Essential to long-term financial success, and protecting your future, is paying yourself first. While this may seem easy to do, it happens to be last thing most people do, instead of first. Debts and other financial obligations, money for entertainment, and other spending always seem to take a higher priority. All I can say is, STOP! Think about it, if you aren't worth being paid first, then who is? Always put something away in your savings, and leave it alone. It doesn't matter if it's only $5 a week, just do it!

Snowball The Credit Cards

Last, but not least, is making extra payments, not just minimum payments, on your credit cards. You have probably already seen this many times, but it just can't be stressed enough. Paying just $10 extra a month on a credit card, above minimum required payment, can cut your repayment term in half, if not more! So, squeeze out that extra payment, however small, every month, and take advantage of compounding effect of snowballing your debt away. The Power of Financial Knowledge

Remember, you don't have to be a financial whiz to understand what's going on with your credit and debt. Just a few simple calculations, and an eye on future, will go a long way to help you succeed financially and keep your debt under control. Be safe, be smart, do math!

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5. Keep a separate file folder for all monthly bank account statements and credit card statements.

6. Use a simple bookkeeping software program like InternetTaxHelper to record all deposits, checks, and credit card charges. Once a week or once a month, input all transactions into InternetTaxHelper and assign each transaction to appropriate income or expense category.

The importance of this "categorization" process cannot be stressed enough -- it's key to whole system!

There are any number of software programs out there for this purpose. I've used them all: Quicken, Quickbooks, Money, etc. Spreadsheet programs like Excel can also be used to automate business record-keeping.

But my favorite bookkeeping program for Small Business Owner or Self-Employed Person is InternetTaxHelper -- it is by far easiest to learn and simplest to use. If your business grows, you can always invest in a more sophisticated program later. For any small business owner, especially if you're just starting out, this is best program I've ever seen.

Using a software program like InternetTaxHelper is a tremendous time-saver. Once you've input all your individual income and expense transactions, and assuming you've assigned each transaction to appropriate category and filed paperwork, you've already completed all work necessary to audit-proof your income tax return!

For more information on InternetTaxHelper, go to: http://www.internettaxhelper.com/g.o/wmdctp

One final comment: If you aren't "computer-savvy", that's OK. You can still use good ole pencil and paper to categorize your business expenses.

I have clients who use nothing more sophisticated than a spiral notebook. Each year they buy a new notebook and label each page with a particular income or expense category.

Every transaction gets written down in notebook on appropriate page. At end of year, they add up totals for each page, and presto, they give me an annual recap of all major income and expense categories. Get picture? It doesn't have to be fancy. It just has to be in writing, accurate, and supported by actual paper documents.

Whether you use your computer or not, end result is same: Every single transaction has been assigned to appropriate category, and every transaction has corresponding "paper trail" -- every receipt, invoice, cancelled check and credit card charge has been filed into appropriate file folder. Should IRS question any income or expense amount on your return, you'll be ready!