5 Simple Steps To Determine Your Financial Status So You Can Break Free From Your Job First
It doesn't have to be unsightly or messy, but it has to be done. You may be well on your way to building a full-time home-based business or just pitching the idea right now, but having a clear understanding of your current and future financial commitments will play an IMPORTANT role in your strategic plan for business success. . business.
Home business owners usually don't wake up one day and say, "Yes. Today I'm going to quit my job and start a business from home." There is usually a period for contemplation, exploration, decision making, creating a plan, and then beginning the execution of the steps within the plan to achieve the ultimate goal.
The process can take anywhere from several months to several years before an employee can quit her job to start her life as a full-time entrepreneur. Being financially responsible is critical not only to home-based business success but also to creating the financial cushion needed to go from being an employee to a full-time entrepreneur.
Understanding your current financial situation is mandatory and shouldn't take more than an hour of your time if you follow the five basic steps below.
1. Calculate how much money you currently have in bank accounts, investments, registered retirement savings plans, GICs, real estate, and so on. If I quit my job today, there would be some form of payment (eg. credit for the sickness plan, social security contributions, unused holidays, recurrence allowance, etc.)?
2. Determine how much you earn monthly, through employment, child support payments, rental property, dividends, your existing home business, and so on.
3. Record your monthly household expenses. Some examples to start with are: tax/home
- mortgage / rent
- property tax / home insurance and mortgage
- utilities (heat / water / hydro)
- telephone / cable / satellite / Internet
- garden maintenance / snow removal
- food and household items
- costs of fuel, insurance, and maintenance of the vehicle
- doctor
- Childcare
- personal care (hair / nails / clothes)
- entertainment (movies / sports / books / plays)
- club memberships, publications, etc.
4. List your monthly business expenses, for example:
- Internet
- telephone (separate company line)
- auto-reply
- Shopping cart
- long distance
- Bank fees
- office supplies
- instruments
- web hosting
- marketing
- advertising
- part-time help
- coaching services
- shipping / postage, etc.
5. Identify your outstanding liabilities, such as:
- credit card balances
- personal loans
- credit lines, etc. When you calculate your annual earnings and income and deduct your personal and business expenses. How much do you have left at the end of the year? Can you put some of that aside to build your own financial cushion?
If your current business income is not enough to cover your business and personal expenses, and if you quit your job today, how long could you survive on your other sources of income or savings and assets, taking into account your monthly expenses. ?
Have you considered all the unexpected expenses that may arise in the next year or two? Does your car work with the last two cylinders? Has your oven nearly reached its life expectancy? Is your vacuum cleaner starting to growl at you? Is your partner's job safe or do you foresee unstable times?
This exercise is not intended to scare or discourage you. Financial stability is an area that needs to be addressed so that you can keep your feet on your feet and have realistic plans as you build your business from home.
Understanding where you are and what lies ahead potentially will help you make sound financial decisions as you plan your future.
After completing these five steps, you may find that your dream of breaking free from your job may take a year longer than expected, or you may learn that to move forward at a faster pace, you may need to hire a partner or investor. or learn to use your time, money and effort more efficiently to accelerate progress.
Perhaps you need to seek professional guidance on how to reduce debt and manage finances?
Regardless of the results you generate, don't let them affect your spirit. Knowing exactly where you are financial will help you make informed and practical decisions so you can create your ideal future.
To increase your level of success in the home business, make sure you have a financial advisor and accountant as part of your success team.
*********************************************************************************
Be Part Of Affiliate Publishers Sign Up Here: https://invol.co/cl86f9w
VERIZON FIOS DEALS SHOP ONLINE EXCLUSIVE! ORDER ONLINE TODAY AND WE'LL WAIVE THE $99 SETUP CHARGE. Details HERE!
**********************************************************
For More Articles To Read, Visit The Links Below
https://www.facebook.com/Articles-In-Market-Estongph-102988945530154
For More Products On Sale Online Click These Links
https://myhubofmarket.blogspot.com/
https://www.facebook.com/estongafiliate
*******************************************************************************
Lead Filter WP Plugin - For details Click This Link: https://tinyurl.com/inDigital-PDF
***************************************************
Secret Software That Turns $20 Into $100, 000 In Just 90 Days GET IT FREE TODAY!
Details HERE! https://tinyurl.com/Secret-Software-Clickbank
************************************************
You Now Have The Chance to Own a Brand New, Content Rich, Easy to Edit, Cash Generating Website Each and Every Month at a Cost of... Zilch, Zero, Nada, Nothing! Details HERE!
******************************************************************************
Note:
Click The Photo For Product Details
Click The Site's Logo For More Items
UL Certified-Ecotric Fat Tire Portable and Folding Electric Bike-White
and Blue
****************************************************************************************
WEB HOSTING
YOUR HIGH PERFORMANCE HOSTING PARTNER
Google Pixel 2 -Just Black - 64 GB - Verizon - Like New
No comments:
Post a Comment