How to Manage Debt During the Holidays

The season of giving is a special time to appreciate your loved ones for everything they do. To avoid feeling like the Grinch, most of us decorate our homes and gift our loved ones with thoughtful surprises. This joyful mentality usually leaves no one debt free after the holidays.

By the new year, some of us look back and question how we racked up so much debt. Instead of feeling stressed, do yourself a favor by making a plan to tackle debt early. Prosperity Concierge is your go-to bookeeper for debt counseling. We help you get and stay debt free with our financial coaching and bookkeeping service located in Reno, Nevada.

Ways to Manage Holiday Debt

This year we decided to give you a gift that will last a lifetime. Here are five ways to help you manage debt during the holidays.

Create a Holiday Budget

During this time, we all get bitten by a bug that makes us feel so merry and bright that we overspend. Creating a budget is a great way to manage how much you CAN spend. Not only does this approach help you identify where to shop, but it also helps you avoid adding to your debt. You shouldn’t feel obligated to buy gifts and to go into more debt. If you truly can not afford it, don’t buy it.

It is important to make a budgeted list and check it twice. By doing this, you can adjust gift ideas as you go. Experiences like movie tickets, escape rooms, and spa days are all great inexpensive gifts that people enjoy and will remember more than tangible items. This pre-planned list will stop you stay debt free.

No Spend Challenge

You're probably not alone if you've never heard of the “no spend challenge”. Many of us are guilty of enjoying a few personal pleasures each paycheck. This challenge asks you to cut out some (or all) of your leisurely spending during the holidays.

Depending on your holiday budget, you can customize this challenge. Some people may only have to go a week without spending for themselves while others may keep it going all month long to meet their goals. This challenge will supply you with extra cash encouraging debt free purchases.

Compare Prices by Shopping Online

There are a variety of reasons we love shopping in stores, but comparing prices online gives you access to the best deals around. That doesn't mean you have to give up the fun associated with retail therapy. We just ask that you use technology to your financial advantage. For example, feel free to compare prices while shopping in store on your mobile phone.

Make A Plan to Tackle Debt

Get Organized

Many of us own a variety of credit cards but don’t know how to pay down debt efficiently. The first step is getting organized by assessing how much debt you owe. This will help you prioritize what cards need to be tackled first.

Change Spending Behavior

The first thing you can do in this process is STOP using credit cards. Cut them up. Most Americans use their credit cards as if it is free money and then become buried in debt payments that they can no longer afford. Start using cash or your debit card to make purchases. Only buy what you can afford in cash.

Make changes in your spending habits. Make temporary sacrifices such as eliminating your daily coffee shop or dining out. This is key to becoming debt free and building wealth. Once you are debt free and wealthy, you can have guilt free coffee from your favorite shop.

Prioritize Your Debts

We prefer the debt snowball. List all of your debts from smallest balance to largest balance. Make minimum payments on all debts except for the smallest. Pay that smallest debt off first by throwing as much money at this as possible, always making more than the minimum payment until it is gone. Then take that money you spent on the previous debt and move on to the next debt creating a debt snowball. Small victories create a sense of accomplishment and motivation to keep going. Before you know it you will be debt free!

Reno Bookkeeping Services Here to Help

The concept of debt is a widespread phenomenon, but how you manage it is essential to your financial success. Let our Reno Bookkeeping team help guide you to financial prosperity. We help the Reno community become debt free with our one on one debt counseling.

Visit us online to see all the counseling services available to you or schedule a consultation with our team. Prosperity Concierge offers you the finest consulting services. Our goal is to help you create substantial wealth and fortune to empower you for many years.

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Podcast: Benefits of Hiring a Bookkeeper with Christine Matlock

Listen to my podcast Benefits of Hiring a Bookkeeper with Christine Matlock. This podcast was done by my long-time friend and coach, Ben Florsheim. To check out more of his podcasts click here.

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Tips from a Reno Bookkeeper: Why Tax Deductions Are Important for Small Businesses

When it comes to owning a small business, every dollar that you save can help grow your company. One of the easiest ways you can retain more of your revenue is with tax deductions. Also called tax write-offs by many, tax deductions help lower your tax liability (reduces your taxable income) and lessens your tax bill at the end of the year.

Determining what meets the IRS’s definition of a tax deduction isn’t as cut and dry as some may think, however. A Reno bookkeeper can help your small business manage your financial statements and organize your tax write-offs for maximum savings. Learn more about tax deductions below, and connect with a Reno bookkeeper from Prosperity Concierge for small business bookkeeping services that are customized to meet your needs.

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What are Tax Deductions?

As stated above, tax deductions lower your taxable income and, as a result, the amount of taxes owed. Deductions, or write-offs, are expenses that a business owner incurs over the course of the fiscal year that can then be applied against their gross income. Typically, tax deductions are expenses that have been made to produce additional income. These tax write-offs are essentially subtracted from your taxable income to determine how much tax will be owed at the end of the year. It’s important to note that tax deductions are subtracted from your income before you calculate your tax and are not subtracted directly from the taxes you owe.

The IRS has determined that tax deductions must be deemed as either ordinary or necessary for the functionality of your business in order for it to pass as a legitimate write-off. Let’s clear up some of the ambiguities of tax deductions.

Ordinary business expenses

An ordinary business expense is one that’s classified as being “common and accepted” in your industry. This may include advertisement expenses, purchasing common supplies, and business travel costs. A majority of businesses in any industry have these types of expenses, making them ordinary.

Necessary Business Expenses

A necessary business expense is classified as being “helpful and appropriate” for your trade or business. These are expenses that need to be made for you to operate your business but aren’t essential for all businesses. Each industry has different needs, so what might be necessary for one business may not be necessary for another. For instance, if your business is related to the construction industry, you’ll likely have to purchase expensive heavy-equipment to operate accordingly, whereas a hairstylist needs shears and hot tools to do their day-to-day job. Each example is used to help boost profits in their respective industry’s but wouldn’t be an appropriate expense in a different industry.

So, What Qualifies as a Tax Write-Off?

Many business owners are worried about what the IRS considers to be a plausible tax deduction that they simply don’t record any deductibles and wind up owing much more on their taxes than they should. If you have a legitimate business expense, don’t be afraid to claim it for your taxes. If the expense is truly ordinary or necessary for your business then taking the deduction is worth it. To determine what qualifies as an ordinary or necessary business expense, ask yourself a few questions:

Is it directly related to my business?
In what way is this expense related to my business operations, services, or products?
Has the expense been deemed non-deductible by the IRS?
Can I justify the expense to an IRS auditor?

Examples of Tax Deductibles for Small Businesses

Home office costs including utilities, insurance, etc.
Startup costs for your first of business
Interest on borrowed money
Advertising and promotions/marketing
Charitable contributions
Wages and payroll taxes
Retirement plan contributions
Education and training
Health insurance coverages
Travel accommodations

Connect with a Professional Reno Bookkeeper

Christine Matlock, owner and founder of Prosperity Concierge, knows just how important accurate financial management is for your small business. As a small business owner herself, Christine has spent much of her time prioritizing financial recording for maximized earnings.

Christine is a local Reno bookkeeper and financial coach who’s proficient in handling business expenses, creating budgets, using QuickBooks, and developing financial confidence. See how she can help your business improve its bottom line!

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Your Questions Answered: Advice from Christine Matlock - Reno Bookkeeper and Financial Coach

Anyone who runs their own business knows how much work, passion, and commitment goes into it. Though being a business owner isn’t easy, it’s 100% worth the perseverance and dedication that you give it. While you’re busy trying to build your empire, who’s focusing on your finances? If you’re doing it yourself, which most business owners are, how do you balance it all?

Creating a successful business takes a lot of time and effort from you, but it also requires some outside resources. For you to focus on important business objectives like creating new ideas and opportunities, you need to hire some professionals to help you maintain your other business essentials. Consider hiring Christine Matlock for Reno financial coaching and bookkeeping services. Here’s some more advice from the professional herself.

What advice can you give me on running a successful business?

My best advice - hire a bookkeeper and a business coach right away. Be sure to have an attorney, CPA, and insurance agent relationship for those business needs and join a networking group like BNI to start making connections. At Prosperity Concierge, we offer Reno financial coaching and bookkeeping services tailored to meet your specific financial needs. Along with this, we’ll recommend preferred business partners for your business as well. Instead of searching for a CPA or an attorney yourself, let us do it for you. We can refer you to the right people to help your business run as smoothly as possible, giving you the gift of time while increasing your bottom line.

How do I choose the right payroll service for my business?

Choosing the right payroll service depends on many things, such as:

How Many Employees You Have
If You Offer Benefits or Not
Whether or Not You Operate in Multiple States
And What Your Workers’ Compensation Insurance is Like

If you have one or two employees, then maybe an online payroll service like Gusto or Intuit Quickbooks payroll is the right fit for you. However, if you have ten or more employees, you may want to go with a specialized company such as BBSI, which offers more than just payroll. They can assist with recruiting, workers’ compensation, drug testing, and other human resource tasks. Prosperity Concierge is here to help you decide how to run your payroll by partnering with Gusto, Intuit, and BBSI for payroll and Reno bookkeeping services. Payroll services are not expensive and are highly recommended. Let Prosperity Concierge guide you to the right payroll and bookkeeping services in Reno, NV for your business.

What are some tips you have for budgeting money throughout the month?

“Budget” can be a dirty word - but it doesn’t have to be. To us, budgeting simply means telling your money where to go instead of wondering where it went. A budget doesn’t always have to be restrictive. We can help you find ways to save money and build wealth, all while still enjoying life with our Reno financial coaching services. We can certainly help you with an intense budget with strict guidelines to help you pay off debt fast and make some behavior modifications. Having a written budget with all of your monthly expenses listed and your monthly income accurately accounted for each month is key to financial success. And prioritizing the essentials like housing, utilities, clothing, transportation, and food is critical. Most of these categories have a consistent amount each month and leave you with peace of mind knowing what has to be paid and the money you will have left for other bills.

Consult a Reno Bookkeeper and Financial Coach

Prosperity Concierge can help you assess your finances to determine the best ways to use your hard-earned money. Do you have vacation goals? Want to buy a house? We can help with our financial coaching and bookkeeping services in Reno, NV. Let’s start building wealth and leave a legacy of financial literacy for your children and generations to come!

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What is the Difference Between a Financial Coach and a Financial Advisor

If you’re considering hiring a professional to work with you on your finances it’s important to know the distinctions between these two. This is one of the most commonly asked questions, but very easily misconstrued. Knowing the difference can help save your precious time, and more importantly, help save your hard-earned money.

What Does a Financial Coach Do?

The main goal for financial coaches is usually just to improve your financial literacy, and teach their clients how to handle their finances responsibly. They act much like a coach where they are improving their client's skills and knowledge to enable them to save money, pay off debt, or create a budget. A good financial coach has the following:

Completed their formal training and earned their certifications.
They can help you develop a positive healthy relationship with money, strategically plan for savings, and paying off debt quickly.
They assist with creating an individualized budget that doesn’t have to be restrictive but will keep you on track for your financial goals.
They analyze behaviors and help you develop better habits with money.
They provide accountability and guidance for you to reach and surpass your financial goals.
Financial Coaches and Financial Advisors can actually work together to help you create your legacy and build wealth.

What Does a Financial Advisor Do?

A financial advisor must be licensed and has more of a hands-on approach to your finances. A good rule of thumb is that you hire a financial advisor when you have disposable income and are ready to invest. They usually have a more in-depth understanding of finance and are qualified to give you financial advice in investing, planning for retirement, estate planning, and long term care planning.

What is the Difference Between a Financial Coach and an Advisor?

The main difference between the two is that a financial advisor is qualified to give you advice on what financial moves to make, where a financial coach is there to increase your financial knowledge and skills to make you more fiscally responsible.

Financial coaches are better for those of you who are younger and still gaining wealth and assets. Financial advisors are usually a better fit for those who have accumulated wealth already or those who are inheriting a large estate and need advice on how to handle all of their assets.

Financial coaches are also best fit for those who are tired of living paycheck to paycheck and are drowning in debt. A financial coach can lead you on the path to wealth and then refer you to a financial advisor. Much like a health journey where one is tired of being overweight, you must make changes in your financial health to make it work!

Connect with Christine Matlock: Reno Bookkeeper and Financial Coach

A financial coach at Prosperity Concierge can help you establish a healthy relationship with money by helping you create a practical budget, creating goals to pay off bills and debts, teaching you ways to modify your money practices, and working towards financial wealth and prosperity.

Not only will learning how to properly manage your money help you financially, but it could also help improve your overall confidence and well-being. Stop stressing about your finances and connect with Prosperity Concierge today! We will help you make appropriate decisions with your money so you can reach your financial goals without complication. Head over to our services page to learn more about our financial coaching services.

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Welcome to Prosperity Concierge!

Our Mission

At Prosperity Concierge, our mission is to assist local, small businesses who are interested in learning more about how to improve their financial stability and success! Christine Matlock, owner and founder of Prosperity Concierge, is a small business owner herself and she understands the difficulty of balancing time, especially when you are spending most of your time working on bookkeeping and other financial responsibilities for your business.

Services We Offer

Prosperity Concierge offers both bookkeeping and financial coaching services.

Bookkeeping

Christine wants to help small business owners manage their finances and show them where their money is being spent. From there she can assess your finances to help you be more prosperous and successful! Check out our Services page to learn more about our bookkeeping plans.

Financial Coaching

Whether you own a business or you simply want to learn how to better manage your finances, Prosperity Concierge is the place for you! Christine will help you create a practical budget, establish goals, teach you ways to modify money practices, and ultimately, work towards financial wealth and prosperity! To learn more about her financial coaching services, click here!

Reno Bookkeeping and Financial Coaching Services

If you are interested in learning more about our service plans, how to effectively manage your budget, or are in need of help with payroll and other financial services for your small business, connect with Prosperity Concierge today!