Today, I would like to talk about the ways, how to manage your finances, while you are working on your personal projects. As we all know, working on something own might take a time, before we’ll see any kind of incomes. At the begining, more likely there will be a lot of investments and costs we need to cover. At the same time, we still need to live somewhere, eat, etc. All this require us to have a lot of money and time to earn this money.
Taking all this on acount, I decided to share some tips with you, regarding managing your finances, while you are trying to get an income from your personal projects. Here are some of the ways you can manage it:
Prepare yourself beforehand
If you have an amazing idea in your mind, you can approximate your living cost for the time you’re going to need to complete your project. More or less. Try to reduce level of your living and save as much money as you can. As you have some savings, which will last you let’s say for two months, take a holiday in your work and spend this time on your project.
This tip require from you a lot of self-awareness. You probably won’t be able to go for coffee every day, but instead you might start preparing your own coffee at home. Maybe this t-shirt you saw last time in the shopping centre is not neccessary spend at the moment? Most likely clothes you have already in your home will last you for some time? Or maybe even you have too many of them and you might consider selling them online, to get some extra cash? Here your creativity will come in handy. As longer your savings will last, this longer you will be able to fully focus on your project. And hopefully, by the time you’ll run out of money, your new business will start bringing some incomes. If not, you will be at least way ahead, when you need to return to work, than you would be without this break. Provided, that you’ve really spend this time on work.
Work in your free time
This option is the easiest one, as you are still having incomes from your regular job. But at the same time it is probably the most exhausting. You might be really not in mood for working on your project after eight hours spent in your regular job. This will require from you a lot of self motivation and ability to fight with your procrastinating nature.
Especially in this case, you might want to be more aware about your breaks and holiday, just not to burn out. If you want to see post about taking holiday, here you can find it.
You should also remember to be patient. This way you might not progress as quick as you would like to. And you have to make sure that you are very organised. You can use simple planner to manage all the things you want to do, or you can try some kind of application managing your tasks (I am recently using Nozbe, which you can get here; I am going to write about this app in my next post as I am using it for one last month and it turned out to be a life changer for me).
You can build a business around your project
What I mean by that, is that you can provide some services or smaller products connected to your project’s topic and keep selling them. It is probably the most riskfull option of all three presented in this post. Having this done will help you market your project better when it’s ready, as you will have a social proof. If services or products you provide are good, people will feel more confident to get bigger and maybe more expensive product from you. However, finding first customers for whatever you can offer might be challenging. And still, having some savings could be a good idea in this case.
These are all of my tips for today. I wish you a very productive day and I’ll see you in my next post.