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Eliminate Credit Card Debt Through a Debt Pay Off Chart for Married Female Entrepreneurs

When couples work with me often one of the first things they want to tackle is getting rid of debt. As married women entrepreneurs we often have some form of debt from investing in our businesses. Usually we carry that debt in the form of credit card debt. I want to give you some tips that you want to keep in mind for creating a debt pay off plan.
I’ve noticed that debt is like dirty laundry that we move from room to room in our house – as we constantly shuffle our debt to the next lowest interest rate credit card. Or we carry our debt around with us for what seems like forever and that burden begins to weigh heavily on us.
Here are some essential components that you want to include when creating a debt payoff chart. For starters, you need a clear debt pay off plan. I call my debt pay off charts, “Eat That Elephant Debt Pay Off Success ChartA�.” There is that old saying, “How do you eat an elephant? One bite at a time.” The same applies for getting rid of debt. The way you get rid of debt is one bite at a time.
For starters you want to lump all of your debt into specific categories. If you have several different credit cards, you want to list each one under the category of Credit Card Debt. For example, if you have three different credit cards list each credit card under the category of Credit Card Debt and then total that up. If you have a couple of different personal loans, itemize each loan under the category of Personal Loans.
You don’t want to include your mortgage in your Debt Payoff Chart. Once you get rid of all your other debt then you can begin to tackle your mortgage. Once you’ve lumped all your debt into specific categories, total up all your different categories of debt and come up with your total debt balance and record this under the heading: Original Debt Balance and make sure you include the date.
The next thing that you’ll do is to identify the smallest debt balance. There are lots of ways of getting rid of debt but I prefer to approach paying off debt by selecting the smallest balance first, and making a monthly payment that is above your minimum balance on the smallest debt balance until that particular debt is completely paid off. I prefer this approach because it keeps you motivated. If you can pay off the smallest debt first you will be excited and you will be more likely to stay on track with getting rid of your remaining debt.
Just make sure you are making a payment that is above and beyond your minimum monthly payments for your lowest debt balance (on all other debt you’ll be making minimum payments ONLY). For example if your minimum monthly payment is $150 on your lowest debt balance you want to make sure you are paying more than the minimum each month. I always say, “Start small, grow tall.” If you can only add an additional $10 each month, then start with that and then gradually increase it.
Underneath the category of “Original Debt Balance” add another category called, “Current Month’s Debt Balance” And under that add a category called, “Improvement.” Each month add up your new debt balance (and record that under “Current Month’s Debt Balance” and subtract your new monthly debt balance from your original debt balance and record this total under “Improvement”. If you’re not charging any new debt, you will see an improvement each month.
It’s very important to know how much you’re improving each month so that you can feel excited, keep up your momentum and feel like you are actually getting somewhere.
These debt pay off tips are quite literally the tip of the iceberg. But these are very essential tips to keep in mind. If you follow these tips you’ll begin to wipe off your debt instead of having it be your dirty laundry that you either shuffle from room to room or carry in a bag slung over your back for years and years.…

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Business Plan

Love and Money – How to Be a Team Player When It Comes To Money for Married Female Entrepreneurs

When we talk about money with our spouses one of the biggest challenges that often comes up is that we feel like every time we have a money conversation that we have to suit up and prepare to go out to battle. If we’re women entrepreneurs, we feel like our spouse doesn’t understand the importance of reinvesting money in our businesses. If we have different spending behaviors or money management styles than our spouses this can become a major source of conflict and tension.
It’s easy to forget in these moments of conflict that we are actually on the same team. Instead we find ourselves indulging in the “All About Me Syndrome” and we forget that the person we are going to war with is our spouse – the person that we loved and adored so much that we chose to enter into the commitment of marriage.
So the question becomes how can you and your husband begin to work as an inspired financial teamA� together? Especially when you’re in the middle of an argument and remembering that you’re on the same team is the very last thing that you feel inspired to remember in the moment.
When my husband and I first got married, we talked about creating a vision for our marriage and our financial lives. We came up with an inspiration to be a “World Class Winning Team.” I remember shortly after we created our vision we found ourselves having an argument. In a brief moment of clarity I asked myself internally, “How would a wife who was being a real team player handle this situation with her husband?”
Immediately the answer came to me, “She would listen without judgment or blame and she would completely hear her partner’s position and share her thoughts lovingly and calmly.” I was able to immediately integrate my inspiration. I chose to listen to my husband in the moment instead of stubbornly resisting what he had to say.
And then a surprising thing occurred, because I showed up in an open and receptive way, my husband’s defensiveness completely dropped and we ended up having a very connecting and productive financial conversation.
How can you become more of a team player with your spouse? Begin to explore where you consistently become defensive in your money conversations. Ask yourself “Where have I been engaging in money conversations as if ‘it’s all about me?'” This will support you in taking the first steps to becoming more of team player when it comes to having peacefully and productive money conversations with your spouse.…

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Business Owner

How to Avoid Five Financial Mistakes Entrepreneurs Make

Business startups are all about the bottom line — profitability is the standard by which success is measured. For many first-time entrepreneurs, “profitability” is an elusive concept. At its base, it makes perfect sense — bring in more cash than you spend, and the business will be profitable. At its core, however, there are numerous factors that keep a viable idea from ever actually turning a profit. One of the most common problems in business startups boils down to poor financial management. The fundamental mistakes that entrepreneurs make can be easily rectified with just a little effort and attention to accounting processes.
The most common financial mistakes made when starting, and how to avoid them, are:
Lack of fundamental accounting knowledge
Entrepreneurship requires a strong basis in basic business essentials, and standard accounting skills in particular. Simply purchasing an off-the-shelf accounting system is not enough — the tool is only as useful as its user. From correctly categorizing expenses to ensuring debits and credits are balanced, knowing how accounting systems work, and why they work, is not only a good idea, it is an absolute necessity.
Failure to develop accounting procedures
Every financial transaction in a business should follow a consistent, written, formalized procedure from decision-making to recording. That is, every income and expense should follow the same path from approval to data entry into the accounting software. Without standard procedures, transactions get lost, decision-making becomes inconsistent, and the numbers never seem to quite work out. Everyone involved with the company’s accounting system need to be handling transactions in the same manner, and those procedures need to reflect an understanding of financial controls.
Inaccurate data entry
Along with developing standard accounting procedures, it is essential to include steps that verify the accuracy of the data entered into the system. This may seem obvious, but every struggling business we have encountered had serious data entry errors in the books. A small error — an extra digit, transposing numbers (2521 instead of 5221) — can wreak absolute havoc in a fairly short amount of time. Establishing at least one double-check procedure can eliminate the majority of these mistakes.
Failure to review and analyze
One of the great features of every available piece of accounting software is a set of easy-to-create financial statements. Unfortunately, many entrepreneurs are number-phobic and do not take the time to learn how to use these crucial tools for financial management. A simple, consistent review of the numbers and running a few basic financial ratios can be extremely revealing, both in terms of potential problems and identifying exploitable opportunities. Business owners do not have the luxury of being “not-a-numbers-person” — business is all about the numbers, thus it is essential to use the available tools to keep control over your venture.
Failure to budget
It is nearly impossible to launch a successful startup without a well-researched budget, and even more difficult to survive without planning out the business’s financial future. No budget generally indicates no planning, and tends to result in throwing good money after bad, especially during lean times in the venture. Setting a budget allows a business to maintain focus on a well-developed strategy while ensuring the cash flow is sufficient to keep the business alive and growing.
It is a common but inadvisable error for first-time entrepreneurs to underestimate the importance of solid financial management. Simply ballparking expenses and taking a see-what-happens attitude with the cash flow are quick paths to failure. Doing your homework and mastering the fundamentals of accounting are not just a good idea, they are the only way to build a viable business idea into a thriving company.…