On occasion I have had people write in to me to say they want to build a business but in order to start they need to save some money. The problem: they can’t save a thing because their job doesn’t bring in enough money for them to save at all. What can you do if you are in this position? Firstly, have an independent person look at your personal finances (especially how you spend), to see if they can find additional savings. If you want to do a re-analysis yourself then get my book, Build Super Savings. This book takes you through your entire financial profile including tips on how to make more money and save a little extra. Secondly, figure out how you can earn more. Finding another job is a good way to gain a bump in salary but there is one little problem that I find many more people than you would expect make: typos! A good employer, that is, one that will pay you what you are worth uses what’s on paper to determine whether you are worth an interview. If you have too many typos and grammatical errors your CV/resume will go straight into the rubbish pile without consideration. I had to fire the very first person I employed for this very reason after a week. For every sentence he wrote there were at least 3 typos; he was using spell check function to autocorrect himself, however, his spelling was so bad that the suggestions he was getting were frequently also not the correct words. I sat very close to him so I observed all the work he was doing and I wasn’t impressed. He was meant to be my marketing manager which includes responding to emails and some social media and I could not rely on him to write a decent email response or represent the Neno Natural brand correctly in any public domain. I raised the issue on the second day and he said he thought he may be dyslexic but he had never been tested. Two days later my trust was falling even lower so by the end of the week I had to make a decision. He was a nice guy and I liked him but to keep him would be damaging to the business so I let him go. On paper, he looked great and even when you saw him, he looked very executive. However, within one week I was sure that he didn’t write his own CV because he didn’t match up to it at all in reality. When I hired him he had been struggling to find a job except for one as a delivery man for a courier company. Delivering packages fortunately doesn’t require you to write any sort of copy. The main thing standing between this man and the well-paying marketing job he wanted was English grammar skills. He had signed up to marketing courses to improve his CV but all he needed was an intensive English grammar course. How he had made it through the English education system right through to university with such low writing skills, I do not know. It’s very hard to admit to being bad at English especially when it is meant to be your native tongue – but if you’re in this boat, man up – get onto a course and get your English, written and spoken, polished up. If you’re not sure how good your English is write a few things and get an independent opinion. Small things you can do now to improve your written English include:
It’s going to sound very sad but throughout my teens I used to carry a little dictionary / thesaurus around. I enjoyed reading it when I had breaks. I also used to list and define words I didn’t know on paper well into my twenties. You don’t have to go this far but the more literature you engage with the better your writing and reading becomes. The better you can write, the better the job you will find. Want to Build a 6-Figure Beauty Business from the comfort of your sofa? Then my course is designed for YOU! "Beauty" includes a WIDE range of products from the not so obvious non-perishable foods and crafts to the more obvious hair, makeup, fashion, health & fitness.
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It’s a dream to have a job that works around your life. I have such a job and a few people I know aspire towards this lifestyle but their approach, I now realize, is completely wrong. Before I had a baby, I used to imagine that maternity leave allowed one to pursue personal interests other than those of rearing a child. When people told me they planned on starting something during maternity leave I agreed that this was indeed an appropriate time. When friends with babies said they weren’t being able to get anything done I thought they just weren’t balancing things correctly – I, in this case, was wrong. Unless you pay for childcare don’t expect to have any time to focus on a business when you are on maternity leave. In America where maternity leave is only two months it’s definitely not going to happen but in the UK and Europe where you are allowed up to a year off with your job still guaranteed at the end, an opportunity to plough more energy into a business exists. My baby is overall an easy one. He sleeps well at night but during the day he requires a fair amount of playing with and attention. I think that’s fair. I wouldn’t feel right to ignore him or place him in front of a TV if he’s awake. I have to deal with my business things on my own time, not his. As a consequence I have a nanny for 3 to 4 hours three afternoons a week and during this time I do my blog writing, video editing, business accounts and catch up with the people that do graphics and other work for my business. I did start off trying to work while he slept but the problem with that is that it led to inconsistent output: Sometimes my boy would sleep for ages and other times he wouldn’t do more than a 30 minute nap here and there. There was simply no way I could do any solid work unless I had someone caring for him so, in the end, that’s what my husband and I decided to do. If you want to start a business and think that the best time to start is during maternity leave, I hate to tell you this but this is unlikely to happen unless you organise some support. Several of my friends have tried this and have all tragically failed; now that I too am a mum, I understand why. So, what are your options for child care? 1. Nanny or nanny share If you can afford it, pay for several fixed hours every week for childcare. A more affordable way to do this is to have a nanny share whereby one nanny looks after your child and someone else’s at the same time so that the cost is shared. I am lucky to have someone on my street to nanny share with so this reduces the cost. Mind you, the cost is not exactly slashed in half by having a nanny-share because the hourly cost of taking care of two babies is higher than the cost of one-on-one care (but it’s not double). I only need to work 20 hours a week (4 hours a day, Monday to Friday) but for now I only pay for 10 hours because I can make up for the rest during nights when my son (and husband are asleep). 2. Ask family for help If you are lucky enough to have family nearby they may be willing or even dying to spend time with your baby. Work out an arrangement that works for everyone so that your family get some valuable time with your baby and you get to do some work. 3. Speak to your partner Ask your partner how they can best pitch in to help you get work done. My husband adores our son and gets one-on-one time whilst I work. He loves doing bath time and does some play time. Luckily, I don’t need to take that much time away from family time. Once I’m done with my work I let it be and spend time with the family. 4. Save for childcare If you don’t have family nearby, a supportive partner or the funds for child care then it may be a good idea to save a lump sum for childcare before you have your baby. If you have more suggestions please make a comment. In summary, maternity leave may provide a chance to put more energy into a business but if you don’t plan for childcare, it won’t happen; so, plan for it! I hope you have all the knowledge you need to build your 6-figure product business so that you don’t waste time making it up as you go along when you should just be running your business. If you need a blueprint for building a product business join The Money Spot Program. You not only get access to knowledge but to a network of individuals who can share ideas with you via our closed, members-only Facebook page but you can obviously ask me questions whenever you need. Want to Build a 6-Figure Beauty Business from the comfort of your sofa? Then my course is designed for YOU! "Beauty" includes a WIDE range of products from the not so obvious non-perishable foods and crafts to the more obvious hair, makeup, fashion, health & fitness. When it comes to education more is always better, right? Wrong. It’s not always the case. Over the last year I have met a couple of people who like investing in coaching and entrepreneurship programmes but they simply do way too many of them. Coaching and training definitely helps with the acquisition of knowledge but that knowledge is totally useless if you don’t do anything with it. One person I met had spent about £20,000 ($30,000) on various programmes within one year but hadn’t put anything into action. I thought that was a big waste of time and money. I kept trying to emphasize to her that she needs to start implementing what she’s learnt because that is the only way she would see results. I hope I got through to her but I dare say even when we were talking she seemed to be considering what programme she would do next. INFORMATION OVERWHELM The problem with taking part in too many programs is that you receive so much information that you have no idea where to start with implementing it. It overwhelms and confuses you. You’ll end up writing lists and lists of what you need to work on but ultimately if you have too much information, you do nothing. You just move on to the next course with the hope that it helps to bring clarity to your confusion. LAGS BETWEEN LEARNING AND DOING If you leave a long gap between learning something and incorporating it into your business then you forget about it. You never get round to implementing it. If you’ve paid for a simple program then this is not an issue but the more expensive programmes usually pack in a lot of homework and you have to do all of it to get the maximum benefit. Don’t wait a long time to start working with something that you’ve learnt. If you can’t implement it, find someone who has the time and capacity to do it for you. THE RIGHT WAY TO INVEST IN TRAINING: REVISE WORK ALREADY DONE There are a variety of “right” ways to get the most from training. If you’ve paid to learn something then you have to implement it otherwise you’re just pouring money down the drain. If you’ve invested in a quality programme, implement what you’re learning as you go along. Then, before moving on to a new programme, go over the material one more time to make sure you’ve got everything before investing in something new. The first time you go through training you will inevitably only implement the easiest or base-level concepts into your business. The second time you go through the material, there will be more you can implement or that you didn’t consider the first time round. Sometimes success or a boost in earnings isn’t the result of making a huge sweeping change, the correct, small tweak can lead to massive returns. Yes, as someone who has a program on How To Build A 6-Figure Product Business I should be saying so loads of coaching, pack in as much knowledge as possible but I’d be lying if I did that. Implementation of existing knowledge can be more important that acquiring now knowledge… Want to Build a 6-Figure Beauty Business from the comfort of your sofa? Then my course is designed for YOU! "Beauty" includes a WIDE range of products from the not so obvious non-perishable foods and crafts to the more obvious hair, makeup, fashion, health & fitness. It occurred to me when an acquaintance of mine posted the great news of her third pregnancy that too many people still have too many children and this keeps some of us in a vicious cycle of barely meeting basic needs. Now, whilst money isn’t everything, being broke is no fun either. Having children and family is very fulfilling but from the moment they’re born we have to reconcile that joy with the fact that they will one day leave, to live their own life. You can’t make a career out of having babies; you need to make it a part of your life without making it all of your life. Okay, I’m talking in darned parables again, what is it I’m talking about? The cost of having children. Each child costs money and of course, time. In my case I am very keen to give my children as much as possible in this jungle of life by providing the best education I can afford and a small lump sum at 18 or 21 just to help them along. It would have been great if upon graduating from university my parents had said Heather, here is £20,000, we’ve been saving some money for you since the day you were born. We’d love you to invest in a property. That lump sum would not have taken away my personal ambitions to achieve but it would mean I was ahead of the curve. I had this one Nigerian friend who’s dad had bought a flat in London ages ago so he was earning a huge salary in investment banking and didn’t even have to use any of it on rent. He was saving all his income to buy his own property – trust me, when you don’t have to pay rent you can save a whole lot faster, especially in London where the rents are super crazy. His father had taught him how to handle money with care and that lesson had been taken to heart. Anyhow, I digress. There are a two points I want to cover: PRIVATE SCHOOL It is one of my deepest desires to send my children to private school or to at least have the option of sending them to one. If I choose the state education route I want it to be because it was the best option at the time not the only option. We actually timed pregnancy such that when our son is ready for school the funds are most likely to be there. If not, he won’t be able to go but this very desire means we had to plan things very well. Firstly, we can’t have children too close together as getting the funds together will take time and it will be too stressful if we’re trying to fund two children at the same time. Secondly, it means we definitely cannot have more than two children. I used to want 3 but I’ve had to be realistic about how affordable it is and in fact, having one child only so far I’ve also realized you don’t need lots of children to be fulfilled; one is plenty and well, a second because everyone loves to have a brother or a sister, right? It’s fine if we realize that despite our best efforts private school is not affordable but if that happens we will compensate by keeping much more up to date with our kids’ progress and educating them ourselves where we feel the system is falling short. Perhaps if a private primary school can’t happen then certainly in the 11 years it takes to get to secondary we’ll have managed it. I said to a friend that I need a 3 year gap so we don’t have two kids going through university at the same time and he was like, “Gosh, you’re thinking far ahead!” I said, “I have to.” I feel that if I don’t manage to send my kids to good schools I’ll be underachieving compared to my own parents who sent us to the best schools they could afford in Malawi. When I needed extra help I’d tell my dad and he paid for a private tutor at home. This happened at a time when we were falling behind on the maths curriculum at school. How many of us think about the affordability of children in terms of funding a private education or subsidizing a state one?We in the West have become so accustomed to the fact that the state pays that we take it as a given. In Malawi where I was born and in Africa in general we don’t think like that because for the most part a state education doesn’t take you very far. Even here in Britain and in the US key jobs in government and in blue chip corporations are run by privately educated men and women; the majority of these people don’t send their own kids to state schools. The Establishment has pulled a number on the masses: the state funds a basic education but the children of statesmen (including CEO of corporates) don’t go there. Hmmmm? SAVING FOR KIDS A good education is the minimum we should want to afford for our kids. Another thing that is ideal, is to save for your children. Even small savings add up massively over time. Instead of rattling on, I’ll just show you the numbers. If, starting from birth, you save some money for your child every single month until their 18th birthday how much will they have? Assume a flat interest rate of just 3% compounded monthly:
What about if you save until the 21st birthday at the same interest rate:
Note that the currency doesn’t matter here, the sums still work out the same. If you’re not a single parent and the other parent also earns then you can share the cost of saving for your kids, it doesn’t have to be a 50-50 split, just whatever works for you. We started saving for our son from the month after he was born. The money goes into an account that will not allow us to withdraw a penny until he is 18. Literally, what goes in CANNOT come out. Good on you if you’ve found this insight before making babies! What are your thoughts on giving your children the best chance in life? Want to Build a 6-Figure Beauty Business from the comfort of your sofa? Then my course is designed for YOU! "Beauty" includes a WIDE range of products from the not so obvious non-perishable foods and crafts to the more obvious hair, makeup, fashion, health & fitness. When it comes to buying a property to live in there are too camps:
Most people in Britain fall under Camp Yes and you will find a lot more people (not a majority) in America under Camp No – the reason is the structure of Government taxes. In the US, when you buy a property in many States you continue paying quite a chunky annual tax. In Britain, you pay Government taxes when you buy the property and no property ownership taxes after that. This means that if you pay your mortgage off before retirement you can enjoy a much lower cost of living compared to someone who is renting and in the process avoid old age poverty. In fact, even while you hold a mortgage, with rents rising like crazy, mortgage payments are now frequently cheaper than rent. However, I have learnt that many people lumber themselves with a mortgage so huge that it becomes a lifelong burden. Most people buy the most expensive property they can afford to buy and frequently need two salaries coming in to keep up with mortgage payments. This is a form of wage slavery. According to Wikipedia, wage slavery refers to a situation where a worker's livelihood depends on wages, especially when the dependence is total and immediate. It is a pejorative term used to draw an analogy between slavery and wage labor by focusing on similarities between owning and renting a person. The fact is when you’re in a situation like this you will take ill treatment and all sorts from your job because you desperately need it and losing the job would cause you a lot of stress and trouble. When you’re in such a situation there are many adverse consequences:
Why do people get such huge mortgages? Usually it’s because they have their mind set on living in a certain, expensive location and they are unwilling to compromise; or perhaps they want a bigger house than suits their budget. A good amount of the time it’s because they want to look good to their peers and can’t take the “shame” of living somewhere that’s not “posh”. What should you do? I’ve said it before and I’ll say it again.
Decide how much you are ideally willing to spend on keeping a roof over your head and look at buying a home in areas where that will work. As I mention in my blueprint, 3 Steps To Quit Your Job, buying a home was part of my strategy in leaving the 9-to-5 and starting my own business. One thing I don’t mention in the blueprint is that part of the strategy involved buying a home with a mortgage low enough to be easily affordable on one salary. In 2010 when we bought our home, we knew I was going to quit in two years’ time. This meant there could be months when cash was tight so we had to account for that. I have a property buying strategy that has worked superbly on two occasions: basically, you don’t buy in the really great area where you want to live, but as close to it as possible. As properties rise in value your area gets a massive benefit. Why? Because everyone that can’t afford the really nice area moves to your area instead leading to higher property prices. This strategy works in London where demand for property outstrips supply but may not apply if the converse is the case. I will admit that we had to stretch our budget by 30% because The Good Husband wasn’t happy with everything we were seeing at “my” ideal budget but in the end we found a great property that we were both thrilled with. Mortgages & Relationships If your partner is the one who wants to live in a pricey area and you know this will leave you chained to a desk job, show them this blog post. Hopefully you can re-work your strategy in a way that suits you both. How about Camp No? Sometimes you just have to rent because you have to live in certain places to progress in your chosen career. Many Camp No people can’t even dream of buying where they have to live because they simply wouldn’t be able to get the deposit together. If this is you consider buying a property in a cheaper location and renting it out so that you have the security of ownership then rent a pad where you need to live for your career (or whatever reason). I saw a good example of this on the TV show Real Housewives of Atlanta; a few people on the show rent because they need to live in the “it” place but they can’t afford to buy there. I think I have even seen a couple of shows where one or more of the contestants is being threatened with eviction for non-payment of rent. Eeek. Side note: Phaedra is my favourite – I think she is both the prettiest and the smartest. Nene is my second favourite and I think the rest of them are pretty forgettable, I don’t even know their names. I don’t watch dedicatedly but I do enjoy it when I find it on TV. Finally, for those that simply don’t believe in buying property at all, please leave a comment. I don’t personally know anyone and I would love to have a discussion with someone who has this viewpoint so I can see what their retirement strategy is. Whatever your point of view, share it. Want to Build a 6-Figure Beauty Business from the comfort of your sofa? Then my course is designed for YOU! "Beauty" includes a WIDE range of products from the not so obvious non-perishable foods and crafts to the more obvious hair, makeup, fashion, health & fitness. |
Heather on WealthI enjoy helping people think through their personal finances and blog about that here. Join my personal finance community at The Money Spot™. Categories
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