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Blog Summary Even if you have enough money in the bank and take home a consistent paycheck, you still need to make a conscious and consistent effort to manage your money effectively.
Concentrate on making incremental gains consistently. Financial situations rarely turn around overnight, as more often, positive change is brought about by many small wins.  Many people overestimate their financial stability. Even if you have enough money in the bank and take home a consistent paycheck, you still need to make a conscious and consistent effort to manage your money effectively. If you want more financial freedom and to take complete control of your finances, follow these 5 guidelines. Create a BudgetA true budget is much more than a dollar amount you don't exceed each month. Have you listed and added up your expenses lately? If you haven't, there's a good chance you're spending more than you think. Keep close track of where your money is going so you can adjust accordingly. You should never be unsure of what you can and can't afford
Pay Down DebtThe interest you pay on debt is money you're literally giving away. If you have a large balance on a credit card, limit your spending on that card until you pay it down. If you're paying off student loans, try to pay more than the minimum so you actually see your total go down and you're not just paying the interest each month. Build Your SavingsIt can be downright painful to take even a small chunk out of your paycheck for savings, but if you can force yourself to do it the first few times, you'll be happy with the results when you start to see your savings account grow. Pick a realistic percentage of each paycheck to deposit into your savings account and hold yourself to the task. If you want your savings to grow faster, look into a savings account with higher interest. The bank may require that you keep a large balance in it at all time, but it's worth it for the interest your money will accrue. Minimize Impulse PurchasesPayday is a wonderful thing, and there's nothing wrong with treating yourself in order to unwind after a long week. However, if you are thinking of purchasing an item you don't necessarily need, it's best to walk away from it and see if it's still on your mind a day or two later. If it is and you can afford it, then go for it. But you might find that you'd rather save the money. Maximize Employee BenefitsEmployee benefits are the company's way of thanking you for your hard work and supporting your overall well-being. Take them up on free gym memberships or parking passes instead of wasting your own money on these things. If your company has a 401k matching program, definitely enroll. Pick a dollar amount to take out of your paycheck that will go into the account each pay period. Choose a number that you're comfortable with but try to challenge yourself to put in more than you think you can. Your company will now match that number and you can watch your 401k blossom! Acquiring financial freedom and being debt-free is one of the best feelings in the world. Contact us today for more information on how to get a handle on your personal finances. Blog Post Link: ramlcpa.link/022022a
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​Can Your Business Benefit From an HRA (Health Reimbursement Arrangement)?Healthcare coverage is an effective employee recruiting and retention tool.Link to this post: ramlcpa.link/022822a  It is not news that the talent shortage is making employers think about ways to attract and retain exceptional talent. Offering a range of benefits is one such method they are using, and the statistics bear them out: 80 percent of workers would keep a job with benefits rather than take one that offered more pay but no benefits. It should come as no surprise the Society for Human Resource Management found that retention (72 percent) and recruiting (58 percent) were top reasons companies increased their benefits. Competitive Benefits
Health Reimbursement ArrangementWith a health reimbursement arrangement (HRA), the employer provides an allowance toward employees’ individually purchased health insurance premiums. HRAs often are more affordable than traditional health care because employers can choose their own contribution amount as long as they stay within federal guidelines. This is especially attractive to smaller employers because it allows them to provide health care without having to deal with participation requirements or minimum contribution percentages. Individual Coverage Health Reimbursement AccountsNew in 2020, individual coverage health reimbursement accounts (ICHRAs) are a new option for employers. These plans, which are governed by complicated regulations, reimburse employees for individual health insurance premiums as long as the employee satisfies certain conditions, including the following:
Other Considerations Companies have many other choices in offering health-care coverage. This makes it wise for companies to engage an employee benefits expert for guidance when evaluating a new or existing health insurance program. Among the many considerations are the following:
If you need additional guidance about employee benefits, contact us today.
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Travis Raml, CPA
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