The Steps:
  

Family

  

Government & Community

  

Education & Skills

  

Employment

  

Management

  

Credit

  
 
 
 
 
 
 


Management
Section I / Section II / Section III / Section IV / Section V / Section VI

Strategy 5 - Turn Time and Skills into Non-money Income

Non-money Income is money free for other uses as a result of spending time and effort to reduce expenses.

Hire yourself to complete the financial tasks which save you money, such as filing your own taxes. Start a garden and grow your own vegetables. Cut your own hair or exchanges these tasks with others. Here is another example: Comparing grocery items to get the lowest price per unit or serving and choosing a less expensive style of eating takes one-half hour but saves $7 per grocery sack. This would equal $14 an hour paid employment and it is not taxed. The total non-money income is $1000 per year.

Example: Waiting for someone one-half hour per day because of sharing a car can be translated into non-money income (or what a person would have to be paid for the equivalent money saved). If having only one car for the family saved $400 per month, the waiting time would be translated into the equivalent of earning $20 per hour. The money saved could be invested and yield 1000's of dollars over a number of years.

Example: Household Work - Yields Non-money Income in Services and Goods at less dollar cost:

 
Saves
Cooking & Lunches
$300
Comparison Shopping
$100
Hair Cut and Set
$20
Laundry, Clothes Repair
$100
Painting, Repair, etc.
$50
Juggling Time with One Car
$400
Paying Bills, Taxes
$75
Preventing Late Fees Bounced Checks, etc.
$100

Total
$1,145

Finding ways to increase non-money income will probably make a bigger difference than increasing money income for many people. This is because an increase in non-money income means a change in behavior. An increase in income can mean you just have more money to manage, or to dig yourself into a deeper hole in which to fall if you do not manage it.

In summary, your steps in Financial Management are

Step 1: Assess current situation

Step 2: Identify goals and objectives

Step 3: Generate alternatives and be creative to meet goals

Step 4: Choose clever methods to achieve goal

Step 5: Implement plan, be consistent and in control

Step 6: Monitor situation and adjust plan

  • Develop a workable, realistic, and individualistic budgeting system

  • Allow for the extras, the underestimated, and the unexpected. (Some students say there are no extras, just bills. Others say, all students must have some money for the extras.)

  • Keep records and receipts

  • Set up a system to avoid late fees, service cutoffs, etc.

  • Control impulse spending. Evaluate the necessity of buying

  • Comparison shop for everything and negotiate prices

  • Prepare low cost meals or buy nutrition packed items rather than entertainment food and drinks. Keep a high nutrition level with healthy, inexpensive food items for the "go and glow power" you need to succeed in college

  • Communicate effectively with businesses and with other family members

  • Make little changes that make a big difference. Develop skills and do for yourself

Practice, practice, practice new ways and attitudes. Look for progress - not perfection - during the change process. Choose what is "adequate" rather than "ideal" in products, services, or experiences when limitations in resources necessitate it.

Reconcile expenses with income and maintain a balance among needs and wants. Provide stability while promoting growth, and distribute resources in a fair, efficient, and effective way.

 

 

Family - Government & Community - Education & Skills - Employment - Management - Credit - Housing, Vehicles & Equipment - Insurance - Savings - Investment - Financial Planning
Ability to Adjust

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