Taking Control of Your Finances: Expert Advice for a Brighter Future
Are you tired of feeling overwhelmed by your financial situation? Whether you’re struggling to pay off debt, navigating the world of freelancing, or trying to grow your small business, getting expert advice can make all the difference.
The Importance of Professional Guidance
As a small business owner or freelancer, working with a Certified Public Accountant (CPA) can be a game-changer. These qualified financial experts offer broad business knowledge and financial expertise that can help you reach your goals. From financial and tax planning to business valuation and accounting services, a CPA can provide valuable guidance throughout the year, not just during tax season.
Saving While Paying Off Debt
So, how do you save when you’re still paying off debt? According to Brooke Salvini, CPA/PFS, CFP, the key is to stay motivated and focused. Continue to save, even if it’s a small amount, and automate your savings with a monthly or weekly transfer. Set up autopay on your debt and work out a strategy to pay off the highest-interest debt first. Celebrate your milestones and increase your savings along the way.
Prioritizing Your Debts
But how do you determine which debt to pay off first? Make a list of all your debts, including the outstanding balance, interest rate, and minimum monthly payment. Decide how much more you can pay each month and allocate that amount to the most expensive debt. As each debt is eliminated, roll the payment amount down to the next debt, and so on.
Savings vs. Investments
When it comes to saving vs. investing, it’s essential to understand the difference. Savings accounts are for money that needs to be kept safe and accessible, such as an emergency fund or specific expenses due in the near future. Investment accounts, on the other hand, are for long-term growth and involve taking on some level of risk.
Finding the Right CPA for You
So, how do you know you’re getting the best value from your CPA? Research their credentials, check their record with the state Board of Accountancy and professional organizations, and review their website and CV. You want to feel comfortable with your CPA and confident in their ability to guide you.
Planning for Taxes with Irregular Income
If you have an irregular income, planning for taxes can be especially challenging. Consider hiring a CPA to help you navigate the complexities of gig work and self-employment. They can assist with scheduling estimated tax payments, calculating your marginal tax rate, and taking advantage of tax savings opportunities.
By following these expert tips and seeking professional guidance when needed, you can take control of your finances and build a brighter future for yourself.
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