5 Simple Steps to Manage Money Well in Business

Hello friends!

It’s money management Monday and you know what that means? Time to catch up on any work that’s been backing up and stay on track with planning. Not sure where to begin? Well, you’re in luck because I have two gifts to help you out.

A little over two years ago, I was interviewed by Barbara Gentry-Pugh, host of Heart Expressions, an online talk show that highlights entrepreneurs and thought leaders. During my segment, I had the privilege of sharing tips from my book, The Five Finance Essentials for Enterprising Women. If you haven’t seen the video, be sure to check it out below.

And, because I really want you to crush your financial goals on the remaining Monday’s from this day forward, I’ve created a free report that you can download, print and take notes.


So be sure to get your copy (my compliments) and leave a comment below to share which of the five steps are you are currently working.



Why You Need a Smart and Simple Savings Strategy

Savings is simply setting aside a portion of every dollar that you earn. It can be difficult to keep the momentum going if you don’t have a vision. That’s why it’s important to have a clear intention. When you have a specific goal in mind, it helps you stick to your plan after you get started.

My mother began teaching me to save when I was around six years old. By that time, I had learned to write my name and was pretty good at adding and subtracting. She’d take me to the bank with her on pay day and hand me the deposit slip to fill out. This happened, without fail, every two weeks until I started high school. It became one of our mother-daughter rituals and, as an adult, it remains a life lesson that I’ll never forget.

There’s so many goals that a person can save for in their personal life and as a business owner. For example, one of the most common savings goals is an emergency fund. That’s where you’ll begin saving for a rainy day. Yes, emergencies can, and will, pop up but that’s just one target to aim for. In your personal life there may be savings for children’s college tuition, family vacations, and your retirement years. But there’s also savings goals for business.

My friend, Jaz, is an administrator at a middle school who aspires to start her own business within the next two years. She’s considering a path as a life coach to women who have been overlooked in their teaching career. Her vision is to equip them to be the candidate whose resume makes it to the top of the pile and gets promoted. She has plans to travel the world speaking and hosting conferences. So she’s putting money away now so that she can pay for classes and coaching certification. Jaz also is positioning to be ready when speaking opportunities show up.

By writing down your savings goals, they will become real. It’s nothing magical. It’s because you’ll see, not just mentally visualize, your savings target. Having it on paper (chalkboard or any way that you can see it in the physical sense) allows you to take practical action steps towards your number. When you’re clear on the amount and know why it’s important, then you can plan and start working towards it.

Savings is just that simple. Rather than a big goal overwhelm you, break it down into smaller, bite-sized chunks instead. That’s what my mother was doing when she took me to the bank. She was patiently and consistently saving towards a new car and upgrades to our home little by little. You need only make one step a time and before you know it, you’ll see your savings grow, too. Then you’ll look up and like many others before you, you’ll be walking around in your vision.

Think about your vision and mission. What is one savings goal that you can work toward in your business?

Three Reasons Why Your Income Tax Return May Look Different This Year

Well, friends! It’s that time again. Tax filing season is upon us. Many of you are seeing big changes in your tax returns this year. Some to the tune of tens of thousands of dollars. And, you may be wondering why.

While I’ve never seen any two returns that look exactly alike, there are several things that they all have in common. In this post, I’m sharing three things that’s might be impacting yours to help you understand how to move forward.

Factor #1: Taxable Income

The “Income” section on your tax return is where you report your taxable earnings. And, yes, this is where reality sets in.  At this point you get to see, in black and white, how your job promotion, fast-growing business, or lucrative passive income streams are causing your tax changes.

In an ideal world, the goal is to keep an eye out on income increases and have a strategy to manage the tax on them. This includes finding ways to keep more of the money you make so that you can enjoy more savings.  But, if you’re like many others, tax planning probably didn’t make it to the top priority list. So, you end up surprised by the amount you end up paying.

The question to ask yourself is “How much did your household income change in the previous year?”

This is the beginning of tax awareness — to understand the amount of income you earn so you’ll know how much tax you’re paying.

Factor #2: Life Events

Did you get married or divorced last year? Were you blessed to add a child to your family? Is a member that you claimed previously no longer in your home? If either of these took place, then your tax filing status might change.

For example, consider a married couple whose daughter is in college. The child worked throughout the summer and received more than half of her support from her parents. Her mom and dad want to know, “Should she file her own taxes?”, “If she does, will that negatively change their return?”, “When she graduates, does that disqualify her to be claimed as their dependent?”  These, and other questions like them, are part of the tax planning process. Unfortunately, tax savings that come in the form of choosing the right filing status is often overlooked. The result? Filers who are paying more taxes than they should.

The question to ask yourself is “Has there been a change in my marital status or the number of people that I can file this year?”

Change #3: Lifestyle Adjustments

Another part of the equation is adjustments you can claim to lower your income. Think of it as getting income as low as possible before you take deductions. Just be sure that you understand the rules and know how to apply them.

If you’re spending in the category of college, career, or self-employment, then there’s probably some adjustments you can make. The Educator’s Expenses for teachers, or Health Savings Account Deduction, Self-Employment Pension Plan, are all examples of ways to lower your gross income.

The question to ask yourself is, “Where does my income go throughout the year?”

As you can see, tax savings opportunities abound for those who are proactive. You can legally cut your tax bill by knowing what strategies are available and how they apply to you. The greatest benefit comes from starting early and following a plan throughout the year.  And, if you’re wondering how to get started with a tax savings plan, post a comment with your question below.