--------------------------------------------- When you're talking about small amounts, the details of how you use it are less important than implementing the philosophy, even if the amount is only 10 cents. --------------------------------------------- So, just to clarify, are you saying that you need to focus potentially on two goals? One, putting money aside for yourself; and Two, paying debt? And regardless of your decision of where to put your money, do it consistently?

Winston, Yep. :-) Cheri

Linda, I certainly do believe in investments? I think of money as a gift and as such it should be used wisely. I am striving to be debt free and live my life to enjoy the gift of money. Not work to pay someone else who owns everything I have worked for up until this point. :) As for my business - I do pay myself first, however I re-invest it back into the website store. Be blessed in 2006' Your friend, Classic Corners www.classicwebstore.com

Hi, Janise, Thanks for bringing this up! It's certainly necessary to reinvest in your business--I think we can all agree on that. Here's the formula I worked out, and it works for me. Only because my income is a second income for the household, I must say. The percentages wouldn't work if the online income were the primary one. One of the things we did to free ourselves from debt was learn to contain our living expenses so my husband's salary would cover them all. He even subsidized my businesses in the beginning! I fully recognize how fortunate a situation that is. The formula: 10% Charity 10% Savings 10% Tax liability (this seems to work because of the homebased business tax advantages here in the US) 15% Contribution to household expense 5% Divided between my husband and me for personal spending money. See the Debt and Diet thread in my Money 101 forum for the reasoning on this. As the income grows and we get close to our goal of freeing my husband from his J O B, we may need to adjust this downward to maintain balance. 25% Debt reduction 25% Reinvest in business Now, this isn't a budget...it's a financial game plan, something everyone needs. (Thanks to Kathy Clark for the term--I like it.) I encourage everyone to spend a little time working one out. Our goal is to make my businesses the primary income...obviously we'll have to adjust percentages as that gets closer and closer. Your percentages should reflect your current reality and your goals.