Author: CaroKim Consulting, LLC

Do you think you are ready to step away from the corporate America and pursue your passion full-time? Here are 5 signs you might be ready!

1. You are making as much money as (or more than) your day job

If your side-hustle is able to financially match what you are making at your day job, you should consider what you could do if you gave it your full attention!

I did not realize how much my side hustle was financially supporting me, until I started bookkeeping and quarterly analyzing my interim financial statements.

2. You have a short and long-term vision

You have mapped out the future of your side-hustle 6 months to 5 years out. You have a plan. This is a good indication that it is more than a hobby. Planning is a sign that you want to see where it can go.

I had short-term and long-term plans if going it alone immediately after graduating graduate school.

3. You work on your side-hustle at work

If you are seating at your 9-5 wielding phone calls and emails, spending time brainstorming for your next service or product launch, and designing your marketing platform for your side-hustle; it may be time to move on and make it full-time.

I spent my corporate America lunch time replying to business emails, meeting clients and taking short breaks to answer client phone calls.

4. Your side-hustle has become a full-time job outside of your day job

If you are putting in 40 hours at your day job and then moonlighting another 40 hours, that is 80 hours of work! Over the long haul that can be difficult to sustain, usually something needs to be given up. It may be the right time to leave the corporate grind behind!

My 5-2 was for building my side-hustle. I worked over the weekends and took paid time off to purse my passion full-time.

5. It is exciting

The idea of working on your side-hustle is thrilling and gets you out of bed in the morning. You are passionate about it and you feel like you are thinking about it all the time. This excitement is a good sign that you are motivated and ambitious and ready to take it to the next level!

The idea of waking up to go clock into someone else’s dream, meet unrealistic expectations just to get a raise, promotion or better performance review gave me nightmares. However, the time and money flexibility to work for myself, grow and build my own, to control my destiny excites me everyday!

Need help getting started with your new business? Ms. C.CPA can help!

How are you preparing for the unknown

What is happening to the economy, health care, work, travel, small businesses… what happens next

3 Personal Stories:I stopped my Costco membership renewal. Recently, I needed to purchase some essentials, walked into Costco, talked to the manager and he allowed me to check out essentials without renewing my membership. they’re still out of

I called Geico to request shelter-in-place paycheck premium refund and they will honor 15% in April via Geico giveback credit.I’m using gas-buddy to search for lowest gas prices, before I . 3 similar gas stations, 2 miles apart have 3 different prices – $1.91, $1.51 & $1.81. $1.51 is the BEST DEAL!

Here are my personal financial hacks:

E-file your taxes, get your refund and economic stimulus direct deposited.

Adjust your withholding’s on your W4 to reduce next year’s refund. Don’t loan your money to the government with 0% interest.

Redirect “extra” cash such as economic stimulus towards topping off your emergency fund, savings or investment account.

Consider taking your dividend payments as cash instead of reinvesting.

Cancel unnecessary recurring charges, fees or subscriptions. Have unused gift cards, now is the time to redeem and use them. Use shop-save apps such as fetch, true bill, rakuten, walmart catcher, rebates etc

DIY – Cook, clean, do your own hair, nails, make up.Work on your kitchen garden, home improvement projects.

Visit your essential need providers online and look for COVID-19 programs, give back incentives, tips on how to lower your monthly bills, then apply.

When not in use or not needed turn off the lights, water, TV and AC. Don’t waste food, leftovers save lives.

If you can, continue paying your bill’s on time or research and enroll in forgiveness programs; before deferring or seeking loan forbearance.

Learn how to research and trade stocks and forex. This is a long term investment tool.

Live Below Your Means!

If you need the maximum tax refund legally possible, my email address is caroline@carokimcpaconsulting.com

Stay Home, Stay Safe & Save Lives

One of my favorite clients requested I write her 16 year old son a few sound financial advice. I said absolutely, here we go:

1. ECONOMIC STIMULUS FUNDS

2020 CARES Act and Tax Credit is OFFICIAL!

Who Is Eligible:

U.S residents and citizens

Taxpayers not claimed on another person’s tax return

Taxpayers with SSN and authorized to work in U.S

Taxpayer filed a 2018 or 2019 tax return

Who Is Not Eligible

Economic Stimulus Check Summary:

IRS will issue checks based on 2019 tax information if you filed a tax return, if you haven’t filed yet, they will use 2018 tax information.

If you had lower income in 2019 and haven’t filed, it’s a good idea to file soon. If you haven’t filed 2019, 2018, 2017, 2016, 2015, 2014 tax returns email me ASAP!

Direct deposits is still the fastest and easiest way to distribute funds. However, the Internal Revenue Service will also mail checks.

The economic stimulus check is non-taxable income.

65+ year old will continue receiving their social security benefits, pension and they will also receive the economic stimulus check. “Social Security recipients will automatically get stimulus checks without filing taxes for 2018 or 2019”, Treasury says.

Economic Stimulus Funds For Individuals:

Again, if you haven’t filed 2019 tax return, the Internal Revenue Service will use your 2018 income tax return and bank information.

Income Limitations And Thresholds:

You get the full amount if your Adjusted Gross Income – AGI is below the following phase-out and threshold amounts:

$1,200 for single and 2,400 for married filing joint tax filers above is reduced by $5 for each $100 that a taxpayer’s AGI exceeds the threshold amount.

You won’t get the stimulus check if your AGI is above the following amounts:

The US government CARES economic program and plan is that Americans will spend these funds and get the economy back on track

To learn more visit: https://www.nytimes.com/article/coronavirus-stimulus-package-questions-answers.html

2. THE PAYCHECK PROTECTION PROGRAM

Article overview:

• Small businesses can apply for 100% guaranteed loans of up to $10 million to help keep workers employed.
• Interest rate of 0.5%
• Maturity of 2 years
• First payment deferred for six months
• 100% guarantee by SBA
• No collateral
• No personal guarantees
• No borrower or lender fees payable to SBA

Paycheck/Payroll Protection Program is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which consists of $349 billion in government-backed forgivable loans to help small businesses continue paying payroll costs and certain operating expenses for up to eight weeks. This is a federal first-come, first-serve basis program so apply ASAP.

Small businesses may each be eligible for up to $10 million to cover payroll and other employee benefits (PTO, insurance premiums, retirement, etc.). The loan may also be used to pay interest on mortgages, rent, and utilities

How much does your small business qualify for? 2.5 times your business average monthly payroll costs with no more than $10 million. Payroll costs are capped at $100,000 on an annualized basis for each employee.

However, SBA and banks are still debating on the most accurate calculation method to use.

Loan payments are deferred for six months.

What is the interest rate? 0.5% fixed rate

Are Paycheck Protection Program loans fully forgiven? Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll).

Loan payments will also be deferred for 6 months. No collateral or personal guarantees are required.

Neither the government nor lenders will charge small businesses any fees.

How can I request loan forgiveness?

You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations.

You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments.

The lender must make a decision on the forgiveness within 60 days.

Must small businesses keep employees on payroll or rehire quickly? Yes.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

Re-hiring requirements are? Employers have until June 30th, 2020 to restore full-time employment and salary levels for any changes made between February 15th and April 26th 2020.

Which small businesses are eligible? Small businesses with 500 or fewer employees—including nonprofits – churches, veteran organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors are eligible. Businesses with more than 500 employees are eligible in certain industries.

To be eligible special rules apply to the following businesses: accommodation, restaurants/food services, gig economy workers and franchises.

Which counts as payroll costs?

Do I need to personally guarantee this loan? No. There is no personal guarantee or collateral requirement.

However, if the proceeds are used for fraudulent purposes, the Federal government will pursue criminal charges against you.

When should I apply?

How do I apply?

You can apply through any existing SBA 7(a) lender or through any federally insured depository

Institutions, federally insured credit union, and farm credit system institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. Online application and document submittal is available for these federally insured depository institutions: Wells Fargo, Bank of America, US Bank, Heritage PNC Bank, Fifth-Third, Fountainhead, Chase Bank. Also check out this SBA Participating Lenders List.

All loans will have the same terms regardless of lender or borrower.

The Paycheck/Payroll Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury to help small businesses.

Application forms are available here: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf

To learn more about the Paycheck Protection Program, contact your preferred lender and visit: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp

#PaycheckProtectionProgram #PayrollProtectionProgram #PPE #SBA