Finance and Marketing

Archive for May, 2009

No matter what level of income basic financial planning is a must. In order to make money you have to have money. At least a small pile of it stashed away somewhere. This means that you will have to structure you actions now so that you will have the money when you need it.

In a 1997 report, the U.S. Bureau of Labor Statistics Consumer Expenditure Survey said that the average person, over 65, spends about $25,275.00 a year to live on. This included items like food, housing, utilities, transportation, health care, entertainment, furniture and appliances, etc. This is a good starting point. Take whatever total you come up with for yourself from those items and count them as expenses. Of course you have to consider any loan payments, life insurance premiums, etc. into that total.

Several basic concepts apply here but one of the most important is to make sure that your income exceeds your expenditures. Don’t do that and you’ll slowly fall into debt instead of moving into safer waters.

Once you have decided what your expenditures are, and you know what your income is, follow the steps below and a basic starting point for accumulating money.

• Find a way to increase your income. The internet offers any number of work at home opportunities that give you the chance to not only set your own hours but dictate your own paycheck. One of the best of those is internet marketing. Network or affiliate marketing gives its users a chance not only for immediate income from their own work, but also residual income from others that you have taught to use the system.

• Curb your spending. Sounds like an obvious solution, if you could only actually do it. This is the backbone of basic financial planning. It is important to have something to save after you have paid your expenses. If you do not you are spending too much. Find ways to cut back or reduce. If gas is too high, take the bus. If lunch at Olive Garden costs you $20 a day, pack a salad and sandwich, or even spaghetti if you just crave Italian like I do.