The One Number You Need to Track
Find out how to find and track your net worth. I take you step-by-step through the process.
How to Turbocharge Your Savings Account So You Save More Money
When it comes to money, the issue of having savings comes up a lot. And for good reason, because it’s a hugely important topic.
But the problem is, many people’s saving accounts get tapped into or emptied every few months for emergencies. So what we need (beyond just a better definition for an emergecy!), is a better way to keep your savings accounts secure so that you aren’t using them so regularly. So let’s talk about the easiest thing you can do to uplevel your savings game.
There’s One Simple Step to Upleveling Your Savings Account
When your savings is too conveniently connected to your checking account, it’s both awesome and problematic. It’s amazing because, if there’s going to be an overdraft, you can just log on to the mobile app or website and click. Just like that, you’ve moved money from your savings account into your checking to cover the issue.
Only, you shouldn’t be doing that for two reasons. First of all, overdrafts aren’t something you should use. And secondly, your savings is far too easy to access.
So here’s what you can do: set up your savings account to a less convenient bank or credit union. More on that in a minute. First, though, let’s talk about why you should do this.
Why Should You Make This Change to Your Savings Account?
When your emergency savings account is too convenient, it becomes easy to justify and rationalize dipping into it on a regular basis. And then, bit by bit (or all at once), your savings gets emptied right on out.
Then you’re back to square one of needing to build a savings account.
So if you can move your primary savings to somewhere that’s harder to reach, you’re going to have to do more planning.
It will give you that extra moment to think, wait – do I really need this money? Is this really an emergency?
Because if the money is in another account at another institution, it’s going to take 2 to 3 business days to transfer it. And that buffer will help you keep your savings more secure for actual emergencies.
Now, when an emergency does occur, you’ll still have access to your money. You may even have a card you can use to access it. You’ve still got it. But that buffer helps you keep it safe for that emergency – rather than using it to cover impulse purchases that probably shouldn’t have happened in the first place.
Where Can You Go to Make This Happen?
So, where can you go to set up this harder-to-access savings account? I recommend you go to an online bank – one that doesn’t have a brick-and-mortar building. That way, you can’t just pop in to the bank to withdraw some money. You’re well and truly stuck waiting for that transfer. And that’ll help you keep your savings more secure – and ready for an emergency!
You can set up a dedicated savings account at places like Capital One 360 or Ally.com. If you do business with eTrade, they have their own banks, too. Discover could be another option.
And if you go to the website bankrate.com, that will help you compare account types, options, and more. It’s a great resource to have on hand, especially when it comes to making any banking institution type decisions.
So now you know why you need a different, dedicated savings account – to keep your money safe from yourself. And you’ve got a handful of places to go to set that up. And to help you save money even smarter, here are a few more articles to get you going on your path to financial freedom.
More on Making and Saving Money Smarter:
The best ways to manage your money so you make and keep more of it
What you need to know before you start investing
How to raise your credit score with these little known tricks
Do you want more money management tips? Get my free eBook, 52 Financial Tips to Help You Succeed and other free resources to help you attract more money into your life today.
The Best Ways to Manage Your Money so You Make and Keep More of It
Have you ever wished you had more money in your pocket? We all have. We all want to make more money and then keep more of it in our pockets. That’s why I want to share with you the best ways to help you manage your money – so that you can earn more and keep more of it.
Now, I’ve got more than 50 financial tips – but let’s start with the most basic one. Because this one will save you noticeable time, money, and credit problems. And, if you want the rest of my tips, make sure you read to the end of this article. I’ll give them all to you – completely free of charge.
The Simple, 5-Minute Tip to Manage Your Money Like a Pro
The best and easiest way to manage your money like a pro only takes five, quick and easy minutes each day. And here’s the trick: you need to acknowledge your money.
What that means is taking five minutes each day to simply log into your financial accounts. Whether you use a bank, a credit union, or an online institution – log in. You can log in from your phone or your computer. Either way is great!
But make sure you’re logging in. Look at your balances. See what your pending and posted transactions are.
For most institutions, pending charges are in italics – and it hasn’t quite come out of your account yet. You want to keep an eye on that because that’s where you’ll see the most fraud. And that way, you can stop it.
All you have to do is call your bank or credit union right when you see those fraudulent pending charges. That way, the money won’t ever leave your account. Even better, you won’t have to go through the whole hassle of fighting with creditors and all of that.
And if you create the habit now of checking your accounts each morning, you’ll get even faster and better at catching potential issues or fraud. And because you’re on top of things, it’ll save you time, headaches, and all that money that would otherwise have been siphoned from your pockets.
Do you want more money management tips? Get my free eBook, 52 Financial Tips to Help You Succeed and other free resources to help you attract more money into your life today.
The Secret to Distraction-Free Success and Business Finances
Lately, one of the biggest questions on people’s minds seems to be this: “How can I keep on the right track (of treating my business like a business) and not get distracted?” At least, that’s the question on the surface. Most people, when they ask this question, are actually wondering this: “How do I structure and handle my business finances so that I can stay on target?”
So here’s the good news – if you’ve ever wondered about either of those two questions, here are the answers to keep you (and your business) on track and distraction-free.
Set up a separate account for your business finances
The single most important step to distraction-free finances for your business is to get a separate account. That and to keep your personal and business finances separate.
Now, if you’re worried that you need to get your LLC or corporation set up first, let’s shine some truth on that common misconception. It’s simply not true. In fact, the longer you delay setting up a separate business account, the harder it gets – and the more complicated your finances and taxes get.
So do yourself a favor. Go in to your bank or credit union and open up a damned business checking account already! You can go in and open that up as a sole proprietor and use your social security number. As things grow, you can always revisit or change that by talking with your lawyer.
Next, strengthen your financial mindset
Now that you’ve got a business checking account, it’s time to change and strengthen your financial mindset. How do we do that? Simple: by ditching the unhealthy, unsustainable “paycheck-to-paycheck” (or “client to client”) mentality and graduating to a mentality where you acknowledge your value, and the money block is a thing of the past.
Okay, but how do we start making that shift? Start by switching your payments to go into your business checking account. Whether you use PayPal, Venmo, Square, cash, or check, send that money into your business finances. Totally separate your business finances from your personal finances.
That way, you’ll be able to start giving yourself a regular paycheck – and quit seeing a low balance as a “crap I need to find a new client yesterday!” moment of panic. Why the subtle shift? Because as you begin to see your business as your source of income, rather than your clients, you’re going to be more willing to invest back into that business – with time, money, and other resources that will have amazing dividends.
Finally, go out and rock your business
Now that your business is set up to succeed, it’s going to transition from hobby to a successful business. And that means that you’re ready to graduate to an accountability group – and a six figure business income.
Do you need some help shifting your mentality so that your business thrives? Let me be your second opinion. If you’re ready to go from entrepreneur to shining like a diamond with a fabulous six-figure salary, then let’s chat.
Start treating your business like a business
Want to make more money? How to start treating your business like a business!
Posted by Lori Hildebrand on Tuesday, April 24, 2018
Freaked Out By Personal Finances?
Does your money ever have you freaked out? Stressed out? Anything but blissful?
Everything, and I mean everything, in your life is a compilation of the small actions you take every day. All areas of your life are the way they are, because of the decisions you make- every day. It all adds up. Which to me, is a fantastic! This means that what you want to be different is completely within your control. Personal finance can be a big giant terrifying beast, or it can be simple small decisions every day that will inspire you to do a little more tomorrow.
To create change in those small daily habits to start creating the real wealth you desire. You must first be clear on where you are starting. Type in an address in your GPS system and it will first search for your starting location, right? You can’t possibly get anywhere without knowing where you’re starting.
If you were asked to share your total income and total debt, most people can give ballpark figures. However a shocking number of people will underestimate their debt by at least 30% and overestimate their income by 15% (whether self-employed, salaried, or commission based). Remember ignorance is NOT bliss when it comes to your money.
To get crystal clear on your starting point, follow these tips.
Track
- Pick a tracking system and stick with it, don’t get caught up in all the cool new gadgets, just pick one and go. I suggest Mint.com (free and secure), if you have all of your accounts under one financial roof, you can check with your bank or credit union to see if they have an easy to use tracking system (be sure there is a phone app!).
- Schedule 4-5 minutes every day to login and check your balances and transactions.
Gather your numbers
- Remember to include any money owed to family or friends, student loans, store credit cards, etc.
- Login to all of your accounts and write down your balance owed, interest being paid, terms of loan
- Pull pay stubs and write down your GROSS income, your insurance and taxes being withheld and any other deductions being taken out. Know your NET income after these deductions.
- If self employed, review your books (Quickbooks or Xero are highly recommended) with your bookkeeper or accountant, at least monthly.
Clear your space
- Give your money enough respect to grow. Start with your purse and wallet.
- Gather all receipts, unused gift cards, loose change, etc. (you’d be surprised at how much money you’re ignoring just in gift cards/certificates alone!)
- In your wallet, all cash should always be facing the same way with smallest bills in the front. Crumpled money thrown in the side pocket = disrespect and scarcity mentality.
How do you feel about money today?
- How you connect with and feel about money impacts how your treat your money.
- The key to lasting change in growing your personal net worth is trusting yourself. Create some time to be still and quiet with yourself, if you were to really trust yourself, what inspired action could you take this week to improve your finances?
Don’t let your finances freak you out! Respect your future self enough to take care of yourself today!
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