Money Saving Tips

Save Your Marriage with These Essential Finance Tips for Couples

Marriage is probably a frightening deal, to say the least! And when it comes to money, most couples end up untying that promising knot over a couple of financial issues. While the financial instability between couples if quite understandable, just rambling on the money matters is not enough.

To actually save your love life from going downhill with time, chuck the romantic talks for a moment and shift your focus to what’s more important to your spouse and you – financial management. You are a couple and there probably lies either a very harmonious or troublesome times ahead of your both. Becoming aware of the basic finance tips for couples is just a starter, while the entire main course actually depends on the chemistry that you have with your partner in managing your financial matters effortlessly. And without a doubt, that’s one of the toughest things to do after marriage!

Finance Tips for Couples

So before you end up talking about children and insurances, it isadvisable to open up on the most driving force in marriages – finances. Financial management between couples can either help strengthen their bond over the years or build a gap in between two partners.

To carry on with going down the romantic line, here are some things to keep in mind while you’re sitting at the dinner table discussing finances with your spouse. And also, stay careful while you’re at it.

Talk the talk

Don’t take your spouse by a surprise with a sudden and typical couple financial discussion. Find a neutral time that fits just right for you both, and when you both are not really facing any current money issues. It is the ideal time to avoid any further arguments and clearly, plan out your financial plans as a couple. The goal is to have a calm and relaxed financial discussion with your partner first and get acquainted their monetary habits to gain a better understanding and insight into your financial stakes as a couple.

Avoid the blame game

Support is the key to any strong marriage, and that is also the card that you need to play while managing your finances. No finger-pointing! No blaming each other! And no argumentative denials or justification for any financial setbacks whatsoever. In a long-term relationship, both you and your partner have to meet in the middle and avoid the blame game that just ruins relationships. And blaming will not help you balance out your balance sheet either. Stay cautious about being more supportive and understanding instead of turning the tables around at each other.

Believe in equality

Neither you nor your spouse should ideally have an upper hand at anything. None of you both may be capable enough to fairly decide and judge the monetary habits of another. So the golden rule? Consider yourselves equal. Your working hours and heavy paycheck hardly determine anything when it comes to a sound financial management with your partner. Have an equal say in money management because regardless of the big fat or small slim paycheck, you need to respect the equality of each other as partners.

Avoiding the key mistakes

There are chances of you experiencing a wrong financial approachfrom your partner. Or even for you, it is important that you avoid-

  • Rushing with things. There should always be some level ofautonomy, even when it comes to couple finances.
  • Assuming that clearing your partner’s debt is solely the responsibility and duty of your partner. Team efforts work wonders!
  • Thinking that your partner is the only spender in the family. Yes, both of you spend different amounts of different things, remember this!
  • Keeping money secrets from your partner. Transparency helps a lot, more than you’d expect!
  • Thinking that both are completely safe. No, you’re not. Start prior planning for financial emergencies

Assets are binding

As a couple, it is very natural for your partner and you to jointly own assets. However, it is not just assets that need to go in the back. Discussing other financial needs of amarried couple such as mortgage and retirement need to be clearly discussed and planned out. In layman terms, you both need to be hand in hand when it comes to any financial aspirations or financial investments that you would want to make. Also, both your long-term financial goals must not really have a huge difference. Instead, a transparent discussion will help both of you come to a conclusion that has clarity and that can help you’ll manage long-term finances without much effort.

But do not rush!

Rushing is a bad, bad mistake in practically anything. And it is comparatively more dangerous when it comes to money management between couples. You don’t need to straightaway start combining your finances with your partner’s without a question asked. And neither do you have to official be involved with your partner’s past financial debts. You can always keep chipping and helping each other, but avoid rushing with your decisions and take up a responsibility that you’re clearly not up or ready for.

On a Final Note

Yes, your partner and you can take your little baby steps toward a sound financial management technique and keep your money in place. Financing money is easier if you bestow some trust and transparency in your relationship while having faith and not panicking at the same time. Rest assured that a stable financial system will only make your marriage stronger and healthier with time.

Personal Finance

Basic Finance Tips for Entrepreneurs to Manage Finances

For entrepreneurs, everything turns out to be a tad difficult to take care of and manage. One of them is finances. While entrepreneurs have anyway signed up for a risky business as this, it becomes more important than ever to take care of their financial situation, which might even go stronger or crumble with time.

It’s all very easy for employees, right? When they take those big fat paychecks back home, it is the entrepreneurs who are left to deal with everything. Right from taking care of his or her business to maintaining consistency in cash flow and financial stability, entrepreneurs have quite a lot on their plate all the time. And it is them who need a great deal of financial assistance to keep their incomes and cash flowing and avoid bad debts.

Finance Tips for Entrepreneurs

If you are an entrepreneur dealing with a startup, studying about the risks and implication of a stable financial management system is all the more essential for budding entrepreneurs like you. To say the least, better money management can help you leave a great legacy for your family, and also relieves your stress when it comes to handling the financial books of your company.

Before going ahead, here are some really basic questions that you need to ask that entrepreneur inside you –

  • How stressed are you with your current financial situation?
  • Is your’s a start-up or an established enterprise?
  • Do you have an emergency stash or reserve kept aside, just in case?

The point of the above questions is just to let you know that your answers don’t really matter. Regardless of them being a yes/no, or any other explanation that you may have, you need to stay educated on some essential finance tips for entrepreneurs that can help you stay on your heels and motivate you to keep it together at all times while running the business.

Choose LLC or S Corporation

You must have heard companies with different incorporations, the two most popular ones being the LLC (Limited Liability Company) and S Corporation. And there is quite a difference between these two, especially when it comes to having a control over income taxes, social security and Medicare taxes.

If you select an LLC, you don’t have to pay taxes in the current scenario. However, whatever incomes, deductions, incomes taxes and other taxes are all passed through and levied on the owner’s tax returns, which are your tax returns. Also, self-employment taxes are paid on the entrepreneur’s share of net business earnings.

On the other hand, an S Corporation is straight up on you receiving your salary and paying off other taxes. Also interestingly, self-employment taxes are lesser as compared to the amount under an LLC. So what gains your interest here?

Understand financial statements

Yes, financial statements are any day a very tricky thing to understand, and some people don’t ever seem to get it, no matter how much they try. But as an entrepreneur, you have no choice but to learn and get educated on what those financial statements actually mean and the message that they are trying to convey to you, most of which include-

  • Balance sheets
  • Income statements
  • Cash flow statements
  • Shareholder’s equity statements

Just understanding these financial statements will right away solve half the dilemma that you are facing with your financial situations. Also, understanding such important financial documents is the key to stabilizing your financial position and determine where all the money is coming and going from your business.

Open your emergency fund

When it’s business, there are always ups and downs, and you have to be prepared for that. You cannot let ups and downs cause any instability in your financial situation. Therefore, open a cash reserve or an emergency fund in other words, and keep some money aside to help you cope with such distraught events and occasions, as and when they arise. Business is full of risks, and as an entrepreneur, you need to be sharp and wise enough to foresee such circumstances that might put you in a debt-trap. A well-maintained cash reserve will always have your back in case your business tries to take you for a ride.

Think bigger

Apart from just your business, you can put some of your money other important investments and assets that you know will give you favorable returns, at least for a short while. Even better, the returns of such funded investments by you can really help build-up your cash reserve. There is no harm in keeping yourself safe and place funds into other side businesses and smaller investments. In case the market dries up tomorrow, you are already covered.

Don’t be embarrassed to take help

Becoming an entrepreneur means taking a bucket load of stuff and responsibility on your head. Some people manage it, some quite do not. To tackle financial obstacles, it is advisable to take help from either an expert or do some self-learning. Whether it is to understand your financial statements or creating invoices, some extra help and assistance from outside parties can do a great deal in keeping your financial situation right on track.

As it goes, prevention is always better than cure. And when you are into something as risky as entrepreneurship, it is imperative that you stay careful with each and every baby step that you take. As an entrepreneur, you will always have your plate full at all times. However, with some help and knowledge, handling your financial books will not be that a difficult time for you over time. If not, you can always take the help of financial advisors and consultants without any hesitation.