5 Personal Finance Tips
Accounting/Bookkeeping isn’t just for businesses. A lot of people don’t realize how much they are spending on subscriptions, restaurants, interest, etc. that they could be saving. Knowing how your money is being spent can be a big step towards building wealth, which is more important than ever when thinking about your long-term future finances.
Managing your monthly budget is a task that requires keen attention to detail and planning. We know how challenging and time consuming it is to get your financial accounts in order! That’s why the team here at Kyle Nichols CPA offer on-going financial and accounting services that help our clients aware of how they are spending their money.
Here are 5 accounting tips from the professionals here at Kyle Nichols CPA, LLC to consider
1. Budgeting
Budgeting your money seems like a simple idea but it can pose a challenge for some, especially if you are not on salaried income. Budgeting involves making sure you know what you can spend on utilities/mortgage/rent, what you can save, and what you can spend leisurely. Easy right? Not always!
You need to first understand your income before you can set a budget for yourself. If you work on hourly, tips, or commission, you will need to calculate an average income over a period of a few months.
Next, you need to understand what your priorities are—things like rent/mortgage, car insurance, groceries, and other monthly bills are essentials and need to be paid first. Having a savings account is important not only for the future but for unexpected costs that may arise. Any excess left over you can spend on shopping/activities.
Starting with small goals will help you create a budget if you are just starting out. TOP TIP One of the most common financial goals is to stop eating out as much! You would be amazed by how much money you can save by just cooking your favorite meals at home. Try to cook at home a couple days a week to start out with, then gradually move towards cooking on the weekdays. If you find yourself struggling, you can always reassess your goals. It is all about what works for you.
2. Spreadsheet
Creating a budget spreadsheet is a great way to stay on top of your financial situation. A budget spreadsheet keeps a record of your bills, expenses, and transactions. The team here at Kyle Nichols CPA can perform this service for you, if you need some support. Getting an accountant is a great idea if you are busy and need extra help in this area.
3. Unnecessary Expenses
Make sure you are proactive in cutting out unnecessary expenses. Monthly subscriptions such as streaming services or apps you do not use often can add up to a huge expense! Have you visited that gym lately that you pay a membership each month? You may need to pause or end that monthly cost, too, and make the choice to work out from home. Unnecessary expenses are unique to each individual, so evaluate your hobbies and activities and make sure you are proactive.
4. Automatic Bill Pay
Setting up automatic bill pay once you establish your budget is also a great way to stay organized with your finances. Accounting for you bills first by using autopay will help you avoid late fees by making sure your bill gets paid on time.
5. Tailored Accounts
Make sure you are taking advantage of all possible account types that you think would benefit you. Checking, savings, and investment accounts are three common account types that most people have or aim to have.
An accounting term “bucketing” refers to multiple different savings accounts for different things. For example, one savings account can be strictly for emergency, while another savings account can be to pay for vacation.
We hope you found these tips helpful! If you think now is the time to enlist the help of an accountant, the team at Kyle Nichols CPA would be happy to take a look at your finances.
Contact us today to find out how we can tailor our accounting services to your unique situation.
