Tag Archives: Income

Keeping Records

Yeah, i’ve harped before about keeping good records and tracking expenditures and income, but when i hear the same people complain about having no money to pay bills, yet when asked if they keep records, they say ‘no,’ it causes me to wonder if they just want to complain, don’t have any idea of where their money is being spent, or perhaps don’t want to know.  But, like anything, if one doesn’t make improvements, then you’ll always be able to complain about something and that is stressful.

Here’s a short article i stumbled upon.  “Make a Personal Budget and Keep Track of Spending

It’s imperative and so easy to keep track of expenses.  Most can simply use a notebook and pencil.  Even easier is to have a calculator in the mix. (Coffee optional)  Write down the amount or ask for a receipt when you stop by the coffeeshop for a latte.  Picking up a soda from a vending machine – well, you’ll have to write it down.  Whatever you need to do, keep track of even the smallest expenditure and categorise it.  THEN, you can make decisions to change and improve your financial situations.  Reimburse your cash expenditures by writing a check to maintain your petty cash stash.  Sure, you can take cash out of your paycheck each month, but it makes it more real when you have to write a check.  Keep your petty cash in balance.

This can be applied to businesses as well, but managing one’s household and personal expenses is the first step.  Personal finance record keeping should begin in the preteen years – as soon as you earn or spend money.

Cheers!

tauna

Farm Finance

Every business or family finances have some unique components that you must determine to help your business or home run smoothly.  However, there are some very basic tools that apply to all.

  1. Bookkeeping-every family and small business should employ bookkeeping principles.  These will include records by account, labor costs, profit and loss (income statement), working capital, balance sheet, debt-to-asset ratios.
  2. Use a double-entry system to keep track of where your money is spent.
  3. Set up basic accounts, these may need sub accounts depending on your company, but here are 10 basic ones:  sales, expenses, payroll, and retained earnings for your income statement and cash, accounts payable, accounts receivable, notes payable, inventory, and owner’s equity for your balance sheet.

 

Most of us have taken basic bookkeeping in high school and so already have the foundation for setting up appicable accounts for our own families and businesses.  The stumbling block is actually doing it!  If you wonder where all your money is at the end of the month or year or complain about the lack of funds, then it’s time to make a resolution and commitment to keeping track of where your money goes. This especially includes all those little cash purchases; coffee, candy bar, water bottle, etc.  Remember, too, you don’t have to buy software to do this.  For millenia, record keeping has been done with pen and paper.  However,  if computer software will encourage you to move forward, I think there are some very reasonably priced packages out there.  Many you may be able to try out for free for a short time.

Here’s a budget helper that seems to be free, but i don’t know anything about is.  It is Dave Ramsey’s EveryDollar free budgeting tool.  Plus Dave Ramsey has a bunch of free tools available.

Whether you choose computer software or a pencil and notebook, start this year taking control of your finances.

Cheers!

tauna

The Road Ahead

Reprinted in part from Farm Journal, December 2015.

Reassess, Dump Loser Assets

Smart farmers will survive the challenges that arise in 2016.  Just as they’ve done in the past, they’ll reassess their spending and recognize cash is king.  I also recommend the following:

Understand true cost of production.  Account for every dollar.  It’s how you’ll quantify whether you’re headed for profit, loss, or breakeven.  Don’t overlook your true living expenses, including what you set aside for college and retirement.  “Tis the year for living frugally.

Scrutinize every line item in your budget.  It’s the only way you can stop haemorrhaging cash and become leaner.  Is there a way to cut your overall costs?  I challenge you to cut all expenses by 1%.  It might seem small, but I’ve witnessed this exercise lead to six-figure savings.  Question input costs and negotiate with suppliers.

Be sure to liquidate all non-productive assets.  You can generate thousands of dollars by selling losers.

Stay in contact with your lender.  They realise down cycles occur.  The last thing you want to do in tough times is cut them off.

article by Peter Martin, Finance & Growth Expert, Farm Journal magazine.

My comments:  Just because an asset is no longer working in your operation, doesn’t necessarily mean it’s a ‘loser’ for everyone.  Sometimes our goals change and someone else needs exactly what we no longer need.  Of course, if the asset is junk,  be sure to sell it that way.

 

Rural North Missouri

“Planning and strategizing are OK, but most of life is in the trenches. It’s just a lot of hard work, commitment and you’re never done.”   Tina Reichert, Brunswick, Missouri

Rural Missouri County Among Best Places To Grow Up For Future Income Growth

AUG 5, 2015
Brunswick street
Downtown Brunswick, Missouri