Latest news with #selfemployment
Yahoo
13 hours ago
- Business
- Yahoo
Do you know your monthly cash flow? Here's how to calculate it.
If money seems to disappear from your bank account nearly as soon as it arrives, you may have a cash flow problem. Cash flow is the movement of money into and out of your accounts. While cash flow is a common term within the business world, it applies to your personal finances too. If you don't yet know how to calculate your cash flow, learning can help you better manage your money. For instance, knowing your cash flow can help you make smart budgeting decisions and ensure you make progress toward your savings goals. And don't worry — you don't need a calculus degree to figure this out. Continue reading to learn the simple equation for calculating your cash flow and why it's so important. This embedded content is not available in your region. Cash flow is the movement of money into and out of your bank account. A positive cash flow means more money enters your bank account than leaves it, allowing your balance to grow over time. A negative cash flow is the opposite — you're spending more money than you bring in. Positive cash flow is the goal because it allows you to save money for the future. Several types of transactions can contribute to your cash flow, broken up by 'inflows' and 'outflows.' Inflows might include income from a W2 job, self-employment, rental income, or other investments. Outflows include all of your expenses, such as housing, utilities, groceries, debt payments, clothing, entertainment, and more. Your cash flow is equal to your inflows minus your outflows. Understanding and tracking your cash flow isn't just crucial for businesses — it's important for any individual who wants to keep tabs on their financial health. For example, say you have a negative cash flow every month, but you don't realize it. Eventually, you'll empty your savings account and need to take on debt to cover your expenses. However, if you keep a closer eye on your cash flow, you'd notice that you're spending more than you earn every month. Knowing this, you can take action to improve your cash flow, such as cutting discretionary spending, getting a roommate to help with rent, or negotiating a raise at work. Unlike some financial calculations, finding your cash flow is simple. To calculate your cash flow: Add up all your sources of monthly income. Then, add up all of your monthly expenses. Last, subtract your total monthly expenses from your total monthly income. Say your income or expenses vary each month. In that case, you can calculate an average monthly cash flow by adding up several months of income and several months of expenses, finding the difference, and dividing by the number of months. To illustrate what a cash flow calculation looks like, here's an example: Say you earn $4,500 per month after taxes. You also have a side hustle that generates $1,200 in monthly income. Total monthly income: $5,700 Your typical monthly expenses are as follows: Rent: $1,500 Utilities: $200 Groceries: $400 Transportation: $500 Insurance: $300 Student loan payment: $200 Household and clothing: $200 Dining out: $300 Fun money: $200 TOTAL: $3,800 Next, subtract your total expenses from your total income: $5,700 - $3,800 = $1,900 Cash flow = $1,900 With a positive cash flow of $1,900, you have money left over each month to save or invest. For example, you might decide to invest $800 for retirement, put $800 toward a down payment savings account, and put the remaining $300 into a travel fund. If you calculate your cash flow only to find a negative number, it can be discouraging. However, there are some things you can do to improve your personal cash flow over time. If your spending in certain categories consistently exceeds what you plan for, budgeting may help. A budget can help you proactively plan for and track your spending. So if you're halfway through the month with only 10% of your fun money left, you know it's time to cut back. When creating a budget, you may find you're spending a lot more than you realize. If that's the case, cut down on spending where you can. Though discretionary spending is usually the easiest place to cut back, you can also see if there are ways to reduce your essential expenses. For example, you could get a roommate to save on rent and replace your new car with a fully paid-off older model. There's only so much you can cut from your expenses without living in a state of constant deprivation. That's why it's also helpful to focus on growing your income. This could look like negotiating a raise, applying for a higher-paying role, or even starting a side hustle outside of your day job. If you've heard the phrase, 'pay yourself first,' but never took it to heart, it may be time to follow this advice. Paying yourself first means prioritizing your future by immediately contributing to your savings and investment accounts — ideally using automatic contributions — before paying other bills. This ensures you aren't short-changing yourself at the end of the month. Paying yourself first may force you to cut back on discretionary expenses, which can be helpful for those who struggle to do so on their own. You can calculate your monthly cash flow by totaling your monthly inflows, totaling your monthly outflows, and subtracting the total outflows from the total inflows. Inflows include any form of income, and outflows include bills and other monthly spending. There's no specific healthy cash flow number, but generally, a positive cash flow is best. Having a positive personal cash flow means your income exceeds your bills, and there's money left over for saving and investing. The bigger your savings and investment goals (or the shorter your timeline), the more advantageous it is to have a bigger cash flow. Cash flow tells you the net movement of money into your accounts every month. For example, a positive cash flow tells you that you earn more than you spend. This means you have money left over to stash in a savings account or invest for the future. If your cash flow is negative, that means you spend more than you earn, and unless you change your habits, you'll eventually deplete your savings.
Free Malaysia Today
5 days ago
- Health
- Free Malaysia Today
Does self-employment better protect women's heart health?
US research reveals self-employment literally transforms women's health. (Envato Elements pic) PARIS : Female entrepreneurship is often associated with insecurity and stress. Juggling difficult clients, irregular income, and domestic responsibilities is the supposed daily reality for self-employed women. But beyond these very real challenges, a new US study reveals an unexpected benefit of self-employment: it claims that women who work for themselves have a much lower risk of cardiovascular disease than their salaried counterparts. This study, conducted by Dr Kimberly Narain and colleagues at the University of California, Los Angeles School of Medicine, sheds new light on female self-employment through a novel methodological approach. Rather than relying on subjective questionnaires, the researchers analysed biological data from 19,400 adults from the US National Health and Nutrition Examination Survey. Forget vague statements about stress or sleep – here, the research is based on objective markers that speak for themselves: cholesterol, blood pressure, BMI, blood sugar. This method gives the results remarkable scientific validity. The findings are striking: self-employment literally transforms women's health. White women see their obesity rates drop by 7.4 percentage points, their physical inactivity decrease by 7 points, and poor sleep duration decline by 9.4 points. For women of colour, the benefits are just as notable, with a 6.7-point decline in poor diet, a 7.3-point decrease in physical inactivity, and an 8.1-point decline in poor sleep duration. 'There is a relationship between self-employment and heart disease risk factors and this relationship seems to be stronger in women relative to men,' Narain noted. The reason? Women carry a particularly heavy burden of stress, constantly juggling professional demands and family obligations. This pressure seems to be considerably alleviated by self-employment, as professional autonomy appears to offer women valuable flexibility in managing multiple constraints. Gone are the rigid schedules that are difficult to reconcile with school pickups or doctor's appointments. No more endless meetings that encroach on family time. Self-employment allows people to regain control over their schedules and, in turn, their health. For men, the benefits are more modest. Self-employed white men see improvements in their diet and blood pressure, but men of colour do not derive any benefits from their self-employed status. Improving women's well-being at work Published in BMC Public Health, this study challenges our understanding of the link between work and cardiovascular health. It is already known that stressful jobs contribute to high blood pressure and heart disease. Self-employment seems to offer an escape from these constraints, at least for certain segments of the population. Given the correlation between self-employment and heart health, companies could explore measures such as allowing more hybrid remote work and flexible hours. (Envato Elements pic) For Narain, these findings call for a complete overhaul of our approach to work. 'It is imperative to increase our understanding of how the work environment gets under our skin, so we can come up with ways to ensure everyone has access to a healthy work environment,' the expert said. This is especially urgent at a time when cardiovascular disease remains the leading cause of death worldwide. The correlation between self-employment and cardiovascular health opens up concrete avenues for improving health at work, without the need for salaried staff to go it alone. Companies could, for example, make hybrid remote working and flexible working hours the norm, particularly for employees with family responsibilities. Introducing a genuine 'right to switch off' and limiting meetings to times that are compatible with family life would be simple but effective measures. In terms of public policy, strengthening support for women entrepreneurs and developing cardiovascular prevention programmes tailored to women's specific constraints would amplify these benefits. It should, however, be noted that this study does not establish any causal relationship. Other factors could explain these findings, such as certain personality traits that may favour both the choice of self-employment and better health. Despite these limitations, this research provides perspectives for rethinking the organisation of work. If professional autonomy does indeed help women's cardiovascular health, integrating greater flexibility into traditional work environments becomes a major public health issue.
Forbes
5 days ago
- Business
- Forbes
How To Use ChatGPT To Make $5,000+ Every Month
Focus on including a subscription model in your business for financial stability and MRR One of the biggest challenges freelance professionals face is lack of predictable work and income. You're chasing one-off projects, hoping for a gig that will tie you over for the month until your next bill is due. And if that one client pulls out, you have nothing to fall back on. Being a freelancer is even more daunting when you think about making major purchases like buying a house and getting a mortgage, or purchasing a car. These types of investments and purchases require you to have stable, predictable income. But if you don't have all the cash upfront, and you're not working full-time as an employee, how can you ensure that you're keeping up with your payments? How can you guarantee the bank or lending provider that you're eligible to make these large purchases if you're living from client to client? The anxiety that comes from wondering if you'll be able to secure your next high-ticket client in time to cover your bills and expenses is not a way to live. That's not what you signed up for when you decided to work for yourself. And even if you're working full-time as an employee and have a side hustle, you still want to be able to know that you have some better form of guaranteed income outside of your 9-5. That's where the concept of Monthly Recurring Revenue, better known as MRR, comes in. In this article, you'll learn about what Monthly Recurring Revenue is, and how to use ChatGPT to build up to $5,000 in MRR (if not more) each month, so you can save yourself the headache of wondering when and where your next client, gig, or project will come from. Why This ChatGPT Strategy Works You can easily use ChatGPT to help you make money. You can use it to help you build passive income. There are plenty of use cases for that. However, even those use cases have limitations, unless you're being strategic. Because when you think about it, the concept of starting a side hustle typically revolves around gigs or one-off projects. You get a consulting client, you complete a project with them, and once that's done, you're either hoping that they'll refer you to others in their field for word-of-mouth exposure, or you're hoping that they'll come back for a paid business. If they do both or either of those things, that's great, but not everyone will. And to be banking on new clients coming in every month can give you anxiety, especially if there are temporary market changes. To avoid this, you need your business model, or at least part of it, to be based on this one thing: subscriptions. This is what MRR is all about. You can turn your expertise and knowledge into multiple income streams, passive and active, that are automated and can also deliver monthly predictable income. ChatGPT can be your assistant in this process to help you ideate, build, and deliver your subscription products. What makes this ChatGPT strategy different? 5 ChatGPT Prompts That Build Monthly Recurring Revenue To power your monthly income engine, try these ChatGPT prompts: The topic I'm passionate about, which I'm highly skilled in, is [name your niche]. I've observed a huge demand in this area for [describe your target audience's pain points]. Give me some ideas for subscription-based digital products I can create which will align with my expertise and niche, and answer my target client's pain-points directly. I want to launch a paid newsletter on Substack/Medium on [name your niche]. Give me some title ideas and pricing options for different tiers. Generate a digital product pack that I can release monthly as a subscription for [name your niche and what your business solves], which is highly tangible and directly provides a solution. List some weekly/monthly deliverables I can guarantee for a $99/month offer or service in [name your skill]. Help me convince my existing/recent clients to go from paying for my one-off services and projects, to going on a retainer model. What should I offer them to convince them to work with me on retainer, and what should I write in the email? 6 ChatGPT-Powered Businesses That Can Pay Up To $5,000 Monthly The following ChatGPT-powered business models work particularly well if you're: Give them a try, and you can scale and add more subscription services to maximize your earning potential: How To Easily Build Monthly Income With ChatGPT If you know how to do something easily, record and document everything--everything you know about your skill, everything you do on repeat, everything you teach your clients on coaching and consulting calls. Record your coaching calls with permission so that you can play them back to yourself and listen to the advice and tools you are consistently giving. Then: You can use just one of these ChatGPT-powered MRR business ideas or combine a few so you can earn more. But whatever you decide, always remember to start small, with just one idea, before you overwhelm yourself and quit altogether. It's better to launch a paid newsletter and stick with it consistently, than to start a thousand subscription services and products (metaphorically) at once and not achieve anything at all, and worse, confuse your audience. So, here's your action plan for this week: Implement these steps right now to lay-off proof your career and look forward to more peace of mind, and more consistent income and projects. ChatGPT can help you ideate, package, and deliver your subscription offers FAQs Can ChatGPT help me make thousands of dollars every month? Yes, if you're strategic and use it as a tool to help you build systems and create, package, and deliver subscription products and services. You can make this your sole business model or use it in combination with other business and pricing models. How quickly can I make $5k? While ChatGPT is effective in reducing time when building your business, it won't provide overnight success. You still need strategy, consistency, and strong networking skills. Once you establish trust and credibility, it becomes easier to achieve your $5,000 goal and even exceed it.
Washington Post
5 days ago
- Business
- Washington Post
In a rocky economy, one word stands out: Temporary
Elizabeth Glidden knows it could be worse. Although she recently lost her job as a technical program officer at the U.S. Agency for International Development, she quickly found new work — a temporary position at the World Bank on the advice of a friend. Her job comes with a generous hourly rate but no benefits, including parental leave if she and her husband decide to expand their family. She's also paying more of each paycheck toward Social Security and Medicare tax because she's classified as self-employed.
Yahoo
20-06-2025
- Business
- Yahoo
Tax saving strategies for small business owners
Choosing the right business structure can significantly impact your tax liability. Small business owners can reduce taxes through deductions, credits and strategic expense timing. Proper documentation and compliance with tax laws prevent costly mistakes. Contributing to retirement plans and using healthcare tax advantages can provide long-term savings. Working with a tax professional can help maximize deductions and credits while ensuring compliance. Taxes create significant financial challenges for small business owners. Without a solid plan, tax liability can reduce profits and limit growth opportunities. A proactive approach to tax planning helps business owners claim deductions, utilize credits and implement legal strategies to lower tax burdens. Learning how to manage taxes effectively can improve cash flow and support long-term success. How a business is taxed depends on its legal structure: Sole proprietors: Report business income on their personal tax returns and pay self-employment taxes. Limited Liability Companies (LLCs): Can be taxed as sole proprietors, partnerships or corporations. S-Corporations (S-Corps): Allow business income to pass through the owners while avoiding corporate taxes. C-Corporations (C-Corps): Pay corporate income tax, but also provide opportunities for tax planning through deductions and reinvestment. Small businesses have several common tax obligations, including income tax, self-employment tax, payroll taxes and sales tax. The Tax Cuts and Jobs Act (TCJA) introduced key benefits for small businesses, including the Qualified Business Income (QBI) deduction, allowing eligible businesses to deduct up to 20% of qualified business income. Some provisions of the legislation, including the QBI deduction and lower corporate tax rates, are set to expire in 2025. Stay informed on these potential changes and adjust your tax strategy to minimize your tax burden. Reducing your tax burden requires strategic planning and smart decision-making. Use the right tax-saving strategies to reduce your tax burden, freeing up funds that you can reinvest in your business. Selecting the right legal structure impacts taxation. Sole proprietorships and LLCs often work for small businesses, but S-Corps can help reduce self-employment tax. Business owners should reassess their structure as income and liabilities grow. Common deductible expenses include rent, utilities, office supplies, marketing and employee salaries. To claim tax deductions, business owners must keep clear records and receipts. Misreporting deductions can lead to audits or penalties. Reduce taxable income by contributing to an SEP IRA, SIMPLE IRA or Solo 401(k) plan. These plans not only lower tax liability but also help build long-term financial security. Hiring a spouse or children can provide tax advantages. Wages paid to children under 18 may be exempt from payroll taxes, and employing a spouse allows for access to retirement benefits. Documentation of work performed is required for compliance. If you use part of your home exclusively for work, you may qualify for a home office deduction. The simplified method calculates deductions based on square footage, while the regular method uses actual expenses like mortgage interest and utilities. Adjust your income and expenses at the right time to reduce taxable income. Make office purchases before year-end to lower the current year's tax burden. Select cash or accrual accounting to control when income and expenses are recognized. Businesses that purchase equipment or software can deduct the full cost under Section 179 instead of depreciating it over time. Bonus depreciation also allows for significant first-year deductions on qualifying purchases. Unlike deductions, tax credits reduce tax liability dollar for dollar. Common credits include the Research and Development Credit, Work Opportunity Tax Credit and Small Employer Health Insurance Credit. Understanding which credits apply to your business can lead to significant tax savings. Small business owners can deduct the cost of health insurance premiums for themselves and employees. Health Savings Accounts (HSAs) provide another tax advantage by allowing pre-tax contributions to cover medical expenses. A tax professional can help you identify the best tax-saving strategies, stay compliant with tax laws and plan for future tax changes. Find an experienced advisor to ensure that all available deductions and credits are utilized. Take action before the year's end to reduce your tax liability. Follow the tips below to take advantage of potential tax savings. Purchase equipment early. Buy necessary equipment before December 31 to claim deductions for the current year. Review estimated tax payments. Review quarterly tax payments to ensure accuracy and avoid underpayment penalties. Maximize retirement contributions. Contribute to retirement accounts before deadlines to reduce your taxable income. Make charitable donations. Donations made by year-end can qualify for tax deductions if properly documented. Organize your financial records. Keeping receipts, invoices and financial statements up to date simplifies tax filing and reduces audit risk. Tax mistakes can be costly and may lead to penalties or missed savings. Here are some of the common tax mistakes to avoid as a small business owner. Underpaying estimated taxes. If you don't pay enough in quarterly estimated taxes, you could face IRS penalties and interest. Missing deductions and credits. Business owners often overlook valuable tax deductions and credits, leaving money on the table. Improper record-keeping. Incomplete or disorganized financial records can make tax filing difficult and increase the likelihood of an audit. Mixing business and personal expenses. Failing to separate personal and business finances can cause accounting issues and complicate deductions. Not updating tax strategies annually. Tax laws change, and failing to adjust your approach each year may result in unnecessary tax burdens. The expiration of the Tax Cuts and Jobs Act in 2025 could impact small business tax rates and deductions. Always plan for potential tax law changes and build flexibility into your tax strategy. Review tax plans annually to stay ahead of policy changes and maximize financial opportunities. Proactive tax planning can help minimize your tax liability and maximize profits. Strategies such as leveraging deductions, choosing the right structure and timing income and expenses can make a big difference. Consult with a tax professional to ensure compliance and take full advantage of available tax-saving opportunities. What tax deductions can small business owners claim? Common deductions include rent, utilities, office supplies, travel expenses, employee wages and health insurance premiums. How can I reduce my self-employment taxes? Structuring your business as an S-Corp may help reduce your self-employment tax liability. Contributing to a retirement plan can also lower taxable income. What is the Section 179 deduction? Section 179 allows businesses to deduct the full cost of qualifying equipment and software purchases rather than depreciating them over time. Sign in to access your portfolio
