A Finacial Plan!

Financial gain is not a matter of luck; financial gain and wealth comes from a great financial plan and saving. You can look at your money from two opposite prospectives those are offensive and defensive. Defensive financial planning is a matter of you taking action, making money and saving money.

Income is your monthly earnings, earnings that you bring into your household. These earnings should be used first and foremost on your necessities, like heat and electricity, water, food, gas for traveling back and forth to work. Your monthly income as well should be used to pay for non-necessities that everyone likes to have cable, phone and internet. Of course as a part of frugal living some of these could be eliminated. Here is where you go to your savings, anything left over from your monthly income after all bills and expenses needed to live have been paid should be considered your savings. That bit of money leftover can be increased; you can do this by increasing the income coming in. Another job, a money making hobby (Hub Pages), investing or you could ask for a raise in your current job. Just remember any extra income brought in is not for spending but for saving.

Saving is a way to increase your wealth for example says you bring $4000 dollars a month in income and $3000 of that is for paying your living expenses the last thousand should go directly to a savings account. A savings account is your first step to a new financial plan and increased wealth status. Your second step should be to find ways to increase that thousand dollars, with one or some of the above mentioned plans, a second job etc…

An increased income is great but in some cases a second job or odd jobs on the side are not possible due to your family situations. Here earning extra can be done through a number of mediums in my case I write online here at Hub Pages and a couple other sites. I have said this before in many of my articles “it is not a get rich medium but every little bit helps”. Frugal living is another great step to saving and financial planning. Frugal living is not stretching the dollars you already make as far as they possibly can stretch, but it is spending on needs and eliminating compulsive buying. Frugal living does not mean living a hopelessly boring life. You don’t have to go without the wants for the rest of your life it just means to do it wisely. With coupons, searching for the best deal and not breaking open your savings account. As I mentioned before “savings account” this is a step I think is of upmost importance. You have found ways to save, and bring in extra money, and extra money does not signal a spending spree. Extra money signals a savings account! After a while of putting money into your new savings account you will condition your mind not even to think about that money, eventually forgetting it is there like that old saying “ out of sight out of mind”! Frugal living as well will become second nature, cutting coupons out of the Sunday paper, buying coffee in bulk and making your own lattes.

So it boils down to a good financial plan, cutting back, increasing your efficiency and get better deals.