Creating the Financial Clone
My goal for 2009 is to completely clone myself financially (Patent pending!). I have a great work ethic with a propensity to save earnings. But in today’s economy, this is still not enough. Read on to understand my definition of financial cloning and how I hope to achieve it.
I feel I have admirable characteristics when it comes to financial responsibility. But the proof is in the pudding. My household is supported strictly with cash. I do not have the perceived luxury of accessing credit for goods and services. The problem with this lifestyle is that the cash dries up quickly! Looking over the monthly financial responsibilities one night, I found myself wishing I had a financial clone.
A financial clone is the ability to match your current disposable income through short/long term means while stressing the emphasis on saving and establishing wealth. That definition seemed to be what I was looking for, however impractical. But, how was I going to achieve it?
I determined that a great way to do this is to make my disposable income work harder while minimizing the time lent maintaining it. These types of opportunities occur in the forms of stock purchasing, 401K investment, high yield CD’s, etc. I chose to purchase stock. I knew very little about traversing the stock market outside of my college business courses. This experiment would force me to research the subject extensively. So far, my investment is growing considerably!
Other ways I wanted to clone my financial self includes traditional savings accounts (long-term), immediate lifestyle changes (such as coupon clipping, nixing the HD cable, etc), or overall frugality. These are things I already do. And I pledged to continue doing so. For the clone to be more successful, I decided to increase my bi-weekly contribution to my traditional savings account. This has been very beneficial.
I began implementing these measures on January 1st, 2009. And for a cash only household, I feel I am making some progress. I will determine the success of the financial clone at the end of 2009. At that time, I will assess how well my disposable income worked or vice-versa. The clone is a good way to look more closely at your personal financial responsibility and ability to make necessary financial changes. Give it a try!
2 Comments
[...] over future posts. Just know that he is a good brother and he is in a word…sharp. Here is an excerpt from the blog, A financial clone is the ability to match your current disposable income through short/long term [...]
This phrase, is matchless)))