The Frontier of the Future Benefits Those that Think and Plan for the Future

Every product or service that has ever been created was first a seed of thought in someone’s mind. Even those products or services that have been created by accident were originally created because someone acted upon a thought. Thought is the first principle of creativity, especially thought about the future.

Thought about the future as it relates to a company is a very difficult process, one that very few entrepreneurs are skilled enough to do very well. This kind of thought; that of accurate future planning, takes a lot of discipline and creativity. This kind of thought will determine who will succeed and who will fail during the next few decades.

The foundation of the logic of future thought for my company rests with the proper usage of technology. My company has grown due to technology created by search engines and social media. Without them we would be a mom-and-pop operation with very little hope for growth for the future.

We are grateful for this technology; however, it is only useful for those who are smart enough to take advantage of their power. That power rests with the proper application of thought and planning on how to use such technology to make a company grow. It is also a testament about the intelligence and skills of those with whom I have hired to help me utilize this technology.

The first rule I use to plan for the future is to determine the size that I want my company to be at by a certain future date. For example, I set a BHAG (Big Hairy Audacious Goal) in 2007 to grow my company by almost ten-fold by 2014. Most, if not all, of the people associated with me in 2007 laughed and impugned my idea. Most did not understand why I set the goal. The goal was, at that time, simply an end to a means.

The goal allowed me to start thinking of the technological processes and things I needed to acquire in order to achieve the goal. The goal was tantamount to setting a goal to climb a very high mountain. One can only arrive at the summit of a high mountain by taking one step at a time. That was my process in setting this BHAG. I started to visualize the steps it would take to arrive at the goal. I started this process with hiring professionals, asking questions, reading books and magazines, spending significant time on search engines, etc. Much of the time was filled with frustration. As in climbing a high mountain, there was a certain amount of “fog” in front of me that prevented me from seeing what I desired to see. I learned from that process. I learned that I must have the drive to force myself to step forward each and every day, even if the continual fog would not let me see the next step.

The “next step,” in my opinion, must default to an investment in technology. The advanced usage of technology was the only logical conclusion for future growth for my company. The investment in and the process of “pushing the envelope” with my employees and professionals in terms of technological usage was the one assurance I have that the future of my company will continue to grow. I know, at a minimum, that my competition will not be able to keep ahead of me and that my company will continue to grow faster than them and reach the future customer at a greater pace than them. I also know that the investment “now” in the proper usage of technology will cause my competition to invest money that they might otherwise need for other purposes. In other words, it throws them off their game and causes them to “react” to my company’s usage of technology.

My security that my company will achieve the BHAG is that we are investing in a step-by-step process of investing in the proper usage of current and future technology. Everything will fall into place. The goals will be achieved and the naysayers of the past will say, “I knew he could do it.”

How Do I Budget and Manage Climbing Out of Debt, Building a Reserve, and Saving for the Future?

Do you find yourself wanting to get out of debt, wanting to build a cash reserve, or struggling to save money for the future? If you find yourself struggling with any or all of these problems you do have some options to help yourself out. The key to successfully accomplishing your goals is planning and budgeting. Many individuals are able to climb out of the hole simply by planning and budgeting. If you are the type of person who has no idea how much money they have, how much they owe, or where there money is going; then these tips are meant for you!

The first questions you need to answer is: what is your monthly after tax income? Let’s suppose that you are like many Americans and are in the $45,000 income range. This will put you in the middle tax bracket (25%, which actually ends up being 16.5% after standard deductions, here is a link to help you calculate your federal income tax http://www.moneychimp.com/features/tax_brackets.htm) and let’s suppose that state and local taxes combined are 9% (this will vary from state to state and city to city! You must find out what your individual state and city are). You will also be paying 4.2% (previously 6.2%) tax for social security and a 1.45% medicare tax. So now let’s compute your total tax. 16.5% + 9% + 4.2% + 1.45% = 31.15%! That is right a little over 31% of your income is going towards taxes! This means that your original salary of $45,000 is only $30,982 after taxes! This means you only have $2,581 a month to live on.

Before you can fully plan you need to answer the following questions: How much debt am I in? What are the sources of my debt? What is the interest rate and balance on each type of debt? What are my minimum payments per month? Many of you will have multiple debts and multiple sources of debt. The best thing you can do is make a list of these debts (you can do everything on paper or you can choose to use a spreadsheet such as Microsoft Excel). An example maybe the following: $1500 in credit card debt from Chase, $20,000 in student loans from Wachovia, and a $5,000 car loan from your local credit union. The best thing you can do to help yourself is to make list of these debts. After identifying the amounts you now want to figure out what the interest rate is and what the minimum payments are: for example Credit Card from chase $1500 outstanding balance, $30 minimum payment, 19.5% interest rate. $20,000 student loan, $350 minimum payment per month at a 6% interest rate. $5,000 car loan, $210 minimum payment per month at a 5% interest rate (you may have much more debt, less debt or no debt, but they key is to map it all out). The information you gather here is that you automatically have $600 of your after tax income per month going towards payments towards debt and you must set this money aside!

Now let’s go back to our monthly income of $2,581. Subtract your $600 in debt payments per month and you are now down to $1,981 per month! Before we can even talk about savings you need to figure out some other consistent monthly expenses and bills such as mortgage/rent, cell phone, electric, gas, water, car insurance, cable, internet etc. Let’s assume the following: $800 a month for rent or a mortgage (this is where having a room or a spouse can save you a lot of $!), $80 a month for cell phone (if you are higher than this, do you seriously need more than 50 rings tones, 20 games, and a $35 a month data package when you have internet at home?!). $200 a month combined for utilities (gas/heat, electric, water, trash removal). $100 for car insurance per month (even if you pay yearly, every six months or quarterly break this into a monthly expense and set it aside!). $120 a month for cable and internet (if you are paying more than this you should really call your cable company and ask them to give you a promotional rate! Also if you are really high on here do you really need all the premium channels and do you really need to rent 10 movies a month on demand at $5 a pop?). You will likely have monthly bills for other items as well, let’s put that number at $200. Now let’s add up our expenses we have $800 + $80 + $200 + $120 + $100 = $1300! Let’s go back to our monthly income we had $1,981 now we need to subtract $1300 giving us a total of $681.

Of course your expenses are not over you still need to eat, be ready for an emergency (a car accident, illness, etc.), irregular events (uh oh car inspection is coming up!). Remember the last time your car had problems? Of course you do that is why you have $1500 of credit card debt! You still need to have money to go out, your significant other’s birthday, that vacation, etc. I would say budget $400 for food, put $100 away each month for irregular events such as a car inspection, and $50 away every month for emergencies. This is an additional $550, you are now down to $131 a month after all of these expenses. You still need to build a cash reserve good for 3-9 months of expenses, save for the future, and buy clothes, get hair-cuts etc. with that remaining small slice. You have reached a problem your monthly expenses are almost equal to your income. You have so little money left you cannot afford to build a buffer or save for the future. Game over?, no simply go back and re examine what you are spending your money on every month. $800 is a lot of money for an individual to pay for a place to live every month. You can look into getting a roommate or moving to a cheaper location (keep in mind moving is stressful and cost money). Look at your cell phone bill of $80, go back and get rid of some of your features and options try to reduce it $60 a month. Cable and internet, get rid of premium channels and call for a special rate, get this down to $80. Look into your car insurance, $100 a month (do you really need all of that coverage?) look to pay less say $75 a month. Maybe you can lower the heat a little, blast the AC less and cut your utility bills to $160? Let say you are able to make the following cuts $650 in rental expense, $60 for cell phone, $80 for cable and internet, $160 for utilities, and $75 for car insurance. Now your savings $150 + $20 + $40 + $40 + $25 = $275! Now let’s look at your income after expenses now $131 + $275 = $406.

Now this is more reasonable. I would suggest putting $50 aside for hair-cuts and personal care a month, $50 for gifts and occasions every month. Limit your going out spending to $60 a month. Now you are looking at an additional $160 a month in expenses. You are down to $406-160 = $246 a month after expenses. I would suggest putting aside at first $50 a month to go towards a short term cash buffer (keep building this until you enough for 3-9 months of expenses! and do not use this money for any reason only if you lose your job or become disabled.) Now put aside $50 a month towards a long term savings plan (you can use a 401 K if you qualify at work do it! Money is taken out pre-tax (you are only losing $34 of after tax pay) and you employer may match your contributions (Free Money)! This leaves you with $146 a month. I would suggest setting aside $75 for other expenses of your desire (maybe a dinner out, a ball game, a gym membership, etc.). The other $71 I would use towards paying off debt. Focus on your highest debt item first (your credit card!) and use the extra $71 a month to pay off this expense. After a time you will be credit card debt free! You will gain an extra $101 a month of extra income since you now no longer have a $101 expense on your credit card. From here dedicate an extra $30 a month to your cash reserve, an extra $30 towards long term savings, and the remaining $41 towards your car loan (or the next highest debt). As you begin to pay off all of your debts you will see that your expenses will decrease and your extra income left over will rise. As this happens you should focus on continuing to boost your savings and paying of more debt. I do not recommend raising your standard of living (dedicating a larger portion of your income towards expenses) until you have at least a 3 month cash buffer, no credit card debt, and at least $5,000 of long term savings.

Budgeting and planning is not easy. It is very easy to be motivated at first then quickly lose interest or become discouraged. You must be disciplined and follow your budget. It will take some time to dig out. In fact it could take a few years, but it is important that you do it. Just be wise, calculate all of your expenses and dedicate your income towards specific expenses and goals. The best thing you can do when you get your paycheck is to mentally spend it towards all of the budgets you outlined. If you are overwhelmed talk to a family member, a close friend, or someone you trust. This is something you must do yourself no one will do it for you. Good luck and may you live long and prosperous!

Sensible Ways to Plan Your Future as a Single Woman

Not every woman is in search of Prince Charming or her knight in shining armor. Some do not want to be legally bound to anyone, and for very sensible and legitimate reasons. Other women prefer to remain independent in every way, and they do not feel the need to date let alone become legally constrained by marriage. Whatever the case may be, it is important for single females from all walks of life to plan their future with complete independence in mind.

Use these sensible ways to plan your future as a single woman, and do not lean on anyone else, even if you are currently cohabiting. Marriages, live-in relationships and dating can abruptly come to an end. Nothing is certain in life. Strong, intelligent and independent women that have experienced loss know that marriage is not the key to happiness and true financial success.

Do Not Lean on Credit Cards

Credit cards can be very useful financial tools – if they are properly used. Everyone has good intentions when they sign on the line, but it is not sensible for a single woman to rack up bills that she cannot afford to pay on her own. People that charge above and beyond their means are not able to buy anything new without using credit cards because they have credit card bills that must be paid. It becomes a vicious financial circle that is almost impossible to escape.

When trying to plan your financial future in a sensible and proactive way, establish credit with a single low-limit card, and do not maintain a high balance. It is in your best interest to fully pay for what you want and need, and without using plastic. It is also best to save up for anything that is not a necessity. Opt for used items while saving for something better, and rethink what you consider necessary.

Save as Much Money as Possible

It is of the utmost importance for a single woman to save as much money as possible, especially if she does not have a pension or a retirement plan in place. It is important to think past tomorrow. Save something each week, even if it is just a few dollars. Take just $20 a week to the bank, and in 10 years you will have $10,400.00 in your account. If you receive a tax refund each year, save it as well and you will accumulate significantly more in a 10 year period.

Buy a Home of Your Own

Many people choose to rent instead of buy, and they have their reasons. Some do not want the responsibility of maintaining a home, while others are unable to buy because of credit issues. Those that rent are left with nothing more than receipts when they decide to move.

As a single women looking for sensible ways to plan for the future, try your best to buy a home of your own. A mobile home of your own is better than a stick-built house that belongs to someone else. Once it is paid for, you will be able to save even more.

Take it from a single woman that was not always single. I have experienced both sides of the financial and relationship spectrum. The pros of home ownership far outweigh the cons. With interest rates at record lows, a monthly mortgage payment is likely less than the cost of renting something that you will never be able to update or call your own, even if you are living with someone that might never be more than a friend. Nothing in life is guaranteed, and the only person that you can fully count on is yourself.