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Archive for the ‘organization’ Category
Right now, you’re probably receiving tons of tax documents. 1099’s from clients, W2’s from employers, statements from loans and savings plans….all kinds of important stuff. I hear all the time that people lose documents or can’t find one piece of paper and have to file an extension. This extra document you’re filing because you can’t find forms is time you could be using on your craft!
Here’s another idea:
- Create a tax basket and place it near your front door (or wherever you sort through your mail).
- As you come across tax documents, place them in the basket. Don’t open them yet. Just know they’re in the right spot.
- On a quiet weekend day, open each envelope and review the documents to ensure your income and expenses have been documented correctly. Leave yourself plenty of time before tax day for this task. If something is wrong it might take a few weeks to receive a corrected document.
Using the “tax basket” strategy, you’ll never lose a document and will save tons of time before tax day.
Posted in organization, ProsperiTIP, Taxes | No Comments »
Posted by Miata | February 15th, 2012
 I have to admit, I’m a perfectionist about planning my business. While making dinner, my mind races through lists of ways to perfect my craft. When folding laundry, I’m usually strategizing about my next potential project. My mind seems to always be at work on the next “better” idea, even when daily mundane tasks rule the moment.
I was reading management guru Tom Peters recently, who stated that balance is baloney. Top people in any field don’t have balance. They obsess. They strategize non-stop. They’re always looking for the better idea, the perfect “new thing.”
As a bit of an obsessor myself, I mostly agreed with his statement, except in one area. You shouldn’t obsess about your money.
It’s actually easier to obsess about business if you’ve done a good job of setting up a sound financial structure. By taking care of some small details today, you’ll be able to focus all of your energy on your craft. (more…)
Posted in Business, Goals, organization, Savings | 2 Comments »
Posted by Miata | December 15th, 2011
Getting financially organized is probably the biggest contribution you can make to your  long-term financial stability.
Dive in to Artist’s Prosperity 101 for step-by-step guidance that will get you organized in four short weeks. In the meantime, here are some quick organizational tips:
- Get rid of bills once you’ve paid them. Purchase a shredder to destroy sensitive financial information when you’re done with it. Or consider contacting vendors to set up “paperless” accounts.
- Use a software program to organize your finances quickly.
- Set up automatic bill pay to make sure bills are paid on time.
- Create envelopes or files (labeled with categories) to store receipts needed for tax purposes. Put them in the appropriate file at the end of each week so they don’t become unmanageable.
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Posted by Miata | August 15th, 2011
Hi Miata,
Should I set up a separate business account for the small amount I earn from my craft? It seems like overkill because I make so little.
- Jasmine
Dear Jasmine,
Absolutely.
Keeping craft money separate from household funds is important for many reasons. Here are a few:
- Separate funds create a scorecard. Many artists want to track how they’re performing financially from their art. By keeping it separate, you’ll have a gauge of how far you’ve come. You’ll also know how far you need to go, which can be an important motivator.
- Supplies for your craft should come from craft income whenever possible. This helps you become a better business person and make decisions based on profits and losses. By keeping purchases in line with income you’ll avoid investing hard-won money into a “hobby” and remember to make sound decisions whenever possible.
If the dollars you earn are very small, and you’re also not spending much money on your craft, you can start by setting up a personal savings account with your current bank. You won’t need a business account until you have a steady stream of income and/or expenses.
Check out Artist’s Prosperity 101 for clear and simple instruction on the financial separation of your business life from your personal life. AND, don’t forget to register for The Power of Prosperity – a completely FREE teleseminar/webcast coming up on Thursday, July 21st. I’ll address your question in more detail and share lots of tips to help you powerfully manage your money as a Creative Soul!
Posted in abundance, Classes & Workshops, Income/Expenses, organization, Savings, Taxes | No Comments »
Posted by Miata | July 7th, 2011
 It’s time for the big reveal: I’m not a fan of spring cleaning.
Once I’ve finally dug in and begun the process, I enjoy organizing shelf space and rearranging household supplies so they’re easier to find. When it’s over, I’m always glad it’s done, and I love that when I want something, it’s right at my fingertips. Yet, if you asked me what my least favorite five tasks around the house would be, cleaning closets and organizing the garage would be near the top.
I mention this because the other day someone mentioned that for her, financial organization is like a trip to the dentist. She dreads the process and can’t wait for it to be over. My friend said that she’d much rather focus on her craft than organize her money. She loves the tools that I’ve made available and the coaching that she receives, but in the end she cried, “Miata, why can’t someone just do it for me?”
Ouch.
Let’s be clear. Most of my audience isn’t in love with the financial planning process. They don’t relish budgeting. I can’t recall any stories about my students jumping out of bed in the morning, clapping hands and screaming, “It’s time to review my car insurance!” Shockingly, it doesn’t happen. So why do people subject themselves to this process? Why do they endure the pain of learning how to streamline their financial lives? Wise savers know that the same truth about organizing closets applies to their financial picture. Once it’s clean, everything goes more smoothly. Items don’t get lost. Money decisions quicken. Accounts are easier to follow.
A solid financial plan frees up more time for your craft
(more…)
Posted in abundance, Creativity, Goals, Mindset, Newsletters, organization, Uncategorized | No Comments »
Posted by Miata | June 2nd, 2011
 Choosing your bank isn't child's play. Unless it can turn into a helicopter, which is just awesome.
Keeping two bank accounts is a key part of your money plan. One account you use to deposit paychecks. The other is your everyday account you’ll use to pay expenses. Your plan works if your paycheck account is difficult to reach and the expense account is accessible and easy to operate.What should you look for in a bank? How do you open these accounts?
Maybe you’ve seen Clint Eastwood’s 1966 film The Good, The Bad and the Ugly. Unfortunately, banks generally skip the good, and your choices are between bad and ugly. Still, customer service has become a bigger focus as Congress has forced banks to discontinue outrageous fees for ATM overdrafts and to clearly state terms on credit statements. Banking has a long way to go, but I’ll admit it’s much better than six months ago.
To find the right bank account, don’t rely on what the account executive offers. They don’t know your goals. Here’s a list of questions you should ask to ensure you’ll open the right account for your plan:
(more…)
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Posted by Miata | September 9th, 2010
 Budgets? Neigh, I say. Don't be an ass! You’ve decided it’s time to take control of your money. Bills keep piling up, creditors incessantly call, and now you know it’s time to start. Sound familiar? You aren’t alone. Over fifty percent of Americans have some credit card debt. The housing crisis still isn’t over. The unemployment percentage hovers around double-digits.
Many of us need to grab the reins and find a plan.
Where to begin, though? How do you start turning pennies into dollars, and dollars into ten dollar bills? Here’s step number one:
Let’s get the word out the the way. The dirty “b” word.
Budget.
(more…)
Posted in Income/Expenses, money plan, organization | No Comments »
Posted by Miata | July 29th, 2010
 The course is steady if you know where you begin. This week we are going to begin examining the second step of the Artist’s Prosperity System: Clear your financial clutter and get it organized for good! There are several elements involved in truly getting financially organized. It can be easy to feel a sense of overwhelm which keeps us from moving forward. Over the next few newsletters our goal is to guide you through each element—so just hang in there, go one step at a time and don’t stop!
Perhaps you are someone who has spent the time putting together a budget: you may even feel you try hard to work within that budget. Then why do you still have so little money every month? You should have some left over yet, when it is time for your next paycheck, you are counting the hours until you receive it so that you can go buy groceries. If this scenario sounds familiar, you are not alone.
So, how does this happen? Well, there are a few reasons.
(more…)
Posted in Income/Expenses, Newsletters, organization | No Comments »
Posted by Miata | May 19th, 2006
 Another artist at tax time. You have just filed your taxes and you breathe that sigh of relief. It’s over for another year. Or is it? The answer is no, or at least it should be, because tax season is just about to begin. That’s right. The organization it takes to make the most of your taxes begins now.
As artists it is essential to understand that regardless of your current income, if you actually intend to make money from your craft, there are ways in which you must treat it like a business. There are two critical concepts you must become familiar with to be fully prepared to do your tax return. Without them, you are not running a business—you are engaged in a hobby—and should never expect that hobby to be financially profitable. The first is you must be organized. Organization means being sure you have all the documentation you need and that you have a place for everything and have everything in its place. You might find that a computer-based program, such as Quicken or Quickbooks, is the answer to keeping all your records in order. If you are more comfortable with paper then be sure to get a paper organizer that is efficient and easy to use. Actors have an enormous resource in a company called Holdon Log. They provide both computer programs and carefully designed log books that allow actors to record everything from auditions and callbacks to expenses related to creating and maintaining your professional image. Find tools that work for you and use them throughout the year to keep the records you need to efficiently and effectively file your taxes.
The second important concept is to keep your business finances separate from your personal finances. Have one bank account for each business you have and use this account to pay all your business expenses. This is a professional way to conduct your business affairs and it is a good way to keep your records in order. Again, remember that your acting, photography, writing, or any other creative career is a business and should be run out of a separate bank account. If you do not have funds in your business account then loan your business some money and keep careful track. The business can pay you back when times are better and in the end you will know that your business paid its own way.
Become familiar with the tax system and how you can maximize your return. One way is by starting a home-based business. You can earn money and with the deductions you will have, such as a portion of your rent/ mortgage and your utilities, you will be able to keep more of that money in your pocket. You can even write off your losses against other sources of income. The best thing to do is hire a tax professional to handle your taxes, someone who will be able to maximize the amount of money you can save. Remember, you have to spend money to make money. There are, for example, accountants that focus on preparing tax returns for actors and/or other entertainment industry professionals. An accountant that specializes in filing returns in your area of expertise may be your best choice.
Finally, there is an avenue that is available to explore, yet is something you may not be aware of, may not have considered, or simply may not believe is even possible. This are tax advantage investments, such as retirement plans, self-directed IRAs, and real estate. I know you may be thinking this is crazy, you hardly make enough money or you don’t know anything about investing, but if you take it one step at a time and do your homework, there are ways that you can actually have your money start working for you.
The key is to know your options, be organized, and conduct yourself in a professional manner. A very helpful resource to understand taxes better is the book Lower Your Taxes—Big Time! Wealth-Building, Tax Reduction Secrets from an IRS Insider by Sandy Botkin, CPA, Esq. You will find valuable tips and rules explained in a way that completely non technical people can understand. The chapter entitled How to Shield Yourself from the IRS Weapon of Classifying a Business as a Hobby is absolutely critical and will pay you back for the cost of the book many times over.
Whatever you do, do not leave your tax preparation until mere weeks before your return is due to be filed. This will cause you an unnecessary amount of stress and may cause trouble for you with the IRS if you do not have your documents in order. It may also cost you money you can’t afford to pay.
Posted in organization, Taxes | No Comments »
Posted by Miata | April 21st, 2006
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