| The first question I ask of any business
| |
| | - AlimonyInsurances
|
| owner is, "What is your overhead cost?"
| |
| | - Health (Add this to your budget even
|
| Most business owners know this answer. If
| |
| | if your employer automatically deducts
|
| you ask anyone off the street about his
| |
| | from your paycheck)
|
| or her household overhead, I would
| |
| | - Mortgage Insurance (PMI-Private
|
| receive a look of a blank face.What is
| |
| | Mortgage Insurance)
|
| your household overhead? The term
| |
| | - Renters Insurance (I always recommend
|
| "overhead" is used in business quite a
| |
| | purchasing renters insurance. It is very
|
| bit. Overhead is the day-to-day cost and
| |
| | affordable.)
|
| monthly/yearly cost of operating your
| |
| | - Disability
|
| household. You would be amazed at how
| |
| | - Life
|
| many people do not know what it cost to
| |
| | - Long-term healthcare
|
| "operate" their house. They think they
| |
| | - AutomobileEntertainment
|
| know until they actually put pencil to
| |
| | - Concerts/Movies/DVD Rentals
|
| paper and write out every cost. They are
| |
| | - Books
|
| usually very surprised how much money is
| |
| | - Hobbies
|
| actually wasted and where it all goes.
| |
| | - Memberships/Dues
|
| And it goes pretty damn fast.Just as
| |
| | - Vacations
|
| business owners know their overhead the
| |
| | - Subscriptions
|
| same should be for those who run a
| |
| | - Toys
|
| household. And we all operate a household
| |
| | - Cable TVMiscellaneous
|
| whether you are one person or a family of
| |
| | - Medical co-pays/co-insurance
|
| four. You must operate your household
| |
| | - Dental
|
| like a business therefore you need to
| |
| | - Vision
|
| know how much it cost to operate your
| |
| | - Prescriptions
|
| house.So let's put paper to pencil. You
| |
| | - Accountant
|
| need to know what you spend on the
| |
| | - Attorney
|
| following:Groceries & Restaurant
| |
| | - Bank charges
|
| Purchases- This includes weekly grocery
| |
| | - Educational Costs
|
| shopping, eating out at restaurants,
| |
| | - Postage
|
| take-out (pizza night, Chinese food
| |
| | - Any other expensesInvestments
|
| night, etc), convenience stops at local
| |
| | - Personal savings
|
| grocer, WAWA, 7-11, Circle K, Starbucks,
| |
| | - 401K
|
| Dunkin Donuts, local bagel shop,
| |
| | - Charities
|
| etc.Automobile Costs
| |
| | - Stocks/Bonds/Mutual FundsNow that you
|
| - Monthly car payment
| |
| | have a budget outline you should complete
|
| - Gas & Oil (Shopping for the cheapest
| |
| | this form over a 3-month period. The
|
| gasoline for your car is not the best
| |
| | reason for a 3-month period is because a
|
| move. Sometimes a cheaper gas can cause
| |
| | one-month snapshot is not long enough for
|
| problems for our cars and in turn cost
| |
| | a proper analysis.After your 3-month
|
| you more in the long run).
| |
| | analysis you will be able to see where
|
| - Oil Change (It is true you should
| |
| | you spend your money and the cost for
|
| change the oil every 3000 miles. It will
| |
| | operating your household and lifestyle,
|
| make your car last longer).
| |
| | hence your personal lifestyle overhead.
|
| - Repairs (You should save $20-25 per
| |
| | Armed with this information you will be
|
| paycheck for repairs)
| |
| | able to make changes and hopefully begin
|
| - Parking
| |
| | to save more and spend wiser.Please keep
|
| - Public TransportationHousing/Shelter
| |
| | in mind just as in business life changes.
|
| Costs
| |
| | Sometimes the change is slow (paying off
|
| - Mortgage/Rent (If you are paying a
| |
| | your school loan) or sometimes fast
|
| mortgage, some folks take the advantage
| |
| | (becoming ill and needing your appendix
|
| of bi-monthly payment. Bi-monthly payment
| |
| | out immediately). One should prepare for
|
| means your mortgage company splits your
| |
| | these changes to the best of their
|
| monthly payment by two and they
| |
| | ability and one way is saving money in
|
| automatically withdraw the payment twice
| |
| | your bank, envelope, jar, etc. for the
|
| per month. This figures out to be one
| |
| | life's little "Uh-oh's".It is easier than
|
| extra payment per year and in turn it
| |
| | you think to keep/analyze your overhead.
|
| could shorten the life of your 30-year
| |
| | There are many computer programs that
|
| mortgage loan to 21-22 years. Some folks
| |
| | will do this for you. One such program is
|
| do not want to give their mortgage
| |
| | Quicken. There are many others. It will
|
| company anymore than due and they would
| |
| | make your life much easier (and your
|
| rather invest the money in stocks, CD's,
| |
| | accountant's).I hope you enjoyed this
|
| etc.)
| |
| | article.Here's to your Health, Wealth &
|
| - Property Taxes
| |
| | Happiness!Michael J. KayeMichael J. Kaye
|
| - Utilities (Electric, Water, Sewer,
| |
| | is a chiropractic physician practicing in
|
| Gas, Trash)
| |
| | Bucks County, Pennsylvania. He is a
|
| - Telephone (Many people are considering
| |
| | member of the American Chiropractic
|
| dropping their land-line. This might be a
| |
| | Association, Pennsylvania Chiropractic
|
| good idea. If you are not in business for
| |
| | Association and the American Chiropractic
|
| yourself yet (and hopefully you will be
| |
| | Rehabilitation Board. He has a
|
| soon) why have more than one telephone.
| |
| | sub-specialty in Chiropractic
|
| - Security/Alarm
| |
| | Rehabilitation. He is the director of The
|
| - RepairsPersonal Costs- Haircuts
| |
| | Rehab Group of Bucks/Montgomery County-a
|
| - Toiletries
| |
| | multidisciplinary clinic with an emphasis
|
| - Laundry
| |
| | on chronic pain and wellness. He is a
|
| - Dry-cleaning
| |
| | publisher of two papers on rehabilitation
|
| - Childcare
| |
| | of chronic injuries. In general his
|
| - Gifts given
| |
| | clinic promotes nutritional and lifestyle
|
| - Allowance for children
| |
| | changes for the chronic pain patient.Dr.
|
| - Clothing
| |
| | Kaye also developed a web site dedicated
|
| - Vitamins/SupplementsLoans
| |
| | to Health, Wealth & Happiness. He
|
| - Revolving charges, i.e. department
| |
| | authored an e-book titled, "The Living
|
| store charges
| |
| | Triad"-a book about the pursuit of
|
| - Student loan payments
| |
| | changing lives to live longer.
|
