Do you fight with your romantic partner about money? Most of us do from time to time. Disagreement about money is one of the biggest stresses in a marriage. While my money coaching focuses on professional women and business partnerships, many coaches out there address couple hood and finances. One of them is my colleague Belinda Fuchs. She is the President and Founder of OwnYourMoney.com, a Boston-based financial coaching and education firm. The interview on WKXL1450 radio about her work with couples can be found by linking to http://ownyourmoney.com/Calendar.aspx#recent_media and scrolling down to the interview.
If you have news you want to share on Where Chicks Make "Cents", please forward it to me, Kathleen, at kbk@kbkconnections.com. Let me tell the world about the good work you are doing with women and money.
Tuesday, July 22, 2008
Monday, July 21, 2008
Tax Planning: What you should know
Recently, a new business owner contacted me with a few questions about tax preparation and expense tracking. Many of these questions are common ones for women new to sole proprietorship so I thought sharing the responses would be helpful for all of my blog readers. While I having been doing this business thing for years, I believe in using professionals to get the best information possible. Therefore, I contacted Sheila M. Furlong of JR Potter CPA (http://www.jrpottercpa.com/) who was kind enough to give her professional insights. Her responses are below.
Why separate personal and business expenses?
"It is important to segregate these expenses because they are treated
differently and reported differently for tax purposes. This is especially
important in the event that an individual or a business is selected for
audit by the IRS or by a state taxing authority. In doing so, there will be
a clean trail as to how various figures on a tax return were arrived at.
This is also especially important if you have more than one business venture
or activity and if these activities share some expenses in common. "
How should you separate personal and business expenses?
"Generally speaking, it is a good practice to maintain separate bank
accounts for your personal finances and your business ventures. It is
also a good idea to keep personal expenses in a separate file or files from
business expenses so that they are easier to locate quickly after the fact.
Another suggestion is to scan those records and receipts onto your computer
(this should be backed up on a regular basis) if you have the capability so
that, in the event of a fire or natural disaster you would have a duplicate copy and would
not have to try to reconstruct the records. "
Why hire a tax person/accountant? What is the value?
"More often than not, an individual or small business owner is so wrapped up
in the day to day aspects of their lives and/or their businesses, that they
simply don't have the time to deal with the accounting and tax consequences
that result from their activities, personal & business. As more and more
time goes by, addressing the accounting and tax issues can become
increasingly overwhelming, whereas if they had been addressed on a timely
basis, it would likely have been a routine task. "
"Another huge advantage to having a good CPA is that they can not only get
you on the right track if you've fallen behind, but more importantly, they
can advise you as to how to proceed going forward and how future
transactions will be treated before they're consummated. A good CPA can
advise you on all levels, personal & business. A dollar amount can not be
used to quantify the value of having a CPA versus not, however, having peace
of mind and control over your affairs, personal & business is invaluable to
most people that have achieved these. "
If you have a question regarding accounting, finances, investing or just money in general, feel free to email me at kbk@kbkconnections.com. If I don't know the answer you can bet I will know someone who will.
Thanks Sheila for your insights!
Why separate personal and business expenses?
"It is important to segregate these expenses because they are treated
differently and reported differently for tax purposes. This is especially
important in the event that an individual or a business is selected for
audit by the IRS or by a state taxing authority. In doing so, there will be
a clean trail as to how various figures on a tax return were arrived at.
This is also especially important if you have more than one business venture
or activity and if these activities share some expenses in common. "
How should you separate personal and business expenses?
"Generally speaking, it is a good practice to maintain separate bank
accounts for your personal finances and your business ventures. It is
also a good idea to keep personal expenses in a separate file or files from
business expenses so that they are easier to locate quickly after the fact.
Another suggestion is to scan those records and receipts onto your computer
(this should be backed up on a regular basis) if you have the capability so
that, in the event of a fire or natural disaster you would have a duplicate copy and would
not have to try to reconstruct the records. "
Why hire a tax person/accountant? What is the value?
"More often than not, an individual or small business owner is so wrapped up
in the day to day aspects of their lives and/or their businesses, that they
simply don't have the time to deal with the accounting and tax consequences
that result from their activities, personal & business. As more and more
time goes by, addressing the accounting and tax issues can become
increasingly overwhelming, whereas if they had been addressed on a timely
basis, it would likely have been a routine task. "
"Another huge advantage to having a good CPA is that they can not only get
you on the right track if you've fallen behind, but more importantly, they
can advise you as to how to proceed going forward and how future
transactions will be treated before they're consummated. A good CPA can
advise you on all levels, personal & business. A dollar amount can not be
used to quantify the value of having a CPA versus not, however, having peace
of mind and control over your affairs, personal & business is invaluable to
most people that have achieved these. "
If you have a question regarding accounting, finances, investing or just money in general, feel free to email me at kbk@kbkconnections.com. If I don't know the answer you can bet I will know someone who will.
Thanks Sheila for your insights!
Tuesday, July 15, 2008
The Poor Man's Pedicure
I love a good pedicure! I still remember my first professional pedicure and how it felt to pamper myself and to have shiny piggies to show for it. It was only a few years ago, but instantaneously I was addicted.
I started pampering my self at fancy salons while on business travel and became one of the hoard at the local nail place down the street in between trips. What started out as a nice thing to do for myself turned into a much needed service. To fit in my addiction, I was having "business meetings" while getting my pedicures. In my mind, it was multi-tasking at its best.
Yes, the magazines I was reading, mostly while waiting for my turn at these salons, told me that polished nails were a must for any professional woman in today's competitive market. The cost per visit runs from $35 to $100 depending on the spa you frequent. Add on the tip and you are looking at an average cost of $80 per visit.
It was all good until the gas prices started to rise, business started to slow and I took a hard look at my personal and business expenses. Well maybe I could go without my pedicures for a while and use those funds to market my services, fill my gas tank or put food on the table. UGH...to be an adult. I could feel the symptoms of withdrawal - irritability, anxiety and a yearning for my cuticles to be cut.
After a week or two of unpolished nails, the "poor man's pedicure" was born. Like most people in recovery, you figure out other ways of coping. So I bought an inexpensive bottle of nail polish at CVS and got busy doing my pedicure. Is it the same? No, not at all. Do I still get joy at peaking down at my toes painted in pretty colors? Sure. Will I appreciate the technician and the pampering I get at the salon next time I splurge on a real beauty treatment? You bet.
Yes, times are tough and one area to cut costs is the beauty budget. My past $80 a month habit is now $80 better spent. Over the coming year, I could save over $1,000 and invest those funds in my SEP retirement account, payoff some of outstanding debt or re-invest it in my business.
Yes, beauty is a $45 billion dollar industry in this country and growing. This does not include the additional 11.7 million we spend on cosmetic procedures annually; ninety one percent undergone by women. Ironic that we make 76% of what men make and spend millions more on looking "professional."
So how much do you spend on beauty? Add up the cost of your pedicures, manicures, hair cuts , colors, highlights, make up and facials in the past year. Now consider what you could forgo and how you might invest that money in your financial future.
I truly believe that real beauty is on the inside and as women we need to not fall prey to the societal message that we need to polish, cover up and waste away to be attractive. Yes, it feels good to look good, but it also feels good to internally know you are a good person.
So the next time you go to the salon, think twice about how much you spend and why you are spending it. Remember the "poor man's pedicure" is a nice temporary solution to save some money in the short run and fight against the pressure to go broke looking beautiful.
I started pampering my self at fancy salons while on business travel and became one of the hoard at the local nail place down the street in between trips. What started out as a nice thing to do for myself turned into a much needed service. To fit in my addiction, I was having "business meetings" while getting my pedicures. In my mind, it was multi-tasking at its best.
Yes, the magazines I was reading, mostly while waiting for my turn at these salons, told me that polished nails were a must for any professional woman in today's competitive market. The cost per visit runs from $35 to $100 depending on the spa you frequent. Add on the tip and you are looking at an average cost of $80 per visit.
It was all good until the gas prices started to rise, business started to slow and I took a hard look at my personal and business expenses. Well maybe I could go without my pedicures for a while and use those funds to market my services, fill my gas tank or put food on the table. UGH...to be an adult. I could feel the symptoms of withdrawal - irritability, anxiety and a yearning for my cuticles to be cut.
After a week or two of unpolished nails, the "poor man's pedicure" was born. Like most people in recovery, you figure out other ways of coping. So I bought an inexpensive bottle of nail polish at CVS and got busy doing my pedicure. Is it the same? No, not at all. Do I still get joy at peaking down at my toes painted in pretty colors? Sure. Will I appreciate the technician and the pampering I get at the salon next time I splurge on a real beauty treatment? You bet.
Yes, times are tough and one area to cut costs is the beauty budget. My past $80 a month habit is now $80 better spent. Over the coming year, I could save over $1,000 and invest those funds in my SEP retirement account, payoff some of outstanding debt or re-invest it in my business.
Yes, beauty is a $45 billion dollar industry in this country and growing. This does not include the additional 11.7 million we spend on cosmetic procedures annually; ninety one percent undergone by women. Ironic that we make 76% of what men make and spend millions more on looking "professional."
So how much do you spend on beauty? Add up the cost of your pedicures, manicures, hair cuts , colors, highlights, make up and facials in the past year. Now consider what you could forgo and how you might invest that money in your financial future.
I truly believe that real beauty is on the inside and as women we need to not fall prey to the societal message that we need to polish, cover up and waste away to be attractive. Yes, it feels good to look good, but it also feels good to internally know you are a good person.
So the next time you go to the salon, think twice about how much you spend and why you are spending it. Remember the "poor man's pedicure" is a nice temporary solution to save some money in the short run and fight against the pressure to go broke looking beautiful.
Friday, July 11, 2008
The Silver Lining to Rising Gas Prices
Last night, I read an article in Time magazine called "10 Things You Can Like About $4 Gas" about the positive impact of historically high gas prices. I have to tell you, I started off skeptical but by the end of the story I was a true believer that there is a silver lining to the economic crisis.
The author, Amanda Ripley, highlighted some changes Americans were now making since they were feeling pain at the pump. These included:
Four-day workweeks
I have always been a fan of the four day workweek and was happy to read that some companies were moving to this model to save on energy costs.
Globalized jobs return home
It used to be cheaper to build things in countries like Vietnam and Ecuador but with the cost of transportation and shipping now sky high, relocating these factories in the United States is a great way to economize, bringing much needed jobs back home.
Fewer traffic deaths and less traffic
People are taking public transportation more and more and fewer people are driving. This not only reduces traffic and car pollution, it also decreases the number of traffic related deaths. Professor Michael Morrisey at the University of Alabama estimates that annual deaths could be cut by almost a third if this trend continues.
Bike sales are up
As a mountain and road biker, I love to hear this fact. I also like to know that people are moving more and using their own power to do errands, visit with friends and commute to work. If this trend continues, our fitness level as a nation will improve as well as our economy.
For the complete article go to the link below:
http://www.time.com/time/specials/packages/article/0,28804,1819594_1819592,00.html
The author, Amanda Ripley, highlighted some changes Americans were now making since they were feeling pain at the pump. These included:
Four-day workweeks
I have always been a fan of the four day workweek and was happy to read that some companies were moving to this model to save on energy costs.
Globalized jobs return home
It used to be cheaper to build things in countries like Vietnam and Ecuador but with the cost of transportation and shipping now sky high, relocating these factories in the United States is a great way to economize, bringing much needed jobs back home.
Fewer traffic deaths and less traffic
People are taking public transportation more and more and fewer people are driving. This not only reduces traffic and car pollution, it also decreases the number of traffic related deaths. Professor Michael Morrisey at the University of Alabama estimates that annual deaths could be cut by almost a third if this trend continues.
Bike sales are up
As a mountain and road biker, I love to hear this fact. I also like to know that people are moving more and using their own power to do errands, visit with friends and commute to work. If this trend continues, our fitness level as a nation will improve as well as our economy.
For the complete article go to the link below:
http://www.time.com/time/specials/packages/article/0,28804,1819594_1819592,00.html
Wednesday, July 9, 2008
Sorry dear, the water heater broke
This morning I got the call. Not the one where they tell you that you have won a million dollars in the Clearinghouse Sweepstakes. No, the call from the management company telling you that your water heater broke and it is going to cost a pretty penny to fix. Yes, for the first time in my life I fantasized about Ed McMahon being on my doorstep!
When I snapped out of it, I sighed, picked up the phone and called the plumber. The way I look at it I can stew all day about this unexpected expense or I can see this as another monetary challenge to be overcome. Ah, the power of choice. Isn't that what coaches talk about all the time? And I am a coach.
So here's to broken water heaters, houses that need repair and rising gas prices. While some might see these events as signs that "There will never be enough money." or "Only rich people get ahead." I see it as "Adversity makes me stronger." and "I will creatively have enough." And when I make the choice to have the perspective of enough and live in the land of plenty, I can breathe. I even can laugh. And laughter is truly the best medicine.
When I snapped out of it, I sighed, picked up the phone and called the plumber. The way I look at it I can stew all day about this unexpected expense or I can see this as another monetary challenge to be overcome. Ah, the power of choice. Isn't that what coaches talk about all the time? And I am a coach.
So here's to broken water heaters, houses that need repair and rising gas prices. While some might see these events as signs that "There will never be enough money." or "Only rich people get ahead." I see it as "Adversity makes me stronger." and "I will creatively have enough." And when I make the choice to have the perspective of enough and live in the land of plenty, I can breathe. I even can laugh. And laughter is truly the best medicine.
Monday, July 7, 2008
Stressed about money? One word can help.
This is a guest post by Stacey Shipman, M.Ed. She speaks and writes about building confidence, resilience, and stress relief for professional success. Visit her blog at http://www.staceyshipman.com.
Money. It’s on everyone’s mind these days. You can’t turn on the TV or read a newspaper without hearing about the status of the US economy, gas and grocery prices rising. Seems that everything but our home prices and salaries are increasing. It’s frustrating and frightening all at the same time.
What can be done? There is the usual – create a budget, talk about it, get some help. But what happens when financial stressors keep piling up? How can you really manage the situation and still come out on top?
One word: Resilience. Resilience is the ability to cope or bounce back from tragedy or crisis. Are you resilient?. If not, the good news is it can be learned. To learn it, you must take a look at how you currently deal with hard times. Do you get stuck there or can you see the silver lining? If you get stuck, how do you get unstuck? In addition to commitment, patience and practice, consider the following as you think about building financial resilience.
It’s temporary. It may not feel like it right now, but your current situation is temporary. So have patience and flexibility. The only constant in life is change, and certainly your financial situation can change at any time. It’s not forever. How can you adapt? Practices like yoga and meditation have helped me increase patience and flexibility in my thoughts and actions.
You have choices. That’s right, you have choices. You can choose to stay focused on the negative aspects of your financial situation or you can do something to help yourself. Knowing you have choices is extremely empowering. Avoid blaming others, and take responsibility for any and all choices you make. You have the power to create positive change.
See the opportunity. Maybe it’s time to start that new business, write the novel you’ve always dreamed of, or take baby steps towards that new career you’ve talked about. Stop focusing on what’s not working right now and you may actually experience new found professional freedom.
Take action – Frustrated, angry or fearful of your current financial situation? Good! Emotion is often the push needed to create change. Feel the emotions and then turn them into positive action. This is how many successful businesses were started.
Money. It’s on everyone’s mind these days. You can’t turn on the TV or read a newspaper without hearing about the status of the US economy, gas and grocery prices rising. Seems that everything but our home prices and salaries are increasing. It’s frustrating and frightening all at the same time.
What can be done? There is the usual – create a budget, talk about it, get some help. But what happens when financial stressors keep piling up? How can you really manage the situation and still come out on top?
One word: Resilience. Resilience is the ability to cope or bounce back from tragedy or crisis. Are you resilient?. If not, the good news is it can be learned. To learn it, you must take a look at how you currently deal with hard times. Do you get stuck there or can you see the silver lining? If you get stuck, how do you get unstuck? In addition to commitment, patience and practice, consider the following as you think about building financial resilience.
It’s temporary. It may not feel like it right now, but your current situation is temporary. So have patience and flexibility. The only constant in life is change, and certainly your financial situation can change at any time. It’s not forever. How can you adapt? Practices like yoga and meditation have helped me increase patience and flexibility in my thoughts and actions.
You have choices. That’s right, you have choices. You can choose to stay focused on the negative aspects of your financial situation or you can do something to help yourself. Knowing you have choices is extremely empowering. Avoid blaming others, and take responsibility for any and all choices you make. You have the power to create positive change.
See the opportunity. Maybe it’s time to start that new business, write the novel you’ve always dreamed of, or take baby steps towards that new career you’ve talked about. Stop focusing on what’s not working right now and you may actually experience new found professional freedom.
Take action – Frustrated, angry or fearful of your current financial situation? Good! Emotion is often the push needed to create change. Feel the emotions and then turn them into positive action. This is how many successful businesses were started.
Thursday, July 3, 2008
Kathleen to blog on the Dish
I just wanted to share the exciting news that I will be a guest blogger on the Women's Dish. This is the blog hosted by the Downtown Women's Network. Check it out at http://womensdish.typepad.com/the_womens_dish/2008/07/another-new-dis.html.
Happy 4th!
Kathleen
Happy 4th!
Kathleen
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