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How to Manage Your Budget Like a Tax Accountant

How to Manage Your Budget Like a Tax Accountant

Tax accountants don’t get into trouble at the end of the year because they prepare continuously for the tax season, and you can be just as organized as the pros when it comes to your budget and taxes. Here are a few tips and tricks from the experts that will keep your accounts in order.

Get Organized (Now)

Stop procrastinating. The main tip from professionals is to start organizing your budget and receipts right now. For most people tomorrow is a myth that never comes, and when we say we’ll organize our budget tomorrow it never happens. So, here’s what you need to do:

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  1. Look at the clock and consider your schedule for the rest of the day.
  2. Determine one 30-minute block of time you can spend organizing your budget.
  3. Stick to this scheduled slot. Work quickly, organizing for thirty minutes, and then stop.
  4. Repeat this process tomorrow, and every day until you are organized.

Choose a Place for Your Documents

When you have one designated place for all of your financial documents, it’s easier to keep track of them. When bills arrive, place them in your determined area immediately, and when receipts make their way home in bags, file them the same way. By doing this, you’ll ensure that everything you need of a financial nature is readily available when you’re ready to start organizing each day.

Learn to Organize Like the Pros

Once you’ve started sorting receipts and bills each day for thirty minutes, you might wonder if there’s an easier way. Here’s what the experts do to keep their budgets in order:

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  • Buy a filofax that has a tab for each month, and sort your receipts by month.
  • Get a calendar and note each bill’s due date. Check this calendar each day to see which bills are upcoming.
  • Use handy software to fill in each of your monthly bills, credits, and reoccurring payments. Find out what your monthly savings could be if you cut out some unnecessary expenditures (such as eating out, or cable).
  • Make a plan to save a percentage of your income (experts recommend 10%).

Experts and financial gurus like Mark Weinberger don’t get successful or rich overnight—they plan and prepare, just like you should be doing.

Make Apps Do the Work for You

If  keeping track of your finances manually isn’t an option, consider one of the following apps:

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  • Mint – You can consolidate all of your credit cards, bank accounts, savings accounts and other investments within this one app. Mint will also set a budget for you, let you know of upcoming bills, and tell you when you’ve gone over your budget.
  • BillTracker – Keep track of your upcoming and outstanding bills with this simple-but-handy app.
  • Shoeboxed – This genius app lets you take a photo of your receipts, and then processes and organizes the data so you can ditch the hard copies.
  • Most major banks have apps you can connect with your online banking; check with your banks and credit card companies for any apps they offer.

Get Serious About Your Future

Tax accountants have plans for the rest of the day’s budget, as well as for their retirement, and you need to be just as serious about your own finances. Once you have your daily finances organized and you’ve begun to organize like an expert by using tools and software, all that remains is savings. Find out what kind of retirement plan you are comfortable with, and plan for it. Whether it’s a company savings plan or a personal goal to save 10% of every paycheck and invest in mutual funds, you need to start today.

Your finances don’t have to be confusing or messy; all they require is a little attention and organization. With just 30 minutes a day of focused organizing and sorting and a few free online tools, you can easily become a tax accountant’s dream client: informed, prepared, and ready for the unexpected.

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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