The Many Advantages Of A Starting Your Own Home Based Business

by: Stefanie Fauquet

Have you been considering starting your own business and working from home? The advantages of working from home and starting your own business are great. Not only will you be able to stay at home with your children, and be your own boss (who doesn't love that), but there are many tax deductions that can make a home based business opportunity very appealing to moms (and dads) everywhere.

Save on Daycare

Quite possibly the best reason for being a work at home mom is actually being able to stay at home with your children. This is truly a rewarding thing, and might be your main reason to start a home based business. Just the fact that knowing where your kids are, and knowing they are in the best hands (yours of course), gives you total peace of mind. This in itself is priceless.

On the financial side this is also a plus. Daycare costs are outrageous now a days, and even more so if you have multiple children that are not yet in school. The money you'll save on daycare alone can offset the costs of starting your own home business.

Be your own Boss

Being your own boss lets you make your own schedule, and set your own guidelines. Don't want to start working until noon? No problem! As long as you have focus, and can get the work you need to get done, it doesn't matter when you do it. You are in total control of you business, and how you want to run it, and that is a great feeling.

No More Daily Commute

Ahhh! How great it would be not to have to try to beat rush hour traffic? With the rising gas prices today this can add up to a big savings. On another note, think of all the money you will also save on business attire. Working in your pajamas is a lot better than a business suit.

Tax Benefits

When tax time comes having your own business can really make sense. Home Based Businesses receive numerous tax advantages. Most of the time, any expenses that are related to your business can be added as a deduction on your taxes. Some of the deductions you can take on your tax return include:

1. Start up Costs - This includes your initial investment in your business. If you are starting in a direct sales business, this would be your start up kit and any promotional supplies.

2. Business Supplies - Anything you buy and use for your business. Business Cards, paper, pens, etc.

3. Computer - If you purchased a computer to use solely for business purposes this can be deducted as well.

4. Internet Access/ Web Services - You internet connection service and any services such as web hosting, and domain names.

5. Phone Line - This would be a home phone line used solely for business. This also includes long distance calls. Make sure to keep all phone bills for your records.

6. Advertising - Anything you do to advertise your business, whether it is online or off.

7. Automobile Mileage - All your business traveling expenses can also be deducted. This would include your gas mileage to and from events such as home parties. Make sure to keep a detailed account of this as well.

The only rule to this is you MUST treat your business like a business, and not a hobby. This is something you should be doing anyway and is one of the first rules in becoming successful. The next main thing you MUST do is keep good documentation of all expenses. This would include all receipts, credit card and billing statements, and a written log on how the money was spent on your business. Just spending a few minutes a day keeping track of your business expenses can save you an estimated $2,000-$10,000 a year on taxes!

Cheap Insurance - Ten Tips

by: Steve Gillman

Cheap insurance? Auto insurance, life insurance, health insurance, liability insurance - whatever type of insurance you need, you can buy it for less. Try the following:

1. Raise you deductible. Why have a $100 deductible if a $1000 deductible won't break you? It may hurt to pay the first thousand someday, but what if meanwhile you saved several thousand? High deductibles mean lower rates. Of course, get quotes with various deductibles, to be sure you're saving enough for the higher risk.

2. Lower your coverage. Insurance agents secretly admit that people usually get sued according to policy limits. You'll be sued for more if your limit is a million than if it's a hundred thousand. A judgement beyond the policy limits is a scary thought, but this can happen no matter what your limits are. If you don't have many assets or much money in the bank, consider lowering your coverage to save money. Get quotes first, of course, to see how much you'll save.

3. Lower the insurance company's risk. Using seatbelts, not smoking, and having alarm systems can mean cheap insurance. Ask your agent about any discounts that are available.

4. Use an independent agent. Why limit yourself to one insurance company? Independents can show you the cheapest policy regardless of which company it's from. Just check a rating service to see if the issuing company is financially solid, especially when buying life insurance.

5. Drop your insurance. The insurance companies will hate me for this one, but consider eliminating some coverages. You need liability coverage on your car, but collision coverage on a $2000 car doesn't make sense. Invest the money elsewhere, and take the $2000 loss once or twice in your life, or maybe never.

6. Buy stocks instead of insurance. If you and your wife both have good incomes, it probably makes more sense to invest your money than to buy life insurance. If loved ones have enough income or assets, life insurance premiums are usually wasted money.

7. Get rebates. Some states that allows "rebating". California law, for example, allows agents to rebate part of their commission to you. If you live in a non-rebating stae, find a California company online!

8. Get the legal minimums. If you have no assets to protect, ask for state-mandated minimums on auto liability policies. Most companies give you their higher, more expensive "company minimums" if you don't push the point.

9. Review your policies. It is common for parents to still pay for health insurance coverage on adult children long after they are working and have their own coverage. See what other unecessary coverages you may be paying for.

10. Get several quotes. For cheap insurance, compare quotes from several companies, and ask about different policy options. One more thing: take notes.