LOVE AND MONEY: TIL DEBT DO US PART?
The beginning stages of love feel wonderful. The first attraction that leads to those many romantic dates and eventually marriage, you wish could last forever. And then comes reality; living arrangements, family, careers, children, and the dreaded MONEY PIT. With song titles like “Gold Digger”,” Ain’t nothin’ going on but the rent”, or “Pay My Bills”, it’s amazing how we even manage to build healthy financial relationships with our partners.
The same energy and effort used to court our partner is needed tenfold when it comes to merging our ideas about money. Many of us float into our predicaments, romanticizing our way into an idealistic view about having it all, not being fully aware of what’s expected, or even wanting to face the harsh realities of having to deal with combining our finances. Unattended, love and money can mix like oil and water, leaving a difficult mess to clean up afterwards. On the contrary, choosing the responsible approach, love and money, handled properly, can reap great rewards and benefits for years to come.
I’ve heard many conversations about this topic from committed couples, married couples, and even dating couples. It’s amazing how brave everyone appears to be when divulging financial information to others about their situation. People tend to give the glossed over version of what they believe is control, when in fact, it’s typically done when the other partner is not even present. Ever had a conversation about someone who wasn’t present and that someone enters the room and everyone gets quiet? This is how it’s generally played out. If the situation was really under control, there would not be a need to cover it up.
It’s time to pull back those covers and expose some of these harsh realities. How do we expect to have a healthy relationship, when we can’t come to terms with one of the more important aspects of partnerships, which is combining resources. Love and money don’t have to exist at the opposite ends of the spectrum. They can co-exist successfully and even build a stronger union if handled properly. Just like a business, when combining resources, the ultimate goal is to benefit all parties involved by way of profit. Using the same concept, we should want to profit financially in our relationships. I’m not talking about living off the means of another. I’m talking about a genuine contribution for the benefit of the union. How do we achieve this?
Stop being selfish.
Unconsciously many of us operate in our relationships based on how it makes us feel. Ultimately this will cause separation and discord. The reason being is the focus is on Me, Myself and I, instead of We. When we don’t get what we want, the easiest solution is to leave. Audrey Chapman, a relationship expert and author, has cited the definition of love being: the act of being selflessly motivated for the complete emotional, financial, spiritual, and physical well being of another. Need I say anymore?
Treat your financial relationship like a business.
Operating a business can be very mechanical in nature but also proves to be very practical. Businesses are in operations for the sole purpose of profit. Management will organize, prepare, and plan to make it as successful as possible in order to reap the benefits. Your financial relationship with your partner should have the same goals. Organize, plan, and prepare yourselves for a profitable co-existence. Be sure to educate yourself on topics such as
• Life Insurance
• Health Insurance
• Retirement Plans
• Alimony
• Child support
Don’t let surprises throw you off balance. Do your homework up front. Schedule time on a monthly basis to have a discussion on finances. Create an agenda of topics to discuss and follow through with research. That’s right; this is your family financial board meeting.
Reveal your financial skeletons to your partner
There is nothing worse than finding out that your partner is financially defunct after you got married. This is where many of us make a mistake. Once you and your partner have made a decision to join in marriage, sit down and have a no holds barred discussion on your financial history. What you find out today can determine if you get married tomorrow. Don’t be ashamed, because this will demonstrate if your intended partner truly loves you in spite of your predicament. But be realistic about how to handle your problems. Create an action plan with milestones to achieve, to get you where you desire to be together.
Decide on ownership
Make the decision on who will be represented as owner on assets such as bank accounts, property, policies, & investments. This is very important. Depending upon your financial profile it may be beneficial to have only one person listed as owner. For example if your spouse has bad credit, it may be necessary to only list yourself on the deed for the property. Or, if your spouse has outstanding IRS liens or levies, all property owned by that individual would be subjected to the lien. Be very careful when making such a decision. Your best approach is to consult an attorney about the ownership statues of your particular state.
Decide if you need a pre-nuptial agreement
Do they create the air of defeat before the marriage starts? Are we preparing for the worst? Not exactly. Very wealthy individuals find it necessary to protect themselves and their legacies from potential unscrupulous activity. I have to admit that I am biased when it comes to this subject. My feeling is why would this be necessary if your partner is truly trustworthy? Although a controversial subject, it still needs addressing. Consult with an attorney before making any decisions, and good luck!
When it’s all said and done, remember the ultimate goal is to work together to resolve all financial issues whether they were created individually or together. Love and Money does co-exist with a lot of hard work, focus and most of all commitment!
Partnering for your success
Jacqueline Williams
Financial Strategist
TAXES DON’T HAVE TO BE SO TAXING
Tax season is here. Most believe that it only occurs once a year, but actually the season lasts all year. Whether for businesses or individual, events continually occur all year long that represent potential tax benefits or blunders, depending upon how they are handled. Although the major events occur from January through April, the remainder of the year should be utilized as the planning phase or preparation phase for the next filing period.
Just recently I had a discussion with a colleague about performing tax services. She proceeded to tell me what I should do during the busy season from January to April, in order to file taxes properly for clients. First she talked about how unfair the tax code is to the average citizen, and then she proceeded to explain how necessary it is to receive a refund. She viewed it as some sort of payback from the government for taking her hard earned money all year. She also talked about maximizing deductions, tax credits, and exemptions. As I listened intently, I waited patiently for her to come to the part about her role as a taxpayer and what she was willing to do to educate herself on the process. As the conversation concluded, I expressed my frustration with trying to educate individuals, who were only concerned with the size of their refund instead of overall planning. My colleague finally admitted that she fell into that category, and that her only concern was that she wanted a refund, the bigger the better. Anything that occurred outside of that reason was to be challenged. In conclusion, we both determined that we want to have the best experience possible. I want clients to be properly prepared throughout the year, and she wants to have a better overall financial experience. At this point I realized to achieve this will take a great coordination of efforts.
There appears to be a great divide that exists between tax preparers and tax clients. Why? For many reasons. The average tax client feels challenged by the complexity of the US tax code, and therefore has created a barrier of distrust concerning this system. They believe the majority who pay into the system are low to mid level wage earners, while the wealthy take advantage of laws written in their favor.
The tax preparers goal is to complete the tax form as accurately as possible, which allows the client to take advantage of all deductions and credits to their benefit. The tax preparer is committed to portraying the information based on the requirements of the US tax code.
How can we collaborate efforts so that everyone comes out on top?
The first course of action should be to clear our minds of what previously existed by way of action plans. It’s clear that what has happened has not worked very well for either of side. A shift in our mindset must occur. Change only comes from within.
Secondly we must take on new habits of behavior. The ultimate goal is to have each person financially solvent and to minimize their tax liability, while taking advantage of any credits or deductions. One must remember that every financial event that happens in our life has a potential direct impact on our tax situation. Start with educating yourself on simple processes like properly filing your W-4.
Third, we must take the necessary steps to plan in advance. Planning alleviates the stress of having to figure out important information months after it occurred. One procedure I’ve trained myself to do is to make a folder at the beginning of each year labeled “Tax File 200_”. As items occur throughout the year, such as donating clothes to Goodwill, or attending tax deductible fund raising events, I keep a copy of the notice or receipt, or whatever evidence is provided, as documentation of the possible deduction. I also make small notations or notes about what occurred and for what purpose. At the end of the year I just refer back to my folder and categorize all the information based on the type of expenditure. This process has helped numerous clients be better prepared for reporting special tax events. But still the trick here is you have to do it yourself.
Once we all make the decision to join efforts, we can all have a better tax experience!
Jacqueline E. Williams
Financial Strategist
Top 10 Reasons to Use a Virtual Bookkeeper
How much is your time worth?
Having a virtual bookkeeper is fast becoming an essential need for the busy entrepreneur, small business owner and person on the run. With the advent of new technologies and ways of doing business, the VB is here to help you along your way. Below are ten reasons to hire a Virtual Bookkeeper.
1. Focus on the business of making money.
Having a VB allows you the freedom to create more profitability for your company by allowing you to concentrate solely on your business, not the mundane tasks that are inherent in business. Making money is what business people do and the more time they have to concentrate on their business, the more money and opportunity they will create.
2. Saves you money.
Why invest in payroll, benefits, insurance, etc., when you could be delegating that money to building your business. Why worry about personnel calling in sick or taking vacations? There is no need to hire in-house personnel when a Vb can be there when you need them to perform the duties that you need in running your business.
3. Freedom to pursue pleasurable activities.
Having a VB work with you frees you up to pursue the activities that help keep your creative juices flowing. When you are bogged down wondering if the bills are paid, you are not thinking about new and exciting ways in which your business could be growing.
4. One-stop shopping.
A VB can perform duties that range from QuickBooks support & training, complete data entry & journal entries, accounts receivables/payables, reconciliations, financial statements, complete payroll, taxes, notary services, & sales & use tax reporting. There is no records management duty that a VB cannot perform or would be willing to learn.
5. Tailored to fit your needs.
Whether you need in-house training & support or would like to outsource completely, a VB can perform these duties. They are structured to fit each individual client’s needs. Fees are arranged for monthly pricing packages to hourly consultant rates. Whatever your needs are, the VB and you create your own individual working partnership.
6. Freedom to work from any location.
Whether you are in your office, your home or on vacation in Tahiti, a VB is always accessible to you. Contact is maintained through telephone, fax, E-mail, and online messaging.
7. Delegate time-consuming responsibilities.
Let a VB take care of those responsibilities so that you may pursue (worry-free) the business of living your life and running your business.
8. Highly trained personnel.
VBs are professionals that have training in the corporate, small business and professional world and have tailored their skills to meet with the needs of the modern day business professional. They have found that every professional has varying needs and offer their expertise in caring for these needs.
9. Individual service provided.
For the entrepreneur, freelancer or small business, it is important that your particular needs are seen as unique. A VB is the person who will oversee your records management system. They can train & develop your staff, maintain your general ledger, pay your vendors, invoice your clients, pay employees & payroll taxes, generate periodic reports for management review, or reconcile your accounts monthly. They act as your partner in caring for those tasks personally.
10. Let their strengths be your strength.
Why waste time on tasks that are not your primary objective? Being a successful business owner entails hiring the right people for the right job. By hiring a VB, you are partnering with the professional that has the knowledge of the inner workings of the financial and corporate fields.
JANUARY SPECIAL: Save 20% on bookkeeping services. Contact us today for details!
Jacqueline Williams
Financial Strategist
NEW YEAR’S FINANCIAL RESOLUTIONS
The holiday season is finally over and it’s time for us to get back to what we call the “grindstone of life.” The beginning of the year brings new hopes, new possibilities, new ideas, new dreams, and new ambitions. We generally take this as a time to reflect on what has happened, and look for ways to make our experiences better than ever before. One of the most common practices is to make a new year’s resolution. From health goals, to relationship goals, to financial goals, we challenge ourselves every January 1st to come up with bigger and better ideas on how to live our lives more prosperous. Goal setting is a necessity if you expect to achieve anything. I’ve asked a few colleagues about their feelings on their financial goals for the New Year.
My News Years Resolution is the affirmation I repeat to myself everyday….
“I am the Center of Abundance, all of my needs, wants and desires are fulfilled”
and
“The Universe supplies all of my needs with unlimited possibilities”
Linda Slack, Creative Director
African American Family Connections
http://www.africanamericanfamilyconnection.com
I don’t really do resolutions I set goals instead. My financial goal for 2009 is doesn’t have $ value because I find I achieve more when I’m not focused on the money but instead focus on my passion which is helping women who want to operate a business online from home. So my financial goal for 2009 is help 5000 women enjoy their life by developing and improving their skills and resources to generate revenue continuously by operating a business online from home.
Beryl Powell
Business Advisor
OperateItRight (www.OperateItRight.com)
My goal is very simple; to save more money by making sure that I pay myself first.
Richard Williams, III, PhD
Assistant Professor, Morgan State University
My position on New Year’s resolutions is that every day is a new opportunity to make a better choice. New Year’s can occur daily, giving new hope, new faith, and a new found purpose of having the best experience possible. What’s your position on this most famous method of goal setting? Share your belief by leaving us a comment.
Jacqueline (Ford) Williams
Financial Strategist