Author: Jennifer Brazer

Have you ever thought about spending a whole day outside without having cash in your pocket? That’s like saying that you landed the first step into a world that will soon be a cashless society. Will that be the case, and if so, when? It is a little difficult to imagine a community where people no longer carry cash. However, the modern banking system is flexible enough to support a cashless society thanks to cards and virtual transactions.

Despite that, we should consider the pros and cons of a cashless society. However, tangible currency was a norm throughout human history, with metallic coins accepted throughout the world. Virtual money, for now, is the closest thing to the cashless society we have today. That said, let us investigate the consequences of an organization that has no cash around:

Carrying Cash can be Problematic

It started as a revolution and expanded its footprint the world over. With debit and credit cards, a new wave of banking suddenly spread its wings to many countries. This type of banking was famous for all the right reasons. You could operate your accounts by inserting weightless tiny plastic cards in ATMs and withdrawing a desired amount of cash. It barely took clients a few seconds to complete the withdrawal procedure. Suddenly, banking had become much easier for millions worldwide.

It was much easier than withdrawing cash using checks as it would consume time and was problematic. Branchless banking, a variant of virtual banking, was also gaining popularity as it facilitated cashless banking. Many conventional bank clients switched to paperless banking without considering the possible challenges it might pose in years to come. Going cashless was far from a reality for now, despite the rising popularity of cashless banking among millions.

No More Cash is Good?

Safety is perhaps the first thing that comes to mind when we think of going cashless. Imagine the horrors of getting robbed on your way home or office because you had cash in your pockets. Will that happen when you deal in virtual transactions online? Also, carrying a large amount of money is difficult in many cases, especially if you are traveling on a private commute. Being watched by suspicious people on your way is the last thing you need. Going cashless is perhaps the best way to avoid falling victim to criminals, thieves, and robbers.

On the flip side, there are drawbacks to going cashless. For instance, you cannot always have your debit or credit cards with you, or sometimes you forget those at home. With no cash in your pockets, how will you go about with things or pay for services or products used? That’s where having no money around becomes a significant obstacle for many. Of course, having smartphones around makes things easier for clients as they can access virtual banking on the go, but is it safe? Our next most significant concern is going cashless in our crime-filled world.

Is Going Cashless Safe?

If keeping money in your pockets was unsafe and risky, what do you say about accessing your account on the go using a smartphone and getting it hacked in the process? That should concern you and all online banking users worldwide. Will you risk losing a few hundred in your pockets, or will you settle for jeopardizing your bank account? Of course, you would pay for a minor loss when push comes to shove. However, why would you settle for failure at all when online banking is safer to operate now than ever?

Despite revamped safety, hackers and cybercriminals are becoming increasingly difficult to handle for cybercrime handlers. Every other day, there is news of hacking attempts on the accounts of a particular bank or financial institution. Some of these attempts are futile, while some are successful. The question is, will clients prefer losing their bank accounts to criminals? In all fairness, no! Online banking is the future of monetary transactions, and improvements will lead to a cashless economy worldwide. However, this will take time and is certainly not a possibility for now.

Final Word

Going cashless is widespread and is here to stay. However, it will take a while until we see a cashless economy. Perhaps it might happen in the next 50 years or so, maybe sooner, but for now, going cashless is not possible for reasons known to all.

Banks must work on safety, transaction security, and client data safety. Until they ensure complete protection for their clients, a cashless society will remain a pipe dream.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

For an overview, financial success depends on two imperative factors: financial education, if we use a more sophisticated word, financial literacy, and the ability to act upon it.

These two are the core part of a good and successful financial plan. Primarily, you must understand how to manage money and have a clear vision of where you want to be in your life and how you want it to end. Secondly, what actionable steps to follow?

Irrational Decisions are Influenced by Financial Illiteracy

Financial illiteracy is one of the prominent signs that your inner psychological narrative is outdated. Your life is illustrated by how you think about money, influenced by parental beliefs, peers’ thoughts, and personal experiences. When we are uninformed about money management, we fail to achieve the goal that we aspire to. If you want to enjoy financial freedom, save money, and manage expenses but ruin every effort, you must reflect on your first concept about finance. Many people who fail to do so blame their consequences, speak ill about money and eventually start hating the rich.

When you are simply limiting your beliefs, the outcome is apparent. To avert this natural resistance, begin challenging your psychological blocks and adopt new ones. People will provide you with several guidebooks, podcasts, and real lessons to manage expenses and save money, but do they ever tell you ‘How to do it?’ What insights will lead you there? No. Therefore we will suggest a life-changing narrative to control finances.

However, here are some statistics regarding a survey conducted by youth.gov.

18% of the 15-year-olds in the United States had not been educated about the fundamental financial skills frequently applied in daily life. Such as creating a budget, shopping, and understanding how to save.

High school seniors accurately scored 48% on a financial literacy exam, illustrating a dire need to brush up on financial literacy. Unfortunately, households fall victim to mounting debts, increasing interest, and scams with such illiteracy.

Do you want to be among the financial illiteracy statistics? Or attain your objective? The decision is yours.

Determine Your Income

Concentrate on your income first. Your payment entails money that comes in your authority and can be counted in the upcoming years. Whatever money comes in is what you include in your income, be it a welfare check, social security check, self-employment income, or anything. Furthermore, identify your sources of revenue.

Act Upon the Most Prevalent Phrase

Create a budget; yes, we all know you must have heard this a thousand times and been influenced to act upon it but then fell prey to your procrastination. But do you know why it is essential to make a budget?

Let’s shed some light on that. First, before you initiate a budget, it’s imperative to have an unflinchingly evident appraisal of your financial standing. Nonetheless, you may know how you spend and where you pay, but you often don’t know how small expenses make up significant instabilities.

Furthermore, Prioritizing and compromising are at the heart of efficient budgeting. A balance between long-term goals against short-term goals is where one immediately realizes the importance of saving. This way, you may be willing to compromise and give up on irrelevant expenses.

Pay Yourself First

People fall into financial crises because they are overly optimistic and deny the chance of it occurring. However, you break the chain when you intentionally save for unanticipated expenses such as increasing interest on monthly installments or unforeseen medical conditions. Emergency events come unexpectedly, and if one is mindful of this, allocate a savings account in your budget, even if it’s $15. Moreover, you can automate your savings if you struggle with overspending. A certain amount will directly go into your account from the monthly payment. You can take the first step, and confidence and financial success follow.

Revisit Your Financial Priorities

Set realistic goals. Don’t practice perfectionism, nor imagine it to happen. It is detrimental to our plan. For instance, you need to save for a down payment on a car, purchase modern furniture, boost savings within six months, or get a new house. But with your current earnings, it’s not possible. To save money, do the following: Do freelance work, create your own part-time business, and work overtime. That is one method to achieve your objectives, but keep in mind that working long hours should not put your health at risk. The second alternative is to evaluate your expenditures and financial goals. Even if you think you’ve trimmed your costs as much as possible, there’s always room for more savings.

Best wishes!

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The term “corporate social responsibility” (CSR) appeared in the early 1970s and was perceived solely as ethics and morality in the business environment.

Now, the company is responsible for the following:

• Employees for conditions and decent wages.
• Consumers for the quality of services or products.
• Business partners for the integrity of the partnership.
• Society for activities, including advertising.
• The local community of the area where she works.

Why Should Businesses Voluntarily Solve Social Problems?

It is not enough to say that your company exists and does its job well. According to research, 71% of consumers are willing to abandon brands that only work for money.

Marketing is becoming more socially ethical, and large companies invest millions in CSR implementation, writes Forbes. And for that, they get:

• Bonuses in the form of tax incentives.
• The Loyalty of own employees.
• Additional competitive advantages to promote products and attract customers
• A new level of relations with state bodies

Personal Motives

The head of the company is a person with his interests, preferences, aspirations, fears, stereotypes, and life experiences. It can have different values:

• Contributing to the present and future.
• Assistance to people in difficult life situations.
• Religious beliefs.
• Development of a pleasant direction and hobby.
• Participation in something previously unattainable.

Corporate Motives

If you want to help those in need, it’s charity.

Related material: The role of the media in the image of the company

If your business employs people with disabilities, it is social entrepreneurship. The company both makes a profit and gives work to people with disabilities.

Regulatory Documents for Socially Responsible Businesses

Each company develops its corporate social responsibility strategy, but there are generally accepted documents:

• The UN global compact.
• National standard ISO 26 000 “Social Responsibility Guide.”
• Reporting standards GRI and АА1000.
• Other international instruments in the field of sustainable development

Who is a Socially Responsible Company?

You can see the list of companies on the site.

The USA Union of Industrialists and Entrepreneurs website has a national register of non-financial reports.

How to Become a Socially Responsible Business

You realize that your company needs to become socially responsible. How to do it?

• On one’s own: This will help the charity department, marketing, PR, or HR. Employees begin to do good deeds within or beyond their core responsibilities.
• Help with your company can help specialists from Exiterra.com Digital Agency. We have existed in the market for 20 years and provide various promotion services.

For example, a hotel chain helps families who have lost their homes in a fire or other disaster. The hotel has allocated a separate room and accommodates fire victims for the first time. The staff helps with restoring documents and the purchase of clothes and essentials. The hotel also provides meals to those in need. The media department has agreed to be regularly informed of such incidents.

Example: Record a PSA as a company ZEWA.

• Through a corporate fund: Management is undertaken by specially hired employees. This option is suitable when the company organizes everything and realizes that it wants to help well. Such funds are becoming more popular and are already working in Rural USA Railways and others.
• Through a crowdfunding platform, A separate corporate entrance is created for each employee, where he chooses an NPO and makes personal donations, for which the company rewards him additionally.
• Through a non-profit organization (NPO): This is convenient when a company wants to become socially oriented but lacks appropriate staff. The organization transfers funds for the implementation of the NPO program.
• Directly to beneficiaries on the recommendation of the NGO. In this case, the NPO only provides contacts, and the company itself helps.

By studying data service, Dobro Mail, about a third of medium and small companies in the USA are engaged in charity. Big business considers it part of a common strategy, an element of a management standard.

According to the outcomes of the study “Leaders of Corporate Charity – 2019″, in 2018, 32 large companies donated $10 million. Three years ago, 60 companies invested less than $10 million. Thus, businesses’ CSR budgets grew by almost three times.

Funding goes to projects in education, ecology, health, and the development of local communities.

How to Develop CSR in a Company

The direction can be chosen based on personal preferences or the advice of volunteer staff, selecting from the existing Sustainable Development Goals (SDGs) developed by the UN General Assembly as “a blueprint for a better and more sustainable future for all.”

It is getting to know local NGOs and choosing one that needs more support. It can be done through the government’s resource center or the administration of your city, at an NGO fair, or charity festivals. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Price Increase

Increasing the cost of products or services, on the one hand, may seem inefficient. Which client wants to pay more?

The proposed method is used quite often and works well. The research results by the consulting company McKinsey suggest that even if the price tag is raised by 1%, operating profit increases by 8-11%. There is no doubt that with considerable increases in price, orders decrease. However the profit will increase due to the rise in the average check, provided that the cost of production remains at the same level.

How to Set the Ideal Price for Your Product?

• Step #1. Measure the current number of leads, average checks, and customers.
• Step #2. Use the resulting values to calculate profit and conversion.
• Step #3. Increase the cost of goods and perform a new calculation of marketing indicators.
• Step #4. Estimate the final profit and see the conversion, leads, and profit dynamics.

Establishing the optimal balance between the number of customers and the price at this stage is essential. It is better to gradually increase the cost of goods, starting from the minimum values of 1% -10%. Be sure to test pricing innovations and never use multiple price increases.

Increasing Conversion

Conversion growth should be present at every stage of interaction with customers. The ideal one should look like this. The company has a digitized CMJ that you use to digitize the parameters at each customer touchpoint.

Your goal is to work on increasing conversions at each stage of the customer journey. Try to increase it by at least 10%. Then, the effect will increase several times compared to that achieved by increasing the conversion only at one of the stages of interaction with customers.

Example

You place your ads in the Yandex contextual network. Its reach is 10,000 users, and 1,000 customers click on the ad. Out of these thousand visitors, you get 100 leads; out of this hundred, ten people become your company’s customers with an average check of $5,000. The cost of the advertising budget amounted to $5,000.

So, we fixed the amount of profit. Now let’s formulate a task for the marketing department and contractors – “We need to increase the conversion by 2% at each stage.” The final conversion will be 12% in each stage. Our budget will be the same as in the previous example. The new marketing metrics look like this:

So, we fixed the amount of profit. Now let’s formulate a task for the marketing department and contractors – “We need to increase the conversion by 2% at each stage.” The final conversion will be 12% in each stage. Our budget will be the same as in the previous example. The new marketing metrics look like this:

Increase in the Average Check

The average check consists of the average number of product units (units) in the check and the average price of one unit. For example, a customer of our company made a conditional purchase. His check includes pants worth $3,000 and a T-shirt worth $2,000. The size of the average check, in this case, will be $5,000, the average price of one check unit is $2,500, and the average number of sold units of goods is 2.

In this regard, a completely logical question arises – why is separation necessary if it is possible to increase the average bill without such difficulties? Splitting a check expands the helpful information for obtaining a set of tools.

For example, we discovered that increasing the number of units sold by one check significantly affects making a profit. Therefore, the company expands the assortment matrix and uses cross-selling in sales. If it becomes more efficient for the business to increase the average cost of a unit sold per check, then the company uses up-sell in its work and investments in the brand to achieve more expensive sales.

The Attraction of New Clients

The most popular way among entrepreneurs is to increase company profits, but not consistently the most effective.

Do not limit your customer acquisition channels; test other tools as well. Remember that social media targeting and standard search engines are not the only tools for expanding your company’s customer base.

Other methods are possibly not used by competing organizations in the market. Incorporate them into your company to improve the efficiency of your customer acquisition channels. Test channels, analyze metrics, and enhance the effectiveness of your advertising communications.

TIP #1 – Follow a Solid Investment Strategy

One of the essential traits of affluent people is their ability to make and keep to solid plans. They strive to stay as far away from behavioral biases as possible when investing. They also realize that predicting the future is practically impossible.

Even the most powerful corporations on the market, those with the most technical skill and access to the most data, make estimation errors.

TIP #2 – Diversify Your Investment Portfolio

People who understand how to diversify their assets and alter their portfolios regularly are the ones who have the best results currently. As a financial manager, I’ve learned that the rich diversify their investments between asset classes and, more significantly, across assets within each category.

In our investment strategy, we call this intelligent diversification.

TIP #3 – Have Clear and Well-Defined Goals

Aside from employing sound and consistent procedures, the most successful millionaires establish and stick to specific objectives. They also have a good idea of how long it will take them to attain their goals. Napoleon Hill promoted this strategy through his writings.

In “Those Who Think, Get Rich,” Hill emphasizes the necessity of having well-defined goals (and, in this case, investing like the rich).

TIP #4 – Protect Your Heritage by Linking it to Stronger Markets

Diversifying your portfolio is equally crucial as avoiding reliance on a single market.

Consider the following:

• While some nations may see economic progress, others may endure terrible disasters.
• The wealthy know this and do not devote their resources to a single market.
• You can readily invest a portion of your holdings in a different nation.
• It’s legal and will help you diversify your portfolio while reducing risk.

TIP #5 – Align Asset Allocation with Your Investor Profile

Creating an investment plan is worthless if you don’t know how much risk you’re prepared to take. When investing money, some people are more careful than others. Others aim to improve their revenues by taking additional risks. Like the affluent, get to know your investor profile first. Your investor profile will disclose how risk-averse you are and what you value most when investing.

From there, you can devise strategies and construct an investment portfolio based on your objectives and profile.

TIP #6 – Don’t Follow the Day-to-Day Financial Market

A Hollywood cliché is the multimillionaire investor who follows stocks in real-time and knows the world’s most significant economic events. The rich recognize that their investment portfolio should not rely on stock market success. They acknowledge that the link between long-term investments and market fluctuations differs dramatically from that which directly affects short-term investors.

Do not be fooled!

As I indicated, large fortunes are gained through hard effort and monetized through solid investments rather than speculating.

TIP #7 – Do the Periodic Balance of the Investment Portfolio

You must balance your investment portfolio at specific periods, which you must determine based on your profile and objectives. Over time, your strategy may become obsolete, resulting in returns that fall short of your financial goals. Making this periodic evaluation is one of the responsibilities of millionaires who know how to manage their assets properly: They can either establish an appropriate asset allocation or employ a professional portfolio manager for the most part. Don’t forget about your equity; balance your portfolio regularly according to your strategy.

TIP#8 – Customization

Anyone who has taken a course in personal finance knows they need to know their income and expenses before investing. Likewise, it also knows that investments with different degrees of risk require more or less time to generate returns. However, when entering the world of private banking, it is clear that things do not follow this logic well.

The truth is that the millionaire has some quirks. He doesn’t necessarily invest in what makes the most financial sense but in what the richest in his relationship group supports.

Thus, typical human characteristics affect it, such as the “herd effect” (transformed into FOMO on social networks) and investing in looking in the rearview mirror based on past performance.

Reversing this behavior takes time and persistence. Therefore, it is customary among professionals who serve this audience to present them with some “pampering” and certain conveniences to win their trust. In addition, knowing what is part of your routine and your passions is essential.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Keeping track of your finances is an essential aspect of adult life. You must ensure you have cash for your expenses and even save something for bad days. It can help you better manage, hold onto, and be in control of your finances. It also informs insiders how you spend your money and what’s on.

Learning effective methods of keeping track of your finances can be extremely helpful, especially if you want to make changes in your life, such as making changes in your life. B. take a new job or start a business. It is a process that is not difficult, but it takes time and perseverance.

Bank Statements

To track and keep track of your finances, you need to know where your money is going. To do this, you need to check your bank statements. You might want to invest in them or manage your expenses. Usually, mobile wallet apps sync with your cards and create charts and reports on spending your money.

Figuring out how to spend your money can help you track your finances, plan future expenses, and save for retirement or vacation.

Categorize Expenses

You must do it yourself if you do not have an app to monitor your expenses. Categorizing expenses is helpful because you have broad categories that make it easier to keep track of your costs. You will find that some expenses do not change much from month to month. You can include rent, gas, or insurance here.

But you will also find that you have variable expenses that change from month to month. Food, clothing, travel, and going out with friends are all included here. As you begin to track and manage your finances, you will become aware of all the money you are making and spending. And it becomes easier to manage your finances.

Budgeting Apps

Budgeting apps are unique because they give you more than a graph of how you have spent your money over the last month. They will help you create a budget that will work for you based on your previous records of how you spend your money. With all this information, you can set some spending limits, and budgeting apps will help you meet them.

You can synchronize your transactions with budgeting apps, automatically sorting them into categories and suggesting how to save money. Depending on the features you want a budgeting app to have, you may have to pay for it. However, the price is not that high, and budgeting apps are worth the cost, says Michael Hudson, an essay writer at Assignment Geek.

Explore Spend Trackers

A budgeting app may not work for everyone, and that is fine. Many other options can help you track and keep track of your finances. You can find some budget templates online for free or buy some if you need more complex features. Consider paying for billing software.

Financial experts recommend budgeting your income by percentages: 50/30/20. 50% of your payment goes towards your house costs, rent, etc. 30% should satisfy your wants and needs, and 20% should benefit your economy or your savings budget.

Finding the best tool to help you manage your money can be difficult. Some pay for apps that do it automatically. Some people even do it manually. Regardless of your preference, you should know that many options could suit your needs.

Change Unhealthy Spending Behavior

The first benefit to starting with your finances is that you will become aware that you are spending your money every month. You might think you are spending more on food, but you will find that going out with your friends will make you spend more. Tracking and keeping your finances gives you insight into your spending behavior and is the perfect opportunity to change that behavior. You can cut some costs and make significant changes to your budget, especially if you want to save money. You will also recognize the opportunity for change, re-budgeting, and healthier spending behavior.

Analyze Your Finances at the End of Each Month

To get an accurate and detailed report on your spending behavior, you must be consistent and persistent in your efforts to keep track of your finances. For this reason, you need to analyze your finances at the end of each month. You should also keep track of your daily expenses and check the charts from the end of the month.

If you spend more than you make, there may be a problem, and you need to determine the cause of your overspending. The simplest method is to add your total income and expenses and compare the two sums. You can also add the cost by category and see how much you spend on each domain: groceries, household, etc.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Think for Yourself

Choosing long-term savings is a big issue that requires some thought work. Therefore, our first piece of advice is simply that you make your own decisions, just like us. Of course, we prefer that you invest in some good funds. And just like most others, we think it is wise to save regularly, for example, with monthly savings. As active managers, only invest in companies where you genuinely believe.

Find the investment philosophy that suits you. The most important thing is not to lose money; therefore, the price of the company’s intrinsic value is crucial. There are many companies, but not all are good companies, and even fewer are attractively valued. As I said, listen to experts and feel free to take advantage of tips from people like us, but in the end, let your common sense make the decision.

How to Multiply Investment

The pyramids of Egypt and the hanging gardens of Babylon are some of the seven wonders that most people have heard of. But according to Albert Einstein, there is one more thing: interest on the interest rate effect, the eighth miracle.

A classic example of interest in the interest rate effect is the legend of the “rice grains on the chessboard.” According to this, an Indian ruler was so impressed with chess that he wanted to buy the game from its inventor, who must have been a cunning mathematician. The inventor wanted to pay in rice, more specifically, a grain of rice on one of the board’s squares, then double up on each other.

The ruler thought it sounded cheap and struck but soon realized it had ruined him. If you double the number of rice grains on all sixty-four chessboards, it will eventually be eighteen trillion rice grains to a weight of 461 billion tons.

This is how interest rates work on the interest rate effect, which long-term investors use. Every year, you get a return on your savings, the value increases, and if you get a return the following year, you also get a return on the previous year’s return.

So, it can continue, year in and year out, and over time, it can do wonders for your finances.

Short-Term or Long-Term Investment?

There is always something to worry about—war and unrest, proud politicians and recession, climate change, and terrorist attacks. Just look at all the misery that has occurred since 1988.

Of course, it would be desirable to predict stock market declines, but it is often hopeless. And when will you reinvest if you still have a chance to sell?

Short-term price movements are irrelevant when long-term values ​​are to be built. Instead of timing the market perfectly, there is a significant risk that you will miss a continued upswing. If you are selective and only invest in companies you believe in, you can improve the odds further. 

Always Invest in Good Companies

We cannot stress enough the importance of investing long-term and avoiding the temptation of trying to time the market. Invest in good companies and let them do the work. Be long-term, preferably in companies with an excellent direct return. As someone said, dividends are facts, and the stock price is just opinions.

Good companies are experts at making money, and you are entitled to your share of the profits as a shareholder. So, instead of staring at a computer screen and being tempted to make unnecessary and devastating relocations, you might as well take a walk. You get fresh air and stretch, strengthening the heart and stimulating thought activity.

You can play with the magic number 72 if you still want to consider investments. If you divide seventy-two by your expected annual return, you will determine how many years it will take to double the capital. Or vice versa: You want to double the money in x number of years and wonder what return is needed. Then, take 72 / x, and you will get the return in percent.

Speculator or Investor

The difference between investors and speculators is the view of strong price movements. The speculator tries to profit by predicting the price development, while the investor focuses on buying and owning “suitable securities at suitable prices.”

Or, as we usually say, good company at a reasonable price. Behind each investment is a thorough business model analysis, finances, sustainability issues, and management. Then we are happy to be long-term. Even good companies have their adversities, but they usually emerge stronger from crises in a way that strengthens our belief in them.

If you want to save long-term, you must prepare for short-term setbacks. Just because the earth takes a year to circulate the sun, it is not certain that a calendar year is suitable for evaluating an investment. Or are you a speculator?

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

All investment strategies can, in principle, be summarized in two questions. Do I have the ability and competence to 1) find incorrectly valued companies? 2) Predict market movements? You will arrive at different investment strategies depending on how you answer these two questions. That is a set of rules and ways to invest your money. It can sum it up in a plan for the guru, one for the analyst, one for the trader, and one for the rest of us, i.e., the small savers.

Below, I have tried to summarize our strategy in several rules with justifications. The advantage of this strategy is that it does not require any skills to get started, can be created in one evening, and does not need to be maintained for several years. It should not be something new for you, those following us for a while.

Do Not Try to Find Wrong or Undervalued Companies; Instead, Buy All Companies in all Markets

Several studies have shown the fruitlessness of being a better analyst than others. 99.4% of all professional fund managers fail to beat the index (= the average for the entire market) over time. The majority of all small savers underperform year after year against the index. Two professional fund managers who manage more than $500 million expressed that it is challenging to analyze better than others. They feel the market was wrong about long-term valuations, especially in the multiple studies. If professionals like them have a tough time doing better analysis, and given the time, experience, and skills, how do I do it better as a small saver?

Do Not Change the Strategy as Long as the Goals Do Not Change

One of my most common mistakes is changing my strategy when market conditions have changed. I have had 100% equity exposure, and then the market has fallen by 20%, and it has not felt easy. I have sold assets and reduced the risk to make it feel less complicated. You should avoid this mistake by doing the right thing from the beginning. My rule is that the strategy and asset allocation should only change if my goals change, not if the market changes.

 Save Monthly Regularly

Saving monthly is one of the best things you can do for many reasons, not least because it improves returns for a long time and makes declines smaller. The reason is that when you save monthly in a downturn, you get more shares at a lower price, boosting the way up.

Focus on Getting the Right Balance in Savings Between Shares and Interest Rates Through, e.g., the Four-Bucket Principle

My experience is that most – incl. I – is at risk. Either you have too little chance, or you have too much trouble. Both are equally wrong because they can lead to insufficient money. If I have too negligible risk, the amount never grows to my need. If I take too much trouble, then maybe I reach the sum but lose a large part of it when the market turns, and I am in the same situation where the money is insufficient.

Realize that You are the Biggest Enemy of Your Money Through the Behavioral Mistakes You Will Make

I have reflected that most of us lose more money in our savings on behavioral mistakes than we do due to the market. It is about everything from the fact that we think the market is highly valued and we do not want to save now, or that we think it will go down, or that we panic when it goes down, that we are wrong in risk, that we do not sell what goes wrong and so on.

In principle, the above rules only talk about the WHAT and WHY of investment strategy. However, in the simplest case, it is about setting up regular savings on a fund. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

By: Jennifer Brazer

Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.

Fact Checked By: Brittany McMillen

Paying Off Debt on a Low Income: How Long Will It Take?

Paying off debt on a low income typically takes 3-5 years with strategic planning, though your exact timeline depends on total debt amount, interest rates, income stability, and the repayment strategies you choose. Most low-income individuals can accelerate their debt freedom by combining proven methods like the snowball or avalanche approach, budget optimization, and creative income boosting while maintaining essential expenses.

I’ve watched thousands of business owners transform their financial situations over my two decades as CEO of Complete Controller, and the pattern is clear: those who succeed don’t wait for perfect circumstances—they build systematic approaches that work within their current reality. This article will equip you with actionable strategies to calculate your personal debt payoff timeline, implement proven repayment methods that work on tight budgets, and overcome the emotional challenges that often derail progress. You’ll discover how to balance emergency savings with aggressive debt reduction, negotiate better terms with creditors, and leverage tools that automate your success even when money feels impossibly tight.

What does paying off debt on a low income really mean?

• The typical timeline ranges from 3-5 years depending on debt amount, interest rates, and repayment strategy chosen
• Key factors include total debt balance, average interest rate, available monthly payment amount, and income stability
• Realistic strategies combine budget optimization, debt prioritization methods, and incremental income increases
• Personal timeline calculators help create customized plans based on your specific financial situation
• Success requires both mathematical strategy and emotional resilience throughout the journey

How to Assess Your Debt and Create a Realistic Timeline

Understanding your complete debt picture forms the foundation of any successful payoff strategy. Start by creating a comprehensive debt inventory that lists every obligation, from credit cards to personal loans, including current balances, interest rates, minimum payments, and due dates.

Pull your credit reports from all three bureaus to catch any forgotten accounts or errors that might be inflating your debt load. Many people discover old medical bills or retail cards they’d forgotten about during this process. Document everything in a spreadsheet or debt tracking app, organizing debts from highest to lowest interest rate for easy reference.

Calculating your personal payoff timeline

Debt repayment calculators transform overwhelming numbers into manageable monthly targets. Input your total debt, average interest rate, and available monthly payment amount to see various timeline scenarios. For example, someone with $16,000 in credit card debt at 23% interest needs approximately $250 monthly to clear the balance within one year, while $150 monthly extends the timeline to nearly three years.

The math reveals why minimum payments trap people indefinitely—a $5,000 balance at 18% interest takes over 30 years to repay making only minimum payments, costing more than $11,000 in total interest. Understanding these numbers motivates strategic action rather than passive payment patterns.

Aligning debt payments with your budget reality

Your debt repayment capacity equals income minus essential expenses, not wishful thinking. Track spending for at least one month to identify where money actually goes versus where you think it goes. Essential expenses include housing, utilities, basic food, transportation, insurance, and minimum debt payments to avoid default.

Many discover they have more repayment capacity than expected after eliminating unconscious spending on subscriptions, convenience purchases, and emotional shopping. Others realize their income simply cannot support aggressive repayment without additional revenue streams, leading to strategic decisions about side income or expense reduction.

Real-world case study: From $16k to debt-free

A CareerContessa contributor accumulated $16,000 in credit card debt during a career transition. Using online calculators, she determined that $250 monthly payments would eliminate the debt in one year. She implemented a “no-spend month” to jumpstart progress, eliminating all non-essential purchases including dining out, entertainment subscriptions, and shopping.

Her strategy combined the calculator’s mathematical clarity with behavioral changes that made the numbers achievable. She redirected tax refunds, bonuses, and gift money directly to debt, accelerating the timeline by three months. The combination of clear targets and decisive action transformed an overwhelming situation into a systematic victory.

Proven Strategies for Paying Off Debt on Low Income

Strategic debt repayment goes beyond making payments—it requires choosing methods that align with your psychology and financial reality. The most effective approaches combine mathematical optimization with behavioral sustainability.

Mastering the snowball and avalanche methods

The debt snowball method attacks smallest balances first, regardless of interest rates, creating psychological momentum through quick wins. Pay minimums on all debts except the smallest, throwing every extra dollar at that target until it’s eliminated. Then roll that payment amount to the next smallest debt, creating an ever-growing “snowball” of payment power.

The avalanche method prioritizes highest interest rates first, saving more money mathematically but requiring patience for larger balances. Someone with a $2,000 balance at 29% interest and a $10,000 balance at 18% would focus on the smaller, higher-rate debt first under this system.

Strategy	Focus	Best For	Example Timeline
Snowball	Smallest balance first	Quick motivation needs	$500 debt: 2 months, then $2,000: 6 months
Avalanche	Highest rate first	Maximum savings	29% card first saves $420/year vs. snowball

Leveraging debt consolidation and balance transfers

Consolidation loans combine multiple high-interest debts into one lower-rate payment, simplifying management while reducing total interest. Moving credit card balances averaging 24% interest to a 12% personal loan cuts interest costs in half, accelerating payoff timelines significantly.

Balance transfer credit cards offer 0% introductory rates for 12-18 months, providing breathing room to attack principal without interest accumulation. However, these require discipline—the promotional rate expires, often jumping to 25% or higher, and new purchases typically accrue interest immediately.

Creating income beyond your primary job

Low income doesn’t mean fixed income. Modern technology enables flexible earning opportunities that fit around existing schedules and limitations:

• Freelance writing, design, or virtual assistance leverages existing skills
• Food delivery and rideshare driving provide immediate cash flow
• Online tutoring or teaching English requires only internet access
• Selling unused items generates lump sums for debt reduction
• Renting spare rooms or parking spaces creates passive income

Even $200 monthly in side income accelerates debt payoff by years when applied strategically. Focus on sustainable options that don’t compromise your primary income source or health.

Managing Debt Payoff on a Tight Budget

Successfully eliminating debt while living paycheck to paycheck requires precision planning and creative resource management. Every dollar must work strategically toward your goals.

Prioritizing essential expenses without sacrificing progress

Create a hierarchy of expenses that protects necessities while maximizing debt payments:

1. Housing and utilities – Maintain stable shelter first
2. Basic food and medication – Health enables everything else
3. Transportation to work – Protect income-generating ability
4. Minimum debt payments – Avoid default and additional fees
5. Small emergency fund – Prevent new debt from surprises
6. Extra debt payments – Accelerate freedom timeline

This hierarchy shifts as circumstances change. Someone with stable housing might prioritize building emergency savings, while another facing eviction focuses entirely on rent.

Negotiating with creditors for better terms

Credit card companies and lenders often prefer partial payment to default. Contact creditors before missing payments to explore options:

• Interest rate reductions for accounts in good standing
• Hardship programs that temporarily lower payments
• Settlement offers for severely delinquent accounts
• Payment plan modifications matching current capacity

Document all agreements in writing and maintain records of conversations. Many creditors offer unpublished programs for proactive customers facing genuine hardship.

Understanding debt management plans

Nonprofit credit counseling agencies negotiate comprehensive debt management plans (DMPs) that reduce interest rates and consolidate payments. A typical DMP converts $30,000 in varied debts into fixed monthly payments over 3-5 years at reduced rates, often cutting total interest by 50% or more.

DMPs require closing enrolled credit accounts and avoiding new debt during the program. While this limits financial flexibility, the structured approach and professional advocacy help many overcome overwhelming situations. Legitimate agencies charge modest fees, typically $25-50 monthly, far less than the interest savings achieved.

Building an Emergency Fund While Paying Off Debt

The conventional wisdom says build emergency savings before attacking debt, but low-income reality demands a nuanced approach. Small emergency reserves prevent minor setbacks from becoming major debt accumulation.

The modified 50/30/20 rule for low incomes

Traditional budgeting allocates 50% to needs, 30% to wants, and 20% to savings and debt. Low-income budgets might run 70% needs, 5% wants, and 25% to debt and minimal savings. The key lies in protecting that 25% through conscious choices.

Start with micro-goals: $100 prevents most overdraft fees, $500 covers many car repairs, $1,000 handles most emergencies without derailing progress. Automate $10-25 weekly transfers to a separate savings account, treating it like a bill rather than optional.

Balancing competing financial priorities

High-interest debt (above 18%) mathematically deserves priority over savings earning 2% interest. Yet having zero emergency funds guarantees new debt when surprises occur. The solution involves parallel tracks:

• Build $500-1,000 emergency fund first
• Then split extra money 80/20 between debt and continued savings
• Adjust ratios based on interest rates and stability
• Return to aggressive debt focus once reaching 1-2 months expenses saved

This balanced approach prevents the discouragement of seeing savings depleted repeatedly while maintaining debt reduction momentum.

Overcoming Emotional Challenges of Debt on Low Income

Financial stress creates emotional burdens that sabotage mathematical strategies. Addressing the psychological aspects of debt proves just as crucial as payment plans.

Processing guilt, shame, and financial anxiety

Debt carries societal judgment that compounds personal stress. Reframe debt as a temporary situation requiring strategic solutions, not a character flaw deserving punishment. Many successful people faced significant debt before achieving stability—your current situation doesn’t define your worth or potential.

Practice self-compassion while maintaining accountability. Celebrate small victories like paying off a single card or surviving a no-spend week. Progress happens incrementally, and acknowledging achievements sustains motivation during long repayment journeys.

Finding community support and resources

Isolation amplifies financial stress. Connect with others facing similar challenges through:

• Online debt-free communities and forums
• Local financial literacy workshops
• Library programs on budgeting and money management
• Faith-based financial counseling services
• Accountability partners sharing similar goals

Surrounding yourself with people who understand the journey provides practical tips and emotional encouragement when progress feels slow.

Learning from success stories

Real transformations happen daily. One Complete Controller client eliminated $45,000 in debt over four years while supporting three children on a teacher’s salary. She combined summer tutoring income, extreme couponing, and debt avalanche methods while maintaining a modest emergency fund.

Another entrepreneur paid off $22,000 in business credit card debt by temporarily downsizing housing, taking on a roommate, and redirecting the savings to debt. These stories share common themes: clear goals, consistent action, and resilience through setbacks.

Creating Your Sustainable Debt-Free Future

Long-term success requires systems that survive beyond initial motivation. Build habits and structures that make debt freedom inevitable rather than relying on willpower alone.

Automate minimum payments to avoid late fees and credit damage. Schedule weekly money dates to review progress and adjust strategies. Create visual reminders of your “why”—whether it’s your children’s education, home ownership dreams, or simply sleeping peacefully without financial stress.

Track progress monthly using debt thermometer charts or apps that visualize shrinking balances. Small celebrations at milestones (paying off each $1,000 or individual account) maintain momentum without derailing budgets. Replace expensive rewards with free alternatives like nature walks or library movie nights.

Conclusion

Paying off debt on a low income challenges every aspect of financial life, but thousands achieve freedom annually through strategic action and persistent effort. Your timeline depends on personal factors, but implementing these proven strategies accelerates progress regardless of starting point.

I’ve guided countless business owners from overwhelming debt to financial stability through Complete Controller’s comprehensive financial services. The transformation always begins with one decision: choosing systematic progress over perfection. Your income level doesn’t determine your financial destiny—your daily choices and strategic planning do.

Take the first step today by calculating your personal debt payoff timeline and choosing one strategy to implement this week. Whether you need help organizing finances, understanding your options, or maintaining momentum through challenges, Complete Controller’s team stands ready to support your journey. Visit https://completecontroller.com to discover how professional financial guidance accelerates your path to debt freedom and beyond.

FAQ

How do I calculate my exact debt payoff timeline?

Use online calculators from Bankrate or NerdWallet by entering your total debt amount, average interest rate, and monthly payment capacity. These tools show various scenarios, helping you understand how extra payments or different strategies affect your timeline. Most calculators also reveal total interest paid, motivating strategic decisions about payment amounts.

What’s the single best strategy for low-income debt relief?

Combine strict budgeting with a debt management plan (DMP) through nonprofit credit counseling if you have multiple high-interest debts. DMPs typically reduce interest rates by 50% or more while consolidating payments, making previously impossible payoff timelines achievable. For smaller debt amounts, the snowball method provides psychological wins that sustain long-term progress.

Can I realistically save money while paying off debt?

Yes, but prioritize strategically. Build a minimal $500-1,000 emergency fund first to prevent new debt from surprises, then focus 80% of extra money on high-interest debt while continuing to save 20%. This balanced approach prevents discouragement from depleted savings while maintaining aggressive debt reduction. Micro-saving just $10 weekly creates $520 annually without significantly impacting debt progress.

Should I use a balance transfer credit card with low income?

Only if you can realistically pay off the transferred balance before the promotional 0% rate expires, typically 12-18 months. Calculate the required monthly payment first—transferring $5,000 to an 18-month 0% card requires $278 monthly payments. Missing this deadline often results in retroactive interest charges, making your situation worse than before the transfer.

When should I seek professional debt counseling help?

Contact nonprofit credit counseling when you cannot meet minimum payments, face creditor lawsuits, or feel overwhelmed despite trying multiple strategies independently. Also seek help if your debt-to-income ratio exceeds 50% or interest charges consume most of your payments. Professional counselors access tools and programs unavailable to individuals, often achieving better negotiation outcomes with creditors.

Sources

• Bankrate. (2025). “How to Get Out of Debt With a Low Income.” www.bankrate.com
• CareerContessa. (2025). “I’m $16K in Debt—Here’s What Experts Told Me.” www.careercontessa.com
• Complete Controller. “5 Money Management Tips to Help Avoid a Deficit.” www.completecontroller.com/5-money-management-tips-to-help-avoid-a-deficit/
• Complete Controller. “How to Manage Your Credit Responsibly.” www.completecontroller.com/how-to-manage-your-credit-responsibly/
• Complete Controller. “Gain Your Freedom with Freelancing.” www.completecontroller.com/gain-your-freedom-with-freelancing/
• Consumer Financial Protection Bureau. “Debt Repayment Strategies.” www.consumerfinance.gov
• Experian. (2025). “How to Pay Off Debt in a Year.” www.experian.com
• InCharge. (2025). “How to Pay Off Debt on a Fixed Income.” www.incharge.org
• Investopedia. “Debt Consolidation.” www.investopedia.com/terms/d/debtconsolidation.asp
• Money. (2023). “How to Pay Off Debt on a Low Income.” www.money.com
• NerdWallet. (2025). “How to Pay Off Debt: 7 Strategies to Try.” www.nerdwallet.com
• OMB Bank. (2024). “Seven Effective Strategies to Pay Off Debt.” www.ombbank.com
• Wikipedia. “Emergency Fund.” en.wikipedia.org/wiki/Emergency_fund

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Why Spam is More than Just a Nuisance

There are numerous reasons to avoid dealing with spam. Still, some of the more concerning possibilities include exposing yourself to identity theft or allowing an attacker to infect your computer with viruses and malware. In the worst-case scenario, you might face charges for crimes you didn’t realize you were assisting the spammer with, such as money laundering or dealing with stolen property. When dealing with spam, the best course of action is to delete the mail as soon as possible.

If you wish to prevent spam communications, remember that if something seems too good to be true, it generally is; this will assist you in avoiding shady contests and offers.

How to Protect Yourself from Spam

While spam is difficult to prevent, utilizing appropriate anti-spam software may considerably decrease and even eliminate the quantity of spam that collects in your inbox. Thanks to developments in software intelligence, many anti-spam filters can now understand which communications are valid and which are spam without user participation. If the spam filter misses a spam communication, the user can mark it spam. The filter responds to the new danger in this way.

You can considerably limit spam threats by ensuring you remove them from your inbox and other key folders by using an Internet security protection package. Furthermore, many Internet security software packages include phishing protection. Phishing protection can be helpful when an email appears authentic but isn’t. Phishing prevention is an essential element in any anti-spam product since these emails frequently ask for banking information other than financial credentials.

Identify the Main Types of Spam

Rumors or hoaxes, chain letters, frauds, ads, and viruses are among the most prevalent spam sorts. Rumors or hoaxes are messages that include misleading information and can be circulated by email or social media. It might be fake news, fake sweepstakes, and so on.

The chains are those messages with shared prayers, how to earn easy money, etc. Generally, there is some punishment for those who fail to carry out the order to pass on the message. Scams are messages that tell some sad and touching story to try to get some financial advantage, like a deposit in a checking account or the sale of some product that promises incredible results.

Anti-Spam System

Anti-spam systems are tools that filter and categorize emails into the following categories:

• Addresses that have you flagged as spam get put on blocklists
• Whitelisting: addresses that are recognized and safe go to your inbox
• Emails with questionable addresses go to your spam folder

Simple solutions are insufficient for businesses. Businesses should utilize a more robust program, such as the Mail Inspector solution from HSC Brazil, better known as MLI. There are more than 28 options in this solution.

Antispyware

Antispyware are applications that detect and remove unwanted programs, such as spyware and adware, that may be present due to spam communications.

Firewall

On the other hand, firewalls are devices that ensure the security of data packets sent across a network while also blocking unwanted access.

Antivirus

Antivirus software safeguards the computer from dangerous applications, round out the list.

Finally, spam is vermin that may cause problems for the organization and its personnel. On the other hand, your organization can function in a secure atmosphere if you follow the security advice and use the appropriate protection measures.

Email Care

Protect your email address by not posting it in comments on social media or anyplace else that hackers might readily access;

• Please do not forward items such as chain letters, rumors, or the like, and do not register on any site because many sell their email lists
• Mark communications as spam, which helps email servers improve their anti-spam filters
• Avoid opening messages from unfamiliar addresses and interactions with suspicious emails, such as clicking unsubscribe buttons. This operation is similar to address verification for spammers 
• When emailing a large group of recipients, utilize the blind carbon copy field. As a result, you will contribute to securing the recipients’ addresses

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.