Author: Jennifer Brazer

First, you must record the current month’s planned income and expenses. A detailed spending plan cannot be kept in your head, even if you have a good memory. It will help create an overall financial picture.

How to do it? To begin with, we draw up a table with all receipts and expenses on paper (or in Excel, as it suits you). It is essential to think over the aspects of life well and not miss anything. Although the first time, of course, there will be shortcomings. It is impossible to carry out precise and correct planning right away. If you find any defects, you should record them in notes. This approach will help improve the budgeting scheme for the next month. Then, each subsequent account will be better than the previous one.

Steps to Help You Manage Your Budget

You should plan any trip to the store. A shopping list and following it as closely as possible will help save money. It is helpful to make a menu for several days, based on which it will be clear how many products you need to purchase and in what quantity. To a large extent, the ability to plan your expenses well is influenced by the skill of time management. We have already discussed it in our article “Personal time management or how to manage your time.”

• Spending accounting. It helps to detect unnecessary purchases and avoid them in the future. You can write in a notebook notepad or use specialized applications on your smartphone.
• Putting aside money. There is always a risk of deprivation of a permanent income. There must be a reserve that will help stretch out for several months in an unforeseen situation. It should be at least three salaries.

Family Budget: Planning and Controlling Home Finances

The well-being of a family depends to a large extent on budgeting skills. Written planning rules are also needed here. The ability to save is no less critical than accounting for income and expenses.

There is an exciting way to organize a household budget. It is called “10-20”. Its essence lies in the monthly saving of at least 10% of the total income. Financial experts advise you to set the goal of accumulation immediately—for example, a vacation, a significant purchase, or a reserve for a rainy day.

“Seven Envelopes” is another way to manage a family budget. On the day of receiving wages, you need to distribute the money in seven envelopes. Their purposes can be as follows (there may be fewer or more points; everything is individual here):

• Monthly Payments
• Nutrition
• Money for children
• Expenses for essential purchases (furniture, appliances, clothing)
• Cash for vacation, entertainment
• Savings
• “Joy” – funds left from the previous month after making mandatory purchases and payments

By the names, it is straightforward how the family budget is distributed.

Method “Four Envelopes.” This alternative is like the last one. But here, each envelope corresponds to a week of the month. The disadvantage of this technique lies in the difficulty of allocating funds for specific expenses.

You must follow seven essential rules to maintain a household budget successfully:

• Avoid debt. Avoid debt, unplanned loans, and bad credit cards whenever possible
• Moderate accumulation and distribution of funds
• Choosing a specific goal (for example, buying a car) is advisable. Such motivation will improve productivity
• Each family member must clearly understand how and why the budget is in place
• Distribute income and expenses according to financial realities today
• Set aside at least 10% of your income in the reserve fund
• At the end of a certain period (for example, a year), please the family with a trip, purchase, or entertainment

Regularly, preferably every month, plan and record. Only stability will help to achieve results.

Tools for Efficient Financial Management

The way you manage your budget depends on your personal preferences and skills. It is more convenient for someone to keep a notebook or use a computer or smartphone.

If there is no possibility or desire to use technological equipment, you need a “granary book” in paper form. The central part should consist of a table divided into three columns (expense, income, total). Keep a record of the money that has come and gone in the first two. The last column is needed to compare the remaining funds with those in the pockets.

It will be much more efficient to manage finances in specialized programs. Many have a version for both PCs and smartphones, allowing you to synchronize and enter data at any time of the day. The functionality of such software includes essential functions. For example, it automatically creates reports, allows you to track debts and loans conveniently, plans finances for the future, and stores savings data. Plus, many applications can add user profiles. That is, they help to maintain a joint budget with all family members.

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.

Distinctive Features of the American Market

A distinctive feature of the American market is the variety of financial instruments: more than 5,000 shares, about 1,000 depositary receipts, more than 2,000 ETFs, and bonds. For comparison, the Russian market is approximately 2,000 debt instruments and, in terms of shares – about 280 securities. American sites are multinational; securities of both national and international companies are traded here. Among the market participants, among other things, there are our domestic public companies, most of which are also on the Moscow Exchange site. For example, depositary receipts of the Russian MTS, Chinese Alibaba, Indian Tata Motors, and 1,000 other foreign companies are in circulation in the US market.

The American market provides investors with great opportunities for industry diversification of investments. Compared with the same Russian market, represented by 17 sectors, the US market circulates securities of issuers from 20 industries. Let’s compare the structure of the Russian and American markets. The Russian market, as a direct reflection of the resource-based economy of the Russian Federation, has a significant bias towards the oil, gas, and mining departments; in the US market, the technology and financial sectors stand out in terms of capitalization. Each sector of the US market, in turn, is divided into several industries. Companies from 129 sectors are on the US stock market.

The variety of trading platforms is an absolute plus for investors.

Exchanges and competing can Offer More Favorable Conditions for Their Customers

Greater liquidity of investments is available: a fascinating fact is that securities of the same issuer can be traded on several sites at once under the same ticker. At the same time, the orders placed by the investor for the purchase/sale are broadcast by the broker to all sites at once, which allows you to make transactions with minimal losses and transaction costs.

The main distinguishing feature is that there are many exchanges in the US stock market, unlike Russia: from small to global giants, different in scale and range of instruments provided.

Structure of the American Market

The list of participants in the US stock market, their tasks, and functions are like the structure of the Russian market (see the article “How the stock market works “): the exchanges themselves, investors, issuers, clearing organizations, and brokers. By analogy with the Central Bank of the Russian Federation in Russia, located in America, the regulators of the trading process are two leading financial institutions – the Federal Reserve System (FRS) and the SEC Securities Commission. Many independent departments create rules for the interaction of stock market participants and monitor their implementation (FOMC, FINRA, etc.).

As for the US exchanges themselves, there are currently more than 10. Some are part of international exchange holdings of the existing modern list of businesses. Some are universal, and some are specialized. And if you look at the market history, you formed many trading platforms here, some of which, over time, could not withstand competition and went out of business; others consolidated into groups.

The figure shows, as an example, a list of exchanges where shares are trading from the foreign trading terminal Trader Workstation:

American Stock Exchange (NYSE MKT LLC, Formerly AMEX)

The American Stock Exchange (NYSE MKT LLC, formerly AMEX) is one of the US stock exchanges, founded in 1911 in New York. Currently renamed NYSE MKT LLC and owned by the NYSE. Capitalization – about $1 trillion.

The company’s heyday came in the second half of the 20th century when the number of companies listed on the AMEX sites almost equaled the NASDAQ. However, after the launch of the electronic trading platform on the NASDAQ exchange, there was a significant outflow of bidders. In response to the current crisis conditions, the company began to look for alternative ways of development – expanding the list of available instruments and launching a listing of foreign companies. These measures had a temporary effect. During these difficult times for the exchange, AMEX “passed into the hands” of NASDAQ, and then there was a buyback. But in the end, in 2008, in the context of the global economic crisis, AMEX finally lost its viability – it lost its sovereignty, passing into the possession of the NYSE and renamed NYSE MKT LLC.

Today, NYSE MKT LLC is a platform for listing and circulation companies with small and medium capitalization. In the exchange environment, it is considered a “bridgehead” for dispersing small companies, which subsequently go to the NYSE exchange upon reaching a certain level.

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.

Often, businesses require investments at the initial stages of project development – when they attempt to develop a prototype or launch the first sales. Then, the businessman faces raising capital from private investors and investment funds. Due to increased uncertainty and risks, banks refuse to lend to such startups or do it on personal property security.

My experience in corporate finance is over 15 years. I help startups, and growing businesses raise investments and get their finances in order.

This article will tell you where to look for investors and how not to miscalculate financing terms.

Ways You Can Increase Capital for Your Business Idea

Investment in external funding keeps a business going until it gets back on its feet and starts generating sustainable profits. Or until the investor runs out of patience – after all, many projects never realize their potential.

It is one of the critical types of investments – it is also called venture capital. This is true when it comes to innovative startups. According to statistics, 75% of such projects do not survive, and the investor completely loses the invested funds in 30-40% of cases.

External financing is often necessary for business development. According to surveys, 49% of startup entrepreneurs consider investments an essential resource for the company’s growth.

The seed and startup stage is when the product is being developed and brought to the market. This period is also known as the Valley of Death because, according to statistics, 8-9 projects out of 10 fail here. They never reach the break-even point, and investors partially or entirely lose their investment.

The expansion stage occurs when the company strives for a successful business model and effective promotion strategy, and sales growth and cash flow become positive.

Growth and mature growth occur when a company steadily strengthens its position in the market and becomes consistently profitable.

Each stage implies a different level of risk: the younger the project, the higher the uncertainty and chance of failure. Accordingly, the amount of capital raised and the purpose of its attraction also differ.

If, in the early stages, the main task is to bring the product to the market to test demand, then in the later stages, it is to increase market share and profits.

Typical Mistakes of Novice Entrepreneurs

Entrepreneurs must remember that investing is free capital to make a profit for any investor.

About half the time in my practice, I encounter startups that are not serious about money: often, they treat a potential investor like an ATM from which you can make money with the promise of dim prospects. The entrepreneur does not have a transparent business model but expects that the attracted investments will somehow start sales.

Another option: the owner of a dying company is looking for investments. We often talk about a small enterprise that fed the owner for some time, but something went wrong – the market changed, or a key customer left.

Often, the matter is complicated by an enormous debt to banks and suppliers. There is usually nothing to support here:

• The equipment is outdated.
• The customer base is small.
• There are illiquid goods in the warehouse.
• The owner does not even have a well-thought-out anti-crisis plan, but at the same time, he hopes that the investor’s money will help save the situation.

I recommend that all entrepreneurs put themselves in the place of an investor and think like him. Professional investors are primarily interested in the following:

Projects with Launched Sales, Demand Confirmation, and a Clear Promotion Strategy

Companies with attractive assets: patents, equipment, or customer base that can generate synergies with other investments

In other cases, I usually advise looking for an investor in your immediate environment – among friends, acquaintances, or relatives.

Investment Types

So, you are an entrepreneur and are planning to attract investments. When trying to be effective in fundraising, it is essential to remember that each investor specializes in specific industries and stages of their development. Therefore, it is necessary to focus on those investors whose sphere of interest your project falls.

The advantages of debt financing are that you do not need to share profits and control over the company. However, suppose a business is starting up. In that case, a novice entrepreneur is unlikely to receive a loan from a private investor – except perhaps on the security of expensive property, a car, or an apartment. Therefore, sharing a share in a business with an investor is a good option. It is ideal if, in addition to money, the investor also brings his experience and connections to the project.

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.

Debts are Part of Life

Do not worry. Being debt-free is a great thing, but for most of us, the reality is different. Few people can give cash for a home, a car, or a college education. Still, it’s sensible to understand your debt and manage it properly.

Not all Debt is Bad

You require some credit history to qualify for a loan when you need one.

“Most of us are programmed to feel guilty when we owe money. It doesn’t matter if you owe a person, a bank, or a credit card company. The key is determining the level of debt that’s right for you,” explains Heather Winston, Associate Director of Financial Planning and Counseling at Principal.

Winston offers some rules of thumb:

• 28% of income before taxes
  • It is the maximum amount of debt for your home (principal, interest, taxes, and insurance)
• 36% of income before taxes
  • It is the maximum amount of all debts, including your home

You are Not the Only One

In a present survey, we asked consumers if they were making any economic changes due to COVID-19. 21% said they were going to pay off their debt*.

Three ways to strike a balance:

1. Know what you owe

It’s like keeping track of everything you eat when trying to get healthier. You write it down so you know where you are in the process.

In the case of debts, write down the balance, the interest rate, and the minimum payment. Please enter the data in our debt management worksheet (PDF).

2. Reduce the balance

Rank your debts according to size or interest rate. Then, analyze how you are going to deal with them.

Snowball Method: First, focus on paying off the account with the lowest balance. Continue to make the minimum payment on other debts. Once you eliminate that first debt, move on to the next debt with the most insufficient balance. It could be the correct method if you are motivated to make more minor credits disappear.

Highest Interest Rate Method: Focus on debts with the highest interest rates first. Try to pay off the next one with the highest interest rate when you pay off one. Of course, you continue to make the minimum payment for the other debts. If you want to pay the minimum over the life of your loans, this could be the proper method for you.

“When you pay off high-interest debt, you generally gain more long-term purchasing power,” says Winston. “But at the end of the day, do what works well for you. The key is that no matter which technique you choose, choose one and stay focused on it.”

When you pay off high-interest debt, you generally gain more long-term purchasing power.”

-Heather Winston, Associate Director of Financial Planning and Counseling

3. Manage your debts

Continue managing your debt as part of your overall financial plan.

Set up regular automatic payments. Late payments can hurt your credit, and you could be penalized. Automatic payment can be your friend in this regard.

To pay off debt faster, cut expenses from your budget or increase your income.

Suppose you hope to finance future expenses (buying a house next year or paying a deductible because you’re having a baby) and factor those expenses into your overall financial plan. Apply for loans intelligently and think very well before acquiring a debt. Read “Five questions to ask yourself before taking on debt.”

For credit card debt, try negotiating for lower interest rates. Ask for a lower interest rate, and you might get it. Or consider transferring your credit card balance to one that offers zero interest for a set period. Make sure you read the fine print. It is necessary to be aware of when the promotional period ends.

Refinance. You could save money, especially now that interest rates are so low. Or you can consolidate your debts and thus make a single monthly payment. Check the terms and conditions; there may be costs in the process.

Know Your Credit Score

Don’t forget about your credit score. Please get to know it and recheck it every year. The FTC has the information you can trust, including links to accessing your free annual credit report.

Having a lot of debt, especially high credit card debt, could affect your credit score. High credit scores typically allow loans to be approved more quickly. Of course, paying off your loan balance helps.

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.

Life insurance deals with an insurance company where the policyholder agrees to pay a premium. The insurer admits to paying capital to the beneficiaries designated in the policy in the incident of the insured’s death.

Who Can be the Beneficiary of Life Insurance?

The designation of beneficiaries is what you decide; they can be one or several beneficiaries with equal or different percentages. You may change the initially designated beneficiaries and persons other than the heirs at any time.

If you have kids or other family members dependent on your income, they are usually the beneficiaries of your insurance policy. You can also name an NGO, a creditor bank, or another entity.

Who Needs Life Insurance?

I can’t think of anyone who may not need life insurance: anyone who has payment obligations for mortgages, personal loans, a partner, children, or dependents who depend on their income in entire or in part to meet their needs.

What if I Don’t Have Family Responsibilities or Loans?

Have you thought that life insurance can cover you for possible disabilities? Then, you will be the beneficiary with a capital that will help you maintain your standard of living if you can no longer work for health reasons. If you are from that small part of the population in this situation, perhaps your parents need help in their old age, and you are not there to provide it.

Can I Have More than One Life Insurance?

Yes, you can have as much as you need, each for the amount, term, premium, and beneficiaries you decide.

It is usual to have life insurance that covers the outstanding amount of the mortgage. In this case, the beneficiary is usually a Bank Entity. Still, you can also take out life insurance that guarantees your children’s studies and another that can generate income to complement widows’ and orphans’ pensions.

What if I Have Enough Money and Don’t Need Life Insurance?

Life insurance has many more advantages in addition to financially protecting the family. You can use it to create an inheritance since it can be self-settled independently of the rest of the hereditary mass. The beneficiaries will always receive the insured capital.

You can also leave an estate with life insurance to people other than the heirs.

If a Person Has No Income, Why Take Out Life Insurance?

Not doing paid work does not mean that your contribution to the family does not have an economic value. A person dedicated to caring for children and the home does an essential job; hiring people to do that work is costly if missing. And the life insurance compensation could serve to cover that need.

If you have debts, life insurance is ideal for preventing the heirs from having to bear them in the event of death. In addition, life insurance always covers obligations, even if the heir renounces the inheritance.

Can My Company Take Out Life Insurance for its Workers?

Yes, then the figure of the policyholder comes into play, who is the one who signs the contract and assumes the payment obligation, which is different from the Insured, who is the person whom the insurance protects.

For example, within the social benefits it gives its employees, your company can take out life insurance in their favor.

Can a Bank Force Me to Take Out My Life Insurance with Them?

Not; the law supports you in this regard. You can get life insurance from the insurance company of your choice. Remember that a comparative study of risk life insurance premiums, carried out by INESE, indicates that life insurance contracted with a bank can be up to 42% more expensive than with an insurance company.

Will I Have to Have a Medical Examination?

It is not usual, but it is possible that depending on the age and the capital you want to contract, the insurer requests a medical examination before signing the policy. In this case, the insurance company usually assumes the medical examination and tests cost.

Does Life Insurance Deduct Tax?

The life insurance linked to the mortgage deducts up to 15% of the premiums, the amounts destined to pay the mortgage, and the maximum limit of $9,040/year.

The conditions to deduct taxes are that the mortgage loan is for the primary residence, the acquisition is before 2013, and the beneficiary is the bank.

If you are self-employed, you can subtract, in the form of a reduction on the income tax base, the life insurance premiums that contingencies of death, permanent disability, or total disability up to a maximum of $500 per year.

How Would I Know if a Family Member had Life Insurance?

All you must do is request the information from the Registry of Death Coverage Contracts, which depends on the Ministry of Justice. This registry allows queries through three channels: online, in-person, or mail. Access here to find out all the deadlines and documents.

How is Life Insurance Compensation Taxed?

If you have been the beneficiary of life insurance contracted by another person, the amount to be received will be taxed through the Inheritance and Gift Tax. Depending on the Autonomous Community of residence and the relationship between beneficiary and policyholder, there are essential deductions of a specific nature. In addition to the ordinary deductions of inheritance tax, a total exemption may occur in the most common cases.

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.

Requesting a loan to receive a personal vehicle is only a few days. In addition, the interest rate on a car loan is noticeably lower than on other types of loans. And you can use borrowed funds to buy a new and a used car. We have compiled a simple step-by-step guide to help you get a car loan quickly and safely.

Step 1: Apply for a Loan

First, a potential borrower is required to assess their financial capabilities. The monthly payment amount should not exceed 30% of the family income. Based on this, you should select a suitable model and loan program; too expensive a car can cause a permanent shortage of funds. It will be easier to decide on a bank by compiling a table and describing the conditions of various programs that seemed the most attractive.

There are many methods to apply for a car loan. For example, fill out a form on the bank’s portal or personally visit the office. Requirements for borrowers usually are posted on the official websites of credit organizations. Another way is to fill out a questionnaire on the dealer’s website, indicating the model you like. The car dealership manager will contact the potential borrower to clarify the details and independently send an application to many partner banks.

Step 2: Submit Documents and Wait for Conclusions

The list of documents needed to consider: you can clarify the application on the bank’s website or from a loan officer. The classic package includes a passport, income statement, a certified copy of the employment record, and a loan application. In rare cases, employees of financial organizations are required to bring a copy of a higher education diploma, marriage certificate, TIN, SNILS, bank account statement, and other papers.

Recently, express lending programs have been gaining popularity. In this case, the issuance method is as simple as possible. Money is provided based on a passport and any other document.

Step 3: Make a Down Payment

The next step is to conclude a contract of sale with a dealer center or an individual from whom the borrower buys a car. In the meantime, the borrower makes the down payment. In this case, the rule most often works: the more significant the amount of such a payment, the less the overpayment on the loan. As a rule, it ranges from 10 to 50% of the cost of the vehicle.

After agreeing to the contract, the buyer receives two sets of keys, a TCP, a service book, and an invoice with the debt balance. You need to decide on a particular car and complete these procedures within a limited time, which the bank sets. After its expiration, you will apply for a car loan on a new one.

Step 4: Take Out an Insurance Policy

Executing a comprehensive insurance policy is a prerequisite for issuing a loan. Since the car will become the collateral subject, the bank must protect it from all sorts of troubles. Therefore, such insurance should be valid for the entire loan term. In the meantime, the bank has no right to force the client to insure. Instead, he may charge a higher interest rate or refuse a loan.

The sum insured must be the same or higher than the car’s market value. Thus, the bank lessens the risks of non-repayment of credit funds. At the same time, credit organizations usually limit the list of companies where you can purchase insurance to the list of their partners.

Step 5: Sign an Agreement with the Bank

After that, the purchaser goes to the bank to sign a loan agreement and a pledge agreement. The latter restricts the borrower’s rights to dispose of the vehicle. Without the bank’s approval, the owner will not sell the car, rent it out, re-register it in a different name, or make significant structural changes. Such actions may be selected as fraud.

Before signing a loan agreement, it is necessary to study its terms carefully. If the contract infringes on the borrower’s rights, demand changes its terms or applies to another credit institution. It is better to ask for a draft contract in advance and read it calmly, and if you find its wording incomprehensible, contact a lawyer.

Step 6: Pick up the Car from the Seller

The bank transfers the loan money directly to the account of the seller organization. Before signing the transfer deed, inspect the car and carefully check all documents for errors. The transfer method may take several days, after which the purchase will be considered complete.

After that, the borrower will only have to register the car and transfer the original title to the bank for safekeeping. By the way, purchasing an OSAGO policy from the insurance company chosen for CASCO is better. Firstly, the policyholder, in this case, may receive an additional discount. Secondly, if you need to change the contract terms, do it with one insurer much faster.

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.

When you find yourself a career you love and want to succeed at, it becomes a high priority to sustain or raise the status of your career and avoid at all costs derailing its path or being responsible for its decline. However, even if we worry about adequately doing our job, sometimes we can make honest mistakes and deal a blow to our careers.

The most determining factor in our advancement is ourselves. Therefore, we are the ones who have the strength to cause the most significant possible damage to our Careers. Based on this, we should be mindful of the conditions and avoid mistakes that could destroy our professional careers.

The Habits that Can Most Harm Your Professional Career

1. Over-promise and under-deliver

It is widespread that we promise more than we can deliver to secure a job or a client. But, by setting unrealistic goals, the conclusion is that we cannot fulfill what we promised, which harms us immediately. It happens even if we believe that we can achieve it.

The most common method this happens is with delivery times. Perhaps we said we would do the job in a month, knowing it is a job of a month and a week, but we thought we could demand more of ourselves and achieve it. When we recognize that we cannot, we realize the error. Perhaps we will transfer the project in a month and a day, an adequate time; however, we could not fulfill our promise.

From the moment a customer agrees with something, they expect nothing less. Therefore, the explication is always to set realistic goals. Not too exaggerated, not too lazy. Fair enough.

2. Comfort

Comfort can destroy entire races without us even realizing it. When we are in ideal comfort, we may forget to keep improving, learn new things or methods, and continue our horizons. It will lead us to a sluggish condition, where believing everything is okay will make us fall behind.

Have you seen how much the world has emerged in a few years? These changes happen daily, and if you don’t stay current in your field, you’ll soon find that you’ve fallen behind and your career is in serious jeopardy.

3. Have an inflated ego

It can affect us similarly to the previous case, comfort. One that will be hard to wake up from when the bubble of our ego bursts and we admit that we were not what we thought we were. Perhaps after a series of successes, we consider that we are well, flourishing, and our ego is inflated. In this condition, we believe we already know everything we need to know and lose the craving to improve, inevitably leading to stagnation.

4. Negativity

Negativity can harm us as much as if we are independent and part of a workgroup.

If we remain negative, we lose the wish to work, and we will be complaining about everything, making it unlikely that the projects will turn out well. In the same way, if we are part of a workgroup and all our conversations, interactions, and cooperation involve negativity and complaints, people get fed up. They will not desire to work with you as a team.

5. Losing sight of the end goal

We must first achieve a chain of small things to achieve remarkable goals. It is so and has always been so. However, sometimes, we get so diverted by the little things and tasks in front of our eyes that we forget about the goal and the real motivation that should drive us.

Therefore, we should never forget why we do each little duty and know they will take us where we desire.

6. Act only for your interests

It is good to set up labor and professional relationships in any career. The worst thing is when we build them based on conflict, gossip, and creating hostilities for our profit. Our preference should always be our work but, above all, to be genuine with our colleagues.

Labor relations are there to boost us, not distract us or waste time in useless conflicts.

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.

Being a businessman entails taking chances, but we may avoid the most common problems by developing a clear plan of action. Of course, certain risks are unique to an organization, but others are more universal and can thus be anticipated. On the other hand, successful people have a track record of taking risks and succeeding as a result. It’s more realistic to say that successful people chase possibilities only after establishing the boundaries of the risks they’re willing to take.
Here are some of the most significant risks:

 

The Funds are Drained

It’s critical to have a sound capital plan in place so that you can reach the sub-goals that make the film appealing to investors at different stages of growth. Understanding the factors investors use to make investment decisions is crucial to your success. One of the critical duties of any Startup & Growth unit should be to assist firms in developing a strategy to ensure that they can acquire money at each stage of their life cycle. Businesses should have enough money to endure 2 to 2.5 years. If the company has less than that, it may face challenges if something unexpected occurs, such as a viral outbreak. Hedging capital is a crucial aspect of risk management.

Investors Who Made Poor Decisions

We should be picky about who we invest in. Problems can emerge if the company and the investor have conflicting expectations. While the investor may want to put money into sales to boost income, the founder would rather spend time and money on the company’s product or technology. Also, remember to run a background check on any potential investors. For example, if the company attracts an investor with payment terms, obtaining a bank loan in the future may be problematic. Determining whether the possible investor can and is willing to offer additional funds is also crucial if the situation gets urgent. Companies with investors who can provide extra funds have a better success rate. Those with investors who refuse or cannot commit extra money are more likely to face difficulties. Too many businesses only take cash when they should spend more time assessing whether investors are the best fit for them. Investors’ contributions to the company can be critical, so it’s necessary to understand what you’ll require.

A Poor Fit Between the Product and the Market 

Without a marketplace, there will be no revenue. Thus, the corporation figures out what demand must look like early on—finding a good market for products and ensuring that the items fit the market’s needs. Please do not overlook the importance of establishing a shareholder’s agreement that spells out the shareholders’ rights and responsibilities and their interests and positions in the organization. Such an agreement can be invaluable when setting expectations and determining how to respond to certain crisis circumstances before they emerge. Make a detailed analysis of the company and industry and the competitors and customers to guarantee that there is a market for the product. Launch a stripped-down product with a minimal viable cost and test it on your target audience to increase your chances of avoiding a flop. We can’t always know who our competitors are in today’s fast-paced world. We may have an excellent idea for a product we want to produce, but someone in another country may already work on it. As a result, the planning process must be completed immediately.

Currency Risk

One of the most significant hazards for growing businesses is being caught off guard by financial auditing and reporting requirements. Many companies are subject to currency risk whether they realize it or not. The recent significant volatility in the foreign exchange market should remind all enterprises with international clients, subcontractors, or production to put currency risk at the top of their priority list. Many businesses realize the advantages of automating their currency risk management. In the early stages of a company’s growth, falling behind on accounting is extremely tough and costly. When businesses begin to expand faster, they frequently require additional funding, making it even more critical to maintain good accounting practices to prevent the danger of venture capitalists devaluing the business.

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.

Following are some points that need to be considered to get maximum benefits from social security.

Examine Your History

You may receive a decent estimate of how much Social Security income you can expect by opening a My Social Security account with the Social Security Administration (SSA). It will allow you to view the Social Security Administration’s record of your wages, which you should review periodically to ensure they are accurate. If they aren’t, you may receive fewer benefit checks than you have earned. Correcting inaccuracies in your record is an excellent strategy to boost your benefits.

At the Very Least, Work Throughout the Entire 35-year Period

Your benefit amount is calculated by the Social Security Administration (SSA) based on your lifetime earnings. The Social Security Administration modifies your payments by indexing them to account for changes in average salaries since the years you received them. The Social Security Administration then adds up your earnings from your 35 highest-earning years. It applies the average indexed monthly earnings (AIME) calculation to calculate the amount you’ll get when you reach full retirement age.

Until You Reach Full Retirement Age, Maximize Your Earnings

The Social Security Administration (SSA) calculates your benefit amount based on your wages; thus, the more you earn, the greater your benefit amount will be. Some pre-retirees search for methods to supplement their income by working part-time or starting a company. Others, ignorant of the effect on benefits, may reduce their work hours or semi-retire, lowering their Social Security income.

Delaying the Benefits

Delaying the commencement of your Social Security payments is another strategy to boost your benefits. You can begin as early as 62 and continue until 70. We all have a “full” retirement age (usually about 66 or 67), after which your benefits will increase by around 8% for every year you postpone. If you wait until you’re 70 instead of 67, your benefits will increase by 24%. If you achieve full retirement age at 67 and start collecting benefits at 64, your payouts will be 80% of what they could be if you started at 67.

Begin Collecting at the Age of 62

Postponing will not benefit you much if you live an ordinary life since you will end up with fewer checks than those who started earlier with smaller checks. Waiting will be worthwhile if you live far longer than the average person. Start saving now if you have reason to believe you will live a shorter life than the average person or if you need the money. For the most part, that is a reasonably prudent course of action.

Take Advantage of a Spousal Benefit

If you’re married and your partner has a lengthier work record than you, you could be eligible for a “spousal benefit” based on your spouse’s earnings rather than your own. Spouses can get benefits equal to up to 50% of the benefits received by their other half. It is especially beneficial for spouses who have never worked or have a low income.

If You’re Working in Retirement, Don’t Make Too Much Money

If you want to start receiving benefits before you reach full retirement age and work part-time while doing so, remember that your payouts may be reduced. “We must subtract $1 from your benefits for every $2 you earn above $17,040 throughout the whole year if you are less than full retirement age,” the Social Security Administration adds. The earnings ceiling increases to $45,360 when you reach full retirement age, and the penalty reduces to $1 withheld for every $3 earned above the maximum. Any money withheld, on the other hand, is not lost. It’s accounted for in subsequent benefit checks, which are improved consequently.

Investigate Surviving and Disability Benefits

Social Security disability payments are offered to people of all ages who qualify. If you’ve been divorced, are handicapped, or are related to those who are disabled, you may be eligible for greater Social Security benefits than you thought. Social Security sometimes pays widow and disability allowance and retirement payments to retirees’ dependents. If your spouse passes away, you and your kids may be entitled to survivor payments up to the age of 17. 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.

Is it hard to find a career that suits your personal qualities and interests? Take a test to see which profession might do you. Start at the right end – with yourself.

We all strive to find a good job by choosing the right career. The phrase “find a job you love and you will never have to work another day in your life.” It illuminates something most of us strive for. It puts a lot of tension on those trying to choose the right career. But can you find a job you appreciate so much that it does not feel like work?

Is it Possible to Discover an Excellent Job by Choosing the Right Career?

There will be days when we do not feel like working for most of us. No matter how much time we spend finding an excellent job by choosing the right career. There will also be days when you think you want to do just that job, even if you are unpaid. The trick is to select a career with an overwhelming majority of good days versus those that may not be so good.

With the vast number of professions available, you should keep a few things in mind to increase the odds of a satisfying career. Try to find a job that suits your interests, suitability, personality, characteristics, and values. You must also enjoy the work tasks; the salary is acceptable, the job prospects are excellent, and the company culture is correct. Below, you can read more tips for finding a good job by choosing the right career.

Get to Know Yourself

The initial step you should do is to learn as much as possible about yourself by spending some time doing a self-assessment. Only when you have a greater understanding of yourself can you successfully explore careers based on what you come up with.

Learn More About Different Professions and Careers

The results of a self-assessment often include a list of other disciplines and trades that may suit you based on various factors such as personality. But choosing the right career and finding a suitable job does not end there. Some of the trades you find after a self-assessment may suit you perfectly; others may be completely wrong.

Many Different Criteria Must Agree

Although some careers seem to be a good match based on your personality type, interests, and values, they may be inappropriate in other ways. It may be that the tasks do not appeal to you. Or that the outlook for the labor market in the future may be poor. It may also be that the training required involves more time and commitment than you are willing to give.

Investigate Several Career Opportunities

Make sure you make an informed opinion by carefully researching each career you are interested in. Carefully read job descriptions for different professions and think past some preconceived notions you may have. If you do not have personal experience before starting your review, there is much to learn before finding a good job.

Find Out if You Meet the Requirements

Suppose you are still interested in specific careers after researching different professions in more detail. Then, the next step is to see what the training requirements are. If an academic education is required to advance in a career, you are not prepared to pursue one. Then it might be the best idea not to choose that career. Make sure to match the requirements of your resume.

Examine the Prospects for Jobs in the Future

You are doing yourself a disservice if you do not examine what a specific profession has for prospects in the labor market. Whether the competition is low or high and in which parts of the country. Investing time to study for a profession and career and then realizing that competition is high and high unemployment is not fun. Choose right from the start!

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.