How to Simplify Your Personal and Business Finances
Monday at 9:28 am
Looking to simplify your personal and business finances? That’s understandable, since dealing with finances can be complicated. Let’s walk through five ways to simplify your personal and business finances so you can breathe easy at night knowing your finances are under control!
1. Plan for the Future
We’ve all been told to plan for the future, but what does that mean for finances that may ebb and flow? Planning for the future is important whether you’re making a plan for your personal or business finances. One way to do this is by planning for your retirement as early as you possibly can. Maybe choose an amount that you’re willing to put away for your retirement every month regardless of what is going on in your life, except for emergencies.
That means no pulling money from your retirement fund either unless the money is going to something more important than your future welfare. Remember, retirement may come earlier than you think. In 2016, the average age of retirement was 65 for men and 63 for women.
2. Refinance Your Car
One way to simplify your personal finances is to refinance your car. Right now is a great time to do so because auto refinance rates starting at as low as 2.74% in places like Colorado.
You would typically get an auto refinance if you’re unhappy with your current loan or if you just want to lower your monthly car payment. Auto refinances can also include changes to the terms of your loan contract or service contract and your interest rates. This is a good option for you if you calculate how much money per month you spend on your car and realize that you thought you were spending or could be spending much less.
3. Separate Business Funds From Personal Funds
If you run a business, it’s a smart idea to keep your personal funds and your business funds separately so you can make sure you and your family are taken care of even if your business isn’t doing so well at the moment.
Likewise, pouring business funds into your personal account may cost you money in the long run, especially if this money could have gone to things like the quality of your product or the maintenance of your workplace.
4. Get Professional Tax Advice
Even if you’ve done your taxes yourself for years, there’s always something to learn from visiting a tax professional. After all, tax professionals are paid to look for small things that the average person wouldn’t notice when it comes to filing taxes.
Also, if you’re looking for a bigger tax refund this year, a professional may be able to help you with that. For example, a survey done in 2017 found that self-filers had an average tax return of $1775, while those who filed with a professional had an average tax return of $2615.
5. Be Inclusive
If you’re running a business, being inclusive is not only important to uplifting the diverse communities of America, but it also helps save America money in the long run. For example, the racial wealth gap in America has cost the economy $16 trillion since the year 2000.
The racial wealth gap stems from a long history of businesses being unfair to marginalized communities by making it more difficult for them to access credit, fair loans and more. You can even contribute to making the economy more inclusive if you aren’t a business owner by buying from businesses that are run by marginalized communities or that support marginalized communities.
Simplify Your Finances Today
Hopefully, with these five, easy tips we’ve given you to simplify your finances, you can even start today if you wanted to. Remember, refinance your car, check up on your retirement plan, create separate accounts for your business and personal funds, get professional tax advice before you submit your taxes and be inclusive if you’re a business owner.