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Household Finances - Complete Controller

Every responsible adult and partner should have a family budget. Managing the household finances is often put on the shoulders of one partner of the family rather than both. While this is generally not an issue, it can become one when the partner not involved in the household finances needs to take over. This need to get involved can be because of illness, time, and other issues that draw the need for involvement.

While it is strongly suggested that both partners be equally involved in the household finances from the beginning, that is not always how it goes, and now one partner will need to be caught up to financial speed. You need to address five issues with your partner before handing over the household finances’ responsibility. Check out America's Best Bookkeepers

Financial Communication

Communication with your partner is key overall with any relationship. However, even if one partner is taking on most of the household finances’ responsibility, financial communication needs to occur. If this has not been done throughout the partners’ joining, it will need to be the first conversation you have, leading to the shifting of responsibility. Both partners need to be keenly aware of the current state of household finances.

Shared Goals

If you have not already done so, now is the time to sit down and figure out your financial goals as a couple. What do you want to accomplish financially, including short-term and long-term goals? These goals could include significant purchases such as vehicles and a home. It could also include luxury items such as a boat or an expensive vacation and retirement, nest egg, savings, and future investment goals. The most crucial thing in this part of the discussion is that all the shared goals are agreed upon before moving on to transfer power. Check out America's Best Bookkeepers

Household Budget

At this point, the household budget should be a well-oiled machine and no surprise to any household member if it is being followed. But for transition purposes, you should select any past budget to inform your partner of the budget’s fine details. These are the essential points of the budget that need to be discussed and understood.

  • Savings goals
  • Investments
  • Monthly bills
  • Monthly Income

This budget meeting is another way to discuss money-related problems and make any changes to the household budget concerning both partners.

Spending rules

In most partnerships, one partner spends more than the other. There are some cases where both partners are big spenders or thrifty, but this is rare. If spending rules have not already been established, this would be an excellent time to develop them together. If both partners create the household’s agreed-upon spending rules, it is more likely to stick to the rules. There are no hard and fast rules except for two. Don’t spend more than you earn and keep credit card usage to a minimum. Outside of those two rules, you and your partner can decide what is best for the household. Check out America's Best Bookkeepers

Debts

It is not uncommon in a partnership for one or both of the partners to hide personal debt. Most people find debt embarrassing or worry it will anger their partner and cause problems in the relationship. This transitioning of responsibility is a great time to lay all debts out on the table and plan together how to overcome it. The important thing is not to be judgmental but rather to be kind and merciful. You are partners and in this together for better or worse.

Shift a Few Responsibilities

If one of the partners has not been involved in the household finances, it may be in their best interest to only shift one or two financial responsibilities to them until they can take on more. The best idea is to both remain involved in the household finances for the duration of the relationship. But if this shared responsibility is not possible, and the transition does not need to be completed immediately, make the transition slower to make the shift seamless.

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers

Financial stress is the worst stress that exists! The financial area is a source of daily concern for most parents who would really like to reach financial stability state with their husband, wife and children.

I do not mean people who live in poverty and who have difficulty paying the minimum wage: for clothing, house rent, food, etc.

I mean the majority of us who have enough money to live, but we need all the time. It’s up to you-or rather, to us-who I address in this article.

 

 

We have enough money to live, but we need all the time!

However, according to the study of the American Psychological Association, money continues to be the main cause of stress among Americans. Not surprisingly, if we think about taxes, indirect rates and all costs that increase steadily even though official inflation rates remain so low … (I will not abuse the figures, do not panic !)

In this article, I will discuss how parents can overcome financial stress and live better with the money we already have! To fully appreciate our family life.

 

 

 

How to overcome financial stress?

First of all, is it really possible to live without financial stress?

And, in addition, you learn quickly! That is to say, I am not talking about increasing your income thanks to a second job, although it could be an option.

I myself went through this process a few years ago, when I was a compulsive consumer. In fact, I systematically bought a little of everything without worrying about my needs and my priorities … until I got tired of it!

Thanks to the fact that I dedicated myself to work on myself and put into practice some simple strategies, of which I will write later, I became an intelligent buyer. How could I achieve it?

 

 

 

Manage your priority expenses

If you take a few minutes to reflect on your dreams and your goals in life, you can quickly become aware of your priorities. Surely he has realized that bad debts are the ones that cause the most financial stress!

Note: Bad debts are those that have made it possible to purchase non-durable consumer goods, such as restaurant meals, trips, clothes, etc.

To help you and also to motivate you to achieve Zen status in the financial area, I invite you to answer the following questions:

  • Do not worry, it will not take more than two minutes, nothing more!
  • What do you like most in life? (Write three activities that come to mind as fast as what you should pay this month approximately).

Do you dedicate enough time to these three activities? (If the answer is “NO” for each of the written activities, ask yourself the question “why?”)

 

 

Two effective strategies to reduce your financial stress

Here I present two strategies that have helped me a lot to move from impulsive buyer to smart consumer.

 

I guarantee you that in less than a month, if you put into practice these two strategies that I am sharing with you, you will achieve -as I do- a better financial life.

 

 

Strategy no 1:  Knowing what you do with the money!

First, do you know how much and how do you currently spend your money? Answering this question is simple and threatening at the same time, I know it!

Because if we know, we cannot pretend not to know why we lack money all the time. And then, fear comes, fear of hearing about budgets … But do not worry, I do not like budgets either.

You may say to me: “I have an idea of ​​my expenses … but that’s fine, because I do not need to know exactly what I spend …”

Hum … It’s what I said a few years ago, before I said to take back control of my financial life.

Could you tell me – without varying the true amount by more than 10% – how much do you spend monthly or annually on food products, restaurants and clothing?

These expenses are the so-called variable expenses. Their variable expenses are those that vary from one month to the next, according to their needs and tastes.

 

 

 

The 2nd strategy: Decide what you would like to do with your money?

That makes you wonder “How would I like to live?” Or “How would I like to spend my money?”

That may seem absurd, but to get anywhere, you need to know where you want to go. Turn on the car, check the fuel level, but it has no precise destination, where do you think it could go?

Something similar happens when we have not reflected enough on our objectives and priorities. When we spend, we often make decisions that seem valid to us, but often we do them without really reflecting on our priorities.

How could we do to align ourselves with our expenses, our priorities and our personal values?


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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.

There is a very famous old saying that says “if you lend money to a friend, you lose the money and the friend”. And they do not necessarily have to be high sums of money. Sometimes, a simple and small amount of money with its subsequent difficulty to return it, generates a discomfort in a certain way, and not necessarily on the part of the “borrower”.

 

 

  1. Do not be afraid to say NO

You have absolutely no obligation to give your money to someone, and more being a hard earned money or saved on sacrifices. Often, you are making a dangerous investment of high risk and zero reward.

Follow your intuition, and if you do not feel comfortable lending the money to that particular person, just say NO. If your refusal to lend the friend money causes a problem, keep in mind that the most likely thing is that you would end up like this, even without you lending the money. Analyze very well who you are thinking of helping.

 

 

  1. Do not give in to emotional blackmail

People who need money will sometimes expose you to a situation much worse than they actually have, with tears included. When you see a person with that level of drama, think that when you get to that situation, it is more likely that your situation will get worse, and not better, so the probability of your money back in the short-medium the term will be quite low.

 

 

  1. Do not use your own savings

Provide only an amount that you can afford to lose in case the money is not returned, as there is a likelihood that it will be.

If you have a savings or investment product, do not take the money out of there, nor use the money destined for your emergency fund , because that money is precisely for that: for emergencies (yours).

 

 

  1. If you lend the money, do not throw anything in the face

If the money goes accompanied by a lecture in which you are going to criticize the financial abilities of that person or the bad man of business that is, the bad head that that person has, etc. … do not lend it, because that person will take the money, but he will not be really grateful to you, but humiliated by you.

And if one day you return the money, you’re feeling about you will be recorded in your head. Of course you can give advice in a courteous manner.

 

 

  1. Write a contract

Most people forget that the fact of lending money is almost never merely friendship, but a financial transaction with nefarious compliance statistics. Therefore, try to do it professionally.

Do it in a friendly way, but with a written contract: we are going to do a paper where you have given us “so-and-so” $1,000, and that you agree to return it on the agreed date. Have it in writing and that each one has a copy, at least remember that one owes money and the other owes money.

And if the thing is distorted, at least you have a document that would serve you in a legal proceeding. However, if it serves you as a reverse motivation, if that person loses his job and runs out of income, no judge will garnish anything to pay you.

That person should only tell the judge that he recognizes the debt and that he intends to repay it, but now he cannot.

 

 

  1. Put yourself in the worst possible scenario

In most cases, when we lend money to friends or family, not everything always ends as we had planned, so you should ask yourself some questions:

Will I be able to pass without being affected if I am not returned that money?

What conflicts would it bring me if they do not pay me the money?

Apart from the money, what else would I lose if I stopped seeing that person when I was uncomfortable for owing me money? And sometimes, not only do we lose our friend, but everything that accompanies that friend.

 

 

  1. Have insurance

This part may sound harsh, but if it is a friend we want to help, but something tells us that we cannot trust him too much, sometimes, some people lend the money condition to do a pre-contract where that person puts something in our name (a car, a motorbike …)

It may seem an extortionary behavior, but it is a way of having the right, but not the obligation, that, in case that person does not comply and makes us lose our money, at least we can recover all or part of the money with another active.

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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.

Many self-employed workers and entrepreneurs are now incorporating family members who, due to current circumstances, do not have access to the labor market. What at first might seem like a good idea, can become a serious problem because it is difficult to separate family and work; not to mention that when there is a lot of trust between people who work together, decisions can be made in less professional and more emotional ways. That’s why we recommend that you take into account the following tips when managing a company of this type:

 

  • When selecting or promoting someone close to the family business, it is better to do so with the help of an external technician who provides independence as well as objectivity. Thus the choice will be more in line with the professional needs of the family business, which will avoid problems and duplication of personnel in the future.
  • In the cases in which a couple establishes a family business, one must be careful because a possible separation may also end with the business, so it is advisable to anticipate possible disputes through a family protocol or an agreement. The protocol of a family business addresses not only what to do in cases of divorce, but also what to do in succession processes or incorporation of family members to the company, being able to complement the protocol with marriage agreements that establish what happens with the matrimonial property in cases of divorce.
  • For cases of rivalries between siblings within the family business, we must act with caution because it is one of the most common causes of disappearance in the family business, so it is best to prevent bad health competition clearly delimiting the functions and responsibilities of every brother in the family business. Sometimes the eagerness to lead the family business will force to create several branches. Thus a climate of constructive complementary will be given, instead of one of destructive competition. Even so, it is normal that in all family business there are conflicts between brothers. That is why it is best to establish a code of conduct that sets the procedures for resolving differences.
  • Firefighting is always a difficult act, but in the family business it is much more difficult, because after the process there may be hatred and resentment. Sometimes the economic situation forces the business to have to make that type of decisions, although in rare occasions it is due to the abuse of trust within the family business. Relying on the trust and the emotional bond of the family is the key to face the process with the maximum guarantees but that bitter swallow in the family business should not be delegated to external managers, it should be the responsibility of the family. In the event that the dismissal is motivated by conflicting relatives, the opportunity must be given to correct their behavior or to be relocated to another post where it may be more useful.
Check out America's Best Bookkeepers 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.
Kids and Finances - Complete Controller

Let’s face it, finances and revenue are a big deal. When it comes down to the welfare and care that is needed for your family, finances are important. From the family’s educational needs to wardrobe desires and nutritional demands, everything is taken care of by you, the parents. As an earning parent, being open with your kids about finances helps greatly in the long run. Many factors are considered so that the right message is laid out as children need to be introduced to responsible financial habits to help with expenditures and the entire family’s overall well-being. Check out America's Best Bookkeepers

Creating a Family Friendly Budget

The hierarchy of a family often leads to the one that is earning, and, for that person(s), following a smart financial plan may sometimes be difficult.  However, it is sacred. The amount earned is distributed equally after the bare essentials are considered. Teaching your children about finances is a great way to make the plan effective. Before acquiring the amount distributed, a scheme, or better yet, a budget, is drawn up, and everyone is considered. Mandatory payments are taken care of first such as a mortgage, tuition, utilities, etc. After that, the remainder goes into two categories, i.e., savings and spending. We recommend saving at least 15-22% percent of the whole. After that, you have the remainder to benefit everyone. Check out America's Best Bookkeepers

Get Your Family Involved

We have to face the fact that what is derived from the above will significantly reduce the original, and everything has to be planned. By letting the family and kids be involved with finances and budgeting, all needs are met, and the family’s welfare is not compromised. By enrolling their attention to the most sensitive matters of lifestyles, expenses, and finances, you educate them about their significance and provide a model to use on their own. Whatever the method, it has to be engaging for everyone.

Proactive involvement leads to less stress on your part. When everyone has an idea of the budget and the plan to carry it forward, it creates an understanding within your family. This understanding leads to the realization of the responsibilities of an adult. Teaching kids about finances who look up to their parents enable them to succeed while learning effective habits to create their economic plans. It helps them understand the value of finances in the years they are growing, making a long-lasting impact on their lives.

Who better to teach these valuable tricks to ensure their future prosperity and financial bliss than you? Undoubtedly, being open about your financial limitations can be hard to endure. But, by exposing your limitations, your family will understand how hard you work to put amenities on the table for them. Knowing the situation and teaching kids about finances allows them to realize the value that hard work has for a secure and prosperous uprising and growth. Check out America's Best Bookkeepers

Young children have the hardest time understanding the concept of money and how all of their desires are to be met. Children around the age of eight should be learning how their welfare is being managed and what the parent does for a living. This enables them to gain a great picture of reality. To mentor kids about finances, it’s almost imperative that there is a functional image of a parent in the eyes of a child who loves them unconditionally and would go to great lengths to take care of them and fulfill their desires and wishes. Being responsible for their decisions is the main focus of planning and budgeting.

Adolescent years are difficult without support from parents. School peers are a meaningful part of their lives and will help them learn about the world. Social events like concerts and parties will bear certain costs and a good deal can be done beforehand to prepare and teach your young adults about money. Teaching kids about finances allow them to acquire the skill of being prepared. Things such as allowances and Christmas money are inevitably used more effectively when they understand the value of a dollar. As set above, savings will help them prepare for any social gathering of friends. Thus, setting more reasons for them to finance and budget. Your example makes an impact, so use it wisely.

Conclusion

Being open doesn’t mean appearing weak. It means facing reality. Living within the means of what is financially provided and saving from will help your family logistically, physically, and mentally. It also helps avoid domestic arguments and protects from spousal distress.  As they say, if the wife is unhappy, no one is happy! Apprising your spouse and children about finances is an honest, open, worthy, and trust-building exercise that will be highly appreciated and, above all, draws respect for you as the leader.

 

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
Family annual expenses - Complete Controller

As a parent, it’s essential to cater to the needs and necessities of your family. In a household, everything needs attention. From groceries to mortgages, everything gets planned through budgeting and small financial practices. Unlike monthly budgets, there are many considerations to undertake when planning yearly expenses. Annual expenses can be difficult, but, if expertly planned, can be managed with ease. Here are some anticipated costs that you could incur in the upcoming year as a parent. Check out America's Best Bookkeepers

Education

As a parent, the future belongs to your children. Their education is priority number one. If you have kids going to college next year and haven’t already planned, it’s better to start right now! Education can be expensive, and obtaining a higher education is undoubtedly costly. The best way to confront substantial expenses is by foreseeing them and preparing well before the day arrives. It is imperative to keep in mind the annual expenses of the future and education of your kids.

Health

Your family’s health is of utmost importance, even coming before their education. If you have someone who needs regular and uninterrupted sequential medical treatment, it gets pricey quickly. Health insurance plays a significant role in relieving some of the financial pressures. Still, even then, it is getting more and more costly. You must always plan for the medical needs of family members and calculate the costs per those needs. Health and medical bills go hand in hand, preparing for any expenditures borne for such a necessity. Check out America's Best Bookkeepers

Vacations

Of course, vacations are a luxury.  However, if you plan for them well beforehand, you can make it happen.  This annual expense is something that everyone anticipates. Vacations are a great way to connect as a family again, especially when it seems that everyone is always on the go. Your kids are busy with school. You may get absorbed in your job. Taking a vacation helps you all come together and enables you to function better as a family.  Plan ahead, set your goals, and allow your family this luxury.

Seasonal Expenses

Different seasons bring with joy, expectation, and, yes, a price! For instance, the winter season brings about the severe cold and, thus, clothing and apparel precautions are necessary. The cooling system shuts down, and the heats turn on. If you happen to live in the south, the opposite could be right for you.  During the hot summer months, your electricity can cost an arm and a leg. Aside from that, there are birthday parties to plan, holidays to celebrate, and so on.  Budget beforehand and start saving money now so that you can enjoy these special times a bit more.

Preparedness for Unemployment

Under the circumstances of losing employment, costs, and expenditures can create a lot of mental and psychological turmoil. Foreseeing this unfortunate predicament is smart and intelligent because the modern corporate scene has already witnessed financial cut downs and layoffs. Being a realist and preparing for such harsh situations will be a blessing in actual job loss. Unemployment itself is a cause of mental anguish. It can lead to severe health problems in the shape of anxiety and depression.  Better to plan for the worst and hope for the best so that your family is ready for anything. Check out America's Best Bookkeepers

Important Events

Events such as weddings and celebrations are essential as a family. Some weddings get planned well ahead of time, so one has enough time to prepare accordingly. However, there are events like funerals that can catch you off guard. Always keep this in mind so that any sudden unpleasant news can get handled with poise and confidence. Also, you should save money at the end of each month to contribute to the annual expenses that are elemental to the welfare of the family every year.

Conclusion

Planning your annual expenses is to align yourself with enduring and striving to make sure nothing goes wrong for the sake of your family. The best means to avoid any tough time is by preparing well for any such incidents ever before they occur. By keeping track of your expenditures for the upcoming year, many plans and strategies are implemented to ensure a pleasant and beneficial life.

 

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
talk about money - Complete Controller

In many areas of our lives, we share struggles and triumphs with others, but our financial lives remain secret. Why? I think a lot of it has to do with shame. Everyone compares their own financial fitness with the parts of their friend’s and neighbors’ financial lives that they chose to share – the good part. It’s likened to viewing someone’s FaceBook page and believing that the slew of smiling moments with groups of friends and family is a fair representation of their life. That’s not their life – that’s what they want you to see!

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Talk to your kids – In our line of work, we get the inside scoop on how many households with varying degrees of wealth and income manage their affairs. One thing that is evident – wealthy families are more likely to teach their heirs about money management. If financial security and self-supporting skills are important to a family, they will talk about it. Too many kids leave home to go to college without understanding basic financial rules of thumb: What portion of your income should your rent be? When is it smart to use credit to make a purchase? How much of your income should be saved?

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Talk to your friends – When you show up authentically in a relationship, you accomplish two very important things – you make yourself teachable. You allow room for the other person to be authentic. When you are young, and it’s hip to be broke, everyone is broke, but one friend gets a good job and buys a fancy car, and then you stop talking about your finances. If you knew the truth, you might find that they are more broke than you. While you are living paycheck to paycheck, they owe more than they will make for the next six months!

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Talk to your spouse (and your spouse to be) – It is interesting how we will date someone, become physically intimate, and even meet their friends and family without ever knowing their credit score or bank balance. Then we fall in love and resent our partner for their past financial flaws. What would be so wrong with talking about those things early in the ‘getting to know you’ stage? And how many marriages that have underlying financial problems wind up in divorce? More than those that don’t – financial stress is one of the common factors found in relationships that suffer from the big three: abuse, addiction, and adultery. Developing open and frank financial conversations in the beginning of the relationship is healthy. At the point when you decide to live together, creating a household budget will foster honesty and collaboration in financial matters.

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers