Can a Doctor heal her finances?

This is part of our Financial Literacy Month Question and Answer series

Question: I want to start a business. Do I need a separate checking account? ~ Monica
Answer: Monica, with a small business it is very easy to mix business and personal expenses especially when you’re just starting out.
For some people the business started out as a hobby or a way to make a little extra money on the side. There wasn’t much thought to profit or a permanent enterprise at the time. All of the money …

Do you make some money as a hobby? If so, you may be able to deduct the cost of the hobby from your taxes.
A hobby can deduct expenses up to the amount of money you make. So, if you make $100, you can deduct $100 worth of expenses.
If you run your hobby as a business, however, you can deduct all your expenses even if they are more than you made from the hobby.
What’s a business?
The IRS defines a business as an activity engaged in for profit. (Income minus Expenses equals …

This is part of our Financial Literacy Month Question and Answer series
Question: How do I go about creating a budget for my family on a straight commission job? What figures do I base it on. Thanks. Todd
Answer: Hi Todd, that’s a great question. I call that “Roller Coaster Income”. Realtors, doctors, sales people and self-employed or small business owners often run into this situation.
Most people with Roller Coaster Income spend the money or pay off old bills when they have high income and starve when …