Generating 7 Streams of Income

Here is some advice. Grab a cup of coffee this weekend, put aside 30 mins and just take a breath and sit down and review your financial situation.

What should you assess? Do I have an emergency fund? ( up to 2 months worth of bills and living expenses). Are my bank accounts insured fully by the FDIC? (make sure you only have up to $100,000 per social security number per bank) What interest rates do I have on my savings accounts? (We discovered that we are earning about $2.75 per month from our account and switched to another account earning 12X more!!)

Next, take a look at how your money is currently invested. You should have recently received a statement from your 401K. Mine showed that from the 34 funds available only 5 were making money. My money is in the Money Market Fund that has earned a whopping 1.11% year to date!!

Take a look at how your stocks and mutual funds have been performing. You will likely be shocked at the poor returns.

Then take another breath and think about making some adjustments.

I know the above process seems about as appealing as undergoing a triple root canal, but wake up and realise that this is your financial situation here. You work very hard for your money and you owe it to yourself to make sure it is working hard for you. Become obsessed with your money and make sure you are doing everything you can to maximise it’s returns.

For example, you may have $5000 in savings earning less than 1% and a credit card balance of $2000 charging you 13%….no brainer here, pay off the credit card from the savings!

You may have funds within your 401K losing alot more than other funds, again decide if you should rearrange your funds.

There are lots of pretty basic things you can do to “Tweak” and “Fine Tune” your finances. Please send some suggestions that you have, any ideas are welcome.

Good Luck, be positive and enter next week feeling as if you have made progress.

This entry was posted on Saturday, July 26th, 2008 @ 10:46 am on the category Generating Streams of Income, Investing Online. You can follow any responses to this entry through the RSS 2.0 You can leave a response, or trackback from your own site.