taxes. These tips will ensure that your returns are filed safely, and your information remains uncompromised.

Practical protection

Tax returns require sensitive information pertaining to your business as well as personal details which make them attractive to hackers and identity thieves.

Since the Internal Revenue Service requires you to keep your tax filings and supporting documents for a minimum of three years and a maximum of seven years. The agency advises that you keep all paper documents locked safely away.

A locked drawer or cabinet are good options, but your best bet may very well be a hidden, fireproof safe.

When working with a tax professional, take the time to vet their credentials before you hand over any sensitive documents. If you choose to file on your own via tax software, make sure that your computer is equipped with up-to-date anti-virus and anti-malware software and that you are protected by a firewall.

If you store your documents on your computer for record-keeping purposes or for electronic filing, the IRS recommends installing software designed to encrypt your files and backup drives to prevent important information from being stolen.

Once you’re ready to cycle out older tax documents, the IRS advises that you shred any paper documents thoroughly to prevent identity theft. For electronically stored documents, you will need to wipe your drives before selling or disposing of an old computer or external drive.

Delivery methods

Before you send off or hand over physical tax paperwork, The Balance’s William Perez and Beverly Bird advise that you make a detailed list of everything you’re sending and make copies of every document. You can scan and save the documents as PDFs on your computer. To get an extra layer of protection get add secondary copies to a flash drive or an external hard drive.

Having readily available backup copies will reduce the stress that occurs if something should go missing en route to your accountant or to the government.

If possible, Perez and Bird suggest hand-delivering your documents to your accountant or professional tax preparer, as this serves as the best option to ensure the safe filing of your documents.

If your accountant is too far to reach in person, it’s suggested that you spring for delivery or signature confirmation and that you maintain your tracking information to monitor your documents’ progress. Additionally, Try not to use email.

Never send sensitive details within the body of an email and ensure that all documents are encrypted and password-protected.

Your tax paperwork is too important to the health of your business. By taking the proper precautions, you can better ensure its success and stability without having to worry as much.

No matter how old you are, the entrepreneurship bug can bite you and give you the itch to start a business. If you have been working for some time, you probably have some experience in the industry you’re launching into and have spent time in the business world. However, if you’re younger, there is more for you to learn. Here are some financial tips that will help you start off on the right foot.

1. Keep it separate

Almost every resource about business finance declares loudly and often that you need to keep business and personal funds separate. It’s easy to think that you’ll make sure to track things and know what money belongs to whom, but when everything mixes together it can be tempting to dip into business funds for personal use. At BSCU we have a low cost Business Checking product that may help you keep things on budget and organized.

Besides that possibility, Dmitriy Fomichenko of NerdWallet points out that if the IRS comes calling for an audit, you’ll need proof of business expenses and income. That is much easier when the money isn’t in the same place. If your business is a corporation, you’re actually required by law to maintain a separate account for your business.

2. File your taxes

Speaking of the IRS, it’s imperative that you remember to pay your taxes. This might seem like an obvious tip, but your taxes get more complicated when you own a company. Project Eve points out that you might be so wrapped up in day-to-day operations that you forget about taxes, or you might not have the right information to file correctly and meet quarterly deadlines. If you don’t have an accountant for your business already, it’s important that you seek the advice of a tax professional now to avoid penalties (or jail time) later.

3. Start a retirement plan

When you first start your business, more money will be going out than in. But when funds do start to come back and you have enough to cut yourself a paycheck, Yoav Vilner of Entrepreneur says it’s important to also start a retirement fund. If another company employed you, retirement plans would probably be part of your intake paperwork and someone else would take care of it. When you’re working on your own, that task falls to you. No matter how much you think you’ll love your business, you will thank yourself in the future for saving now so you can ride off into the sunset later.

4. Get ready for emergencies

You probably insured your business when you opened up, but don’t forget about yourself. NerdWallet points out that, as an entrepreneur, any serious illness of injury can put that source of income in jeopardy. Make sure that you purchase disability insurance to cover you in case the worst should happen. While you’re at it, consider buying business overhead expense insurance.   If you have to take an extensive leave of absence and that temporarily closes your business, this policy will cover certain business costs like rent, employee salaries or taxes until you’re back on your feet.

If you’re young, driven and ready to start a business, we wish you the best of luck. Just make sure to look both ways before you make a major decision, and consider consulting a financial adviser.

When you were a child, your parents opened your first savings account. As you grew and came into bills of your own, you opened a checking account to have better access to your money. Now, as the owner of a business, you’ve probably opened a business checking account so that you can pay your suppliers and separate enterprise money from your personal accounts. If you really want your business to be as sound as possible, consider going one step further and opening a business savings account.

1. Prepare for tax time

If you have spent time as an employee of an established business, you know that the usual automatic withholding of taxes can be extremely helpful every time that tax season rolls around. As a small-business owner, you are the one responsible for knowing how much money you owe in taxes and paying that amount to the federal, state and local governments on time. A business savings account can be a great place to store or hold the money you know you will need for tax payments. Not only will you yield some interest from setting the money aside, but you will ensure that you or your partners don’t spend it on a business investment instead.

2. Save for a rainy day

When you’re managing your personal funds, your savings account more than likely holds the money you are keeping in case of an emergency, such as a loss of job or a medical crisis. A business can use a savings account for the same thing. Amanda Cameron of Patriot Software advises that a savings account is a great buffer to cover unexpected costs that might otherwise severely hinder or even cripple your business. As liquid assets, you can access funds quickly to fix any problems, such as broken  equipment or an accident, to make sure that any work stoppage lasts the shortest time possible.

3. Earn interest

Interest rates are finally going up in the United States, which means that savings accounts might once again start earning meaningful interest. Regardless of how much interest your money accrues, the team at the Money Supermarket Financial Group points out that you will almost certainly earn a more competitive rate of interest with a savings account than in a checking account. Whether you intend to use the money in the account for a rainy day or just have it there for safe keeping, keeping it in a savings account ensures that your money is working for you.

4. Stay organized

Just like an individual can have more than one savings account, a business can also have multiple accounts. While it might seem confusing to maintain separate accounts, it is a very basic way to make sure that all of your money will be used for its intended purpose. Keeping your equipment funds in an account apart from the emergency money will help ensure that you don’t accidentally overspend in an emergency and not be able to pay for upgrades your tools need to stay competitive. This ensures more stability, even if it comes at the cost of added account maintenance.

Consider talking to an associate at your bank or your financial advisor for the best advice for taking your business savings to the next level. A business savings account is by and large a sound decision, but there may be options available to you that work better for your business’s needs.