Preparing Your Children for the World of Accounting

Accounting is a hugely important factor of life — and it’s not just important in the world of business. You see, accounting is basically the management of money, and everybody has to manage their money whether they are an accountant or not! Everybody — whether they are a student, a part time worker, a stay-at-home parent or a big business boss — has to manage their money by tracking their income and saving it when and where they can in order to cover their future expenses. And your children, as they grow, will be no different — they’ll have to do this sort of thing too. And the best way to get them prepared for doing it is to actually prepare them! For advice on how to do so, make sure to read on.

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Teach them about recording and tracking

The recording and tracking of expenses is the most important thing that is done in the world of accounting, so it is apt that we begin with it. And, when it comes to teaching your children about it, no it doesn’t mean that you have to teach them how to become an accountant or a bookkeeper or send them off to do a an MBA Accounting online course as soon as they are old enough. In fact, when you teach your children about recording and tracking you don’t even have to use money to do it. You can just have them write a list of their toys and where they have been put when tidied away. You could play a shopping simulation game with them where they record what it is they have bought and how much fake money they have spent on it. Or you could provide them with a sheet that includes all their chores and pieces of homework, have them tick off what they do, and note down what their prize was for doing them.

When things are written down, they stay written down. And because they remain written down, they can be studied, summarised and analysed in the future. So, try to instil into your children the importance of writing down and recording everything that is of importance to them. By doing so, not only will they be well versed in the management of money in the future, but they will be far more organised in their general way of living.

Teach them about budgeting and the stretching of money

The biggest pitfall when it comes to the saving of money is spending it. Yes, it’s good to spend money and buy things that bring happiness. And yes, it’s good not to let money rule your life. But, in order to live a happy, care-free life, money must be saved and your financial future must be covered. And your children must know this.

Your children must know how to stretch their spend and most importantly what should be given precedence with what they spend. A simple and effective way to teach this is to give them a small amount of change to work with in a shop, and for them to buy whatever they want within the price range they have been given. They should also be taught that if they save the little money they are given in the for of pocket money, then it will eventually grow to be a big pile of money. To do this, you could inform that instead of buying a few sweets every week, they could save up for a number of weeks or months and instead buy themselves a brand new Playstation or Xbox game.

When money is spent wisely it can be the centre of one’s happiness rather than being the root of all evil. And it is imperative that your children know this as they grow. For more advice on how to prepare your children for the world of accounting when they reach adulthood, make sure to check out this guide.

Money Mayhem: Don’t Make These Mistakes

Money is great when you have it, but there are still tonnes of mistakes to be made that can either cost you your hard earned cash, or cost you the opportunity to make more. It pays to stay wise where your money is concerned because it can be the difference between your future being bright or bleak. There are certain mistakes that are worse than others, and can really cost you your future happiness. You need to do more than simply hold onto your money by spending wisely. These mistakes should always be avoided, and luckily, it is quite easy to do so.

Over Extending On A Mortgage

Buying a house or apartment is supremely exciting. You get to have your own space and finally put your own stamp on a property by designing it yourself and decorating how you see fit. But don’t take the biggest mortgage you can, because it could prove hard paying it back whilst still maintaining a comfortable way of living. Instead take a reasonable amount that won’t stretch you to breaking point. Remember, when you get a new home you’re likely going to need spare cash to renovate. You may need a new kitchen or bathroom so make sure you have the money there to do that. If you dump it all on a deposit you won’t, sure, you’ll have a great home, but no money to do what you need to do.

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Protect Your Money During Marriage

If you have a decent amount of savings as you go into a marriage it can be a good idea to get a prenuptial agreement drawn up. It may sound harsh asking for such a thing, but it can really save you losing out big time down the line. If you get divorced you’ll have to use the Best Law Firm to ensure you take away the majority of your cash, but if you had a prenup then it could have all been avoided. It may sound like one of those things that only celebrities and millionaires use, but you’ll be surprised by how useful they can be to protect even the smallest of savings. It may hurt your other half, but they’ll ultimately understand, you may not even need to use the agreement, but it is a great precaution to have in place and it will save you thousands.

Not Letting Your Savings Work For You

If you have any kind of savings in the bank then you need to put them to work to earn yourself a passive income. Even if it is moving them over to a bank account which offers better interest rates. These always vary so make sure you keep an eye on them and adjust them as necessary. You can also try checking out the ISA accounts. These are fixed term saving accounts which means you can’t withdraw from them until the time period is over but as a result you can benefit from higher interest rates. You can find some of the best ISA’s here.

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Amazing Sources You Can Turn To For Money Advice

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Not sure what you should do with your savings? Do you have money in an investment that is now starting to look very risky? It sounds like you could do with some money advice! No matter what type of question you have, there are plenty of sources you can turn to. Each one will be able to give you some solid financial advice. Not sure where to go for the best advice? Here are some of the best sources for financial advice.

Finance Blogs

Thanks to the Internet, it is now easier than ever to get advice about your money. One of the best places to start is by looking at financial blogs. Most finance blogs are written by people who have experience working in the financial sector. In fact, many bloggers are retired wealth managers. If you take a look through all the articles on the blog, you will find a great selection of articles on various financial topics. If you can’t find your answer in an article, don’t be afraid to send one of the bloggers a quick question. I’m sure that they will be more than happy to help you out!

Wealth Managers

If you have a lot of money to invest but aren’t too sure what to do with it, you should speak to a wealth manager, such as Ian Filippini. The wealth manager will be able to look at your current financial situation and figure out which are the best investment options for you. Not only that but once you have invested your cash, they will manage the investment for you. That means they will keep a close eye on it to make sure that your money continues to grow. If an investment looks like it is becoming a risk, your wealth manager will review other options where you could move your money to.

Charities

If you don’t have a whole lot of money to afford a wealth manager but still need some expert advice, you can always speak to a charity. There are a number of charities that have been set up to provide people with lower incomes financial advice. Most of these charities specialise in advice relating to getting out of debt and paying off loans and credit cards. If you give your local charity which offers financial advice a call, you will be able to set up an appointment to go in and speak to someone.

Financial Newspapers

It can also be worth picking up a daily financial newspapers, such as the Financial Times. These are full of local and national news stories, but they are also jam-packed with a lot of extra financial information that you won’t necessarily find in other everyday papers. The Financial Times also has a daily roundup of share and fund prices, so you can always quickly check to see how your investments are doing.

It is very important that you know where to go for professional financial advice. That way, you will be better equipped to manage your money and help it grow!

Money as Debt

There is a very interesting video produced a couple of years ago called Money is Debt.

It explains the origins of banks and money and explains how our current financial system was created and self perpetuates.

It is around 45 minutes long and so needs a little time and concentration. It’s worth the effort however if you are interested in how and why money and debt are related.

Tithing – your way to abundance?

I have recently been hearing and reading a lot about the benefits of tithing and to be honest it brings up some mixed feelings.

I’ve put togther this post below from a number of sources on the web.

I would love to hear your opinions or experiences with tithing.

The subject of tithing can be charged with emotion and yet can be a good barometer to measure how you really feel about money.

Tithing is the practice of giving away 10% of your income (tithe means “tenth”), usually to a religious or charitable cause.  Many people absolutely swear by the practice of tithing and consider it integral to the process of wealth creation.

As a wealth creation strategy, it takes a certain level of faith to believe that you will gain more by giving more away and yet this is exactly what many spiritually aware teachers such as Mark Victor Hansen or Dr Joe Vitale are suggesting. To our logical minds this perhaps doesn’t make sense. If you earn $1000 and give away $100 then you have less, not more. But not understanding electricity or gravity doesn’t make them any less valid.

The benefits of tithing include:

  • Overcoming scarcity thinking.  Tithing helps you develop a greater sense of abundance.  By giving away 10% of your income, you’re programming your subconscious to believe in abundance thinking.  This can make you more open and receptive to receiving money.  If you think abundance, you’re more likely to experience abundance.
  • Supporting a worthy cause.  If the money you tithe is put to good use, you can financially support a cause that’s important to you.
  • Achieve greater wealth.  Whenever you earn more money, your tithes increase as well, so your cause(s) receive greater financial support.  This can be extremely motivating for some people.

It is important that tithing should be done from a state of abundance.  If you harbour thoughts of scarcity as you tithe, then tithing will only become a source of incongruence and pain for you. This is the barometer mentioned earlier. If you feel in lack and are concerned with making ends meet then the idea of giving away 10% of your income can be difficult.

If you were certain however that giving money away was the quickest route to receiving more, then how much easier would it be to give? And would you stop at just 10%?

Consider the true purpose of tithing.  The purpose of tithing is to serve the highest good of all.  But it is only one of many ways to serve the highest good, certainly not the only way.  There are many other ways to serve the greater good.  Here are some ideas:

  • Give time.  Donate time to a cause you find is worthy.  Perform an act of service.
  • Give information.  Write articles, a newsletter or start a blog to share your knowledge freely with others who may benefit from it.
  • Give talents.  Use your skills to help someone who can’t afford to pay for them.
  • Give acknowledgement.  Smile at people.  Give someone a kind word today.  Acknowledge a job well done.
  • Give encouragement.  Be supportive of those around you.  Let others know that you care about them.
  • Give thoughts.  Intend the best for other people.  Give a silent blessing to the homeless person or the driver who cuts you off on traffic.
  • Give touch.  Give someone a pat on the back, a handshake, or a hug. 

 Money is not the only way to give; there are times when money is actually the weakest form of giving in comparison to those above.  Consider the parent who gives a child money rather than attention, time or love.

Understanding is not as beneficial as knowing. You will only know that tithing creates greater abundance by trying it for yourself. Take the 30 day tithing challenge and share the results with others.

There is a place where giving is painless and receiving is selfless.  Find that place in your own life, and move towards it.  As you do this, your scarcity thinking will dissolve, and a mindset of abundance will flow through your reality. Steve Pavlina