November 30th, 2008 — Diversification, Income Streams, Money, Personal Finance
One of the main problems facing those that have multiple streams of income is managing them. You can start to feel a bit like a juggler and chances are, you may be neglecting areas that could be performing better and making more money. Focusing can be tough, but there are easy ways that you can keep track of your many income streams and make sure that they are all performing up to snuff.
1. Set aside a few hours every week to collect reports.
One of the main keys to staying on top of several income streams is to keep tabs on them every week. Set aside a few hours to focus on the returns and keep track of how each one is performing. You can use special software like Excel to make it easier to keep track of how each one is doing. The added benefit is that you can start to spot trends each week and you’ll know when it may be best to move on to a new opportunity.
2. Keep a paper log of all activity.
While it’s certainly find to keep track of everything on your computer, there is a lot to be said for keeping hard copies of everything. First and foremost, you may need these for the IRS and secondly, we read differently on paper than we do on the screen. You won’t run the risk of missing important information and you’ll have an easy copy for reference at any time. Don’t forget to make disc copies of all of your information as well. You should store your paper copies and your backup disc in a safe place that is fire resistant for extra security.
3. If necessary, minimize.
If you’re running too many streams at once, it can be nice for your bank account, but very hard to keep track of. Find ways to consolidate your income and reporting and if necessary, you may need to drop some of the streams that aren’t performing as well as others.
4. Get passive.
If you’re trying to manage several active streams of income, chances are you’re probably spread pretty thin. Try to diversify and add more passive streams so you don’t have to work so hard. Passive income is a lot more fun, and you’ll be able to spend more time on other things in your life that are even more important than making money, such as your family or hobbies.
5. Get some professional help.
If you’re just too swamped to manage everything on your own, or if you find that you have fallen behind, it’s time to enlist the help of a professional before it spirals out of control. Consider working with an accountant or a financial planner that can take some of the burden off of your shoulders for awhile. This is especially helpful if you are going through a period of extra work or you need to be able to focus on other areas of your life for a few months.
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October 15th, 2008 — Budget, Money, Personal Finance, checking, children, education, saving
As parents, most people focus on the basic lessons of life, and may not be covering important financial lessons that could last a lifetime. Successful adults are usually those that were trained early on in proper management of their money, and developed an early respect for a dollar. If you have not yet implemented a plan to start teaching your child about money, now is a great time to start. Here are some tips to help you along the road.
Children Aged 3 to 5 –
This is a great time to start working with kids and teaching them about earning money. While they can’t exactly go get a paper route, that doesn’t mean that they can’t take on tiny tasks and get rewarded. For example, you can have boys (or girls) find certain types of bugs in the yard. For each bug they correctly identify and capture, you can give them a quarter. As a bonus, this is also a great lesson in entomology. If bugs aren’t your child’s thing, you can easily adapt this into another form. The key is teaching them that hard work and persistence does pay off.
Children Aged 5 to 9 –
This is the time when kids are more able to start handling basic chores around the house. You may also be able to start working on goal setting, especially as they get closer to nine. Try taking them to a store and ask them what they would like to get. Then, you can use this as a lesson by teaching them how much work they will need to put in, in order to get that item. For example, if they want a toy that costs $10, and they get a weekly allowance of $2, you can teach them that they will have to work five weeks, and save that money in order to get what they want. This has the added benefit of teaching them about saving, and learning more about hard work.
Children Aged 9 to 13 –
These are very important years and you can start to expand on the lessons you’ve already taught them. If they are mature, they may be ready for their first child checking account. This is also the time when they will be able to do bigger jobs around the house, or even get a paper route. Use each opportunity that comes up to reinforce the lessons that they have already learned.
Children Aged 13 to 18 –
By now they should have a firm foundation in how money works, how to get what they want, and the importance of respecting how far a dollar can stretch. Once they reach 16 they’ll be able to get their first job, and all the lessons you’ve taught them will carry over.
It’s never too late to start teaching your children about money, saving and earning. In fact, as you teach them, you may even learn a few things on your own and come to a better appreciation of your finances.
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August 11th, 2008 — Personal Finance
There comes a time in everyone’s life where they begin to take a hard look at their finances. If you weren’t born into wealth, you’ve worked hard to get where you are and it can be frustrating if you feel as though you’re only treading water. Every single one of us has the potential to be a financial success, but we all hit that point at different times in our lives. Here are some tips to speed up your trip to becoming a financial success.
1. Are you making more than you spend?
You are never going to be able to get ahead financially if you cannot put a leash on your spending habits. Until you start realizing that you do indeed to make more than you spend, you will not be ready to take that next step towards living your dreams. If you find it difficult, try setting a budget for yourself for just one month. It may be a little tough at first, but at the end of the month, you’re going to feel incredibly proud of yourself. With time, it gets easier to retrain your spending habits and you’ll be able to take that next step.
2. Do you pay your bills on time?
It’s easy to get into that trap of being a few days late here, or a week late there. However, this will not help you become a financial success. You need to learn to set hard and fast dates for yourself to pay those bills and make it possible with the proper budgeting. If you know that you’re not going to get your paycheck in time for that bill next month, you’ve got to put aside the money right now to cover it. There is nothing wrong with paying your bills early, or at the very least, putting the money aside to pay it by the due date.
3. Do you rely on one income?
If you are stuck living paycheck to paycheck, it’s never going to get any better. Even if you get a raise, you may get stuck into the trap of simply spending more every month. In order to become a financial success, you’ve got to have more than one stream of income coming in every month. This has the added benefit of providing a cushion that frees you from worrying about your job so much. Make small investments at first, or deposit money into a high yield savings account that will start paying interest.
4. Are you one step away from financial ruin?
80% of Americans face the harsh reality that if they lost their paycheck today and could not find another job, they would be financially ruined. Going back to point three, you have to find a way to increase your income so that this is not a problem. Put money aside, and save for that rainy day. It may never come, but at least you will be prepared if it does.
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