Money Management Advice

Staying Organized Is Essential!

Creating a Financial Master List

Step 1: Gather all your important numbers

Keep a list handy of all of your major documents and identification numbers. These include:

      >> Bank account numbers

      >> Banking telephone numbers

      >> Retirement Account and Keogh numbers

      >> Drivers license numbers

      >> Insurance policy numbers

      >> Social Security numbers

      >> Stock certificate numbers

Step 2: Prepare further information

Create a reference sheet of all of your money affairs. Some important ones to include:

      >> Name and phone number of your accountant

      >> Financial obligations

            - Mortgage

            - Car loans

            - Substantial credit cards

            - Any money owed to you by others

      >> Investment record updates

      >> Properties you own and their current value

      >> Locations of important records

            - Personal papers
            - Bank records

            - Tax records

Step 3: Maintaining your Financial Master List

Be sure to keep up to date with any changes and additions.

      >> Have multiple copies

      >> Record major payoffs

      >> Include newly gained assets

      >> Keep track of outstanding debts

      >> Follow investments and retirement contributions

This financial master list is a really important first step to having complete control over any sudden issue that may arise. Being organized will also save time and hassle, and will reduce stress and worry when issues arise. Being organized is definitely sage money management advice.

Tax Preparation

Step 1: Keeping up to date

To save yourself all the hassle of last minute tax preparation:

      >> Always save receipts for large purchases

      >> Record all tax deductible expenses

      >> Keep a diary of deductible expenses, include            date & brief description

      >> Keep a clear record of all income

            - Taxable: Salary, bonuses, dividends and                interest owed

            - Non Taxable: Gifts, loans and municipal                bonds

      >> Past taxes that have been paid

      >> Unpaid taxes of prior periods

Step 2: Yearend planning

At the end of the year, usually in December, do the following:

      >> Estimate your payable taxes using

            - Payroll records

            - Deposit records

      >> Estimate your deductions using

            - Checkbook records
            - Receipts

      >> Get a rough estimate of your federal, state, and any local taxes

Step 3: Start the New Year off organized

Beginning in January, you should:

      >> File and organize all incomes and expenses from the previous year

      >> Pick up and keep handy any tax forms you will need

      >> Speak to a tax professional

      -or-

      >> Educate yourself on the general instructions

      >> Plan your strategy by doing research, speaking with friends and professionals

      >> Don't procrastinate, get an early start

By following this simple money management advice you will make the tax season a lot less stressful. You will also save yourself money because you will be less rushed and make fewer mistakes. Business owners, home businesses included, want to make sure they get ALL the deductions they are entitled to...that's one of the biggest benefits of becoming a business owner.

Keeping a Personal Inventory

Step 1: Taking inventory

Follow these steps for each room in your home:

      >> Write down major items

      >> Record year purchased and estimated price

      >> Take a picture or video of expensive items

      >> Keep copies of the records and pictures in a safe place

Step 2: Updating inventory

Always keep your inventory up to date:

      >> Add newly purchased items along with proof

      >> Remove items that are no longer in your possession

      >> Keep up to date with the value of major possessions

We obviously never wish for anything negative to happen, but inevitably things do. By keeping a detailed personal inventory, you will be in a much better position if any unforeseen disasters happen to strike. This is preventative money management advice, and it's better to do and not need than to need and not have done.

Bill Paying Organization

Step 1: Creating a System

Establish a clear and concise system by:

      >> Assigning yourself or a family member to the duty of paying bills

      >> Choose 2 days a month to be "bill paying days"

      >> Have a specific place for your bill paying

      >> Keep you workspace organized

Step 2: Getting it done

Get the job done correctly by:

      >> Having a folder to keep all unpaid bills

      >> Having a second folder for bills already paid

      >> Assign bills to each folder as soon as you get them or pay them

      >> Record all bills that are deductible

      >> Keep your bank statement balanced by recording each payment

This is sage money management advice that can save you time, money, and a few headaches. A little preparation and planning can go a long way. Financial organization is key to financial freedom.

A Final Thought!