All posts tagged money

Simple Tips for Saving Energy

Simple Tips for Saving Energy

If you’re a small business owner that works from home, your electricity bill may be doing double-duty…covering both your home and business energy needs. Fortunately, there are some simple ways to save energy throughout your home, leaving you with more cash for the bottom line!

Here are some simple ways to save energy around the house:

  • Caulk and weatherstrip your doors and windows. It keeps cool air in during the summer, and heat in during the winter.
  • Add a storm door to all outdoor doors.
  • Replace your windows with energy-efficient windows if possible.
  • Use heavier window treatments, such as shades and curtains, to help maintain the indoor temperature in your home.
  • Make sure all of your appliances are energy-efficient.
  • Unplug all appliances, including computers, when they will not be used. This keeps them from drawing power when not in use. (Alternately, plug into a power strip and turn off the strip when not in use.)
  • Turn off your computer if you’re not going to use it for more than 2 hours. If your monitor is separate from your computer, turn the monitor off if it will not be used for more than 20 minutes.
  • Use of new lighting technologies can reduce lighting energy use in homes by 50%–75%. Upgrading 15 of the inefficient incandescent light bulbs in your home could save you about $50 per year. (source: energysavers.gov)
  • Use the lowest watt bulb practical for each space. The lower the wattage, the less energy the bulb uses when lit.
  • Turn off your lights whenever you don’t need them, and teach your family to do the same.
  • Turn down the heat in your home. By getting your family used to a lower temperature (even 5 degrees) you can save a lot of energy.
  • Consider using a space heater, rather than turning up the system in your whole house, if you’ll only be using one room in your house for long periods of time (like a home office.)
  • To conserve hot water, fix leaks and install low-flow fixtures.
  • An energy-efficient dishwasher can actually save more energy than hand-washing dishes in hot water several times per day, especially when using shorter wash cycles.
  • Get an energy-efficient clothes washer and dryer. In your clothing washer, use cold or warm water for washing, and cold water for rinsing.
  • Lower the thermostat on your water heater. For each 10ºF reduction in water temperature, you can save between 3%–5% in energy costs. Most households are just fine with a setting of 120ºF on their water heater. Reducing your water temperature to 120ºF also slows mineral buildup and corrosion in your water heater and pipes. This helps your water heater last longer and operate at its maximum efficiency.

By giving some attention to these small details, and teaching your kids to do the same, you can reduce your energy costs and conserve energy. And that means more money in your pocket!

How do you save energy at home? How does your business conserve energy? We would love to read your thoughts and tips in the comments below!

We are thankful to the US Dept of Energy for sharing these valuable tips on their website at http://www.energysavers.gov. For more information on any of the topics above, please visit their website.

22 Ways to Earn Extra Money

22 Ways to Earn Extra Money

There are many reasons to take on extra side jobs. Sometimes we need to make extra money because we want to save up for something, or simply have extra spending money. Sometimes it’s just for the pure enjoyment of working on a job we love. And for some, it’s to test the waters and see if we have the entrepreneur “chops.” For many it’s most likely a combination of reasons.

Whatever your reasons, here are some ideas to make extra income:

  1. Pet sitting/walker
  2. Pet grooming
  3. Lawn mowing/ Lawn maintenance
  4. House or Business cleaning
  5. Selling homemade goods on a site like Etsy
  6. Kids party organizer
  7. Childcare
  8. Senior care
  9. Personal baker
  10. Personal cook
  11. Personal spa treatments
  12. Substitute teacher
  13. Tutor
  14. Specialized skill services – like teaching a foreign language, sewing, teaching music, etc.
  15. Local delivery service
  16. Personal car washer/detailer
  17. Sell baked goods
  18. Personal chauffeur
  19. Garage sales
  20. Handy fix-it person
  21. Painter
  22. Direct sales opportunities (this can be part time or full time, depending on how much money you want to make)

You might even want to partner with your older kids. It’s a great life lesson, and a great way to teach finances, goal setting and math in a practical application.

Do you have other ideas to generate extra income? Do you use life experiences to teach your children about finances and math concepts? Would love to read your thoughts in the comments

Keeping Your Personal and Business Finances Separate

Keeping Your Personal and Business Finances Separate

Are you keeping your personal and business expenditures separate? This is a daily task that can get muddy for small businesses quickly, and can make tax time a real headache.

Here’s a checklist to keep this task simple and clear. Follow these simple steps and you won’t get things confused when it’s time for filing your taxes.

  • Maintain separate checking accounts. Having all business payments and expenses on one bank statement will give you a clear idea of your business finances, and when it comes time to do your taxes you can use your bank statement to clearly explain your business accounting.
  • Use a business credit card. A business credit card will help your business build credit history as your business grows. Keep all your business expenses on one statement and avoid using your personal credit card for business.
  • Maintain two separate places for personal and business receipts. If you have a very small business it may be as simple as two shoe boxes. Use one box for business expenditures and another for personal. As your business grows you should use some type of accounting software.
  • Keep a log of your business expenses. For example, if you use your personal car for business regularly write your mileage down, or even better, keep track of it on your computer/smart phone.
  • Your home office is for business, period. If you have a home office for your business and want to claim it on your taxes, you need to keep it for business use only and not anything else like a guest room.
  • Understand what a business expense is and what it is not. You cannot add personal activities into a business meeting and call it a business expense. It must be for business completely or it’s not a business expense.

Following this simple checklist will help you during tax time because your personal and business finances are separate. Now you can focus on growing your business!

How To Start Saving: From Baby Steps to Retirement

How To Start Saving: From Baby Steps to Retirement

Sometimes our finances can become overwhelming to keep track of. And starting a savings account is the last thing on our minds. But it’s necessary to avoid living from paycheck to paycheck! It’s also a great life and academic lesson for our kids to learn.

Here’s where to begin saving:

  1. It could be as simple as a piggy bank – If you are living paycheck to paycheck, having a piggy bank for you and your kids is a great way to start saving. It could be for change left over, found money or from part time jobs, chores and gifts.
  2. Make it automatic and a habit – Every time you get change from shopping or chores, save it. The ideal is to put away 10% of each paycheck. If that’s not possible try 5% – any amount. The sooner you start saving the more money you’ll accumulate.
  3. Make the mental shift – Save instead of spend. Think about this, if you saved and invested your money from not buying that bottle of soda how much would it be in 15 years? A few hundred dollars? Then multiply that by how many bottles of soda you buy in 15 years. It’s probably enough to help you retire!
  4. Open a free savings account – Once you get used to saving, don’t hide it under a mattress. Formalize the process and open a savings account with your local bank. Make sure that the account doesn’t have a fee associated with it. Again, the process of opening and systematically putting savings away is a great life and academic lesson for your kids.
  5. Set a goal for your savings – Save up for a new bike, a trip or even money for college. The process of setting a goal may mean that you’ll have to create a budget, calculate interest, figure out how much things cost, etc. All this means you’re on your way to mastering the art of savings.
  6. Start a Roth IRA retirement account – It’s a special retirement account that allows you to earn interest tax-free, and make tax-free withdrawals after age 59-1/2.

The key to savings is to start now, to make it a habit and to set goals for how you plan to use your money. These simple tips will get you on the right path to financial security. As your savings grow, find a trusted financial advisor to help take you to the next level.

It’s Time For Your Annual Credit Check-Up!

It’s Time For Your Annual Credit Check-Up!

It’s time for your annual credit check up! It’s not only a smart way to maintain your financial health, but to also avoid financial and identity fraud. A once a year credit checkup is like getting an annual physical…it makes great sense and makes you feel good knowing you’re healthy.

Here are a few steps to review your credit and financial health:

Step 1 – Obtain your free once a year credit reports from all three credit agencies.

Step 2 – Review your credit reports and check if there are any inaccuracies or incomplete credit history.

Step 3 – If you do find a discrepancy, report it to the agency. They are required to investigate the inaccuracy within 30 days.

Step 4 – If you do have a legitimate negative mark, contact the creditor directly to negotiate and arrange for a payment plan.

Step 5 – Your credit report’s health is reflected in your FICO score which is a measure of your capacity to repay loans. This will affect the interest rates for your loans.

Step 6 – Understand your debt ratio. Creditors prefer a debt ratio under 36%. For example, if you earn $3000 monthly they want to see debt payments less than $1080 a month.

Step 7 – Consider keeping only 2 credit cards, maintaining less than 30% of the maximum limit at any time and always pay on time.

Step 8 – Develop a budget and financial plan. Review it annually to fit your financial situation.

Step 9 – Seek help from a certified credit counselor for sound financial advice if you get in trouble.

For more financial tips check out this helpful free government site http://www.ftc.gov/

This is all part of a healthy life style. Eating right, exercising, thinking positively and maintaining your credit leads to a happier you!

Do you check your credit annually? What tips would you offer? Would love to read your thoughts in the comments below!

How to Break Bad Money Habits

How to Break Bad Money Habits

We know how it is. You’re busy. You meant to make that bank deposit yesterday, but there just wasn’t time. Now you’re staring at $56 in small bills and have no idea who gave it to you. You’d deposit the cash anyway, but your bank, which is on the other side of town, is closed on Saturdays.

If this scenario reflects the way you run your business, maybe it’s time to take a look at your money management process as you break your bad habits. Here’s how to get started:

Banking

  • You should have a business checking account in your name that’s separate from any other personal or business accounts
  • Your account should be with a bank that’s conveniently located and has opening hours that fit your needs
  • Look into the services the bank offers — and use them! Most accounts can now be securely accessed online and via phone; some banks offer an online check deposit service

Cash Handling

  • Keep envelopes in your bag to separate cash and checks from various sources; write identifying details on each envelope
  • If you do a lot of business on a cash basis, get into the habit of making daily deposits; invest in a small safe to hold cash between deposits
  • Be safe! Make cash deposits during daylight hours when possible

Check Handling

  • Double check every check as it’s handed to you to be sure the date and amount are correct and make sure the numeral amount is the same as the written amount
  • Make sure each check is signed
  • Follow your company’s guidelines for accepting checks (ask for photo ID, stamp with “for deposit only,” etc.

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