Saving Money

Achieving Financial Wellness

Its raining money

What does financial wellness mean to you? Does it mean not living paycheck to paycheck? Does it mean having a little extra cash each month to spend on dinners out, the newest fashion and weekly Friday night happy hour? Or does it mean having the luxury to vacation annually anywhere in the world?

Financial wellness means something different to everyone, but the one key factor that applies to everyone is the need to manage our money so that we can live life without overspending and overextending our financial means. It’s never too late to take a step back, reevaluate your spending and living costs and come up with a plan that will lead you to financial stability.

Here are tips you can easily incorporate into your life that will allow you to achieve the financial wellness you desire!

1) Create a budget – The very first step to achieve financial wellness is to develop a budget that contains your monthly income and living expenses.

2) Automate your savings – Before you spend a single cent of your earnings, have your savings auto drafted to an account. If possible, set aside at least 10% of your income. If 10% is too much, don’t sweat it. Put as much as you can in, but do it every paycheck, automatically. It’s also a good idea to put any extra income – like bonuses or income tax refunds – into this account too!

3) Cut unnecessary expenses – Limit your surplus spending. Eating and drinking out is often the main culprit. How about that daily coffee that costs $5? That’s $150 per month in unnecessary spending. Do you need all those cable channels? Or how about that gym membership? If you’re only going once per month anyway, it makes sense to pay by the visit and save the difference.

4) Carry cash – Pay in cash when possible. Swiping plastic does not have the same realization as to what you are spending as handing over cash.

5) Plan for major purchases – Sticking to your budget means not splurging on a new flat screen TV or laptop on a whim. If you intend to buy something expensive, add it to your budget plan and save. This way you’ll be able to purchase it without using credit (and paying additional finance charges).

6) Plan for your retirement – It’s never too early – or too late for that matter – to start planning for your retirement. There are many options, including money market accounts that can exponentially increase your contributions. Seek out advice on how to best meet your future needs.

7) Get tax advice – Finally, if you’re not good with numbers and finances but you want to learn how to achieve financial wellness and you’re looking for a CPA in Hawaii, Michael J. Yuda CPA, LLC can help!

Planning for Your Retirement

Retirement is something that seems quite far away, however, it really isn’t. If we live long enough, some of us eventually reach a point where we leave our careers and opt for less intense work life. Many years ago, there was a time when companies included pension plans in their compensation packages and employees could look forward to receiving a percentage of their salaries to live on for the remainder of their lives. However, now it’s important to us to create a comfortable retirement that we rely on when we’re lucky enough to sit back and enjoy some time off. Here are a few tips for retirement savings:

Saving Retirement

  • Make a Plan! Saving for retirement might seem difficult at first, but with some guidance, coming up with a foolproof plan could be a breeze. Meet with a CPA to learn how much you can comfortable contribute to your retirement goal each year.
  • Start saving! It’s sometimes hard to just start saving money, but once you get into the proper mindset, saving becomes almost second nature. Designate an amount of your pretax income to contribute to your retirement savings on a monthly or bi-weekly basis. It’s easier to save money that you don’t have in your hands, so set it up so that your retirement savings automatically go into your savings account. Be sure to keep your hands off your savings!
  • Take advantage of retirement plans! Learn about programs your employer offers. From 401(k) plans to IRAs, take advantage of these.

There are many other ways to help amp up your retirement savings. If you’re looking for a CPA in Hawaii to help you guide you down the path of a more financially secure future, visit Michael J. Yuda CPA, LLC today!

Get Out Of Debt in 2014

iStock_000013409257SmallIf you are regularly finding yourself in financial trouble, perhaps it’s time to make some changes. Many people sadly live paycheck to paycheck, and find themselves in a never ending cycle of debt each and every month, with no relief in sight. If you find yourself buried beneath credit card bills and other monthly bills, and see your paychecks dwindle before you even see them, consider trying the following:

  • List your income, and average expenses. It’s crucial to ensure you’re actually making enough money to cover your expenses while also being able to comfortably afford necessities. If you find yourself in an uncomfortable position, consider cutting costs if possible. Do you really need that expensive cable package? Should you cancel a monthly subscription that you don’t really need?
  • Create a realistic monthly budget. This will help you control where your money is going.
  • Track your spending, so you can assess any trouble areas. If you find yourself splurging on any certain item, tracking your spending will help you figure this out. Many smart phone apps exist that will help you track your finances.
  • Sell items you don’t really use. The extra cash can help you catch up on your bills, and pull you out of debt.
  • Consider possibly taking a part time job on the weekends.

The most important step in taking control of your finances is to stay disciplined. As 2014 progresses, following these steps can help ensure a financially sound and fiscally responsible year! If you need the guidance of a professional, don’t forget about the best CPA in Hawaii, visit Michael J. Yuda CPA, LLC today!

Fun Facts You Didn’t Know About Saving Money

When you’re trying to save money, it sometimes seems impossible. However, there are a few tips and tricks that can help secure success. Below are just a few fun facts about money saving:Saving money

  • Did you know that by watching less television, you might have an easier time saving money? When you avoid TV, you’re less exposed to guilt-inducing ads, and ultimately a high cable or electric bill. Advertising makes so much money because it works. However, advertising isn’t always friendly on your wallet.
  • Many credit card companies will work with you on a rate reduction. Although these deductions aren’t extremely high, you can save up to $150 a year.
  • When we’re stressed, we’re more prone to impulse buys. Going to the gym or participating in any type of exercise isn’t just good for our bodies; it’s great for our wallets too. Exercise reduces stress, which can prevent impulse buys.
  • Delete your credit card numbers from your online accounts. Everyone loves the convenience of 1 click shopping, but by un-synching your account, you might re-consider your purchase, helping you save money.
  • Many people aren’t aware of all the benefits they have at their jobs. Do your research and see what types of benefits you might be overlooking; these could help you save money. If you find yourself spending a lot on entertainment, you might find that your employee offers benefits like free or discounted tickets.

If you’re looking for financial guidance and want to finally reach financial stability, consider choosing the premier CPA in Hawaii, Choose Michael J. Yuda CPA, LLC.

Break Out That Piggy Bank

Does it seem that as each day passes, it feels harder and harder to save money? You desperately try to put away more money, but the amount of money you’re putting away isn’t keeping up with the rising costs of living. Remember your childhood piggy bank? Well the concept of the childhood piggy bank can be used into your adulthood as well, just on a more mature level. Of course, we’re not opposed to be using a piggy bank. Below are a few helpful suggestions that closely mimic the concept of having a piggy bank:

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  • Every time you make a bank deposit, set a certain amount of money to be automatically placed into your savings account. You can do this each week or bi-weekly. The amount you choose is up to you, but you’ll be surprised how much you can really save in a year.
  • Perhaps actually use a piggy bank. You don’t necessarily have to go out and buy a ceramic pig, but collecting and saving coinage can really add up.  Not only does saving loose change regularly sometimes pay off, but it does build great saving habits that you can use in other financial aspects.
  • Putting money into a high yield savings account or a CD is a great way to save money, and even increase the value over the years. Consider these accounts a more advanced piggy bank.
  • Don’t stick to just one method of saving. Having a savings account, CD and even saving pocket change are all great ways to reach financial stability. Quick thinking, smart planning and wise purchases are all extremely important when it comes to saving, however, it’s not always that easy.

We value your financial health, and want to see you reach financial stability. If you’re looking for a CPA in Hawaii who can help you get there, choose Michael J. Yuda, CPA, LLC.

Holiday Saving Tips

With the holidays quickly approaching, many people will flock to department stores to stock up on the year’s hottest gifts. Many people will spend more than they intend to during the holidays, and this could set a lot of people back financially. This holiday season consider being mindful of what you’re spending with these helpful financial tips from Michael J. Yuda, CPA, LLC.

holiday saving tips. CPA in hawaii

  • Decide how much you can actually spend! People often overlook extra fees when they draft a budget: this includes wrapping paper, gas to get to the store, and other small expenses. Come up with a realistic budget, and stick to it.
  • Much like Santa, make a list and check it twice. Assess your spending limits for the gift receivers in your family, to ensure you can comfortably spend the money on their gifts. Keep your focus on what you’ll spend, and not the gift you will buy.
  • Pay Cash! Many people rely on credit and debit cards, but without seeing the money dwindle, you’re more inclined to overspend. If you must use a card, use a card with the lowest interest rate.
  • Give yourself enough time to get your shopping done. When you wait until the last minute to finish your holiday shopping, you’ll end up overpaying for items that may have been priced lower in previous months. Getting an early start also ensures you can breathe and enjoy the holiday without stressing out.
  • Don’t just focus on material things! Gifts come in all shapes and forms. If you aren’t financially set to spend a lot of money this holiday season, consider giving gifts from the heart.

Your financial health is important to us! If you’re looking for a CPA in Hawaii, consider Michael J. Yuda, CPA, LLC.

Start Your Emergency Fund Today!

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Do you have an emergency fund? If you don’t currently have an emergency fund that you regularly contribute to, perhaps it’s time to reconsider this idea. Financial health is sometimes a major burden and stressor in our lives, and when a financial emergency develops, we are often stuck without a safety net. From emergency hospital visits to car troubles, there are a lot of things in our normal lives that can dip into our finances without warning. Starting an adequately funded emergency fund is a great way to be financially safe in the event that an expensive emergency occurs.

With a high number of jobs disappearing and people out of work, starting an emergency fund is a great safety net. A good starting point is saving up to 3 months of expenses to help secure your financial future in the event of a financial catastrophe. If you want to take it one step further, consider setting aside six months of money in your emergency fund especially if you think your job is in jeopardy. Below are a few other tips on how to start an emergency fund:

  • Set a number that is doable and possible! It’s important to factor in your normal spend when deciding on the best amount to save each month.
  • Make an emergency fund a long-term goal.
  • Factor saving into your expenses. Make your emergency fund a priority as you would a bill.
  • Make your money hard to get to! Look for an interest bearing account with minimum balance or fees. The harder it is to get to your emergency fund, the less likely it is that you will spend it for non-emergencies.

If you’re looking for financial guidance and more in-depth information on starting an emergency fund, contact the premier CPA in Hawaii, choose Michael J. Yuda CPA, LLC.

Climb Out of Debt

Poor financial decisions can add up and wreak havoc on your life. Piling debt can be crushing to your emotional well being, and could get you in a lot of financial trouble. If you’ve found yourself in debt, it probably feels as if you’ll never be able to rid yourself of this burden, but there are plenty of ways you can help your situation and even become debt-free:

Climb out of debt

  • Make cutbacks: Nobody loves the idea of making cut backs, but cutting money from certain aspects of your life can help you take care of debt a little more. Working on a budget when money gets tight may sound like a daunting and awful task, but it might also have you realize where your money is going, and potentially improve your financial health for the long term.
  • Seek help: If you’ve found yourself in a tough spot financially, perhaps seeking out a CPA could help teach you fiscal responsibility and get your finances in order. A CPA may not actually get you out of debt, but can help set you down the path to a more sound financial life, and help you know how to handle your money so you can stay out of similar situations. Consider seeking out help before making any drastic decisions, such as claiming bankruptcy. There are many professionals out there who can help give you advice, before contacting lenders.
  • Prioritize Your Debt: Study the consequences of missing certain payments. It’s not the best choice to only pay the largest debt with the biggest interest rate first. Read over any lending agreements and statements, to get a picture of which debts should be a top priority, and which can wait.
  • Avoid Pay Day Loans: Burying yourself in more debt in order to pay off existing debt is a recipe for financial destruction. Stay away from pay day loans, loan sharks, and any situation which makes you feel like you’re solving one problem and creating another.

If you’re looking for a CPA in Hawaii, consider contacting Michael J. Yuda CPA, LLC! Your path to financial stability begins with proper assessment and the best guidance from the very best CPA in Hawaii.

 

ALOHA!

Reasons to Save Money!

You’ve probably heard it time and time again, but saving money could be one of the most important things you can do in your life. There are a variety of great reasons as to why saving money is a great long term decision. You may or may not have enough money to pay for everything you need now, but taking the initiative to save money is never a bad idea. Here are a few great reasons to start saving now!

 

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  • Emergency: It’s a great idea to set a fund aside to cover unexpected expenses that may arise. Surprise expenses like car repairs, sudden job loss, and medical emergencies are things that can happen, and having an emergency surplus of cash handy is a smart way to ensure you’ll be able to handle the hardships.
  • Retirement: The sooner you begin saving money for retirement, the less you will have to save in the future. Starting a retirement fund early is a great way to build financial stability in your older years. It’s a wise decision to contribute up to what your employer matches, and then gradually contribute more of your gross income.
  • Buying a House: Saving money to make a down payment on a house could be one of the biggest decisions you will ever make. If you’re able to save enough to pay the down payment up front, you can cut out the stress of loans and avoid high interest rates.
  • Education: Whether hoping to obtain a master’s or doctorate degree, or send your children to college, saving now is a great way to guarantee you don’t lose your shirt with student loans and high tuition prices.

There are many different reasons to save money! If you’re unsure on how to handle your finances, consider seeking out a CPA! If you’re looking for a CPA in Hawaii, don’t hesitate to contact Michael J. Yuda today!

Using Your Tax Refund Wisely

If you’ve been patiently waiting near the mailbox for your tax refund you’re probably not alone. Some may have already received their refund check, but there are still people waiting diligently for their check! Sure, it’s great to have that extra money in your pocket, but before you go out and spend it on a shopping spree or expensive vacation, consider using this money for more important things! Here are a few helpful suggestions to get the most out of your tax refund check:

don’t hesitate to contact the Honolulu CPA firm, Michael J. Yuda CPA, LLC for any questions

  • Take household expenses into mind and figure out how far ahead you can be if you use your refund to pay them off.
  • Consider the benefits of establishing and creating an emergency fund that can cover expenses in the event of an emergency or even a pay freeze. In the wake of paycheck squeezes and lay-offs, saving your tax refund could provide a blanket in the event that your personal finances take a hit.
  • Pay down credit card or loan debt. With the extra money, you can get a great head start on paying down debt that has been building.
  • Begin planning your retirement fund. Adding money into a retirement fund is not only a sensible decision, but can have you financially stable when you reach retirement.
  • Consider taking that class you’ve always wanted! There’s no better way to spend your money wisely than investing in yourself!

There are many sensible ways to spend your tax refund. Sure it’s easy to go out and spend money on things you really want, but in the long run, using your refund wisely can help pave the way to a more financially stable and fulfilling life. If you’re curious as to how to become more financially responsible, don’t hesitate to contact the Honolulu CPA firm, Michael J. Yuda CPA, LLC for any questions you might have.

Aloha!