3 Strategies for Organizing Your Finances

3 Strategies for Organizing Your Finances

If you struggle with saving money and paying your monthly bills on time, you are not alone. In 2017, the employment site CareerBuilder reported that eight out of ten Americans live from paycheck to paycheck and have little to no money set aside. However, you may be able to change your financial circumstances with a bit of effort and insight. Organization can be key when it comes to managing money, and there are several strategies you can use to build your confidence as well as your savings account.

1. Start With Your Net Worth

Discovering your net worth can be an important step in organizing your finances because once you know what this figure is, it may help you build a more effective budget. Your net worth is the number of assets you have, minus the debt you owe currently. For example, if you own your home, you have more net worth than someone who is paying a monthly mortgage. Seeing your net worth on paper can provide you with a springboard for creating a more viable budget.

2. Be Detailed When You Track Spending

Today’s mobile banking apps come with a variety of pros and cons, and while they may offer some tracking features, they might not give you the big picture when it comes to your spending. Detailed tracking can bolster your budget and help you see where you might be wasting money. Track your spending manually and divide your expenses into different areas, such as what you spend on gas, groceries, lunches out, and monthly bills. You may be able to see where you can cut costs when you look at these expenses individually.

3. Have a Bill Tracking System

Even if you pay your bills online, it may help you to stay organized if you develop a quick and simple bill tracking system. Whether you write them down on a calendar and keep them on your desk or keep an online day planner you can access at any time, tracking your bills can be helpful for avoiding late fees or missed payments.

For example, if you pay your car insurance online or through an app, you can still track your payments in several ways. Note the amount, when you paid it, when the payment was posted, and whether you use auto debit or pay it manually. The more you know about your monthly bills and how they relate to your budget, the more efficiently you can handle them.

Managing your money and building a savings account, whether you want money set aside for emergencies or a major purchase later, can be challenging. However, if you work to organize your finances, it can help you discover paths to savings you might never have considered.

What is An S-Corporation Tax ID?

What is An S-Corporation Tax ID?

When you are ready to begin a business or if you are restructuring your business, a corporation may suit your needs, but there is a particular type of corporation that is different from all of the others. An S-Corporation tax ID is a federal tax identification number generated by the Internal Revenue Service (IRS) so they can know with whom to assign taxes to. The easiest part of setting up your S-Corp tax may actually be filling out the application to get the tax ID number. Everything else may become quite overwhelming.

Understanding The S-Corporation

When your business registers as an S-corporation your business can save on taxes. In other business structures when you get a tax ID number and have employees all of the net income can be taxed, but when you have an S-corp only the shareholder who is employed with the company is subject to the employment tax that must be filed. With an S corp tax ID number the profits and losses garnered through the business can be passed through to the owner’s personal tax return, similar to a limited liability corporation.

If it is beneficial to your company, a LLC can request for S-corp status which will allow your LLC to be taxed like an S corporation. You will need to contact the income tax agency in your state to you can be completely clear about your tax requirement.

Basic Benefits

If you are not going to have shareholders, and you are trying to keep it as simple as possible at the moment, you will still need an S-corporation tax ID number. With this tax ID number you can establish an open line of credit for your business, get business discounts on a company vehicle, office supplies, and other capital, and you could even qualify for a small business loan.

You will need a tax ID number no matter if you are an S-corp, or another type of business structure and IRS-EIN-TAX-ID.com will help you along through the process.