Taxes & Stress: 5 Steps to Simplify and Soothe

Taxes and stress go together like death and taxes. No wonder we get stressed and put off the pain as long as possible. Stress amps up our fight/flight alarm system. Breathing – even 5 or 6 breaths stimulates the relaxation response and both systems can’t be active at the same time.

No wonder we avoid doing the things we KNOW we SHOULD be doing. But make a VOW to yourself to follow these simple and key guidelines to make Tax Season easier next year.

The Inner Procrastinator is quieted with baby action steps along the way. Baby-steps feels doable and build confidence and STOPS the avoider in her tracks. We all have to do our taxes, eventually and if you're a woman in business, you don't want the stress or weight of back taxes weighing you down with guilt.

5 Steps to Simplify and Soothe:*

1)   Gather Your Records In One Place: This includes mortgage payment receipts, medical bills, donations, expenses. Designate a file folder. Start NOW.

2)   Expenses – Especially if you’re Self-Employed. Have a TAX FILE with a folder or file for receipts.

For example: When I take a prospect to lunch or coffee as soon as I get home I write the name of the person on the receipt and file immediately. 

If Self-employed Medical, Dental or long-term care Insurance is deductable.

TAX TIP for Self-Employed: Business expenses must be ordinary and necessary to be eligible for deduction. Ordinary is expense common in your field. Necessary is one helpful and appropriate for your business.

3)   Use Quickbooks for easy reporting or hire a bookkeeper and ask her/him for reports each month so you know your numbers throughout the year and how much to be saving for quarterly taxes year end.

4)   Britany suggests keeping up-to date on tax laws but I would be totally overwhelmed by that. If at all possible, hire a tax preparer or use the Quickbook reports each month and then give a year-to-date to your Tax Person.

5)   Retirement Plans:  Up to 40% of women retire in poverty. Sad fact and social security isn’t enough to maintain a decent lifestyle.

ESSENTIAL MONEY STEP:  If you don’t already have a retirement plan START ONE this year. Ask your friends and colleagues for a reputable planner or advisor. A planner has more education and initials after their name and look at the big future picture.

I recommend looking for women planners / advisors in your area – meeting with 2 or 3 and then making a decision. One of my 30 something clients started saving $250.00 a month last year automatically. She said she’s not missing it and if she doesn’t touch it, by the time she’s ready to retire she’ll have a good next egg. Another started with $25.00, but in 6 months will up it by 10%. That’s great because it’s building a habit.

We get more overwhelmed when we’re not prepared. Start NOW for 2015 Tax time and you’ll be happier and more peaceful. It's the best gift you can give yourself - and then treat yourself to a new pair of shoes?

**Adapted from Britney Castro, CFP, CRPC  article posted at LearnVest.com 15 Tax Saving Tips You Can Take Now

WANT TO USE THIS ARTICLE IN YOUR NEWSLETTER OR ON YOUR WEB SITE?

You can, as long as you include this complete blurb with it:

Certified Money & Business Coach, Professional Speaker & author, Lynn Telford-Sahl, writes the weekly PowerUP Your Money blog for women in sales and small business. If you’re ready to PowerUP your Money, your Business & your JOY get your FREE Financiial Strategy Session with Lynn at www.powerupyourmoney.com or take The Money Quiz to find out your Money Strengths & Challenges.

Women in Business: Try Wineing Away the Tax Blah’s!

Tax Day is April 15^th. If you’re a woman in business you may be feeling a little worried or even whiny about the whole process.  You might be wondering how much you’re going to be paying or what you owe, and then how you’ll pay what you owe. (See how our mind can wind around itself with worry?)

Of course, if you’re on top of your record keeping over the past year you know which way it’s going to go. And, if you’re paying taxes, that’s a good thing, because it means you MADE money!!  Yeah you!

But some of us women in business aren’t on top of their money game and feel reactive at this time of year and are madly gathering info for your tax person. Make a vow to be more proactive next year and hire a bookkeeper (it’s worth the expense) who will keep the numbers for you, or put a system into place like Quickbooks. Do it now, not next December. 

Whether you’re in the mood to WHINE or WINE, it’s ok.

Here’s what a group of friends and I are doing to COPE with tax time. We’re gathering together to WHINE (not much) and then to WINE away the Tax Blah’s and oh yes, eat. Doesn’t this sound a lot more fun than worrying or avoiding?

I want to suggest you do the same – start inviting. You’ll feel better and so will your friends. Then, go see the tax person and resolve (and support each other) to be more PROACTIVE next year.

WANT TO USE THIS ARTICLE IN YOUR NEWSLETTER OR ON YOUR WEB SITE?

You can, as long as you include this complete blurb with it:

Certified Money & Business Coach, Professional Speaker & author, Lynn Telford-Sahl, writes the weekly PowerUP Your Money blog for women in sales and small business. If you’re ready to PowerUP your Money, your Business & your JOY get your FREE Financiial Strategy Session with Lynn at www.powerupyourmoney.com or take The Money Quiz to find out your Money Strengths & Challenges.

Taxes & Fear Go Hand in Hand for Women in Business

Why do women in business make themselves so crazy with the fear, avoidance and resistance to paying taxes? We know they’re due a year ahead of time. Yet, we procrastinate up until the last day. A hundred years ago if you didn’t pay your taxes you could be hauled off to the poor house. While that’s not the case any longer, as April 17th approaches I notice a strong whiff of anxiety as I’m out networking and talking with women business owners. It’s hard to not get caught up in fear when it’s so prevalent. But, of course we don’t talk about that feeling of fear in the air. We put on a game smile, pretend as if everything is just FINE and struggle in silence because we think others know so much more or are doing so much better than we are.  Not the case.

As a life and business coach talking to women in business every day a couple of things are clear. One – when you’re self-employed the goal has to be to SAVE enough over the year to be able to pay your tax bill at the end of the year. But many don’t. They’re caught up in daily survival, often are just making ends meet and don’t know how to develop a longer-term perspective.  Others get caught in the vicious loop of paying BACK taxes, which makes it doubly hard to pay this years taxes. Ow! And then you have folks that earn plenty, but don’t save a thing because they just don’t manage their money well. As Robert Kiyosaki, of Rich Dad Poor Dad fame says, “It’s not how much money you make. It’s how much money you keep.”  That comes home to roost as we get older.

Second, the economy has wounded the heart and soul of many women (and men) in business. Losing a house, having to file for bankruptcy, downsizing your life and expectations takes its toll. Sometimes it’s hard to imagine things getting better. But imagine and work towards this, we must.

So then the question is – how do you deal with money fears that create avoidance and exaggerate money troubles? I know you’re not going to like this but the answer is to courageously look at the facts as they relate to your money situation and create a plan to deal with it. Get help if necessary. Women in business: we get past fear by confronting what makes us afraid and by taking the daily right action necessary to stay conscious of what’s happening with our money. As Suze Orman says: “Every money challenge can be solved by the person you see in the mirror.”