Category: Personal Finance

How to Show Proof of Income When You Are Self-Employed

Self-employment is liberating especially because you have so much freedom in all your decisions. However, it can get tough during tax season or when you are applying for a loan when proof of income is asked for. 

Turns out, it’s not that difficult at all! Here are some tips on how to show proof of income when self employed!

How to Show Proof of Income When Self Employed

By following the tips below, you will have no trouble showing proof of income when asked for it. All it takes is a little organization and tracking! 

Keep Business and Personal Separate

Instead of putting all your money into one account and using it for all business and personal related expenses, open up two accounts and use them separately. Business expenses should only come out from your business account

Dipping into one fund can lower your deductions and blur the lines between employment and personal finance. 

Update and Track Accounting Records 

When being a self-employed individual, it is important to keep track of all recipes and records of business transactions. This will all be helpful for your own records because it will show income and expenses. 

Use Pay Stubs

Using pay stubs to pay yourself allows you to have tangible evidence of income. This will come in handy when having to show banks your stream of income for loans, because not it will show exact numbers instead of estimates. 

Generating your paystub has never been easy when using this proof of income form to print out paystubs. 

Monitor and Update Financial Reports 

Don’t just wait to update all financial reporting when you need it. If you make a habit to regularly update any balance sheets, expense sheets, or profit or loss statements, it will be very easy to keep track of all accounting information as well as your proof of income. 

These documents will also come in handy to help determine your loan status and you may be asked to provide them.

Save Tax Returns From Previous Years 

Tax returns are also capable of showing your self-employment income. Tax returns are good for nearly 7 years so having the history and record is a safe bet to show your proof of income. 

Show Proof of Income

Now that you are aware of how to show proof of income when self employed, it’ll be easier to get started and not stress over it. There are plenty of tools online that can be downloaded to help keep track of business finances, and you can always talk to an accountant who can help organize your records for you. 

The important thing to remember is to keep business away from personal expenses, save business receipts, and use pay stubs to pay yourself so your proof of income can be easily provided. 

Check out our page for more tips on saving money, and working from home! 

The Ultimate Guide to Using Pay Stub Generators

Did you know that it only takes about one minute and under five dollars to create a fake pay stub in today’s tech-savvy world? Pay stub generators can be used with both good and bad intentions. 

If you run a business now is a great time to consider pay stub generation. You can do it both online or by downloading specific software. Keep reading to get the scoop.

Online Pay Stub Guide

If you are looking to go online and make pay stubs whether it’s for your business or fake pay stubs for apartment, you can check out several websites that offer these services by doing a google search. 

It’s actually quite simple. All you need to do is signup with a site and you can make and print pay stubs directly from there. It’s a seamless process. You enter your employee’s information as well as their hours and pay rate. 

You can choose hourly or salaried pay. You can also add an employee or contractor to the stub. They also give you a choice of states to endorse the check.

The whole process takes about four steps to complete and after your preview, you can print it on the spot.

Pay Stub Generation Software

You can also download software and apps that help with pay stub generation. You’ll be able to auto calculate hours, taxes, and weekly pay. 

The technology with these types of software is so simple anybody can do it. You’ll get a PDF template and they print quickly and easily. You’ll also have the added benefit of an archived paycheck. 

If a certain employee needs a more customized or altered pay stub, then you can do it manually when needed. 

Questions to Ask

Now that you know a bit about how pay stub generators work there are some questions you need to answer before choosing which software or website to use. 

How Big Is Your Company?

If you’ve got a bigger sized company then you’ll need to be wary of the IRS. Bigger companies are typically subject to more audits than smaller ones.

If your company uses “payroll giving” then you have a very complex tax arrangement and need the proper software to make sure things are correct. 

How Many People?

Smaller companies are less complicated than bigger ones so the software needed for those is quite simple. But, for companies with a lot of people on the payroll, you’ll have more employees in different tax brackets.

Plus, you might have temporary employees more often as well as full or part-time workers. 

Free or Not?

You can easily find a free pay stub generation service. But, if your payroll is more complicated you might want to consider shelling out a few bucks for a more in-depth software or system.

Pay Stub Generators

Pay stub generators can be simple and complicated. You just need to figure out what your needs are and how complicated your payroll is, along with the size of your business. 

Check out our business blog for business news and information. 

Investing 101: 6 Crucial Tips for Where to Invest Money

The personal savings rate for Americans has taken a hit lately and hovers around 12%. What should you do with the money you’ve got left after paying your taxes and other bills?

Low interest rates are great when you’re buying a house, but they’re not so good for your savings account. There are better ways of making your money work for you. 

Are you wondering where to invest money so you’ll earn more? Don’t put your money under the mattress!

Read on for 6 crucial tips for where to invest your money. 

1. High-Yield Money-Market Account

A money-market account offers higher interest than a regular savings account, and it’s a safe investment. Money markets are FDIC-insured up to $250,000. If you’ve got a few thousand to invest and you want easy but infrequent access to the money, this is a good option. 

Interest on the cash in money markets is higher because you’ll only have the option of withdrawing a few times a month. 

2. Certificates of Deposit (CDs)

CDs are also low risk and have higher interest rates than regular savings accounts. CDs come with term lengths like six months or even five years. The longer the term, the higher the interest. 

The downside? There are early withdrawal penalties. Don’t lock your money away unless you know you won’t need it. 

3. Government Bonds

Government bonds are mutual funds sponsored by the U.S. government for paying off debt and funding projects. 

They’re great for low-risk investors and those with cash-flow needs. The bonds are government-backed and safe but inflation and fluctuating interest rates do affect them. 

4. Treasury Securities

Treasury securities are also U.S.-government backed and issued. They raise money for debts and government projects. You buy Treasury securities for a term of 20-30 years. 

You can hold them until they mature or sell them sooner. While you’re invested, you’ll receive payments from the interest. When they mature, you’ll collect the entire principle. 

5. Coins and Collectibles

This is a risky investment but one that a lot of people love. Collecting is best left to those who have a strong interest in what they’re collecting. 

You’ll need a lot of knowledge about whatever collectible you choose. Military challenge coins are a good example of investing in collectibles. Many of the coins are collector’s items in high demand. 

Other coins are solid gold, making them worth even more money. 

6. The Stock Market

The stock market can be risky but it’s a great place to earn a lot back on your money. Don’t invest in the stock market until you’ve done a lot of research. But don’t avoid investing in the stock market out of fear.

Putting your money in index funds and leaving it there for long periods of time is a good strategy due to compound interest. With some historical exceptions, the stock market is a good place to put your money to work. 

Where to Invest Money

Knowing where to invest money depends on many factors. Your budget, risk tolerance, and age all play into how and where you should invest. 

When you’re starting out, do lots of research and talk to a few investment professionals. Beware of investments that sound too good to be true because they usually are!

Was this helpful? Look for more on the blog!

What Does a Real Estate Attorney Do Exactly?

If you’re in the process of buying, selling, or inheriting a house, you have probably been told to contact a real estate lawyer. However, you might be wondering, what does a real estate lawyer do?

After all, a real estate attorney in the US typically charges between $150 to $350 per hour, which is not a small amount by any standards. However, when you learn about everything that a real estate attorney actually does, you will quickly realize that they often represent good value for money.

Without a real estate attorney, any transactions involving property can become immensely complicated, not to mention fraught with legal dangers. With that in mind, here is everything you need to know about real estate attorneys and what they do. 

How a Real Estate Attorney Helps You Buy a House

First off, it is worth covering all of the ways that a qualified real estate lawyer will help you buy a house and protect your interests at the same time.

A real estate lawyer will conduct a thorough review of all documents relating to the house you want to buy, including any relevant zoning laws and the title to the house.

They will attend the closing of a sale when you hand over the money to the seller and the seller transfers the property to you.

They will arrange independent inspections of the house you wish to buy. All of this will keep you legally and financially protected throughout the homebuying process.

This way, you can ensure that, when searching “real estate lawyer near me” on Google, you are taking vital steps towards protecting your most important assets. 

How a Real Estate Attorney Helps You Sell a House

When selling a house, a real estate attorney also plays a crucial role. They will ensure that you receive your money for the sale of your house from the buyer.

They will, if necessary, conduct a legal audit of the buyer, especially if that buyer is a corporation or company.

They will, crucially, work to defend you if a dispute arises between you and the buyer.

They will pursue the buyer through proper legal channels if they do not keep to their side of the bargain or fail to meet any purchase agreements you might have come to.

They will draft up all the paperwork related to the sale of your home and keep your best interests at heart. 

How a Real Estate Attorney Helps You Inherit a House

Finally, it is worth covering how a real estate lawyer plays an important role in estate planning.

If you are in-line to inherit real estate, a lawyer will help you navigate the legal process of obtaining ownership of that property.

They will help you navigate the minefield of inheritance tax and also fight in your corner should you have any dispute about the inheritance.

Likewise, a real estate lawyer will also help if you wish to bequeath real estate to a loved one. They will help you draft up a binding inheritance agreement that fits your needs and desires. 

Learn More About Real Estate

Now that you know the importance of hiring a real estate attorney, it’s time to get clued up even more.

In our Real Estate section, you will find expert and local advice on every aspect of the current real estate market. 

The Secret of How to Get out of Debt on a Low Income

How can you save money and pay off debts when you’re just getting by each month? That’s a question that millions of Americans ask themselves.

Only 30% of Americans are financially secure or financially healthy. The rest of the population struggles with debt while making ends meet.

If you’re in the making ends meet and want to pay off your debts once and for all, you’ll want to keep reading.

Find out how to get out of debt on a low income.

1. Make a List of Your Debts

The first thing you need to do is get a list of all of the debts in front of you. You want to make a list of the balance owed, the type of debt, the minimum payment, and the interest rate.

That will give you the information you need to make smart choices about paying down your debt fast.

2. Use Momentum to Pay Down Your Debt

Have you seen in movies or TV shows where a snowball rolls downhill and it gets bigger and bigger? You can use a similar approach to pay off your debt.

Here’s how it works. Take a look at your list of debt and find the debt with the lowest remaining balance. Pay the minimum payments on your other debts and take all of the extra cash you have to pay down the debt with the lowest balance.

You’ll pay off that debt faster and you can move on to the next debt with the lowest balance. As you pay off each debt, you build up momentum and pay off your debts faster.

Your confidence will go up with each debt that’s scratched off of your list.

3. Stick to Your Debt Budget

If you have several credit card balances and pay one of them off, you might be tempted to take the money and put it towards a purchase that you really want.

For example, you previously paid $500 a month towards your debt. Now that you have one credit card paid off, your debt budget is now $400 a month.

Don’t spend that extra $100 a month on something else. Keep applying that extra money towards your remaining debt. That’s how the momentum really builds.

4. Consider Debt Consolidation

When you looked at your list of debts, did you discover that you have several high-interest credit card bills?

You can take out a debt consolidation loan, which will be enough to pay off the credit cards. You’ll have one monthly payment, and the loan is usually at a lower interest rate than the credit cards.

Even if you have bad credit, a debt consolidation loan is still possible. Some lenders offer a guaranteed debt consolidation loan.

How to Get out of Debt on a Low Income

It can seem like an impossible task when you’re in debt and you have a low income. Once you learn how to get out of debt on a low income, you’ll begin to see the opportunities.

It does take commitment and consistency, but it is possible. You have to take it one debt at a time.

Come back to this site again for more thrifty tips.

4 Kinds of Insurance Every Self Employed Person Needs to Have

Approximately 16 million Americans are self-employed. Are you one of them?

If you’re self-employed, there’s a good chance you’re going without insurance or are underinsured. Insurance might seem like a luxury, especially if you’re dealing with a tight budget. It’s important to make sure you’re covered, though.

Read on to learn more about the four essential types of insurance for self-employed people. You’ll also learn how to choose the right insurance policy for yourself and your family (if you have one).

Why Do You Need Insurance?

Insurance is expensive. There’s no getting around it.

Because it’s so expensive, a lot of self-employed people try to convince themselves that they don’t need it. This couldn’t be further from the truth, though.

The following are some of the most important reasons why everyone needs insurance (including those who are self-employed):

  • Insurance safeguards you and your family’s financial needs
  • Insurance helps you provide for your family if something happens to you (death, disability, etc.)
  • Some insurance plans (like life insurance plans) help you save for the future 
  • Insurance gives you peace of mind

For many people, the peace of mind that they get from being insured is worth the upfront costs. Knowing that you have a bit of a safety net can make a world of difference.

4 Essential Types of Insurance for Self-Employed People

Okay, you’re warming up a bit to the idea of getting insurance. What kind of insurance do you need, though?

There are lots of different types of insurance available to self-employed people. The following four are the most important types to consider purchasing: 

1. Health Insurance

First of all, everyone ought to have health insurance. Even though there’s no longer a government mandate requiring everyone to be insured, it’s still important.

Investing in health insurance now can save you a lot of money later. This is especially true if you or someone in your family gets sick and needs medical care. 

Remember, too, that self-employed individuals get a special tax deduction for health insurance. If you’re like most self-employed people, you’re always looking for ways to reduce your tax bill. Buying health insurance is an easy way to do this.

2. Term Life Insurance

Another type of insurance to purchase is term life insurance. Term life insurance is more affordable than whole life insurance, but it still provides some protection for your family in the event that you pass away.

A term life insurance policy will provide your descendants with money to help pay for the cost of your funeral. They can also use the money to pay off any debts you might have accrued and maintain their quality of life after you’re gone.

3. Business Insurance

While you’re insuring yourself, you also should take steps to insure your business. Business insurance protects you, your business, and your employees. There are a few different types of business insurance you ought to purchase, including the following:

  • General liability insurance
  • Professional liability insurance
  • Workers’ compensation insurance

This might seem like a lot at first. If something happens to your business, though, like a lawsuit or an employee injury, you’ll be glad you covered yourself and the company.

4. Long-Term Disability Insurance

What would you do if you experienced a serious injury tomorrow and couldn’t go to work? How would you continue paying for your house or buying groceries for your family?

Long-term disability insurance allows you to continue receiving a portion of your salary after you’ve been injured or become disabled in some way. It can be a lifesaver during difficult times and allows you to focus on recovery while also resting assured that you and your family’s needs are being met.

How to Choose the Right Insurance Policy

Shopping for insurance can be overwhelming. There are so many different providers and policies out there, and everyone claims that theirs is the best.

How are you supposed to know which one to buy? Start by following these insurance shopping tips:

Work with an Independent Agent

In general, it’s best to work with an independent insurance agent. They aren’t beholden to a particular insurance company and will help you to weigh the pros and cons of different providers. They can be more objective and will make sure you understand each policy option before you make a decision.

Research Each Insurance Company

Before you decide to buy a policy from a particular insurance company, do some research into it. Learn about their reputation as well as their financial health.

An insurance policy won’t do you any good if the insurance company goes under before you have a chance to reap any of the benefits, right? Looking into the company’s health and overall reputation will help you ensure they’re a good fit for you and will be around when you need them.

Consider Coverage Options

Pay careful attention to the type of coverage you’ll receive with each insurance policy. Read through everything and ask questions if anything confuses you. You ought to know exactly what you’re getting before you agree to pay for a particular policy.

Pay Attention to Price

Speaking of paying, don’t forget to take note of the price, too. Find out what the premium (the amount you’re supposed to pay per month or year) is for each policy and consider what you get for that price.

Whether you’re shopping for health insurance for self employed people or a life insurance policy, remember to ask about discounts, too. Many insurance providers offer discounts for everything from bundling policies to living a healthy lifestyle. You never know what you might qualify for, but it’s always good to check in case there’s an option available that will help you save money.

Get Insured Today

Now that you know more about the essential types of insurance for self-employed people, as well as how to choose the right insurance provider and policy for your needs, it’s time to get to work. Follow the guidelines laid out about as you begin looking for a policy that feels like a good fit for you. 

Do you want to learn more about insurance or handling life as a self-employed individual? If so, we have lots of resources available on our site. Head to the Tips section today for more information.

10 Best Options for Making Money from Home

Sometimes, life throws a curveball and we’re forced to spend most of our time at home. Whether that means you have a baby, break your back, or lose your job, we still have to find a way to provide for ourselves.

Making money from home, fortunately, is a lot easier than it was before the internet existed. There are a lot of excellent ways, both online and otherwise, to make a living from home, and we’re here to help get you started. 

We’re going to take a look at 10 potential jobs that you could take to start earning money from the comfort of your own pajama pants. Let’s get started:

10 Ideas for Making Money from Home

Modernity has given us the chance to do nearly everything from home. You can go grocery shopping, pick up prescription medications, buy Christmas presents, and more, all without ever leaving your house. 

It’s time to tap into that potential and start bringing money in rather than sending it out. Here are a few ways you can do just that.

1. Teaching English

The first option we suggest is finding an English teaching job online. You would be surprised at how qualified you are to do this job. You’ll also be surprised by how much you could get paid to do it. 

You only need to be a native speaker of English to land a lot of teaching jobs. If you have a college degree, you might be able to land a higher-paying job, though. That said, you can make anywhere from 20 to 30 dollars an hour teaching even without a degree. 

2. Affiliate Links

One extremely passive option is the use of profitable affiliate links. The idea is to create a website, optimize it to generate traffic, and include links that make you a profit whenever someone clicks them. 

Linking in this way is a part of the grander affiliate marketing orbit, which is an excellent way to make money online. Make sure that you let users know that links are making you money, though, because it’s illegal not to. 

3. Dropshipping

Dropshipping is the process of selling goods online without having to ever see or ship those goods yourself. You create a storefront on a site like Amazon, people buy the stuff you sell, and manufacturers will pack and ship those items for a small fee. 

You just sit back and rake in the cash. How well you do depends on how well you can optimize your storefront. 

4. Freelance Writing

If you have the writing chops to create content for paying customers, you should definitely try it out. There are thousands of sites that pay writers to create content and send it out to clients. 

If you’re entrepreneurial, you could even reach out to clients of your own and establish high-paying relationships. 

5. Blogging

Blogging and freelance writing are a little different. To make money from your own blog, you have to develop a following and capitalize on that following with advertisements or endorsements. 

That said, if you have a knack for entertaining people and can write well, a blog might be the perfect place to start. 

6. Digital Receptionist

The digital receptionist profession is taking off right now, and it’s a great way for you to earn a reliable income. 

You’ll essentially be on the clock for a specific period of time, answering calls and making appointments for various businesses. The nice thing is, you can do it all from your home and all you need is a headset and internet connection.

7. Day Trading

If you’ve got a little extra cash lined up and some time on your hands, you could try your hand at the stock market.

Day trading is a little different from traditional investing because it requires that you buy and sell quickly as things change. If you’ve got a keen eye for markets, you could end up working your way to a handsome income.

8. Consulting

What did you do before you started to work from home? Odds are, you can take that skill set and turn it into freelance work for businesses that need it. 

A lot of companies don’t want to hire employees for work that they only need for a short period of time. That said, they can’t omit essential work and they need highly qualified people to do it. 

That’s where you come in. Start marketing yourself as a consultant in the field you’re trained and find out what can happen. You can improve your results by listing your services on popular business sites and even making a business website of your own.

9. Manage Social Accounts

Are you something of a social media wizard? If so, reach out to small businesses around you and see if they’d be open to having you manage their social media accounts. 

Businesses have a lot to gain from a flourishing social account, but most don’t have the time to invest in constant management and marketing best practices. Learn the ropes of social media marketing and try your hand at it. 

If you don’t feel qualified or don’t know how it will turn out, ask to be paid on when the business starts seeing results. 

10. Blend a Few Options

The practices of freelance writing, blogging, consulting, teaching, and social media all share a lot of ground. 

The overlap in all of those industries provides you with an opportunity to streamline your work into a unified project. That means having a product or service, marketing it on social media, and writing about with the help of SEO best practices and affiliate links. 

If you hit the nail on the head, you could be running an extremely profitable website in a matter of weeks. 

Looking for More Tips and Tricks?

Adjusting your life toward making money at home can be difficult at first, especially if you’re used to a busy life out in the real world. We’re here to help you figure it all out.

Explore our site for more useful tips and tricks on working from home.