Let’s face it; the people of the United States, in general, are pretty bad at managing their money, There’s a lot of reasons for this, and quite a few of them are cultural. For example, we live in a culture that places a lot of emphasis on getting things now, when we want them, rather than on waiting until we can pay for them in full. Because of this, we’ve actually grown entire industries around the idea of ‘getting it now’.
For example, there are, within a few minutes’ drive of my house, a series of businesses where I can buy a lot of things on lay away or on an installment plan. These things range from video game consoles and low-end computers to things like furniture and appliances. Of course, buying something you want now seems like a great deal, and why wouldn’t it? You shouldn’t have to wait, especially when you can just put a down-payment down now, and then slowly pay it off over the next couple of years. However, there’s a couple of things you aren’t considering when it comes to this deal.
For example, your choice to pay something off over the long term means that you’re going to be paying interest the whole time. So something that, for example, cost 1000 dollars can end up costing you closer to 1100 or more, which can be a real loss when you consider that someone can easily live on a hundred dollars for a weeks’ worth of food and drink at home. Then, of course, there’s the fact that every payment you have to make each month is chipping away at your monthly income, so if you make two thousand dollars a month, but you have to pay for your living space (seven hundred bucks a month), then make payments on your television, new video game system, microwave, your furniture, and your car, you’re suddenly finding that, all told, you’ll have eight hundred dollars or so to last you an entire month of incidental expense. That’s something that can be burned through with one (cheap) trip to the emergency room!
So, what can you do, and more importantly, how can CPA firms help you to better manage your money? Well, there’s a variety of ways they can help you to attain better fiscal solvency.
To begin with, they can help you to look at the way that you spend money, in general. Almost everyone in this country is wasting their money on something they don’t actually need to live. For some of us, it’s beer. For others, tobacco products. Some people are wasting their money on things like eating out, when you could much easier eat at home, and be consuming a meal that is a lot healthier. Some people are just buying things as far as utilities go that they don’t need, like internet power that they’re not using, or leaving something on in the house and slowly burning through power at their own expense.
Whatever the case may be, an accounting firm is well equipped to help you look at the way that you’re spending money, and to pick out the things that you don’t need, but rather, want.
Another thing that they can help you to do is to get out from under whatever debt load you currently live under. Anyone who works for any of the accounting firms in your area can tell you that any debt you have that you have to regularly service is a problem for you and your fiscal solvency. The more debt you have, the more often you have to actually make payments on that debt in some way or another, the worse of you are, financially speaking, when it comes to living your day-to-day life. Each payment you make on that debt slowly saps your ability to pay for other things, things you may want to or need to pay for. Each bit of debt you have to service on a monthly basis chips away at the total that you earn in your paycheck, and it’s of the utmost importance that you pay down such debt as swiftly as you can so that you can use that money for other things in the future, rather than paying interest for an eternity.
So, if you’re having trouble managing your money, consider hiring an accounting firm to help you out. You’ll be glad you did when you’re saving money and able to afford the things you want, and a few of the things you need as well.