Creating Financial Stability

Hello everyone,

To begin with I'd like to let you know that I am a personal financial strategist by trade. The reason I am telling you this is to let you know that I do not plan to steer you the wrong way and to let you know that I do have the training needed to be giving this type of advise. Step 1: Calculate your total monthly income. This income can be from various sources such as work, child support, alimony, side jobs, internet sales, ect. When trying to work out your finances I'd have to say this is a very important step. After calculating your income move to step 2. Step 2: Calculate your total monthly expenses. This includes everything from food to rent to cable and cloths. Make sure before you go to step 3 that you have a stron estimate for total monthly expenses. Step 3: Compare your income to expenses. When doing this your income should always be at least $250.00 a month more than your expenses. No one knows when emergencies can happen so making sure you have expendable resources is very important. Step 4: Analyze your current financial state. This means after balancing your income to expenses you need to figure out where you stand. Do you have more or less than $250.00 expendable resources each month? Do you have enough income to cover your expenses? If you have more than enough income, what should you do with this excess income? Well that is all answered in Step 5 wich is different for everyone. Step 5: Fix what is wrong. First, if you do not have enough income to cover expenses, figure out a way to reduce expenses. I know this sounds hard but really it is not. One of the best ways to reduce expenses is packing a lunch from work. The average fast food meal costs $8 the average packed lunch costs $3 over a month you could save $150 a month packing lunch 5 days a week. If this is not enough cut back on some thing that, although you may enjoy, are not necessary such as cable and internet this is also about $100 a month so now we are up to saving $250 a month. If this is still not enough cut out the extra trips in the car. The average american spends $175 a month in gas for unnecessary trips. I know I know cutting everything off sucks but it is what it is to become financially stable it is worth it. Next after cutting expenses look for extra income. Running errands for elderly picking up a part time job or even internet marketting can work. Or, if you already have at least $250 a month in expendable resources move straight to step 6. If not once you get there go to step 6. Step 6: Practice healthy money management. Ok so you have $250 a month to play with this does not mean to go out and play. Before playing you need to set up a back up for hard times. What you need to do is save up $500 once you have this open a high interest quick access savings account. Every month put the expendable resources into this account. When the account reaches $5,000 now it is ok to play once in a while you are now financially stable. If you lose your job you wont loose your house. You now have at least 1 or 2 months of rent and resources backed up. Enjoy the stability you made it! Also I came across this tip on another hub and I find validity in it. "Coffee and Water These are two things that you should really not spend money on, but they seem unavoidable nonetheless. If uncontrolled I am sure I would spend thousands, seriously, on coffee and water each year. Instead I give myself a $20 limit per week, which still adds up to $1,040.00 per year! This is the envelope that I never have any money left in at the end of the week, or usually by Thursday. As someone who is often out of the house all day, I need an afternoon caffeine boost. The best thing to do is to buy coffee from places like Tim Horton's or Dunkin' Donuts which are generally much cheaper than Starbucks and other designer coffee chains. As unglamorous as it seems, gas stations often have good cheap coffee that costs less than a dollar for a very large cup.In the morning I try to fill up a mug with coffee so that I only need to buy one cup in the afternoon. I carry a Nalgene bottle with me everywhere I go and this has greatly cut down on my costs. I can stop at a drinking fountain or tap to refill and I usually only need to buy one bottle of water per week. These are just a few suggestions. I would love to hear if you have any money saving tips that help you each week, month, or year." The italic portion written by lauren hager Also, if you are interested in making money online go to Become an Affiliate!