May Topic - Financial Planning

I think I speak for the majority of Americans when I say we are being squeezed at both ends in this economy. Most of us are looking to increase our bank accounts due to the current economic situation. The price of daily supplies, such as fuel and food rising, and it seems there is no end in the near future. The only option we have is to increase income in this challenging economy.

The question remains how do we increase our income? Well that answer will differ for various households. There are some general guidelines and options that we can all look into and see if it fits our personal situation. I will tell you it starts with your current situation and the job you have now. You may be in a situation where some financial planning will actually increase your income. On the other hand, some of us may try a different course of action. Throughout this newsletter you will find some approaches that you may be able to apply to your situation.

How to Increase Income

01.  Financial Planning
02.  Steps for Asking for A Raise
03.  Sample Work Sheet & Daily Spending
04.  Expand your Education
05.  The Internet & Networking

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Financial Planning

The first step to increasing your income is budgeting. Many of us spend a lot of money throughout the month on little things that add up to be a lot. We do not realize how those pennies add up over the days, weeks and months. You can actually increase your income by budgeting. The March newsletter went into detail about budgeting and saving money so I will only briefly touch on this subject.

The word budgeting makes people's skin crawl. So let's refer to it as a financial plan. First thing you want to do is make a conscious decision to watch what you spend each day. I recommend writing everything down for one week. This includes a cup of coffee, pack of gum or a tank of gas. It does not matter how small or large the purchase is you should record it. After doing this for one week you will have a better grasp on your expenses throughout the average day. On the following page you will find a budget, as well as a spending record that can assist you in these tasks.

You will most likely be astonished at how much money you spend that can be avoided by planning ahead. Let's think about this for a moment. I am sure most of us are guilty of stopping at the local coffee shop at least 2 times a week on the way to work. I am positive that costs you an average of $40 a month. Imagine the savings over a year if you brought coffee from home. A lot of times saving money is accomplished by making small differences in your spending habits.

Steps for Asking for A Raise

Know the policy of your company. You should have received an employee handbook when you were hired, which usually states some useful information. You would want to find out if your company does annual performance reviews or gives raises according to the rank. If there is a Human Resources department it can be helpful as well.

Find out what you are worth. Salaries vary from area to area. There are many salary calculators on line available to you, such as www.cbsalary.com. Take into account your specific job description, years of experience, as well as your location.

Prove your case. Why are you asking for a raise? Have a list of accomplishments ready. Remind your boss of the positive things you have contributed to the company.

Did you help solve problems or complete a tough assignment?

Did you work extra hours to meet a deadline?

Did you make or save the company money?

Do you work well with and train other employees?

Make an appointment. Generally speaking, owners and bosses of companies are extremely busy throughout the day. Try to set aside some time to speak with he or she. You do not want to just walk in and approach your boss. Contact he or she and ask whenever available you would like a moment to speak with him or her. This is the professional way to handle it and you are assured then that all attention is on what you are saying. Do not rush through it. Stay calm and explain your valid points.

Leave out personal talk, such as why you need a raise. Your boss does not care if you are a single parent or your car broke down. Make the point that you are asking for a raise because you have contributed a lot to the company and therefore you deserve it. Emphasize that your positive track record is going to help the company grow in the future, assuming that you have already demonstrated the skills needed to have a positive influence on the growth of the company.

Sample Work Sheet & Daily Spending

It sounds simple but many people take this area too general. You want to think of everything you spend money on. Obviously most people will have food, utilities, and mortgage/rent, but you will also have personal categories. You must think of extra activities that you do such as golf, or another sport you may participate in. The purpose of doing this is to become more aware of where every dollar goes.

Download our printable Microsoft Word Version worksheet that will assist you in this.

Monthly Expenses-Housing
1st Mortgage or Rent	$
2nd Mortgage or Equity Loan	$
Property Taxes (monthly)	$
Heat/Electricity/Water	$
Telephone (home and cell)/Internet/TV-Direct TV or cable	$
Total	$
Monthly Expenses-Insurance and Food
Auto Insurance	$
Home Insurance	$
Life Insurance	$
Health Insurance	$
Medical/Dental/Prescriptions	$
Total	$
Monthly Expenses-Other
Savings	$
Education	$
Children's Expenses (Child Support/Child Care)	$
Recreation/Vacations/Health Club/Sports	$
Books/Magazines	$
Cigarettes/Alcohol	$
Beauty (hair, nails, dry cleaning)	$
Car repairs and maintenance	$
Charity contributions	$
Gas	$
Total	$
Monthly Expenses-Debts
Credit Cards	$
Student Loans	$
Car Loans	$
Total	$
Grand Total	$

Expand your Education

It may not seem like a perfect time to go back to school, however keep in mind higher education means higher salaries and benefits. In addition to the unemployment rate-increasing daily you are more marketable with a degree. I know that many of us are not in the situation to quit our day jobs to continue our education. Luckily there are so many options available to us without leaving our house or job.

Online courses have become increasingly popular. Many people have depended on online courses due to working responsibilities and family obligations. If you plan on going back to school try to use all your resources. There are countless numbers of scholarships available. They are often not publicized so be sure to do your research and you may be pleasantly surprised at what you find. A little time and research could save you a lot of money.

Generally there are Community Colleges available in each area. Keep in mind that the courses offered there are equivalent to universities. Often times these courses are less expensive. The academic credits you earn at Community College are transferrable to a University if needed.

The Internet & Networking

We live in a world of technology where everything can be done with the stroke of a mouse, or the click of a button including making extra money. What do you do with the things that you no longer need or want? Probably throw them out or donate them. Just like you have heard countless numbers of times "one man's trash is another man's treasure". I am sure you remember the days when your parents or grandparents had garage or yard sales and made some extra money. This generation has replaced garage sales with EBay or other sites that sell things without leaving the comfort of your home.

You have nothing to lose by selling things on these sites. It is easy and cheap to do. It is more cost effective than having a garage sale and you reach millions of people nationwide. Not to mention the convenience of it. The site will contact you when you have received offers and the payment is done online.

The Internet can be used for other ways to make money, such as surveys. Some sites will actually pay people money for their time. Please be cautious which sites you use and be sure they are legitimate. The Internet is a wonderful tool, however many people are victims of scams. Never give any personal information until you are sure you are on a secured site and you have researched the company.

Networking

Look in your community for job opportunities. You may want to go to the Local Town Hall or religious halls and research any bulletins listed. A lot of times people will look within their community for side jobs, such as a babysitter or a handyman.

Think about your skills. Are you really good at a certain subject? Possibly swimming? Sewing? You could post your own bulletin offering your services for a fee. Networking will help. Discuss with local neighbors that you are going to start giving piano lessons. You will be stunned at how quickly word will get around.

Remember to look into the qualifications and average fees for services you are offering. Research the average fees for your services and be competitive. Take into account people are going to shop around to find the best deal. Keep in mind first impressions do last, so be professional and have a list of references if asked.

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Got a question? Then contact our Education Team on 561-883-2398 Ex.310 United conducts regular seminars on financial education, including "How to Budget", come along and join us - to reserve your seat contact our Education Team on 561-883-2398 Ex.310

Newsletter 05
Rev.1
May, 2009