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The economy is changing constantly.  Your life is changing too.  One of the most important factors to securing your future is to ensure financial stability.  Setting financial goals in order to guard against these changes that negatively impact your money is important.  There are numerous plans to help you achieve your financial goals.  They include modification to your income, budget and investments.

When planning to build your overall net worth (your assets minus your liabilities) you will need to establish a guide to provide the best action plan based on your specific goals, situation and willingness to make concessions.

The DMK Guide to More Money will prove useful as a template with 10 examples in each category for comparison to your own situation and goals.  The template will aim towards a $10,000 increase over last year.  You can modify this amount according to your individual goals.

DMK Guide to More Money


Income

The ideas in this category include ways to earn more money to achieve your goal for increased net worth for the coming year.  Remember, you may not achieve your increase in one selection below or within one category.  It will likely include a combination of multiple ideas in multiple categories.


1. Promotion or raise - Ask, don't wait. If a raise isn't provided, seek another position within the company that offers higher earning's potential. If you have to be at work 8-10 hours a day, make the most of it.

Potential Increase - If you seek $1.00/per hour @ 40 hours/week and invest it weekly for 52 weeks with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $2,281.00


2. Overtime - Hourly, commissioned, salary with bonus potential or performance based positions all have opportunity for more earnings with more time invested.  Put in 4 or more extra hours per week  to assume a reasonable monthly increase in earnings. 

Potential Increase - If your extra earnings are an average of $50/week and invest it weekly for 52 weeks with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $2,852.00


3. Bartending or Serving - Secondary employment options aren't all created equally.  Food service jobs aren't usually glamorous or easy, but they pay great money and there are usually pretty many opportunities in most cities for part-time positions.

Potential Increase - If your extra earnings are an average of $125/week (about one good night/day shift per week with tips and hourly) and it's invested weekly for 52 weeks with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflations would be: $7,129.00


4. Sales JobIf you have a large circle of influence or sales background, the flexibility to work from home as an independent sales consultant could net big profit and a flexible schedule.  

Potential Increase - If your extra earnings are an average of $200/week and it's invested weekly for 52 weeks with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $11,407.00


5. Retail job - These jobs are usually easy to get.  They may pay less than some other opportunities and therefor require more hourly investment.  But you should be able to get approximately 20 hours per week in most situations.  Seek no less than $9/hour with potential for raises, bonuses or commission.

Potential Increase - If your earnings are on average $180/week and it's invested weekly for 52 weeks with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $10,266.00


6. Hobby job - Potential to lose money on hobby jobs is high.  So be cautious of invested capital in order to assume a profit in the first year.  Your hobby job is something that produces an income based on a current hobby or area of expertise.  Track expenses and keep receipts for tax purposes.

Potential Increase - If your earnings on average net $100/month and it's invested for 12 months with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $1,410.00


7. Ride sharing - If you have a reliable vehicle, you can make a good deal of extra money even after depreciation on your vehicle and fuel costs.  

Potential Increase - If your earnings on average net $150/week and it's invested weekly for 52 weeks with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $8,555.00


8. Odd jobs - Dog walking, child care, senior helpers, lawn care, handyman, auto repair.  There are a plethora of service industry opportunities that can provide a source of unlimited secondary income.

Potential Increase - If your earnings on average net $200/week and it's invested weekly for 52 weeks with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $11,407.00


9. Work from home - Numerous opportunities exist for jobs that can be done while in your home.  Transcription, tutoring, bookkeeping, data entry, medical billing and coding, customer service, etc.

Potential Increase - If your earnings on average net $100/week and it's invested weekly for 52 weeks with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $5703.00


10. Caregiver - These include odd jobs like child care, senior helpers, house sitter, pet sitter.  From waiting for the cable guy to being a nanny; busy families or aging loved ones need your help.

Potential Increase - If your earnings on average net $200/week and it's invested weekly for 52 weeks with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $11,407.00


Budget

The ideas in this category include ways to identify and modify spending as it applies to your earnings for increased net worth for the coming year.  Consider multiple categories and multiple ideas within each category to achieve your goal.


1. Tax savings- If you are doing your own taxes it might be time to use a software program or have a professional take a look to see if you could achieve more deductions or write-offs for your personal or business taxes. 

Potential Increase - Variable


2. Budget, budget apps, coupons- Tracking where your money goes and how to cut expenses will keep your spending down.  There are numerous apps that help you do this. Clipping coupons may seem outdated, but it may save you a few bucks that really add up over the year.  

Potential Increase - If your extra savings are an average of $20/week and invest it weekly for 52 weeks with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $1,141.00


3. Discount and savings apps- You can sign up for apps that make saving money and getting discounts on products and places you shop routinely.  They will alert you when you are in a location where there is a discount offered.

Potential Increase - If your extra savings are an average of $10/week and invest it weekly for 52 weeks with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflations would be: $570.00


4. Remove home services - If you have services in your home like lawn care, termite or pest control, house cleaning or child care you should review your current statement and ask if there are any potential discounts available or consider removing these providers to save money.

Potential Increase - If your extra savings are an average of $100/week and it's invested weekly for 52 weeks with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $5,703.00


5. Refinance home - Speak with your current mortgage provider or a mortgage broker to determine if you are qualified for a lower rate on your current mortgage.  Depending on the years left on your current mortgage; stay close to the remaining term (22 years left on mortgage - refinance into a 20 year term).  Make sure that after the closing costs to include prepaids and points do not make the opportunity to save negligible.  The new mortgage should also not have a prepayment penalty.

Potential Increase - If your savings are on average $100/month and it's invested weekly for 52 weeks with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $1,410.00  BIG SAVINGS ALERT! Use this money to pay one extra monthly payment per year $1,410) and take approximately 4-7 years off your 30 year mortgage.  This could save over $86,000 off your mortgage!


6. Remove PMI - Many loans have PMI (Private Mortgage Insurance).  This insurance is your responsibility until you have reached a certain amount of paid-in equity over the course of your term.  It is included in your loan and monthly house payments.  It is insuring your lender, not you.  As soon as you have the required equity you should ask your mortgage servicing provider the process to remove the insurance from your monthly payment.

Potential Increase - If your savings on average net $75/month and it's invested monthly for 12 months with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $1,058.00


7. Refinance revolving credit and personal loans -There are numerous options for those of you who have excellent credit to refinance some of your debt into 0% or  low interest cards with no annual fees.  If you have poor credit you should still look into ways to improve your credit by reducing your debt to income ratio in order to consolidate the remaining debt into lower interest loans.  Avoid refinancing these debts into a home loan or refinance unless you are going to close these accounts immediately to avoid a higher amount due on your mortgage, only to charge up these cards again.

Potential Increase - If your savings on monthly interest is $50/month and it's invested monthly for 12 months with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $705.00


8. Refinance car loans - If you have an established credit history or relationship with your bank you should see if you can get a better rate on a similar remaining term for your vehicle.  Check out the local credit unions for better rates than most banks can offer when you open an account.

Potential Increase - If your savings are approximately $25/month and it's invested monthly for 12 months with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $353.00


9. Purchase new car - You may not realize what a gas guzzler you own until you research new vehicles with hybrid or smaller engines.  The money you save in fuel may make up for the cost in the new vehicle and you will have less costs for repairs and increase the longevity of your automobile.  This may not save you much to increase your savings so do the math before your purchase to see if it makes sense.  If you currently have full coverage your insurance may change with a smaller, more energy efficient vehicle - call your insurance provider before you purchase.

Potential Increase - variable


10. Establish new service providers - It's time to review your bill or monthly statement and compare with your providers competitor to see if you can get a better deal.  These include cell phones, insurance, lawn care, veterinarians, hair stylists, cleaning services, cable, internet provider, etc. 

Potential Increase - If your savings are approximately $100/month and it's invested monthly for 12 months with a 15% ROI - 1 year increase (invested capital and simple interest) before taxes and inflation would be: $1,410.00


Investments

The ideas in this category include ways to improve your ROI (return on investment) on your overall investment portfolio to increase your net worth over the coming year.  Consider multiple categories and multiple ideas within each category to achieve your goal.


1. 401K Evaluation -   It's not simply good enough to participate in your employer's 401K program.  You should know what they match, how much your earning on your current elections, when you can make changes and the tax benefits, if any, to assume a higher return based on pre-tax deductions in comparison to investing on your own.  Ask your Compensation and Benefits Manager for details.

Potential Increase - Variable


2. Current stock- Reviewing the prospectus, latest news, trends and professional analytics for the stock you own or wish to purchase.  It gives you company background, history and expectations for future growth.  If your stock is under performing in comparison to market trends you will want to determine if changes need to be made or if holding is appropriate based on various reasons specific to your investment goals, current and anticipate market trends and current stock's past-current and anticipated performance. 

Potential Increase - Variable


3. Current fund- The prospectus for your mutual funds will provide a good deal of information related to strategies, performance, objectives, distribution, fees, expenses and management.  The fees are very important for Mutual Funds since they reduce investor profits.  Review these and any distribution guidelines very carefully.

Potential Increase - Variable


4. Current bond - Generally investors move their money to bonds in a market downturn.  Don't move quickly when the market gets sluggish, but if you are ready to make a move at the same time, moving your money to bonds makes sense. Bonds are risky and you are best to refer to your wealth manager to recommend the appropriate funds to reduce risk and based on your individual goals.

Potential Increase - Variable


5. Current IRA - The savings on your IRA can come in the way of tax savings.  Based on the amount of your tax deductible contribution you may save thousands in annual taxes while preparing for your retirement.

Potential Increase - Variable


6. Home evaluation- There are numerous ways to save on your home that may include selling.  If your home has not appreciated a reasonable amount in the last 5 years, it may be time to consider moving to an area where there is a higher demand and annual appreciation.  Consider a fixer-upper or home that needs a little work in order to get into this area at a reasonable cost.  Upon listing your home, negotiate the commission for the agent from approximately 7% to 6% or less.  It may mean less than full service, so make sure you understand what you are getting with the listing.

Potential Increase - The savings to sell your $200,000 home for 6% instead of 7% is $2,000.


7. Potential investment - Regardless where you decide to invest you should earn a reasonable return. It should be in-line with current market trends and your personal financial goals. 

Potential Increase - variable


8. Business and hobby investments - Be careful about investing your money in a new hobby or business if you want to assume a profit within the first year.  Small business start-ups and hobby businesses are risky.  According to an article on successharbor.com, the U.S. Census Bureau reports that while 400,000 new businesses are started every year in the United States, approximately 470,000 are failing.  So be cautious.

Potential Increase - variable


9. Donations - Making donations to be charitable or as an opportunity to get a tax write off is great.  But, make sure you tithe in such a way that is appropriate for your current financial situation.  Do not contribute to school and church funds based on guilt or past donations if your divorce has caused changes in your finances.  

Potential Increase - variable


10. Personal belongings  - Personal belongings such as home goods, furnishings and clothing usually provides very little ROI.  Be cautious in buying these items and consider consignment in order to re-invest the cash form the sale of these goods into a stronger investment.

Potential Increase - If your consignment items yield $200/annually, you would yield $200/year 1 and $230/year 2 based on invested capital and simple interest, before taxes and inflation.



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