tax
Good Debt and Bad Debt: Is There Really a Difference?
Many people think all debt is bad, others think it is okay to have good debt, and still some like all kinds of debt! Is there a difference between good debt and bad debt and what is good debt vs bad debt? Most people will tell you that good debt is debt that is against … Read more
June Financial To-Do List + Calendar
Life happens, but you can be prepared for the unexpected with an emergency savings fund. These funds are designed to be set aside for unanticipated expenses, such as: Unexpected job loss Unforeseen medical expenses Car repair Family emergencies Emergency funds…
Full Story
The post June Financial To-Do List + Calendar appeared first on MintLife Blog.
How to Pay Off Debt – Fast!
The post How to Pay Off Debt – Fast! appeared first on Penny Pinchin' Mom.
Americans are in debt. It’s one of the main reasons couples fight and a leading cause of stress. Fortunately, there is a way you can get out of debt. Anything worth having in life takes hard work and dedication. And, the sense of accomplishment and joy when you can tackle what seems to be the … Read More about How to Pay Off Debt – Fast!
The post How to Pay Off Debt – Fast! appeared first on Penny Pinchin' Mom.
Whatâs in the Second Stimulus Package? – Lexington Law
The Average Salary of an Architect
The average salary of an architect is $76,100 per year. Have you ever wondered how much an architect earns? Becoming an architect requires an investment of money and time, but pays off in the form of a rewarding career that comes … Continue reading →
The post The Average Salary of an Architect appeared first on SmartAsset Blog.
Tips And Services To Help Your Bookkeeping Go Paperless
The COVID-19 pandemic wasn’t a catalyst to shift businesses toward digital transformation, it merely sped up the process. Businesses needed to scramble to move much of their operations online so workers could efficiently collaborate with each other and maintain business continuity during a difficult time.
Fortunately, departments not traditionally associated with the digital universe, like Bookkeeping, had an easier time adapting thanks to online services like Bookstime.com, a provider of digital bookkeeping tools with unique experience in difficult areas like sales tax automation, health benefits administration, and more.
Advantages of digital bookkeeping
Keeping track of every business transaction is among the most important and perhaps underappreciated tasks. Failure to keep track of transactions in a professional manner can result in a business owner making wrong decisions because they have inaccurate information.
Even worse, they might think they end the year with a profit but in reality, a bunch of small bookkeeping mistakes over several months means the business owner really lost money.
A shift to a digital platform eliminates these concerns. Online digital platforms make use of the most up-to-date accounting automation software that erases nearly every careless mistake. This is especially useful for a business owner who does the tedious but necessary job of bookkeeping themselves to save money. The more time a business owner spends on ancillary tasks, the less time they have to generate revenue and keep clients happy.
Some of the other advantages associated with going online include:
- Eliminating clutter: keeping a clean home office is challenging enough but a digital platform means more space for higher priority files.
- Save time: A digital bookkeeping platform is always available online with a few short clicks of the mouse. It can be accessed as needed and when needed in a few short seconds.
- Environmental benefits: It isn’t unusual for a company to use at least 10,000 sheets of paper each year. Shifting resources online may seem like a small benefit but everyone has a responsibility to do a little bit more to protect our environment.
Case in point: Fill in a W-4
Every business owner is happy to hire new workers because it means they are expected to provide value to the company above and beyond their salary. But that doesn’t mean that the formal process is enjoyable.
One of the more undesirable parts of the hiring process is the pesky W-4 form that every employer has to ensure is properly filled in before a worker’s first day. Simply put, the W-4 form confirms how much income tax a worker wants to have withheld from their recurring paychecks. Under-withholding taxes means a worker will likely experience a shock come tax season as they owe money to the government. Over-withholding taxes means a worker is paying the government too much money and has to wait for a refund.
Digital bookkeeping can help simplify this process so you're less prone to errors. When other people’s finances are at stake, small careless mistakes could impact a worker’s desire to give the business owner 100% of their focus.
Businesses that shifted their bookkeeping process online to better navigate through the pandemic quickly realized this was a move that should have been done years ago. The advantages of having access to a clean and organized online tool far outweigh the costs.
Biden Proposes $15 Minimum Wage
As part of his $1.9 trillion economic stimulus package, President Biden proposed an increase in the federal minimum wage.
How to File for a Tax Extension
This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. Depending on your financial circumstances, you might have a lot of […]
The post How to File for a Tax Extension appeared first on SoFi.
Financial Considerations When Getting a Divorce
In a recent episode, I shared that I would be doing a 4-part series on divorce. I’ve been divorced for 5 years now and wanted to share what has worked for me, my ex-husband, and our 8 kids during this time. While divorce is not easy, time does help heal, and when your focus is putting your kids first, it is absolutely possible to maintain a healthy, happy family relationship.
My first episode in this series was 5 Expert-Approved Ways to Talk to Your Kids About Divorce. My second episode in this series was 5 Ways to Co-Parent with Your Ex-Spouse.
There really isn’t anything easy about divorce. Thankfully, as I discussed in the first two episodes, there are strategies and thoughtful ways to navigate through some of divorces issues, especially if the two parents are willing to put their personal differences aside and focus on their kids. In addition to the emotional turmoil that encompasses divorce, there is also another difficult component that couples must deal with and that is the financial aspect.
After 25 years of marriage and 8 kids, Mighty Mommy had to get her financial house in order and make some significant adjustments going from a two-income household to a single income.
Here are four financial considerations, as backed by the experts, to keep in mind if you are thinking of or getting a divorce.
1. Get Your Financial Documents in Order
The entire divorce process is completely overwhelming, and when you begin to delve into the financial ramifications, the stress is taken to a whole new level. Once we began having our small tribe of kids, we decided I would leave my career to be home with our family. During the last 10 years of our marriage I went back to work part-time as a freelance writer but by no means was I contributing significantly to our income. My ex-husband managed the majority of our financial affairs so when the reality of our divorce settled in, I knew the first thing I had to do was get a handle on every aspect of our financial status. I honestly wasn’t sure where to begin, but my divorce attorney recommended I start by gathering all my financial documents.
Maryalene LaPonsie, contributor to USNews.com writes in 7 Financial Steps to Take When Getting a Divorce that “as soon as you know you’re getting a divorce, collect all the financial documents you can.” She continues, by stating that these include:
- “Bank statements”
- “Credit card statements”
- “Tax returns”
- “Retirement account balances”
- “Appraisals for valuable items, if available”
In addition, other documents to consider are:
- Mortgage Statement, including any Home Equity Loans and purchase information
- Checkbook Registry for the last year
- Any other long-term debt account statements you may have, including car loans
2. Know Your Income and Expenses
When we began our divorce proceedings, I admit I was far more focused on my emotional state than my finances.
When we began our divorce proceedings, I admit I was far more focused on my emotional state than my finances. Because my ex was the one who paid all the bills and the sole provider for most of our marriage, I never worried much about the details of our 401(K) plan, life insurance policies or what our overall assets and debt totaled.
One piece of advice I received many times over was that I needed to know what our budget was so I could begin to realistically know what my living expenses would be.
Jason Silverberg, CFP at Financial Advantage Associates, Inc. and author of The Financial Planning Puzzle, told me via email: “If there was one singular, most important piece of financial advice that I could offer someone going through a divorce, that would be to understand where everything is and what everything’s worth. Without knowledge of what you own and who you owe money to, you really are going to have a hard time moving forward. You’ll also want to understand all of your sources for income and all of your monthly expenses as well. This will help you have a good handle on your budget to provide you critical understanding, so you can make smart financial decisions.”
He went on to say, “This exercise should be done both prior to as well as after the divorce. This way you can get a sense for how your household budget will operate on one income.” To help divorcing couples realize these figures, Silverberg has created the Personal Financial Inventory (1 page worksheet) inside the Picking up the Pieces eBook.
This exercise was extremely enlightening as I realized exactly where every penny (and then some) was going on a monthly basis. I was also able to gauge how much income I would need to start making in order to support these bills in addition to the child support and alimony payments I was receiving. One important factor to consider with child support is that it will decrease as your children get older, so I had to continually modify my budget based on this decrease. At first, it was overwhelming to see how much money I would need to keep our household running, but when you are armed with the figures and you pay attention to your monthly cash flow, it becomes easier to make adjustments. The fact of the matter is that some of the extra splurges such as frequent trips to the hair salon or buying my kids their usual top-of-the line items like sneakers or sports equipment had to be adjusted to what I could now afford. My kids have had some disappointments in this department, but they appreciated how we were trying to work together as a family-unit so that their lifestyle wasn't affected as drastically as it could've been which balanced everything out.
3. Consider What Professionals Will Represent You
There are important considerations to keep in mind when choosing which divorce professionals will represent you. Adrienne Rothstein Grace writes on the Huffington Post, 3 Steps to Prepare for Your Divorce, that you must align yourself with the right professionals. She explains “First, think about the divorce process you and your spouse will want to undertake and ask yourself the following questions:
- “Is this going to be an acrimonious divorce? Or will my spouse and I cooperate?”
- “Do I already know about all of our household and personal finances? Or do I suspect that I may be out of the loop on some assets, debts or income sources?”
- “Do I trust my spouse to be cooperative and forthright?”
- “Do I have any reason to believe that I will feel intimidated by my spouse during these proceedings?”
- “Are we both focused on the wellbeing of our children?”
Grace says that “If you believe that you and your spouse will cooperate and will have joint best interests in mind while negotiating, then you might want to choose a divorce mediator or embrace a collaborative divorce. Those options are less costly, more private, and usually result in a more peaceful settlement process. However, if you’re not certain about finances, or cannot trust your spouse to be completely above-board and cooperative, then you might hire a traditional divorce attorney, who will only have your interests in focus while they help negotiate the complexities of your divorce.”
My ex-spouse and I decided to retain individual divorce attorneys. In addition, we also hired a Certified Divorce Financial Analyst, (CDFA) at the recommendation of each of our lawyers, who met with us jointly to give us a complete overview of what our financial future was going to look like. It's a huge wake-up call when you see all the numbers in front of you on paper. At our first meeting with the CDFA I learned quickly that I was going to have to go back to work, full-time to sustain the home we lived in as well as the upkeep, taxes, insurance, and basics like groceries for our large family.
It's a huge wake-up call when you see all the numbers in front of you on paper.
If you surround yourself with competent, caring professionals who will guide you through this very delicate journey, you will have made an important investment in your family’s future, financial well-being.
4. Stay in the Financial Know Throughout Your Divorce
Throughout your divorce, you’re bound to get all kinds of advice from friends, family, co-workers and other concerned individuals that will be looking out for you and have your best interest at heart. This can be both helpful and draining depending on your relationship with these people. When I began divorce proceedings, I too received lots of comments and suggestions from well-meaning folks, but I also decided I wanted to be armed with my own facts so I began reading lots of articles and books as well as listened to informative podcasts about divorce, particularly financially-related pieces.
My QDT colleague, Laura Adams, Money Girl, recently did an wrote about divorce in Getting Divorced? Here's How to Protect Your Money. She interviewed Stan Corey, a divorce expert and author of a new book, The Divorce Dance. This podcast had some terrific insight and some of the topics she and Corey cover in this interview include:
- Different types of divorce proceedings that you can choose
- The biggest mistakes that can cost you financially in a divorce
- Why relying on a single family law attorney can be a bad idea
- Tips for dividing up financial assets the right way—especially when you’re not so financially savvy
- How to get divorced when you don’t have much money to pay for it
As you continue down the path of your divorce, surround yourself with as much information as you can, so that you will be able to make the best decisions possible for you and your children.
Five years later, I am still watching my financial picture very carefully. I work full-time and do freelance work on the side in order to maintain my home and other living expenses. I am extremely grateful that my ex-husband is very supportive of many of our 8 children’s extracurricular expenses, but the reality is I’m responsible for my own financial future so I have learned to be extremely careful with purchases and expenses.
The final topic in this divorce series will revolve around putting your kids first after the divorce.
How have you managed your finances during a separation or divorce? Please share your thoughts in the comments section at quickanddirtytips.com/mighty-mommy, post your ideas on the Mighty Mommy Facebook page. or email me at [email protected]. Visit my family-friendly boards at Pinterest.com/MightyMommyQDT.
Be sure to sign up for the upcoming Mighty Mommy newsletter chock full of practical advice to make your parenting life easier and more enjoyable.
Images courtesy of Shutterstock.