Interested in having some financial wealth in your lifetime? Well, being financially responsible comes easy to no-one. It’s hard work. It takes dedication. It requires discipline and respect… Respect for the goals. It does not require great math skills, although you will be surprised at how much better you are at math than you think you are. It does not require much but your attention… attention to details. We all want the finer things in life, but we’re all living way outside of our means so finding a happy medium is all we should expect and strive for. Long term, strive for greater wealth after taxes, and low interest rates all the way around.
Table of Contents (pages to come)
page 1: Save As – Bank Statements, every month. The easiest way to learn the process is to by using your debit card and bank statement to keep most of the records. If you’re a cash person, it can still be done but it’s a more manual process. write down or list all of your expenses or bills. How much money do you NEED each month and where does it go. You should include yourself here, “pay yourself first”.
Page 2: Allocate and reconcile. The bank statements provide a majority of the data you need to do your bookkeeping so that you can prepare the financial statements. Profit/Loss Sheet, Balance Sheet, and Cash flow statement. These statements enable you to make good and adequate decisions, and help forecast for the future.
Page 3: Employees or employers or self employed or investor. You’re probably all of these nowadays so you just need to know how to keep your “books” and records separate.
Page 4: Income Taxes, Employment Taxes, Property Taxes, Sales Taxes, and Excise Taxes. You pay all these types of taxes, every year, all year.
Page 5: Self-Employed: If your paycheck is provided with a stub attached that shows information like taxes withheld and year to date information then you are most likely considered an employee of someone else, you will receive a W2 at tax time. If simply receive cash (see details) or checks, or run your own square then you are self-employed, and will receive a 1099 Misc at tax time (see details).