starting your financial foundation

The foundation for anything you create is by far the most important. If the foundation is weak, or rushed your creation will not stand strong and is likely to fall apart over time. These two steps are great to start with when managing finances and trying to create a system of savings.

1. Increase the difference between your income and expenses

2. Save that difference and grow it exponentially over time

When executing the first step, start with a basic math problem

monthly income (after taxes) - monthly bills and expenses

For the income portion ,its best not to include any income that does not come in on a consistent monthly basis.

for the monthly expenses portion include EVERY BILL!

food costs for the month, monthly shopping totals, leisure activites.

All monthly expenses should be including, for example ..

if you go to happy hour regularly, that should be included.

take the average that you spend at happy hour a month, that is considered an expense.

Repeat this step for any other miscellaneous monthly spending.

counting all those extra expenses will help you manage and better prepare

this leaves less room for unexpected credit card balances, overdraft fee, etc.

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Now, after you have calculated your monthly expenses, subtract that from your consistent monthly income, if anything is left that is your savings. easy

But for many, they will probably have a small amount left, none left at all or debt. This does not exclude you from establishing a foundation with these 2 steps.

Next, move right into the next phase of step 1.

Now work to eliminate any unnecessary expenses. And you have to be real wiith yourself about this part.

here are some examples..

removing cable, utilize your cellphones hotspot if you need WIFI

cook at home and eat out less

thrifting

limit your travel (cuts out on gas and automotive repairs)

trade your car for one more efficient (better gas mileage)

pay off your smallest debt to eliminate one monthly payment

get a roomate

now if there is no expense that can be eliminated, the other option is to increase your income.

think outside the box.

i.e freelance writing, baby sitting, online tutoring, uber .. so much more.

Now Step 2

save the income left after covering your monthly expenses and watch it grow.

And stick to it!

and there are endless ways to grow your savings ..

certificates, stocks, real estate investments and so much more

But first, lay the foundation.