Step 1 -> Define the Problem and a Solution
This is the most important step of all in the problem solving process and in identifying the problem. Even though you cannot solve a money management problem without knowing exactly what the problem is, that’s impossible, many people try to do just that, they are not smart. When asked about their financial situation, most will say, they just need more money. They jump immediately to attempting to solve a problem they have not yet clearly define and seem not to care about a clear solution.
In order to gain clarity about your overall situation, gather all the facts and figures you need to answer the following questions:
What is your net worth?
How much do you owe?
What is your current income?
How can you make even more?
Where can you make more?
What are your expenses?
Exactly how much do you owe?
What is your credit rating?
What interest rates are you paying on mortgage and loan balances?
Will that interest change?
What interest rates are you paying on credit cards?
Can you cancel these cards?
When are your payments due?
Are your expenses higher than your income?
How much money do you need?
By when do you need it?
Answering these questions may be the last thing you want to do, however most people experience a sense of relief when they finish. You might even find things are not as bad as you imagined. Sometimes all you need is a little honesty with yourself and the problems get the solution by themselves. Anyway you should always try to answer all these questions properly.
Never rely only on one income stream. Always have two or more income streams. Internet is now the best way to ake some money. You can easily start making some good dollars online. For example Adsense is a great place to start. Signing up is easy and as soon as you reach 100$, Google will mail you a check.
Search for some adsense tips to see how you can almost double the amount of money you make with Adsense. Joel Comm is one of the best Adsense xperts. He makes more than 20000$ with Adsense alone. He wrote a book about adsense where is tells all about it, from getting the best hosting for your site to selecting the right ads for your site.
No wonder he is an Internet Millionaire! He knows how to make money. However the book is not magic and you will have to learn a lot about Adsense by yourself, but the book will help you a lot.