If you've watched the news at all recently, you've seen that Greece is on the brink of a financial depression as great, or greater, than the US went through in the 30's and 40's. Why did this happen?
Today's podcast will answer that question, and talk about why you should care. You may not live there, but the world is yours, so we better understand how all the parts fit together…and they do, like a giant game of Jenga.
In this podcast we cover the A-B-C's of a health savings account – what it is, why you need one and who it is good for. I've had an HSA (health savings account) for years as a self-employed person and can't speak highly enough. You don't have to be self-employed to get all the benefits of this account either.
For more information on HSA accounts, check out HSA Center.
Listener Question- “Hi Shannah, I left a salary job last year to become self-employed and am having a hard time staying on budget without taxes coming out of my paycheck each week and even getting a paycheck each week for that matter. How can I budget?”
In today's podcast I dive deep into this listener question offer a few tips to help with the self-employment paycheck woes.
1. Know your tax rate from last year- take a look at your tax return from last year to figure out your tax rate. Then, ask yourself, “Am I going to make more money this year or less?” That will decide the percentage you need to pay in estimated taxes. You must pay estimated taxes quarterly to avoid a penalty if you are self-employed. Also, get yourself a good CPA.
Here is a great calculator to help you figure out self-employment taxes.
2. Budget- An excel budget just won't do the trick when you are self- employed. You can spend way too much time using an excel budget, when a program can do the accounting for you. My favs are Quicken, Microsoft Money and iBank5 for Mac users.
Check out my How to Budget in 20 Min a Month video to get my budget template that I use with the software above.
3. Minimize Taxes- Business deductions are your friend if you are self-employed. This is why it is so important to track EVERY single one of your expenses. Other things to think about are an IRA, SEP-IRA (you can put a higher number in this retirement account) or a Health Savings Account.
Tweet us questions @shannahgame, and follow us on Instagram @millennial_money
Starting your own business is never easy, and there are SO many things that you just don't think about. When you work for a big company, you have everything that you need at your fingertips – office supplies, office space, parking, phones, computers, internet and maybe even free snacks. Sorry to say, that doesn't exist when you work for yourself.
Some of us though (me including) have a burning desire that we just can't get rid of. We simply must start our own business. If that is you, then today's Q & A video is all for you. Learn how to start your business in 4 steps so your business can soar right out of the gates.
Be sure to follow us on Twitter @shannahgame, Instagram @millennial_money and on YouTube @MillennialMoneyTv.
Donating to charity, cheaply is all about finding different ways to re-engineer your donations. Just building wealth for ourselves is really helping anyone. Sure, we are getting wealthy, which is important, but changing the world with our wealth is even more important. Find what excites you, and then find ways to donate even if your bank account is having a panic attack at even the mention of donation.
1. Smile.Amazon- Did you know that if you go to http://www.smile.amazon.com, you can make purchases and .5% will go to a charity of your choice? It's genius.
2. Matching- Most companies will match your donations dollar for dollar. Make sure you check with your HR department for their rules and regulations first.
3. Charity Miles- Your credit card rewards and miles aren't just good for you, they can be good for others too. Donate any unused miles to your favorite charity and let someone else experience the gift of travel.
4. Change Jar- We all have one. It just sits there staring at us. It's time to put it to good use and cash in on all that change. Before you start thinking about all the things you would buy with it, give it away and make someone else's day.
5. Your Time and Skills- Maybe you have a hidden talent or a skill that could offer to someone. Maybe you are a baker, or a computer genius, or are great at math. Whatever it is, giving of your time and skills is a very noble, and inexpensive way to donate to your favorite cause.
6. What Your Not Using- Got some clothes that are just hanging in your closet? Got a piece of furniture that you never use? There are people and organizations that would love to have all your old stuff. Better yet, you might be able to score a tax deduction for that donation.
Don't let money limit you. Be creative and get out there and make a difference, even in the smallest way possible.