Author: Jennifer Brazer

High medical bills can be overwhelming after a hospital stay or if you have no health insurance or poor coverage. Unpaid medical bills can be a bookkeeping nightmare, as they pile higher and higher, burying you under heavy debt. This can negatively affect your credit score, as well as cause severe financial stress. Listed below are 8 tips that can help you recover from high medical bills and keep you out of debt.

Everything is Negotiable

A typical medical bill could be for surgery, treatments, x-rays, and medications. You may be able to get all or at least a part of your bill reduced. Contact the billing provider and try to negotiate lower fees. This negotiation is often effective as the provider would rather receive partial payment than none at all.

Make a Payment Plan

Most, if not all, healthcare service providers offer payment plans. Again, they would rather get partial payments of the total amount due than none at all. When negotiating a payment plan, use your bookkeeping system to determine what amount you can pay each month that will work within your budget. When setting up the plan with the service provider, be aware of any extra fees or interest they may charge to set up the payment plan.

Authenticate Your Bill

Review your bill as soon as you receive it and check for accuracy. Medical bills are itemized and will show the cost of each item. Highlight any questionable charges and contact the provider to discuss. Depending on the size of the facility and the bill, it will either be remedied within the initial contact or it will be sent for review.

Insurance Provider

Health insurance is often provided through an employer. If your job does not offer healthcare, consider looking into private insurance options. If you already have coverage and still receive a medical bill, contact your insurance provider and inquire about your coverage. Even if they do not cover the item on your medical bill, they will often negotiate a better rate with your provider on your behalf.

Medical Bill Support

Charitable groups and government agencies have been created to help with medical bills and services. These groups and agencies can aid in payments or provide services for free. If you have low to zero income, you may qualify for financial aid or free services. 

Choosing a Provider

When choosing a healthcare provider, seek out doctors who accept your insurance. If you have no insurance coverage, seek out a provider that is willing to negotiate your bill before services are provided. Research is extremely important when it comes to choosing a provider. Making the right choice can end up saving you hundreds in medical bills.

Credit Counselors

Credit counselors will often provide services that will help you lower your medical bills. In some cases, they may even get them forgiven completely. While these services are usually not free, the cost is nominal and worth the savings on your bills.

Collection Agency

If you have made every effort to take care of payments and are still unable to pay, your provider may send your bill to a collection agency. The same process will apply to handle the bill at the agency. They now own the debt and will want to negotiate payments that will be beneficial to you and get the debt paid in full as quickly as possible.

Summary

It is very easy to understand how one simple visit to the hospital could land you in a mountain of debt. However, with the right tools, any debt can be managed and overcome. 

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

Communication creates a business culture of loyalty, ownership, and a sense of belonging to the company by its employees. Employees need to feel valued by having clear and defined principles, roles, and challenges they will face. One of the chief complaints of collaborators in organizations is the lack of communication.

Great leaders must connect with their team professionally and emotionally to inspire them and achieve their best performance. This communication is a complex process that involves aspects that are fundamental for people to feel that their voices are listened to and that they are important to the company.

Here are seven tips for a leader to become the best communicator for your organization:

1. Authority:

Leaders need to speak with authority to communicate effectively. As the person in charge of the organization, the leader must communicate the information with certainty. This authority produces credibility and trust among the members of the work team.

2. Honesty:

The best leaders know that for communication to be effective, it must be sincere. Honesty, both good and bad news, should be the basis of internal communication in any organization. Always speaking with the truth generates trust and loyalty on the part of the collaborators and clients.

3. Speak in public and private:

Leaders must be able to speak with the group and with the collaborators individually with the same effectiveness and clarity. The key is to know in which situations a group meeting is necessary and in which an individual one. In both cases, trust should be transmitted, and the participants should be actively listened to.

4. Know how to listen:

Communication is a two-way process. Both parties should be clear when they speak and listen actively when the other person speaks. Taking the time necessary to listen to the ideas and opinions of collaborators and focus on what they are saying is key to finding the solutions for all those interested.

5. Ask for feedback:

Leaders do not assume that their collaborators received the message they delivered. Verify that the information given to the recipients is the message intended. If understanding was missed, then you need to re-communicate to make sure the information is received correctly.

6. Self-criticism:

Leaders who make mistakes admit them and discuss them with their collaborators to find quick and effective solutions. In communication, you cannot waste your time; looking for blame is not an alternative; you need to act to fix it and learn not to fall again in the future.

7. Be proactive:

Leaders who want to cultivate the best communication skills do not waste time and are up to date with the news of their sector, are agile to dispel rumors in the company, share the good news and bad news at the right time. They constantly talk with their team so that they do not go in the wrong direction; they ask for and give feedback to strengthen the company’s culture.

Leaders who communicate effectively with their team do not boast about their knowledge. They think about human talent, the most important capital of any organization. They know what they need to hear, and they worry about how to deliver those messages the best way. Leaders also say what is important, even if its bad news.

Honesty, trust, respect, the ability to speak and listen actively, self-criticism, and credibility are the qualities of a leader who wants to excel by the way he communicates with his team. Identifying the virtues and weaknesses in each of these aspects is a great first step to becoming a star communicator.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

No matter how great your business is performing at any given moment, improvements can reveal a more efficient version of your company. Reducing expenditures and keeping costs in check offer the best results when done with no stress. IT systems provide possibilities to businesses to streamline operations and cut costs at the same time.

The implementation of an advanced system in your business has benefits to the reduction in costs. It enables you to be at par with your competitors as everybody in this fast-paced technological world has its hands on to new solutions. Businesses are transforming into technological hubs while reducing costs at the same time.  

How does the IT system help to reduce expenditures

Automation

The industrial revolution has revealed to us the possibilities of what we can achieve, and automation is the center stage of this revolution. You can reduce overhead costs and increase productivity by implementing IT systems into your business model. You don’t necessarily have to automate every step in your manufacturing process, but you can certainly automate most of the routine procedures in your business. Automation helps reduce error, expenditures, and owner stress, among many other things. 

Tasks like bookkeeping, invoicing, and other banking liaisons can be handled with a single tool at your convenience. This alone would be enough reason to automate the financial aspects of your business! With this automation, your employees have access to real-time data at all times, which means they can constantly work out ways to reduce expenditures and make better fiscal decisions. Government organizations can benefit the most from this IT system as they still heavily depend on paperwork, which adversely affects their efficiency.

Move over to the cloud

It does not matter if you are a small law firm or an e-commerce business with expanding needs; you need servers that can host your website and all your data.  As businesses in any industry, when you grow your expenditures grow as do your needs. The trend back in the day was to buy and maintain personal servers, which can cause a nuisance once your business expands in scale. It will result in recurring costs as you will be required to update the servers and other infrastructure.

Cloud hosting has drastically sorted this problem and has contributed to reducing costs. Third-party vendors host everything at a fixed subscription cost. If at any time you feel like upgrading the IT system, all you need to do is subscribe to a higher package. The data is stored in these cloud-based servers and can be accessed at all times. Security is being looked after by end-to-end experts who are proficient at their job.

Focus on integration to reduce expenditure

One of the drawbacks of IT systems is that it can be challenging to find the right combination because of other solutions out in the market. Hybrid cloud is one example of finding the perfect mix by combining private and public cloud services optimally for your business. You need to assess the areas in your business that are most in need of integration, which can help to reduce expenditures as well.

Integration today has become easier than ever, instead of working on making an integration model internally, you can buy a platform from a vendor. Software constructed with an “API-first” approach aids integration, denoting that a best-of-breed method is within reach of all kinds of businesses, whether big or small.

IT systems are of great value when businesses want to reduce expenditures and also improve their efficiency, and as we progress, its dependence is going to increase.

 

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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 running a restaurant, accounting and bookkeeping are as important as the food you serve and the people you hire as your staff. A restaurant can have amazing service and cuisine but if the accounting side of the business is not well cared for, the restaurant can still fail despite all these efforts.

In this overview, we requested restaurant administrators share how they achieved their financial needs, as well as their best practices. The outcomes were fascinating as the data demonstrated that administrators who had great bookkeeping had great profits, while those with poor accounting did not.

Here are some of the best practices shared by restaurant executives across the country!

• Recording of daily receipts. Taking the time to record every input and output creates an organized list of all cash flow and expenditures.
• Detailed cost recording.
• Goods and labor costs.
• Taking stock on week-to-week or month-to-month premises. This will show patterns and areas where expenses can be cut.
• Assigning key people for bookkeeping-focused undertakings. Delegating responsibilities clearly ensures that the restaurant operates seamlessly.
• Utilizing a POS framework for following time and participation. This system should be user-friendly and suitable for your restaurant’s specific needs.
• Having a benefit and loss proclamation month-to-month. This also shows patterns and provides insight into the health of the business.

Of this rundown, three bookkeeping best practices were the most beneficial to administrators:

1. Having a money-related benefit and loss proclamation month to month.
   1. 73% of administrators that got month-to-month money-related proclamations revealed being profitable.
   2. 49% of respondents that got simply quarterly or yearly explanations were profitable.
2. Goods and labor costs.
   1. 75%, of administrators that got week-to-week sustenance and work costs, were productive.
   2. 60% of respondents that did not get week-to-week reports were productive.
3. Taking stock on a week-to-week or month-to-month premise.
   1. 72% of administrators that complete stock in any event month-to-month was productive.
   2. 58% of administrators that do not figure stock esteems are productive.

How do these practices benefit your restaurant?

Cost savings

By executing effective accounting methods, you will be able to pinpoint and cut down on all the extra expenses. You will be able to analyze your business’ spending habits and gain awareness of any unnecessary spending. Through saving this money, you will be able to invest it in further improving the services of your restaurant. It is always a good idea to turn your business’s savings into reinvesting into your business to help it grow. 

Improved management

With a keen check on the finances going in and out of your accounts, you will be able to locate any extra expenses. You will also be aware of whether an employee is committing fraud. This will lead to improved money management, a safer work environment, and there will be less chance of wasted money. You will have the knowledge of where every dime is going so if something does not add up, you will know that something needs your attention.

External expenditures reduced

Money is an asset and necessity for the development of your restaurant. With proper money management, you will be able to cut off all the external and excessive expenditures. These unnecessary expenditures are hindering the growth of your business. Once they have been cut down, you can use the saved amount of money on opening a new branch or introducing new dishes.

Planning and execution of future plans

Saving money and time by effective accounting methods will provide you with an efficient time frame to save and plan for future goals. You will be able to work on any plans that will provide you with increased returns in the future.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

What is meant by Real estate closing?

Real estate closing is the handover of the estate title from the seller to the buyer per the sales contract. When the transfer is finalized, the buyer obtains the title as owner of the involved real estate, while the seller takes the money. Once the property is in your name, you can include the fixed assets in your bookkeeping records. The process of bookkeeping is a recognized and well-defined process in the field of business and accounting. Every transaction, whatever the nature (purchase or sale) may be, has to be recorded. The process of bookkeeping helps ensure accurate and timely records.

There are costs and requirements connected with the closing that results in a complex situation. The majority of the real estate closings use the facilities of an escrow agent. This agent works as a third-party for both the seller and the buyer. Both parties know they can trust the agent. The agent coordinates the negotiations between seller and buyer as per the sale and purchase contract.

What can you expect during the closing process?

1. Open Escrow

Escrow is an account retained by the third party in the best interests of the two major parties of the transaction while waiting for closing. For this reason that several things need to happen to complete and finalize the home sale, the most significant way is to have an unbiased third party that has all of the documents and money till the deed gets settled. This way, with a third-party present, the buyer or the seller will be prevented from being ripped off.

2. Title Exploration and Title Insurance

A title insurance and title search provide peace of mind, as well as a legal safeguard. This way, if you buy a particular property, later on, nobody can attempt to claim its entitlement as theirs, be it a tax collector who thinks he was not paid, or a despised relative who was not included in the family will. A title officer will execute a title search just to be sure that there are no impairments on the title.  

3. Find Yourself an Attorney

This is an optional step if you wish to get a legal opinion from a professional on your closing documents. Don’t think any less of yourself if you need to take the advice of an attorney. Even some of the most well-educated individuals cannot entirely comprehend their closing documents. Your knowledgeable and skilled real estate attorney will not just understand the documents, but also identify where to search for potential problems, if any, in your paperwork.

4. Get Yourself Pre-Approved for a Mortgage

Even though it is not obligatory to close a deal, if you get pre-approved for a mortgage, you can close the deal a lot more quickly. This is because being pre-approved, the seller will receive signals that you happen to have some solid financial backing. Consecutively, being pre-approved will give you extra bargaining power when you are negotiating.

An additional crucial benefit of being pre-approved can be that certain creditors will propose you a rate lock.

This means you can easily protect yourself for an interest rate on the loan. You will not be affected by the markets if in case, the interest rates increase right before the purchase is finalized.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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 do startups have a struggle dealing with cash flow complications

Small businesses and startups are vulnerable to cash flow difficulties. There are reasons for this. It can take some time before the business starts making its first sales. The pre-trading duration often includes suffering costs without receiving any income in return.

Suppliers may call for early or immediate payment from the small business since the startup has not established a track record of paying their bills on time. A startup often has to devote up-front on expenditures such as product and marketing development.

The startup will not have stashes of cash put together from profitable trading. This is an imperative source of cash called “retained profits.”

During its early months of business, a startup faces its most critical challenges in handling their cash flow. Without careful planning of cash and careful management, the startup may lapse out of money. This is a brief introduction of why cash flow difficulties are a significant reason for business disaster amongst startups.

Why is Cash Flow Forecasting Important for most Startups?

Cash flow is what runs a small business. It is its lifeline. Therefore, it makes sense that a startup should forecast what might happen to their cash flow so that it has enough to survive.

If, in the case where a startup depletes its cash funds and fails, at that moment, it would be such a pity if the startup owner had not, in any case, seen it coming.

Startup owners identify potential losses in their cash balances beforehand. They need to see their cash flow forecast just as it is an “early warning system.”

Cash is the king when you talk about a growing company’s financial management. The time duration gap between disbursing the employees/suppliers and learning from consumers is the problem. Through a precise cash flow projection, startup owners can deal with the troubles well in advance before it strikes a problem.

How to generate early profits

Startups should emphasize profit-making. Those startups who have preserved their model asset-lite will be the ones who are lucrative in a short time when compared to other enterprises. Considering those who are focusing on an e-commerce startup, the initial years will be tough for them. It all comes down to becoming feasible since they are loaded with colossal marketing charges to entice visitors online.

The adjustment of these online visits resulting in sales is your chance to gain market opportunity, the capability of the startup to gauge customer acceptance. The owner must also ensure that they are up-to-date with their bookkeeping skills to calculate accurate profits.

Your Takeaway from This Blog

Once a startup businessperson gets her/his business up and running, various strategies can be used, and value can be amplified at different sales, buying, or in customer contact.

The main point to remember is to check and measure what will work and what will not because no plan or strategy works flawlessly every time.

The basic notion is to increase the speed of turning the supplies and materials into products, receivables into cash, and inventory into receivables.

Even after playing safe and smart, a startup owner might anticipate a situation where she/he does not have adequate cash to pay all of their bills.

This does not mean you have failed as a successful businessperson. It is just that you were unable to predict the future of your startup perfectly. In a perfect scenario, a startup needs to have enough cash so that it can sustain itself for six months’ expenses. The owner will feel less pressure and can give all of their focus on providing quality products and services.

 

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

Putting all your eggs in one basket will never be considered a good business strategy when it comes to financing your new business. Expanding your sources to finance your business will help your start-up better withstand potential downsides and improve your chances of getting the right financing tailored to your specific needs.

 

Never forget that bankers do not necessarily see each other as a single source of funding. Moreover, lenders will consider you as a proactive entrepreneur if you have sought or used various financing methods.

 

Whether you choose a bank loan, an angel investor, or a business incubator, each has specific advantages and disadvantages.

 

Here is an overview of seven typical sources of financing for start-ups:

 

Personal investment

When you start a business, you should be the main investor – whether investing your own money or putting up assets as collateral. You prove to investors and bankers that you are committed to your project in the long term and that you are willing to take risks.

 

Money of family or friends

This is money lent by the spouse, parents, other family members, or friends. Investors and bankers view this method of financing as patient capital, that is, money that will be repaid later, as your company’s profits increase.

 

If you are thinking of borrowing money from your loved ones, remember the following:

 

• Family and friends can rarely provide a lot of money.
• They may want to own a stake in your business.
• A business relationship with family members or friends should never be taken lightly.

 

Venture Capital

Venture capital is a form of early-stage investment run by companies with strong growth needs and significant capital requirements. It is provided by venture capital companies or institutional investors rather than individuals.

 

Venture capital is not for all entrepreneurs. Venture capitalists seek to invest in high-tech companies and highly promising companies in sectors such as information technology, communications, and biotechnology.

 

These investors also take a stake in the companies they finance to help them realize a promising project, but with greater risk. This means that the contractor must transfer part of his business to a third party. Venture capitalists also want a good return on investment, which usually happens when the company starts selling shares to the public.

 

Angel Investors

Angel investors are usually wealthy people or of retired business executives who invest directly in SMEs belonging to others. They are often leaders in their field. They provide the company with their experience and their network of contacts, but also their technical knowledge or their management know-how. Angel investors tend to finance businesses in the early stages of development, and the amount invested ranges from $ 25,000 to $ 100,000. Venture capital companies prefer to invest large amounts in the order of $ 1 million.

 

In return for the risk they run by investing their money, angel investors reserve the right to supervise the management of the company. This often means that they sit on the board of directors and require transparency assurance.

 

Business Incubators

Business incubators typically target high-tech start-ups at various stages of development. There are also local economic development incubators, which focus on job creation, revitalization, as well as service provision and sharing.

 

Incubators often invite nascent or emerging companies to share their premises and administrative, logistical, and technical resources. For example, an incubator can make its labs available to new businesses so that it can develop and test its products cheaply before starting production.

 

Bank loans

Bank loans are the primary way of financing SMEs. Banks offer different benefits, such as personalized service or flexible repayment terms. Compare to find the bank that can meet your specific needs.

 

Banks typically target companies that have a proven track record and excellent credit history. A good idea is not enough. It must be based on an effective business plan. In addition, start-up business loans normally require contractors to provide a personal guarantee.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

Effective money management is a skill that may be difficult to achieve but is an absolute necessity if you wish to achieve financial freedom in your adult life. Most are living paycheck to paycheck without any savings. In fact, most Americans do not have any savings at all! Having a healthy savings account is important for security, emergency funds, and future purchases. It also is important to supplement retirement funds.

When it comes to handling income, most adults need to work on their money management skills. Those who learn to spend their money wisely are steps closer towards achieving their goals, such as savings and investments. Adequate financial planning will help to make sound decisions. 

A Budget That Fits All Your Needs

Creating a household budget is one of the first steps towards managing your income efficiently. A budget will help you to see where your money is going and where you can afford to cut back. An accurate and current budget gives you a clear picture of your finances, how much you are earning, and where your money is going. This game-plan will ensure that you have better control over your finances. Creating a household budget may seem challenging at first, but once you craft a plan that works for you and your household, it will remove daily stress.

Every budget will be different from household to household. The financial needs, income, and goals of every family vary, so there is no perfect template that works for everyone. Therefore, it is important to build your budget together as a family. Working together will help reduce money stress both individually and as a family. The cost of necessities such as bills, housing, food, and gas needs to be determined and other expenditures. Then, all income must be determined. This will give a clear picture of where the money is going and whether you are living inside your means.

Division of Expenses

Bookkeeping records or recording every transaction will help keep your budget accurate and give you a clear picture of your finances. This is where decisions need to be made if more money is going out than what is coming in. There may need to be some cutting of non-essential spending to stay within your means. You also may need to tighten the belt to build a savings account. Remember, “Save today, so you can play tomorrow.” While “playing” may not be your top priority, saving what you can each day will help you reach your goals.

By setting your priorities right, you can expect to save more by remaining cost-effective throughout the month. Be proactive and constantly review your spending habits to save more money for future plans, purchases, and emergencies. Consider ways to cut down on expenses, such as shopping generic, carpooling or public transportation, and meal prepping. There are always ways to save a penny. Remember, those pennies will eventually add up.

Create an Account with the Right Bank

Make a thorough list of banks, research them, and choose the right strategic fit that could offer high-interest returns. This will help you save money and also help you to get interest dividends from the bank. Take advantage of promotional deals that many banks offer. Also, you can look into accounts that offer cashback on your spending, including bills. Having your money at the right bank is an important aspect of savings and spending.

Savings and spending habits need to be monitored and controlled. Financial stability will come to those that save and spend with intelligence and thoughtfulness. A working budget, accurate bookkeeping, and willingness to make changes to live within your means will guarantee financial sufficiency.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

Any household budget consists of two main components: income and expenditure. To have a successful budget and healthy finances, it is important to follow one basic rule: expenses should never exceed your income. This is also known as “living within your means.” Once you have decided that you need a successful budget, it is simple to do but it requires discipline. To start you simply look at your accumulated debts as the enemy standing in the way of your goals (buying a new car, owning a home, going on a trip, saving for retirement). Try to get rid of these debts as quickly as possible. Return the money you borrowed and then kiss those credit cards goodbye! Now, stick to your household budget as if your life depended on it. Living within your means is the first step towards financial freedom and the stability of your dreams.

The optimal household budget includes both management of expenses and handling of profits. All proceeds should be assessed for the risks they bear. For example, in which currency to keep your savings and what will happen to them if the dollar value decreases. Do not forget about the market risk if you invest the family savings in stocks or mutual funds. A rational approach is to make sure that your income is not heavily dependent on the situation of the stock exchange. Especially in uncertain times like these, having your money tied up in the ever-changing stock market can be a major risk that you may not be in a position to take. 

The second part of the household budget, expenses, is more painful and often exceeds income. In the battle for the family budget, the most important aspect is knowledge of your spending and planning. Having an awareness of your spending habits creates a guide for smarter spending. For those just beginning their household budget, start with the bookkeeping of all your expenditures. Divide the household expenses into two parts, necessary and desirable. Necessary expenses include housing, food, clothing, and medical care. Desirable expenses include eating out, hobbies, interests, and savings. Keeping an accurate record over the course of a few months will give you an average of what you spend in each area every month. Use this as a road map to make some necessary cuts. This part will be painful, but it is necessary on your road to financial freedom!

Independent Model

An independent model of a family budget provides for the disposal of cash earned by each household member. It is where each individual family member creates their own personal budget. This budget works best when used as a complement to a family budget. This model can suit newlyweds, couples with equal income, as well as those who prefer to be independent. It works the same way. List all your incomes and expenses. Examine what is essential and what is desirable, then make appropriate cuts.

Planning for the household budget

Below is an example of how household funds may be distributed:

• 50% – basic expenses, food, and home maintenance costs 
• 10% – charity 
• 10% – freedom fund or investment 
• 10% – savings for large purchases or travel 
• 10% – entertainment and fun 
• 10% – unforeseen expenses

In fact, there are a variety of distribution options that you can follow when crafting your family budget plan.

Planning a family budget is necessary and useful. It helps to avoid thoughtless spending and ensures that at the end of the month, you always have money. However, sometimes there are unforeseen situations, and you may have to tighten the belt. Identify your goals and rely on them for motivation to continue spending and saving wisely.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

Many people fall into heavy debt each year. On average, about 80% of Americans are in debt. This totals up to roughly, $870 billion owed in American debt. Whether they are dealing with increasing bills, insufficient income, an unforeseen challenge, or lost their job, it can be disheartening to watch interest grow and your finances deplete. Some options available to people who are struggling with debt include debt merging loans, refinancing loans, debt credit counseling, and debt settlement services.

Debt management plans, Main credit counseling services

Many organizations offer credit counseling facilities, also known as DMP (Debt Management Plans). However, not all these organizations have a nonprofit or public entity. Some self-governing agencies offer credit services as well. These include credit unions, military bases, and universities. Some for-profit banks also offer such credit counseling options. Do a little research to see which option is available for your situation.

Many Americans turn to credit counseling to get a debt management plan (DMP), so they can pay off their unmanageable debt. A debt management plan is a contract between a person and their credit counselor that binds them to pay all the debts within a specific time frame. Think of it as a payment plan that consolidates your debt and allows you to pay it off more efficiently. Making timely payments can also have a dramatic effect on your credit score.

Determine if a debt management plan is right for you

DMP is not for everyone. However, the budget advice provided by reputable credit counseling agencies is widely applicable, even if you do not have serious debts. Sitting down and speaking with someone who understands personal finances can be useful to you even if you are just living paycheck-to-paycheck but have not yet fallen into a vicious circle of unpaid obligations.

1. Cannot commit long term?

To be effective, a DMP requires a person to maintain discipline. When their counselor presents them with a modified budget to pay their debt off and start to save for their future, it is imperative that the plan is followed and not abandoned for old habits.  

Getting out of the debt takes a lot of time and requires some sacrifices, such as the following:

• Reduce non-essential expenditures, such as restaurant meals
• Reduce or eliminate costly habits, such as smoking/ drinking
• Eliminating needless shopping purchases online
• Exchanging a newer and more expensive vehicle for one with a lower payment (or reducing the number of vehicles in your home from two to one)
• Save cash on groceries by purchasing generic foods
• Taking fewer pleasure trips or vacations

With the help of proper discipline, such changes do not have to be permanent; however, they can be essential to solving your constant debt problems.

2. Would a substitute be better?

If you have uncontrollable debts, a DMP may not be the smartest solution. If the main problem is a crippling mortgage, a car loan, or other protected obligation, speak directly with your lender regarding refinancing choices that could reduce your monthly expenditures without forcing you to default.

As an alternative, just employ the benefits of your credit counselor’s planning and budget services. They cannot pay your debts for you, but they may be able to give you a new look at personal finances.

However, it is crucial to know when a debt management plan is one of the best other options. If you are behind on credit card payments or you cannot find more money to reduce debt, a DMP might be your way out of the debt and on towards financial freedom.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.