Free Tips Money

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kids ages 5 and under are attending some type of preschool. Owning a day care is a lucrative business. Small day care services are often offered from an individual’s home. Even though this service is not free, it often costs less than commercial day care services. A lot of stay at home mothers provides this type of service for friends, neighbors, and other referrals. Typically, there is only one paid provider in the home day care business. Older children frequently assist the day care provider for free. There are often a smaller number of children being cared for. Parents of preschool children often seek this service first.

The number of preschool children being cared for dictates income. Day care provider’s incomes go up and down. Any daycare center looses income when the parents lose their job or get laid off and have to remove the children. Loosing 2-3 kids at the same time can significantly reduce the weekly income expected, especially for a small day care provider. A sudden and unexpected decrease in income can create financial problems if you do not plan properly.

You must budget and plan ahead of time the number of children you need when you decide to create a daycare service as your source of income. You have to advertise in the paper and ask your friends for referrals. Once you have enough children, you need to create a waiting list for other parents who need the service when you have an opening. Don’t wait until you loose kids before you start looking for a replacement. This is a free selling tip and may drive additional parents to your door because it implies you are providing such good service, people have to wait.

Properly budgeting and planning ways to keep the correct number of children means your income will remain constant. However, life is never constant. You need to create a 3-6 month emergency fund to weather the times when you loose kids unexpectedly and you have no one on your waiting list to replace them. When you think you are doing good and business is great, find ways to save the extra money. Save enough money to cover your expenses for 3-6 months.

Things have a way of happening during our lives that we have no control over. Unexpected medical bills and a spousal layoff are two such things that will often adversely impact your income. There are other things, however, that we create and can control. Splurging and spending money on unnecessary items while very tempting, should be kept to a minimum until you have established your emergency fund. This is not suggesting that you can never buy things you want. This free tip says you must keep your wants to a minimum.

It’s hard to resist the temptation of a spending spree. So often, when you think you’re doing well and spend cash for something you have been waiting for, you feel like this is your reward. Just when you’ve splurged, something happens or a few days later some long term customer unexpectedly removes their child from your day care. These parents may have been fired from a job, quit their job, or they may be moving. Often this announcement comes without notice.

Or, another example of an unexpected life occurrence is when your child gets sick or breaks a limb and has to be hospitalized. Rushing a child to the hospital creates an ambulance bill in addition to the other costs for doctors, x-rays, and medication. These unexpected emergencies create a financial setback for anyone’s budget. These services are not free even if you have insurance. You still have to pay a deductible.

Timing is everything. A sudden decrease in enrollment shouldn’t be a major setback when you plan properly. The best tip is to become a better money manager. Make sure you have adequate income for your bills and for savings. Don’t spend the money available for savings. Save it. Tell yourself you’re broke until you have acquired a 3-6 month emergency fund.

Getting Started On Your 401(k) Plan is an easy read finance book. The book does not talk over your head or confuse you with financial jargon that you don’t understand. The workbook format allows you to practice what you have learned at your convenience.