Reverse Engineering of Money Streams

The term "reverse engineering" has become a popular term today. I first heard of it on the History Channel, in relation to alien technology from the Roswell incident. Nobody knows what happened at Roswell for sure. One thing is for sure, The folklore of Roswell has changed the way we think and produce things.

Reverse engineering of money streams can be done by anyone. It can be accomplished by individuals or large corporations. This article will focus mainly on helping individuals in financial need.

There are countless individuals in financial indebtedness. They often feel trapped and are wondering, "How can I get out of this financial burden that I am under?" Reverse engineering of money streams can provide a way out. However, you need to understand how this process works. Do not get it confused with "money streams." A money stream is a set salary or a monthly check like house rental that comes in once a month.

Reverse Engineering of Money Streams
Each month we all have bills to pay. Some bills are set for a certain length of time. These are things like a car payment or a set loan payment. They are always the same month in and month out. However, there are those that are constantly changing. If you have a credit card, it fluctuates back and forth. It could be a high or low payment. It is based on several factors. Those factors are interest rates, how much you spend on the card and on penalties. It is important that you identify these factors.

Step 1
Write down all your outgoing bills. Identify which ones are fixed (always the same) and those that change. On all those that are subject to change, list them away from everything else. These are what we will work on.

Step 2
Write down how much you paid on each account. Do not use these accounts the next month. Preferably never again.

Step 3
On your second payment, pay the same amount as the month before. You will notice that your payment is lower than the previous month.

Step 4
On your third month, take the difference from the second and third month and place it in a savings account. Whatever you paid on the second month for a payment, repeat it. This will always be your payment until the debt is paid off. You will soon begin to see a savings growing each month. It will not be very large at first, but it will grow and begin to snow ball.

Step 5
Now do this with your other accounts. These are what is called reverse engineering money streams. They do two things. First they pay down your debt and second they slowly add a little to your savings each month. You must track your savings each month and set it aside.

You want more?
Get rid of the extras. For example, if you have cable or dish, dump the movie channels (Starz, HBO etc). Add those monthly savings.

Phones; If you have a cellphone and a land-line, dump the land-line and put the savings aside.

Utilities; Reduce and conserve. Place your savings aside.

Extreme budgeting; Look to cut costs and start setting aside those savings.

Like your credit cards, you must track your savings.

This plan takes discipline and patience. You can pay down debt and generate extra cash within a few months. Stay disciplined and it will begin to snowball in both savings and debt reduction. The cool thing about this is that you don't need extra money to do this. You can do this with just the money you presently bring in. Good Luck.