WEALTH

MONEY MANAGEMENT, PART TWO


Step #2: No New Debt

Starting today, make a commitment to stop acquiring new debt. Do not use a credit card. This may seem obvious, but if your debt is out of control, it’s because you keep adding to it. The first step on the path to debt freedom is to stop using credit. Don’t finance anything. Begin making purchases with cash as often as possible.

Spending with cash will often result in spending less impulsively. If you have to use plastic use a debit card.

In order to begin living within your means, you need to start by looking at where your money goes. This step will seem tedious
but you have to go the distance.

Step #3: Begin tracking your spending now.

The purpose of tracking your spending is to take a snapshot of your spending habits and figure out where it all goes. It is only by doing this you can begin to change your habits.

Track your spending and
- Begin to plug leaks in your spending
- Reduce spending where it’s possible
- See how reducing small amounts in lots of areas add up to something significant

In order to begin living within your means, you need to start by looking at where your money goes.
- Begin to live within your means (and save)
- Know where your money is going for a better chance of success

You will become a bit frugal and thrifty and feel accomplished in doing so. Don’t agree to a life of per-ma-debt (permanent credit card debt). Begin preparing for the future and live within your means.

ACTION: Track your spending.

1. For the next 30 days track your spending. Simply jot down what you spent and on what. That’s it. Begin today. Every time you write a check, pay with cash or debit card, jot it down.

2. At the end of the thirty days, categorize your spending (groceries, restaurants, entertainment, credit card bills, electric bill, haircut etc.). Be specific with the categories and total them.

3. Save all receipts.

4. For now, you are no longer using credit cards or financing anything.

Next, we’ll work on re-prioritizing your spending!

Andrea Pokorny
MainstreamMom.com

WORK FROM HOME MOM


Andrea Pokorny is living proof that when your {luck} with jobs and money change a reality check sets in very quickly!  She and her family had their lives turned upside down in one day….They went from a salary of over $125 thousand a year to $25 thousand.  Two children at home and one on the way,  life changed quickly and major cut backs happened.  Andrea has taken her lessons that she has learned along the way and has created Mainstreammom.com  She now is able to have a home business and still be a {mom}.

Listen to some of her sound advice. Andrea Pokorny

ARE YOU STILL USING CREDIT CARDS?


Andrea Pokorny is living proof that when your {luck} with jobs and money change a reality check sets in very quickly!  She and her family had their lives turned upside down in one day….They went from a salary of over $125 thousand a year to $25 thousand.  Two children at home and one on the way,  life changed quickly and major cut backs happened.  Andrea has taken her lessons that she has learned along the way and has created Mainstreammom.com

Some of her first steps were to cut up those credit cards…Listen to her some of  her sound advice.  Click here Andrea Pokorny

IS MONEY MANAGEMENT LIKE RAISING KIDS?

Money management is a lot like raising children. And if you’ve ever had a child, you are aware of how quickly he or she grows up. One day you’re swaddling them in their blanket and the next you’re cutting gum out of their hair or preparing them for their SAT’s.

You’ve nurtured them and taught them how to fend for themselves. You’ve reprimanded a bit, expected their best and often find yourself smiling when they’ve made good choices.

If you were to scrutinize your “money parenting”, would you find yourself neglectful? Have you deprived and ignored those sweet little clams?

Had you taken the time to read all you could about money management, as you likely did about parenting your newborn, you’d be set. You’d be debt free with an emergency fund that could last up to six months if needed. Your savings would be growing as quickly as your kids and retirement may even come early.

Money requires some tender love and care. Just like the kiddos.

Let’s face it, money isn’t everything. But, managing it well will allow you to spend it when you want, give it when you want and of course it provides financial security. It will give you freedom and peace of mind. That’s all.

If we look at money like being a child, we might be more inclined to take better care of it.

Of course, there would be absolutely no doubt that we’d be sure to know what is going on, at every moment, with every single penny. Do you ever allow a child to walk out of the house without knowing where she’s going and when she’ll be back (not to mention who she’ll be with and if any parents will be there).

Does money often fly out of your hands, without any real discipline, on stuff you don’t really need? Do you find yourself scrimping by? Is all or most of your money gone just before your next paycheck? — If you’ve answered yes to any of these questions, you’re not alone. Not by a long shot!

So, like Oprah says, when you know better, you do better. Time to do better… start raising smart, hard working little clams that will make you smile when financial security arrives at your door step.

Step #1: Know Where You’re At

Knowing your net worth is the best way to measure and track your financial well-being. It will be your guidepost on this journey to financial security.

Some of you might find some comfort in not knowing because as long as you don’t know, there is a chance things aren’t that bad (i.e. denial). Still, this is an important step.

Just like family dinners and special one-on-one time with your kids will keep you up to speed on their lives, keeping your finger on the pulse of your net worth will do the same for your money.

STEP 1 ACTION: Calculate your current net-worth.

Net worth = Assets – Liabilities (Worksheet Here)

It’s possible to have a negative net worth, even if you have a high paying job, gorgeous home and money in the bank.

If it is negative, consider this a wake-up call and decide right now that you’re going to change it. If your in the red, if your net worth is a negative number, that simply indicates that you are living beyond your means. You have more debt than you have assets.

Complete step one and stick around for step two. This stuff is easy (WAY easier than raising kids). Simple, common sense. Let’s do this together!

Andrea Pokorny
MainstreamMom.com

A LABOR OF LOVE

It was an honest accident. That is how Shana Martin describes starting her business, The Ana Mae Southern Bread Company. She coupled her degree in marketing with her grandmothers bread recipe and found herself cleaning out her dining room in order to make room for the bread orders that started rolling in. She served the local restaurants near her home in North Carolina for a year and a half before branching out. She ventured into independent grocery stores and farmers markets and said everyone who tasted her grandmothers recipe was hooked. From there she moved her operation to a small business incubator to help cover her cost and reduce overhead and give her a few more pair of hands to help with baking and deliveries.

Through all of it Shana has stayed true to her grandmothers recipe; a recipe that takes 30 hours to process with a slow yeast starter. Everything is made by hand, from scratch with local ingredients, the old fashioned way.  Ana Mae Bread has recently struck a deal with Fresh Market, its first national chain. She says the key to her success in a start up company is passion. Martin says without the passion for her product she would not have survived some of those long days of baking and baking and more baking. She says her bread company is a labor of love with an emphasis on labor.

{To hear the interview with Shana Martin, click here}

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