Can’t say that i’ve actually done this through saving, but as it stands, i can survive 6 months without earning a penny. However i do want to get to the stage where i’m not in debt to do this! I think this has made me realise that if i stretched my finances abit and wasn’t so reckless with my spending i’d probably be able to survive for a year without spending. I have to make the decision about whether i’m going to be entreprenurial and make money from 0 or invest some. My negotiable costs for this year are 13299 which i can afford not to spend.
Obviously it wouldn’t be good for the business as i’d have to be creative about the way i got my clients. I do though need to think seriously about whether i can make that outlay i’m spending less and be more cost effective about things. I have a database of directors names and address, i need to think can i create my own leads or should i buy them especially now as i’m focusing on the outsourced telemarketing side of things.
I would be quite happy with this figure sitting in the bank for a rainy day. I would feel secure about my job because if i lost it i would have sustainability financially. It would make it possible for me to spend 6 months full time running my business from home, which will give me the oppotunity to achieve my goal of become a millionaire within a year as to manage business effectively is a full time job as i know.
Not only saving but investing at a secure investment rate of 16%. I need to save £200.00 a month an invest it. As of July i’m going to take this stratergy to the max. Be effective in saving money! Also i need to become an expert in taxes & accounting because in business you can’t rely on anyone else in this field. Make sure that i understand the financial side of life.
Okay savings are just non applicable in my life at the moment. However i have done an excel spreadsheet which shows that by the end of December if i continue on the path i plan of working part time and studying at college until June, then taking a full time job working in a hotel or horsy job from July the 1st until December i will have around £3000.00 in savings. This can then be used to put down as a deposit on a house.
The only way to speed up the savings potential of course is to get some clients on board for my marketing business. I really need to think about working on this seriously for 6 months solid, just to make the money i need by the end of the year. I will do a careful cashflow on this shortly and work out how i’m going to take on board say 6 new clients this year. That’s a minimum of £6000.00 to add to the kitty or £18000 if i charge top price. I would like to go for £10000.00 to keep the balance. So that’s £1700 per client. That is a great price for the services i’m offering. I would only be able to manage one client per month. I would spent two weeks completing the project on their behalf then another 2 weeks canvassing for the next new client.
I really need to get my act database sorted out and also my business search pro cd updated to the latest version, this will cost me £400.00 unless of course i can get it cheap off ebay etc. We will see. I’m definately going to have to put all my efforts into my marketing company if i’m going to succeed. I need to keep my projects to a minimum so that i’m not overwhelmed. So i’ll say that i’m going to work solely on my marketing company and building a career with horses from July until December. This will give me the money i need to achieve this goal.
My wage at the moment is the lowest it’s ever being. Being a college student is a hard life! I’ve shown in the picture how i’m keeping track and projecting my finances. I’m almost considering transfering one pound into savings as a gesture. I will then work on increasing that amount to myself!
This is fundementally what i should be doing! Saving like the PROS. The only problem is i can’t seem to find that 10% to save with all my other bills that keep cropping up. It is the most important thing in the long run though, so i’m going to re-organise my cashflow again tommorow and try and find some money in my budget i can put into savings! It will be worthwhile in the end i’m sure!
This is the fall back plan, for when everything goes pearshaped. It’s good to have a financial support and backup plan, especially when you are striving for such high ambitions such as my self and taking risks! I don’t see business as a risk. I see working a 9-5 a risk! However i do need a financial cushsion to protect me and support me just incase noone else will. Money is great! I love it… I’m going to learn to hang onto it now instead of spend it. Save 10% as rockfeller did, give away 10% and pay 10% of my debt, before i start spending and doing what i like with the rest! Pay yourself first, the best stratergy in life if you ask me! Also going to get this budget planner i think so that i can work this stratergy well! Tying up my assets too and my money in investments seems like the best way to stop me spending!