Businesses Online Q&A

Q: How can I better manage my money so I can afford to open my own business?

A: There's this old thing called a budget that I use. Just like running a business, you have to control spending as it relates to income. Literally make a list of all of the various bills and put them in two categories: variable and fixed. Variable bills are ones like gas and electric which change from month to month based on usage, and fixed are ones like rent or mortgage payments which don't change from month to month. If you get paid weekly than place the bills in one of four categories depending on when they are due: first week, second, third, and fourth. Put the actual costs in this category with estimates of the variable costs. Total the payments for each pay period. Subtract the total from your net weekly pay and the amount that is left is your discretionary money. Estimate how much you need each week for fuel in the car, clothing allowance, food, and recreation including cable tv and Internet connection (those are recreational not actual monthly bills). Total these discretionary expenses and subtract from what's left of your weekly check. The amount that is remaining is your investment income. You can have a wide range of opportunities for your investment income such as an Ameritrade account for purchasing mutual funds, exchange traded funds, and equities/stocks. Or open an Ing Direct account and earn the heighest possible interest on a saving account or long term certificates of deposit. Stay in touch with what is happening in the world that affects your ability to make good investments at http://www.thestreet.com/ and http://www.marketwatch.com/news/default.... , open accounts at Ing here: http://home.ingdirect.com/