How much should I save?

Hi guys,

Today’s post is continuation of previous one where I presented five ways to earn or save some money at your home or doing things, you do any way. Especially, if you are planning to switch from full time job to your own business, no matter what it is, beginnings are usually hard. That’s why it is important that you’ll make your decision about leaving your save income not earlier than you are ready. You might have a hard time figuring out how to market your products or services, you might struggle to get hang on your taxes or just working from home might be harder than it was at work, when you had your boss over your head for the entire time. Why shall you add to this worrying about money? Remember that no matter how well or bad your business is going, you will still have your bills to pay.

So how much is good to save before leaving your job. And the answer isn’t as simple and direct, as some people would like to hear. I would definitely like to. But there are some questions which, in my opinion, everyone who starts their own business should ask themselves, before going on their own (and they are not all possible questions, just all of them I thought of myself and which I’m using to take this decision).

How much am I spending each month?

This is very important question. First of all, it will determine, the minimum amount of money you need to survive. You should include all you house bills, groceries, clothes, debt payments, etc. When you will look at your costs, I would right away divide it into two categories: necessary and unnecessary. Necessary would be all stuff like bills, food, medicines, if you are taking some, clothes, cleaning stuff, etc. Generally everything what you really need. Unnecessary will be all except them. And it doesn’t mean that you have resign out of them, at least not right away. In this category would be your all subscriptions (except these which you would be using for your work, they will be in previous one), all coffees drunk outside and all other costs, you would be able to live without if you had to. If you get some numbers, you can move to the next question.

Can I reduce any costs of the unnecessary category, if I have to?

This one might be hard sometimes, but no one ask you to do so. Just think about this, in case if there will be any unexpected cost, something you didn’t know how to prevent. Or if there would be a tight period in your business. Where could you pull money out to cover it? Or if you’d realised that your business actually needs a bit more time to work for itself, how much longer are you going to be able to stretch your funds?

What is plan B?

You have this great idea for your business, with eyes of your imagination you can see how you are becoming a millionaire within no time. But what if this will not be the case? Of course I wish you that you succeed, but there are many businesses which don’t make it. What are you going to do in case if your one will be the one? Will you have an opportunity to return to your old work? Or you will have to find new job? How long approximately it can take you to do so?

How long do I think I will have to wait for my business to take off?

This question might be hard, especially if you are new in entrepreneurship. But just think what is your first thought. Maybe your business is already running and you just need to scale it? What steps do you need to take and how long the process is going to take? If you are about to start, maybe try and think, how long mentally are you going to take it. You can give some deadline to yourself, and after that start looking for at least part time job to support your actions?

When you’ll get an answer for all for questions, you could try to decide this way: if the answer for last question is one year, multiply your monthly costs by 12 months plus the time of how long do you think getting your plan B into the life might take you. To be even more sure, you could add couple of months as a mistake margin. Or you could just try to cover it by reducing your unnecessary category costs. This is a way of how I am planing to do so. I think this system would keep me calm and give me a lot of time to react, in case if something will go wrong. But remember, this is my way. Maybe for you peace of mind will bring doubling these numbers or even tripling. The only thing I want to ask you to do, make sure to get at least a bit ready. Don’t throw you straight into the deep water, if you don’t have to.

But at the same time remember, that you can start your business as a side hustle after your work. At least on the beginning. It will make you much more tired, but can save you a lot of stress in the future. And as you’ll see that the product or service you have to offer is on demand, you can resign knowing that you are not in a bad situation (but you could try to have some savings any way, even if you are working full time 😉 )

That’s it for today’s post. I wish you a very productive day and I’ll see you in my next post.

Daria

5 ways to earn (or save) some extra money

Hi guys,

Today’s post will elaborate on some 10 ways of earning an extra cash or just making some savings on things, most of us are spending money any way. Habit of saving money and learning money seems a hard task for many of us. including myself. Although, I am not the person who buys a lot of expensive clothes, or clothes at all (mostly, I buy new one when my old ones are damaged), I am not going out as much and I am able to save some small amount after most of the months, there is always something coming out.

At the moment world is in this weird situation, where I don’t thing many of us expected. There have been whole countries locked at their homes, travelling became close to impossible, a lot of people simply lost their source of income, as their company bankrupted or some stuff had to be reduced. And I always repeat, that money isn’t the most important thing in the world, but at the same time you can’t live without it.

As I mentioned on the beginning, my household’s financial never has been very bad and I hope it will stay this way, but I’ve also realised recently that our savings wouldn’t allow us to live comfortably for a longer period of time. My company is closing by the march as well. So, I’ve decided to look for some ways to actually build up our savings and ideally find some other sources of incomes too. I would appreciate, if I would be able to start earning my money from home. This is my most important goal at the moment, because it would give me an opportunity to spend more time with my son. As my company has been closed for last couple of weeks due to some incident, I’ve decided to use my free time to do some research and I came out with some ideas. Some of them, I can’t really recommend from my own experience yet, as it takes a time to see results or I haven’t started yet, but I will tell you as I am describing each of them.

Here are my 10 tips:

Join partner programs in shops where you do your shopping

This is one of the ways, where you can save some money, by doing your regular shopping. I am living in UK and a lot of (if not all) supermarkets, pharmacies or even some coffee shops offer to sign for there program, where usually you are getting a card and keep collecting points for every time you use it in shop. After you collect right amount of them, they are exchange for money, you can use to reduce your next bill in this supermarket.

I’ve always thought, that this is quite pointless, as it takes time to collect enough points to actually get some money. But I’ve decided to give it a go any way and you won’t believe how quickly it adds up. Big grocery shopping here, small snacks for a park trip there and you will not even notice and you’ll have enough points to get some reduce next time you shop. Is it a lot of money? Definitely not, but you are saving it without much effort. I even made a piggy bank, where I am putting all money that have been saved this way and it is still not a huge sum, but always better than nothing. And you will not even notice, how fast these small sums are adding up.

Review your subscriptions

We are living in a world, where we are subscribing to many different websites, portals, etc. I have found these advice in many other blog posts and I thought that this is just no use. If I subscribe to something, I must using it. But as looked closer to my bank outgoing transactions, I found so many subscriptions that I had no even a clue when I signed for them.

But even, if you are sure that you are paying only for what you are truly using, still have a look, as there might be some subscriptions that offer some options for more users. If we take myself as an example, after some time of me and my husband subscribing to netflix, we realised that we can have just one subscription and two users within it. I think, you might be aware of this, but we got to know about this just recently. Again, is it a lot of money? No. But it is still money.

Organise your home

This might seem stupid, but you can’t even imagine how many stuff you don’t need. Starting from some obvious like clothes, but even some kitchen tools, pots or pans. Do you know how many pas I had, which I haven’t taken tags of? And I don’t even remember when did I buy them! Similarly with some decorative elements, which doesn’t fit in our space any more, but still I did hold on to them. They were simply collecting dust somewhere out of the sight, forgotten… But now, many of them found their new home and my savings grew a bit.

Offer you services online

This is a mind blower for me. I already knew that you could become a website developer online, or do some graphic design for people, or even write peoples post. But somehow, it didn’t occur to me that you can offer cooking food for people for money, or baking cakes, sawing, knitting, doing some art work… Almost everything you like doing might be turned into the side income.

I’ve recently met a women, who literally prepares containers with food for some people from her neighbourhood. They give her ingredients and all she needs to do, is to turn them into a tasty meals. But what is even more amazing? She loves cooking, so she basically gets money for her hobby and still she is able to work her full time regular job. isn’t it a win-win situation?

Create an online content

This one has been presented as a last thing, just because you probably can’t count on instant income. I can’t say for myself, as I’ve never considered this blog as a source of income of any kind (and probably I will not turn it into it), but recently I’ve decided to build my own community and hopefully turn my actions on my new blog into a business.

But of course, not only the blog is an option. You could try to become a youtuber, podcaster, Instagram influencer and many many more. However, this one I can’t say for myself yet. I could only ask you for keeping your fingers crossed and let’s hope my plan will work some day.

And this is it for today’s post. I hope you enjoyed it. I wish you a very productive day and I’ll see you in my next post.

Daria

Finances while working on your own project

Hi guys,

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.

Daria