| |
| |
|
Personal Finance Information |
|
|
|
One Income Source Is Not Enough!
My personal opinion is that in today's new economy, it is wise to have multiple income streams. Reliance on one income source poses a risk to individuals, entrepreneurs, and even large corporations. A single-source income stream, rather it comes from a job, a million-dollar customer, or a highly targeted market segment can dry up for any number of reasons. I live in Michigan where many people derive their income from the auto industry. A downturn in that industry can affect masses of people in various industries because their critical source-point is the auto industry. In fact, before I got laid off from IBM last year, Ford was their biggest client here in Michigan. As Ford started making drastic cuts, so did IBM and many other IT consulting companies. This trend happened over and over again and our mid-western economy has still not fully recovered. People still assume that a job provides security but the reality of unemployment tells an entirely different story. I was laid off for 7 months and I had plenty of time to come to terms with my own financial vulnerability. Financial consultants have always advised a person to have 6 months income saved up and as sound as this advice is, many people don't even have 2 months income saved up; they are actually living from paycheck to paycheck. Over my 20+ year career, I've gone through the down-sizing fiasco more than 5 times and I would be quite foolish to pretend that I can depend on a job to be there just because I need the money. Jobs are good?they keep the economy flowing?people get paid?people spend money?the money flows in and out and everybody's happy. But?and this is a big BUT, jobs cannot be viewed as the single source of personal long-term security. Our view of jobs have to change to match the reality and the reality is - we'd better learn to manage our money well and we'd better learn to generate income from multiple sources if we want to create financial security. There are a few people who don't have to worry about money now or in the future. They have money handled; their income is quite substantial, their lifestyle is affordable, their savings, investments, and retirement plans are unassailable. Most wealthy people cannot even claim this kind of stability because their lifestyles are exorbitant and out of control. But there are people who simply have no money worries; they made the right career choice, they love their work, they handle their career and money like an expert. How many people do you know that fall into this category? Not very many, right. It's true, money doesn't buy happiness but don't let anyone trick you into believing that you can have a quality life without certain financial means. In western society, having a certain income is essential to survival. I know everyone who reads this article may not be suited to join my business but everyone who is looking for way to give themselves some financial breathing room should consider three things, controlling the money going out, diversifying the income streams, and increasing the money coming in. Starting a part-time home-based business is an excellent way to do this. This is one of very few ways that a person can legitimately reduce their tax liabilities and take the money they save and use it to make more money. Robin Harris is a DesignerLife Coach who specializes in helping people get money handled once and for all. You can find out more about acquiring your free copy of the Self-care Kit which includes the amazing Money Module at http://www.how-are-you-doing.com
MORE RESOURCES:
Personal-Finance - Google News |
|
|
|
RELATED ARTICLES
A Quck Lesson in Saving Money Did you have a piggy bank when you were a child? I did. Mine sat empty for a long time until my mother convinced me that I should really start putting my pennies and nickels into it in order to save my money for when I was older and wanted to buy something. Personal Finance - Have Consumers Had a Belly Full of Personal Debt? For months, we were trigger-swipe happy, putting our groceries, clothes, holidays and service charges on our credit cards. We wanted mortgages, we took out loans, we watched Property Ladder and What Not To Wear. Expenses A - What Are They And What Can We Do About Them It is crucial as an individual who is striving for financial freedom to be able to recognize the different type of expenses in our lives. It is a proven theory that it is easier to cut your expense than trying to earn more income. The Good and the Bad of Money Management Good money management needn't be difficult. In fact, there a number of easy steps recommended by most financial professionals to help manage your finances better. A Fresh Start for Family Finances in 2005 While 40% to 50% of us make New Year's resolutions on January 1-a ritual that has existed since ancient times-approximately 60% to 80% of us have already broken them by the end of February, according to researchers.It's still not too late, however, to reset the trajectory on your family's finances, experts note. Budgets And Eating - Can They Co-Exist? Whatever your reason for having a tight budget, the truth is that going to the grocery store without a plan is a BIG budget breaker. And sadly all that cash ends up vanishing into our stomachs and then. Im Broke, How Can I Afford... I'm still amazed every time someone comes to me complaining that they don't have any money to put into their business and that they're broke.I mean what have you been doing with your money man?!?Plain Truth: If you don't have any money you won't make it my friend? it's that simple. Why We Are Never Satisfied with What We Have I have to admit, I do it too. I complain. Is There A Retirement Crisis? When people speak about the increasing age expectancies, they generally do so with positive connotation. This author agrees-there's nothing wrong with living longer, especially if we can sustain our quality of life at each period throughout our lifespan. Budgeting Before Buying With interest rates being at an all-time low, I can understand the urgency for people wanting to purchase a home. But I caution the first-time home buyer to learn how to budget their money before buying a new home. Save Money on Groceries: Part I One universal of humanity, no matter who you are or where you come from, you have to eat. Unless you grow your own food, you will have to go to the grocery store to get it. What Are We Teaching our 2005 Graduates about Money? Now that we are in the month of June I can't help but wonder if we have prepared our new graduates for the responsibility of managing and budgeting their money.I had a very interesting conversation with my God-son, a recent graduate from a local Los Angeles high school. Budgeting is Essential for a Single Mothers Success Today many women are struggling with debt and it's even harder if you are a single mother trying to support your family. According to the Census Bureau single mothers far outweigh single fathers. How to Save Money in a Grocery Store Now there are ways to save money in the grocery store, and they may or may not take much effort on your part to learn some great ways to save money. Your greater savings can often be found in the perishable departments of a grocery store. The Magic Of Compound Interest Christians are called to be good stewards of God's resources. A steward can be described as someone who manages the resources of another. Government Grants - Beware of Scams As the saying goes: "Buyer Beware". If you see ads claiming you qualify to receive a "free grant" for education, to start a home business or to payoff unpaid bills, be wary. How To Survive The Grocery Shopping Blues If you are the normal consumer, then you've probably experienced the Grocery Shopping Blues. Most supermarkets use this trick to their advantage to squeeze more money out of their customers and turn a tidy little profit for themselves. Car Donations and Used Car Donations Car donations and used car donations are the way many people choose to recycle their older model cars without having the headache of repairing, advertising, showing, and hopefully then selling them. Being able to get rid of an older car and at the same time gaining the benefits of charitable giving and a tax deduction are all part of the allure of used car donations. How You Feel Affects How You Shop & How Much You Spend Have you ever stopped to think about how your "mood" affects the way you shop, not to mention the amount you spend? Think about it.If you want to save a lot of money, avoid shopping whenever you are in one of these moods:DEPRESSED, UPSET, or ANGRYIt's very dangerous for your pocketbook to shop when you're either depressed, upset or angry. How To Reap The Rewards With Rewards Programs Recently, many of these loyalty rewards programs have come to the realization that they must change how they put these programs together if they are going to increase their share of the market.One way that has changed over the years is how reward programs have started linking up with various partners to offer more types of rewards for it's members.
|
| home | site map |
| © 2006 |
