Author: Complete Controller

As an accountant for small business owners and families and the mom of three 20-something young ladies, I have had plenty of experience with living paycheck to paycheck and helping people who are in that stage of their financial life. Here are a couple of tips that will help alleviate some of the stress and position you to break the cycle:

Don’t Borrow on Credit

If you are living paycheck to paycheck, you can hardly afford interest payments on top of everything else. You have to make your money stretch and work for you. An easy way to avoid borrowing is by leasing or buying something that is not-so-nice for now. Remember that every time you make a sacrifice to avoid payment, you are laying the foundation for healthy spending and saving. If you need a car, lease the least expensive car that will meet your needs, or buy a car that isn’t glamorous but gets the job done. When deciding which option is best for you, be sure to factor in the insurance expense on a lease – which can be pretty high since it’s a new car – and the maintenance expense on a clunker. If you don’t need a car, don’t get one. Consider a bike or scooter instead.

Buy on Sale

School shopping for three kids was never inexpensive. So we would go straight for the sale rack at the back of the store and make our rounds to every store they liked. Rather than shopping for clothes every month, shop once a season because the last season’s clothing was always on sale when they are bringing in the new stuff. Grocery shopping is a big chunk of the monthly budget, but definitely less expensive than eating out. Make it a challenge to only buy items that are on sale. If you must eat out, go somewhere that does not require you to tip a server. Even if you want to treat yourself to good food and a nice ambiance, there are plenty of small deli’s and specialty food stores that have excellent selections and are self-seating. Oh yeah, and drink water!

Budget and Save

Planning ahead is really important. You know that car registration, school tuition, or medical expense is coming – so plan for it. Find some amount that you can save and make it automatic. My daughter works at a restaurant part-time. She saves her tips and tries to pay for her living expenses on her paycheck alone. After only 5 weeks, she had enough to buy a plane ticket for her vacation next year, and now she’s saving for spending money. If you get a paycheck from your employer, use direct deposit and have a reasonable amount – $50 is better than nothing – per check deposited into a savings account. At the same time, the remainder goes into your checking. Finally, know your spending. People who are aware of their spending tend to spend less. Check your bank account frequently and make sure you never overdraft – for some folks, that habit alone will save them hundreds of dollars each year.

Great news! It’s entirely possible to build wealth and establish good credit even if you’re currently living on a low income. The key is to get creative with your shopping and planning strategies. By making small adjustments and staying committed to your goals, you can make significant progress over time. Are you ready to dive in and make your financial dreams a reality? Let’s explore some ideas together!

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services 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 US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. 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.

As an expert in the bookkeeping field and the mom of a family with three kids, I am very familiar with making dollars stretch as far as possible. It’s always fun to find a good deal but disappointing if the quality isn’t there – in these unlikely experiences, I was pleasantly surprised!

One of the things that my husband loves to buy used is running shoes! I never would have thought of that because it’s always been my assumption that the best performance comes early in the shoe life. That may well be true, but ‘used’ doesn’t have to mean ‘heavily used’. You see, when consumers return running shoes to the store after they have been worn even so much as one time, they may not be sold as new. So, if you search online, there are plenty of very nice – and expensive – lightly used shoes to buy at a super steep discount.

Prior to my recent relocation to a new state, I always purchased my appliances new from Sears or Best Buy. When I moved, I found myself in a very new, very empty home with no refrigerator, washer, or dryer. To purchase new and wait for delivery would take several days. Instead, I searched Craigslist to see what my neighbors were selling, and I found several businesses that sell used appliances and even warranty them. They got their start as appliance delivery and installation contractors. Since delivery also means hauling away the old appliances, they had plenty on hand for parts and began to build an inventory. Since my town has a pretty significant vacation property population, there were quite a few lightly used appliances in their inventory to choose from. One phone call had them delivering a high-efficiency front load washer and dryer and a stainless steel refrigerator that same day for $500 cash – and they hooked it up too. The ‘warrantee’ is for 90-days but that is more than enough time to discover any deal-breaker characteristics.

Spend wisely and enjoy it!
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.

Over the course of the past ten years, we have had the privilege of collaborating with an extensive array of small businesses. Throughout our experiences, one crucial component in achieving success has been the act of establishing business credit from the outset. By doing so, business owners can avoid solely relying on their personal credit and instead maintain financial independence and stability.

Business Credit Cards

If you are looking to apply for a business credit card, it is advisable to select companies that report to credit agencies. This way, your credit score will be positively impacted as you make timely payments. It is also important to request credit line increases every six months to increase your credit limit and improve your credit utilization ratio. To qualify for these increases, you should maintain a good credit history and ensure that your payments are made on time. In some cases, you may be required to provide a personal guarantee to secure the credit line. Therefore, it is essential to carefully review the terms and conditions of the credit card before applying to ensure that you understand the requirements and are able to meet them.

Credit Reporting Agency

Establishing a profile for your business with Dunn & Bradstreet, a highly regarded business credit agency, is a prudent measure to take. It is crucial to keep a watchful eye on your credit relationships and monitor them carefully. Additionally, it is possible to request trade references from companies where you frequently purchase goods or services on credit. This will help you keep better track of your credit standing and ensure that you maintain healthy credit relationships.

Business Bank

Finally, establish a relationship with a business bank. I recommend one of the national banks like Chase, Bank of America, or Wells Fargo because they will readily extend business lines of credit to clients that have kept funds on deposit for 5+ years and have an excellent payment record on their accounts. A business credit card or another revolving credit account from one of these institutions will put you in the perfect position to get the big equipment loan or commercial mortgage you will want when you grow your enterprise from small to midsize. One of the reasons it is so difficult for businesses to move from that $1-$5 to the $6-$20 million in revenue range is the lack of credit. It takes money to make money, and the big businesses get that way because they know how to responsibly leverage debt to build their business.

In Conclusion

Building your business credit is crucial for several reasons. Firstly, it allows you to separate your personal and business finances, allowing you to maintain a clear financial record for both your personal and professional accounts. Secondly, it increases your borrowing potential, providing you with access to a wider range of financing options. Growing and reinvesting in your business is made a lot easier with stronger financial standings. Establishing business credit is an essential step toward building credibility and trustworthiness in the eyes of potential partners and clients. By establishing a solid credit history, businesses can benefit from easier access to financing, improved cash flow, and greater flexibility in negotiating contracts and partnerships. This not only enhances the company’s reputation but also helps to establish a strong foundation for future growth and success. Overall, building business credit is a critical component of any successful business strategy. Finally, building business credit can help protect your personal assets in case of business failure or bankruptcy. Overall, building your business credit is a critical step to ensure the long-term success and financial stability of your 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.