To begin with, you need to gather together everything you spend your money on. It may be helpful to grab a cheap notebook and write down everything you spend your money on for an entire week, or an entire month, just to get an idea of where all of your money is going. Write down the specifics as well as how much money you spend on each item. Don’t forget the date that you made the purchase.

The next step is to collect all of your regular expenses. Total up everything that you spend your money on in a year (including when you spend it). You want to look ahead 12 months because you don’t want to forget expenses that may only come once or twice a year - like taxes, or car insurance, etc. Some examples of regular expenses (just to get you thinking) are:

1. Taxes (if using gross income or you are self employed)
2. Mortgage Payment
3. Second Mortgage payment
4. Household (yard)
5. Gas
6. Elect/Water/ Gar
7. Gas (for your automobile)
8. Auto Insurance
9. Maintenance (car maintenance like oil changes, tune ups, etc.)
10. Automobile Registration
11. TV
12. Life Insuran
    Bad Credit Business Loan - Bad Credit Business Loans May Be the Answer
    Although your business has become a fixture of the community that serves it well, you may never have been able to get out from under the accumulation of business related debt. Regardless of the reason, the business cash flow is not equal to the monthly bills, which are beginning to fall behind. With each payment that isn't made, the interest on the business debt continues to accrue, make the debt larger and more difficult to pay. Each missed payment results in a stiff late fee or missed payment charge that adds to the debt mess.To make matters worse, the credit history of the business is beginning to be affected, and the credit rating has become poor. In fact, the credit rating of the business has declined so far that the usual business lenders will not entertain any request for a new loan.Is it time to start looking for a bad credit business loan? And will the terms make a bad credit business loan a good idea or just another nail in the coffin of your business? Under certain specific conditions a bad credit business loan may be a reasonable solution. But first, lets define what a bad credit business loan actually means.A bad credit business loan is usually offered by alternative loan providers to individuals or businesses that conventional lenders shy away from because of the poor credit rating of the business. The terms of a bad credit business loan are usually more stringent than a conventional business loan both in terms of repayment time and interest rates. The interest rates are usually quite steep in comparison with those of conventional lenders and banks. They may be nearly doubled that of a normal small business loan and they also may have shorter repayment times. They often will have strict penalties levied for late payments and missing a payment may make the entire loan immediately due and payable.How can such terms be beneficial to a business that it already in financial trouble? Usually they are not and securing a bad credit business loan may signify the death knell of a business.However, there are some specific situations where taking out a bad credit business loan may give an ailing business the monetary shot in the arm it needs to ride out its financial problems. If the situation exists that there is a significant amount of business that can be relied upon that is just about to begin, it may be a good idea to take out a bad credit business loan to become current on the bills and stop accumulating penalties. For example, a bed and breakfast may have finished reno
    The data that is available from the Federal Reserve Board is staggering. In 1989, credit card debt in America had reached $238 billion. By 2005, this number had almost tripled topping out at around $800 billion. The average Middle Class American family owes approximately $9,000 in credit card debt. When interest rates fell to “all time lows” and homeowners rushed to the banks to cash out all of their available equity on interest-only adjustable rate mortgages, they learned a harsh lesson when interest rates began to rise.

    With the end of their interest only payment options coming due, we are seeing the results of the lack of a good budgeting system. The practice of excessively living beyond our means by treating credit as a source of wealth and not looking to the future is at last being exposed for what it really is: a harsh road to foreclosure and bankruptcy.

    What about the folks who are not $9,000 or even $1,000 in debt, and yet never seem to have much money, and even if or when they do, they never seem to be able to make it last or put it to it’s best use? What the about those who do have a lot of extra money? What about those who make several thousand dollars more per month than what their bills amount to? Are they in serious trouble as well? Sadly, I’m afraid so. What is amazing is that the cause is the same for the well off as it is for the poor: the lack of a good budgeting system.

    The Traditional Approach

    There are numerous “traditional” methods of budgeting, which include simply balancing your checkbook and making sure you keep track of all of the checks you write. There are software programs like MS Money and Quicken that allow you to see where your money is being spent. There are a few pencil and paper methods where you are told to write down everything you spend your money on and make sure that that never exceeds your monthly income.

    The common trait among all of these methods; however, is that they take a pragmatic approach to budgeting. Rather than relying on principle, they treat each expense or “budget problem” as unique. As such, there can be many different methods to budget your money, and the success or failure of a particular system depends on whether “it works” (at least in the short-term) regardless of the long-term consequences of the method. It is not surprising, then, that we see several different popular methods all claiming to be “the right one” or “the best”.

    These methods are also 100% reactionary. Which means you are passively reacting to your money, your bills, and your financial life in general. The system depends on you reconciling your checkbook, or your spreadsheet, or whatever you’re using after you’ve already made purchases. These methods can only record and track your spending history, not help you control your current and future financial situation. The result is a static report of your past.

    If you find yourself in a position where you never seem to have any money or enough money at the end of the month, this is the reason why. You cannot simply react to the world around you and try to control it at the same time. This passive, reactionary approach to budgeting often leaves an individual wondering “what am I doing wrong? I know what my expenses are, I know how much money I make every week/month, why can’t I seem to get ahead?”

    If you find yourself with a lot of “extra” money, it is entirely possible, and in fact probable that you are losing money in the form of opportunity cost. Often times, those who are well off don’t see the need for a budget. They perceive it as something only the poor or the less well off folks need. However, budgeting in principle is good, therefore it is good no matter who you are - rich, middle class, or poor. To illustrate this point consider the situation of the famous pop singer Elton John who, earning $25 million a year, was spending so much money that he had to take out a $40 million loan just to pay off his debts. Even if you are thrifty, budgeting can be the difference between controlling where and what your savings is doing (in terms of return on investment) or simply passively reacting to it.

    Then, there are what I call the "inspirational" methods. These are budgeting "tips" which set unrealistic expectations on you such as "just cut back on going out to the movies" or "always buy the generic brand" when grocery shopping. These methods attempt to control your lifestyle and dictate your wants and desires. It is no surprise that, usually, these systems fail for most people because they present you with a dichotomy (a split) between "needs" and "wants" that makes life generally unpleasant. I'm not saying that there aren't things that you should cut back on or that you don't need to change your lifestyle in order to become financially successful. But, whatever changes you make to your life should be your choice, not your advisor's.

    The “Unit Method”

    The Unit Method of budgeting takes a fundamentally different approach to managing your money. Instead of taking the pragmatic, reactionary approach, we are going to take a pro-active approach. Instead of simply reacting to each individual expense, we are going to plan for them and budget them before they ever happen. Instead of passively monitoring our savings, we are going to control it. Instead of telling you what to cut back on, to start buying the generic brands, or how you should live your life, we are going to let you make that choice.

    To begin with, you need to gather together everything you spend your money on. It may be helpful to grab a cheap notebook and write down everything you spend your money on for an entire week, or an entire month, just to get an idea of where all of your money is going. Write down the specifics as well as how much money you spend on each item. Don’t forget the date that you made the purchase.

    The next step is to collect all of your regular expenses. Total up everything that you spend your money on in a year (including when you spend it). You want to look ahead 12 months because you don’t want to forget expenses that may only come once or twice a year - like taxes, or car insurance, etc. Some examples of regular expenses (just to get you thinking) are:

    1. Taxes (if using gross income or you are self employed)
    2. Mortgage Payment
    3. Second Mortgage payment
    4. Household (yard)
    5. Gas
    6. Elect/Water/ Gar
    7. Gas (for your automobile)
    8. Auto Insurance
    9. Maintenance (car maintenance like oil changes, tune ups, etc.)
    10. Automobile Registration
    11. TV
    12. Life Insuran
        5 Basic Keys to Online Business Success
        If you don't know where you are going, you will probably end up somewhere else. -Laurence J. Peter US educator & writer (1919 - 1988)When you think about starting your online business, success depends on the value of your strategic Internet marketing plan. It acts like a roadmap to guide you from one milestone to the next along your business journey.What's Strategic Internet Marketing Plan?There's an old saying that goes like that, "Success depends on planning your work, and then working your plan."In the most successful business, the strategic Internet marketing plan is a fundamental written document which crafts a business idea in terms of goals, objectives, time lines, financial declarations, marketing consequences, competitive positions, directorial factors and goes on to show how the business owner will realize those goals, including a detailed marketing strategy. A complete business plan also contains a formal break-even analysis and a profit-and-loss projection analysis designed to give you an idea about the business's profitability, growth and cash flow.Your plan must clearly define each step in the process. Be accurate and honest. Identify time lags and non-value-adding steps. Identify responsibility for each step. Brainstorm For problems in the process. Each step should illustrate an action in specific, clear and measurable terms. Keep your business plan flexible and simple so that you can quickly make changes as necessary. More importantly, your employees need to read and understand your company's goals, the activities required to achieve them, the timetable for accomplishing assigned tasks and each individual's responsibilities as part of the team.The people most successful are those who have clear, specific goals and a timeframe; and they have an internal mechanism for monitoring the progress of business. They have been passionate about their business and eager to find ways to improve their own performance continuously in the search for excellence. These people dedicate themselves to learning everything they need to know about the business to achieve their dreams. They have exceptional knowledge of creating, managing, marketing and running their business with integrity and responsibility. And they pursue their dreams with persistence, passion and a continual confidence that they will succeed at any cost.Is the importance of creating a personal plan before starting a business sounds dull? Miss this step and you'll almost certainly fail in whatev
        l off as it is for the poor: the lack of a good budgeting system.

        The Traditional Approach

        There are numerous “traditional” methods of budgeting, which include simply balancing your checkbook and making sure you keep track of all of the checks you write. There are software programs like MS Money and Quicken that allow you to see where your money is being spent. There are a few pencil and paper methods where you are told to write down everything you spend your money on and make sure that that never exceeds your monthly income.

        The common trait among all of these methods; however, is that they take a pragmatic approach to budgeting. Rather than relying on principle, they treat each expense or “budget problem” as unique. As such, there can be many different methods to budget your money, and the success or failure of a particular system depends on whether “it works” (at least in the short-term) regardless of the long-term consequences of the method. It is not surprising, then, that we see several different popular methods all claiming to be “the right one” or “the best”.

        These methods are also 100% reactionary. Which means you are passively reacting to your money, your bills, and your financial life in general. The system depends on you reconciling your checkbook, or your spreadsheet, or whatever you’re using after you’ve already made purchases. These methods can only record and track your spending history, not help you control your current and future financial situation. The result is a static report of your past.

        If you find yourself in a position where you never seem to have any money or enough money at the end of the month, this is the reason why. You cannot simply react to the world around you and try to control it at the same time. This passive, reactionary approach to budgeting often leaves an individual wondering “what am I doing wrong? I know what my expenses are, I know how much money I make every week/month, why can’t I seem to get ahead?”

        If you find yourself with a lot of “extra” money, it is entirely possible, and in fact probable that you are losing money in the form of opportunity cost. Often times, those who are well off don’t see the need for a budget. They perceive it as something only the poor or the less well off folks need. However, budgeting in principle is good, therefore it is good no matter who you are - rich, middle class, or poor. To illustrate this point consider the situation of the famous pop singer Elton John who, earning $25 million a year, was spending so much money that he had to take out a $40 million loan just to pay off his debts. Even if you are thrifty, budgeting can be the difference between controlling where and what your savings is doing (in terms of return on investment) or simply passively reacting to it.

        Then, there are what I call the "inspirational" methods. These are budgeting "tips" which set unrealistic expectations on you such as "just cut back on going out to the movies" or "always buy the generic brand" when grocery shopping. These methods attempt to control your lifestyle and dictate your wants and desires. It is no surprise that, usually, these systems fail for most people because they present you with a dichotomy (a split) between "needs" and "wants" that makes life generally unpleasant. I'm not saying that there aren't things that you should cut back on or that you don't need to change your lifestyle in order to become financially successful. But, whatever changes you make to your life should be your choice, not your advisor's.

        The “Unit Method”

        The Unit Method of budgeting takes a fundamentally different approach to managing your money. Instead of taking the pragmatic, reactionary approach, we are going to take a pro-active approach. Instead of simply reacting to each individual expense, we are going to plan for them and budget them before they ever happen. Instead of passively monitoring our savings, we are going to control it. Instead of telling you what to cut back on, to start buying the generic brands, or how you should live your life, we are going to let you make that choice.

        To begin with, you need to gather together everything you spend your money on. It may be helpful to grab a cheap notebook and write down everything you spend your money on for an entire week, or an entire month, just to get an idea of where all of your money is going. Write down the specifics as well as how much money you spend on each item. Don’t forget the date that you made the purchase.

        The next step is to collect all of your regular expenses. Total up everything that you spend your money on in a year (including when you spend it). You want to look ahead 12 months because you don’t want to forget expenses that may only come once or twice a year - like taxes, or car insurance, etc. Some examples of regular expenses (just to get you thinking) are:

        1. Taxes (if using gross income or you are self employed)
        2. Mortgage Payment
        3. Second Mortgage payment
        4. Household (yard)
        5. Gas
        6. Elect/Water/ Gar
        7. Gas (for your automobile)
        8. Auto Insurance
        9. Maintenance (car maintenance like oil changes, tune ups, etc.)
        10. Automobile Registration
        11. TV
        12. Life Insuran
            Reducing Staff Turnover in Small Businesses
            Is staff turnover driving you bonkers? Do you feel you are losing money and market share? Do you contribute this to the absence of loyalty and dedication among your staff? Would you rather have a "team" and not ever worry about absences or staff turnover again?If you have asked yourself these questions over and over again, I have very comforting news for you. You can have a dream team. Like all relationships, it takes time to build a team but it can be done and much easier than you think.You must brace yourself for what is about to be shared with you. Remember, you are being given help and not raked over the coals. What is common knowledge about most highly educated professionals is, they have academic know-how and special gifts and talents as it relates to their training. What is lacking are leadership and management skills. The flow of leadership and management is vertical. It begins at the top and flows to a receptive team. The team is receptive because they are intimately aware of several things in the decision-making process: The best interest of the company, the customers/clients or patient’s and their best interest have all being considered.Your staffing woes are due vastly in part to lack of strong management. From here forward, I’ll use management and leadership, interchangeably. Management is not entirely relegated to a person. This comes as a surprise to you, does it not? Do not think this means you can layoff your Office Manager or Department Managers in the near future. You will need them, along with your team, to turn things around. How will this be done? You are wondering. It is accomplished through “systems."Well, what are systems? You ask. American Heritage Dictionary cited nine definitions of which three were more closely related for our purpose. System is defined as:An organized set of interrelated ideas or principles. A condition of harmonious, orderly interaction. An organized and coordinated method; a procedure. I especially like definition #2. One would expect organization and coordination but in building a dream team, there must be harmonious, orderly interaction. The organized set of interrelated ideas begins with the company’s mission, vision, and goals. What follows are job descriptions and functions. Systems are written to cover procedural day-to-day tasks and are in place to take care of hypothetical events not expected to occur, or emergencies. We know Murphy’s Law and what it states.Systems also
            er you’ve already made purchases. These methods can only record and track your spending history, not help you control your current and future financial situation. The result is a static report of your past.

            If you find yourself in a position where you never seem to have any money or enough money at the end of the month, this is the reason why. You cannot simply react to the world around you and try to control it at the same time. This passive, reactionary approach to budgeting often leaves an individual wondering “what am I doing wrong? I know what my expenses are, I know how much money I make every week/month, why can’t I seem to get ahead?”

            If you find yourself with a lot of “extra” money, it is entirely possible, and in fact probable that you are losing money in the form of opportunity cost. Often times, those who are well off don’t see the need for a budget. They perceive it as something only the poor or the less well off folks need. However, budgeting in principle is good, therefore it is good no matter who you are - rich, middle class, or poor. To illustrate this point consider the situation of the famous pop singer Elton John who, earning $25 million a year, was spending so much money that he had to take out a $40 million loan just to pay off his debts. Even if you are thrifty, budgeting can be the difference between controlling where and what your savings is doing (in terms of return on investment) or simply passively reacting to it.

            Then, there are what I call the "inspirational" methods. These are budgeting "tips" which set unrealistic expectations on you such as "just cut back on going out to the movies" or "always buy the generic brand" when grocery shopping. These methods attempt to control your lifestyle and dictate your wants and desires. It is no surprise that, usually, these systems fail for most people because they present you with a dichotomy (a split) between "needs" and "wants" that makes life generally unpleasant. I'm not saying that there aren't things that you should cut back on or that you don't need to change your lifestyle in order to become financially successful. But, whatever changes you make to your life should be your choice, not your advisor's.

            The “Unit Method”

            The Unit Method of budgeting takes a fundamentally different approach to managing your money. Instead of taking the pragmatic, reactionary approach, we are going to take a pro-active approach. Instead of simply reacting to each individual expense, we are going to plan for them and budget them before they ever happen. Instead of passively monitoring our savings, we are going to control it. Instead of telling you what to cut back on, to start buying the generic brands, or how you should live your life, we are going to let you make that choice.

            To begin with, you need to gather together everything you spend your money on. It may be helpful to grab a cheap notebook and write down everything you spend your money on for an entire week, or an entire month, just to get an idea of where all of your money is going. Write down the specifics as well as how much money you spend on each item. Don’t forget the date that you made the purchase.

            The next step is to collect all of your regular expenses. Total up everything that you spend your money on in a year (including when you spend it). You want to look ahead 12 months because you don’t want to forget expenses that may only come once or twice a year - like taxes, or car insurance, etc. Some examples of regular expenses (just to get you thinking) are:

            1. Taxes (if using gross income or you are self employed)
            2. Mortgage Payment
            3. Second Mortgage payment
            4. Household (yard)
            5. Gas
            6. Elect/Water/ Gar
            7. Gas (for your automobile)
            8. Auto Insurance
            9. Maintenance (car maintenance like oil changes, tune ups, etc.)
            10. Automobile Registration
            11. TV
            12. Life Insuran
                Nourishing Business Plans - Bad Credit Unsecured Business Loan
                Bad credit brings a feeling of tension and anxiety in the minds of most of the people when they think about loans. The probability of getting a loan is very much dependent on the credit status of the borrower. It is not much difficult for anybody to get into a bad credit score. A small default made by you in the past can cost you a loan approval.Now you may be thinking what is a credit score and how to find out what is your credit score?Credit score is a three digit figure which replicate the number of debts you have taken in the past along with your unpaid credit card bills, late payments or non- payments, arrears etc. Credit rating agencies such as Experian, Equifax and Transunion can provide you your credit report. You can analyze your credit report from different agencies to find out the errors if any. This will give you a better hold of your credit score. These agencies will also suggest you the ways to improve your score.About the Loan…Bad Credit Unsecured Business Loan is the best tool for getting the money for your business needs. The financial need of the business keeps on fluctuating as business sometimes faces profit some times losses. In time of losses you need money to cover up the deficit. The other need may arise when you are ready with your new venture plans but don’t have enough of your money to apply those plans. In such times going for a bad credit unsecured business loan apt decision for you without risking any of your valuable property.Searching for a loanIt is not very easy to get a bad credit unsecured business loans, but with online lenders and brokers coming into the picture, it is not also much difficult. These loans basically suit those types of people don’t want to put their asset at stake or those who don’t have anything to offer as a collateral. You need to do some research work in the market or through online option to get a good dealFilling the application formOnce you have found the right lender, you have to fill an application form with the following details.• Nature of your business • Purpose of the business loan • Name of your venture • Your social security number • Proof of ownership in case of existing business • Documents related to contracts, tax returns • Financial statementsApply for an unsecured bad credit business loan for starting your business, buying office space
                rence between controlling where and what your savings is doing (in terms of return on investment) or simply passively reacting to it.

                Then, there are what I call the "inspirational" methods. These are budgeting "tips" which set unrealistic expectations on you such as "just cut back on going out to the movies" or "always buy the generic brand" when grocery shopping. These methods attempt to control your lifestyle and dictate your wants and desires. It is no surprise that, usually, these systems fail for most people because they present you with a dichotomy (a split) between "needs" and "wants" that makes life generally unpleasant. I'm not saying that there aren't things that you should cut back on or that you don't need to change your lifestyle in order to become financially successful. But, whatever changes you make to your life should be your choice, not your advisor's.

                The “Unit Method”

                The Unit Method of budgeting takes a fundamentally different approach to managing your money. Instead of taking the pragmatic, reactionary approach, we are going to take a pro-active approach. Instead of simply reacting to each individual expense, we are going to plan for them and budget them before they ever happen. Instead of passively monitoring our savings, we are going to control it. Instead of telling you what to cut back on, to start buying the generic brands, or how you should live your life, we are going to let you make that choice.

                To begin with, you need to gather together everything you spend your money on. It may be helpful to grab a cheap notebook and write down everything you spend your money on for an entire week, or an entire month, just to get an idea of where all of your money is going. Write down the specifics as well as how much money you spend on each item. Don’t forget the date that you made the purchase.

                The next step is to collect all of your regular expenses. Total up everything that you spend your money on in a year (including when you spend it). You want to look ahead 12 months because you don’t want to forget expenses that may only come once or twice a year - like taxes, or car insurance, etc. Some examples of regular expenses (just to get you thinking) are:

                1. Taxes (if using gross income or you are self employed)
                2. Mortgage Payment
                3. Second Mortgage payment
                4. Household (yard)
                5. Gas
                6. Elect/Water/ Gar
                7. Gas (for your automobile)
                8. Auto Insurance
                9. Maintenance (car maintenance like oil changes, tune ups, etc.)
                10. Automobile Registration
                11. TV
                12. Life Insuran
                    Stock Market Investment is Only as Risky as You Want It To Be
                    Many people shy away from the possibilities of investment due to the potentially high financial risks that are involved; however, many don't take into account that investors have the ability to choose the level of risk in which they place their money. Whether you're an experienced investor or just thinking of testing the investment waters, rest assured that there's an ideal option for you.That said, people have different attitudes towards risk and, generally speaking, investors can be grouped into one of three categories: low-risk, medium-risk and high-risk investors. Low-risk investors are usually looking to gain better returns than those offered by a bank or building society bank account; they're therefore willing to place a limited portion of their funds into stock market investment. However, low-risk investment portfolios have limited exposure to equities; what's more, returns are slightly above, the same, or even below the inflation rate which often means that investment will fall in value over time. So while a cautious approach may prevent sudden loss, it can also inhibit the potential for an investor's money to grow.Medium-risk investors, however, are usually looking for a significantly higher spending power and are therefore likely to place more of their money into the stock market. And while this means that their portfolios have greater exposure to risky investments, like equities, such investments have the potential to perform better over a longer period of time.High-risk investors are interested in higher total returns, and thus account for the greatest portion of money placed in stock market investment. A high-risk investor's portfolio is likely to be governed by equities, with perhaps a small percentage of bonds or cash. In high-risk investment, money is subject to greater fluctuations and, therefore, greater potential loss. Such instability means that there is no guarantee of a positive return in any given year, making this type of investment unsuitable for anyone who requires a consistent income. However, higher-risk investments tend to grow faster than more stable investments - so, over time, an investor would increase their chances of achieving higher total returns.What type of investment is right for you? There are a few points you should consider first: do you have specific financial goals in mind, like retirement funding or a major purchase? You should also consider whether you're looking for immediate return or if you'd rather achieve a steady income from your inv
                    start buying the generic brands, or how you should live your life, we are going to let you make that choice.

                    To begin with, you need to gather together everything you spend your money on. It may be helpful to grab a cheap notebook and write down everything you spend your money on for an entire week, or an entire month, just to get an idea of where all of your money is going. Write down the specifics as well as how much money you spend on each item. Don’t forget the date that you made the purchase.

                    The next step is to collect all of your regular expenses. Total up everything that you spend your money on in a year (including when you spend it). You want to look ahead 12 months because you don’t want to forget expenses that may only come once or twice a year - like taxes, or car insurance, etc. Some examples of regular expenses (just to get you thinking) are:

                    1. Taxes (if using gross income or you are self employed)
                    2. Mortgage Payment
                    3. Second Mortgage payment
                    4. Household (yard)
                    5. Gas
                    6. Elect/Water/ Gar
                    7. Gas (for your automobile)
                    8. Auto Insurance
                    9. Maintenance (car maintenance like oil changes, tune ups, etc.)
                    10. Automobile Registration
                    11. TV
                    12. Life Insurance
                    13. Loans (car loans, personal loans, educational loans)
                    14. Credit Cards
                    15. Babysitting/Daycare
                    16. Clothing
                    17. Grocery
                    18. Eating Out
                    19. Nonfood grocery items (cleaning supplies, toilet paper, soap, laundry detergent, etc.)
                    20. Medical Bills
                    21. Hair cut/personal care items
                    22. Charitable Donations
                    23. Emergency Fund
                    24. College Fund
                    25. Dry Cleaning
                    26. Birthday gifts
                    27. Christmas gifts
                    28. Holidays and other gifts (i.e. Valentine’s Day)
                    29. Maintenance (home repairs, etc.)
                    30. Retirement Savings
                    31. Magazine Subscriptions
                    32. Membership dues (elks club, moose, club, or other social organization)
                    33. Dates (going out to “dinner and a movie” with your sweetheart)
                    34. Video rentals
                    35. Entertainment/”Play Money” (i.e. any hobbies)

                    After you’ve gathered all of your expenses together, it’s time to do some thinking. The method that we will be using to develop your “bulletproof” budget actually involves two processes: differentiation and integration. What you need to do is try to identify similarities among two or more concrete or specific expenditures and differentiate them from the rest of your expenditures. This should be done as simplistically as possible. Then, we need to integrate these similar expenditures while omitting their specifics and thus forming a new “unit”. This new “unit” becomes the basis for our budget and will allow you to easily track and control everything in your financial life.

                    The list I gave you above already accomplished part of the job for you. I merely asked you to do this process in reverse to come up with the concretes. For example, if you look at your expenditures and you find that you have a Discover card, 3 Chase cards, a Capital One card, and a Visa - we would group these together by their similarities, omit their specifics and form a new "unit" around them. From now on all credit cards can be filed under this “unit”.

                    But, what do we call this "unit"? Do we simply refer to the unit as "credit cards"? Is this the common denominator? Perhaps. We could group all credit cards together and form a unit called "Credit Cards". However, perhaps we could do better than that. What is a credit card? What is its essence? What is its purpose? What does it allow us to do? Aren't we borrowing money when we charge up a credit card? Isn't the major distinction between this expense and all of the other ones really the fact that these are all some type of loan? I think that this would be a more accurate association than just "credit cards". "Credit cards" denote what they are but not their purpose. Their purpose is to provide us with credit - with a loan, and unsecured loan, but a loan just the same. This is the key to making the "Unit Method" really work for you. You must find the most accurate associations between your expenses.

                    So, based on this, we form the unit "Loans" and file each credit card under this new unit. Now that we have begun to form our first unit, what other loans do we have? A loan out for an automobile? A college loan? A personal loan? We can also group these expenditures by their similarities, their common denominator - the fact that they are also loans - omit their specifics, and add them to the "Loans" unit. Again, we do not care what kind of loan they are, the term, the interest rate and so on, only that they are loans.

                    The same thing can be done with “Entertainment”, “Insurance”, "Taxes", and so on. Remember when making associations to discover the purpose of the expense, not just what it is. After you have put together a list of all of your new budget “units” you can then simply file each concrete or individual specific expenditure under the new “unit”. These become “unit items”. For expenses we may use the general term “expense items”. For savings “savings items”. For investments, "investment items" and so on. For example:

                    Loans:

                    1. Wells Fargo (mortgage loan)
                    2. Bank of America (personal loan)
                    3. Community Bank (automobile loan)
                    4. Chase card #1
                    5. Chase Card #2
                    6. Chase Card #3
                    7. Discover Card
                    8. Capital One
                    9. Visa

                    Now, we must reintroduce the specifics to each individual expense because we must determine the budget for the new “unit” that we have created. So, if your mortgage payment is $600/mo, your Bank of America personal loan is $250/mo, your auto loan is $300/mo, Chase #1 is $50/mo, Chase #2 is $60/mo, Chase #3 is $50/mo, Discover is $50/mo, Capital One is $50/mo, and Visa is $40/month, then the budget for this “unit” is $1,450. Continue to do this for all of your budget “units” and add up the total. Now compare this with your paychecks and any other income that you might have. If you make more money than all of your newly created “units”, then you’re fine. If not, then this gives you a clear signal that something is wrong and an easy way to adjust your total budget. You can look for the “unit” that has the biggest budget and try to cut out some of the “waste”, or if you don’t think that this is possible, you can always