Text Message

GET YOUR FREE COPY OF 10 WAYS TO MOTIVATE YOURSELF INTO TAKING ACTION ON YOUR FINANCES. MAKE THIS YEAR YOUR BEST! Subscribe at the Follow By Email gadget.

Wednesday, November 25, 2015

Why This Is Hard Work's Right Hand On Your Path To Success

Thanksgiving week is a time to reflect on all of the things you are thankful for.  Certainly number one on your list, just like on my own, is good health.  After all, we cannot take our good health for granted.  The same goes with our families and the bonds that keep them being an integral part of our own lives.  Where would we be without the support of our loved ones?





Now onto the less obvious, but equally important traits that keep us looking golden and feeling one-hundred.  Among these is the previously posted about quality of Hard Work.  If you're a hard worker, consider this another reason to lift your champagne cup this holiday season and take a sip.  Not everyone has this trait.  Success on your terms is almost guaranteed if you are a slave to your dreams.

After some deep reflection, I cannot come up with an alternative number two on the list that accounts for people's personal success.  Hands down the number two factor on my list after hard work is confidence.  Are you a naturally confident person?  Confidence is what feeds the fire of your continuous efforts to make something happen.  Without confidence, future success is nearly impossible to materialize.

Look, I'm a former "illegal alien" who found personal success despite unfavorable odds.  The formula has never failed me: Hard Work + Confidence = Success.   Think of a time you experienced personal success.  Did your success equation include hard work and confidence?  Most likely it did.




How does confidence impact your personal success in today's economy?  Confidence is now more important than humility.  Humility is extremely difficult to pull in the 21st Century.  In 2001, Jim Collins authored what was to be and still is a widely read treatise on leadership: Good to Great: Why Some Companies Make the Leap...and Others Don't.  It is one of my favorite business books.  Collins explained that great businesses (as opposed to good ones) are led by a Level 5 leader, "an executive in whom extreme personal humility blends paradoxically with intense professional will."  If these type of people were scarce then, they are the metaphoric needle in a haystack today.



We are living in an era where confidence is lacking in multiple institutions.  Both the public and private sectors lack trust and confidence in our political leaders.  The public lacks confidence in the private sector to lead us out of our economic stagnation.  We even see a lack of confidence in publicly traded companies.  The evidence is clear.  Many of them would rather buy back their own shares, increase their dividend, or worse, do nothing with their free cashflow, leaving investing in themselves for a more certain tomorrow.  The confidence crisis is real, and exacerbated by the growing global insecurity.

Too much confidence can turn into arrogance, and indeed, even braggadocio.  It used to be a put-off.  Donald Trump has somehow managed to make it into a turn-on, mostly in the eyes of people who lack confidence in themselves...the weak-willed who have found someone in Trump who can get away with saying what they have always wanted to say but didn't...out of fear of sounding racist, sexist, homophobic, wrong, etc.

There is no mistaking the fact that if you are to be successful, you will need to find the right mix of confidence that works for your arena.  This is not the time to have humility, not when the money is chasing the stars and luminosity is your biggest weapon.  So if you're humble...save it!  Save it for a different occasion.  Go out into the world a bundle of confidence day in and day out.  Not you?  Then fake it until you make it because the last thing you want is for someone to mistake your humility for doubt.  Just ask Marissa Mayer at Yahoo Inc. how things are going for her.

Thanks for reading!  Until next time.  Don't forget to subscribe on your way out.
        

Saturday, November 21, 2015

There Is No Substitute For This If You Desire Success

I think we've all become a bunch of pansies, complaining about how bad things are--economically speaking--in our lives constantly.  I admit, I sometimes get into a gripe session here and there.  Do you often go on a rant about your money situation? 

My wife, Jessica, stops me after she's tired of hearing my whining, and redirects me to what has always been the answer: work harder and smarter.  Do you have someone to metaphorically slap you around?  A person you trust?

This financial literacy post is on the one factor that almost always guarantees success in life.  The success I've had in my life is entirely due to a nonstop embodiment of this factor.  My father raised me to never be idle.  In fact, he hated it when I'd have nothing to do, and would assign me chores on the spot just so I could stay busy.  Are you the type of parent that assigns your kids chores when they're idle?





The lesson of having a strong work ethic is universal.  All cultures, but some better than others, ingrain in their young adults that hard work is as close to heavenly as you can get.  Yet, it takes a superbly successful person to make "it" click in your head that maybe you do have to work like a Mexican on a roof on an extremely hot day, seven days a week, to make things one day blow-up majorly (in a good way) in your life.


And you think you have it rough!

T. Boone Pickens, the legendary energy billionaire tycoon, recently shared what I consider to be the most sound and simple financial advice for young people:

Mr. Pickens said, "The work ethic is the backbone of success as far as I'm concerned."  He grew up in Oklahoma during the Great Depression and as far as he could remember, "no one he knew was lazy."  

He ran a small paper route, picking up his load by 3:00 a.m. and delivering them all before school.  This man was not born rich!  He has worked his behind off all of his life and he has always had money on hand, saving much of it as people of his era did.

I am saddened to see how things have changed.  Have you noticed how incredibly lazy people have become?  Are you one of these people that expect dreams to come knocking on your door and present themselves to you?  

"First thing I'd say is if you haven't developed a good work ethic, you better do it," Pickens said.

There is no substitute for hard work if you desire to accomplish something better for yourself.  Take the case of Rich Hachigian, a resident of my city who is on the verge of opening up an Edward Jones.  It's near 80 degrees today, a beautiful November Saturday that makes grown men want to sit on the couch and watch College Football all day, go to the beach, surf, nap, anything but work.  Not Rich, he came to my door wearing a long-sleeved shirt and tie, and khakis, and introduced himself.  He shared his new goal of establishing a successful business of his own by helping people invest, save for retirement and other things.  He'd been canvasing the neighborhood all morning.  Now that's work ethic!





Because Rich inspired me to write this post, I am thanking him by mentioning his new Edward Jones franchise that is looking for new clients.  If you need "sensible investing" advice and one-on-one financial services, give him a call: 760-576-8387 or email: rich.hachigian@edwardjones.com.

The theme of this post is YOU and how hard you work.  If you want something in life, sitting around, complaining about the system, the rat race, whatever, isn't going to get you anywhere.  60-hours a week right now...that's how hard Rich is working.  Do I think he will fail?  Not a chance!

Thanks for reading this get off your ass post.  If you want some more slap around, subscribe to this blog!    
    

Tuesday, November 17, 2015

10 Reasons To Go Shopping On Black Friday

It's beginning to look a lot like Christmas.  And we all know that the shopping season officially begins with Black Friday.  There is a counter Black Friday movement being led by the likes of hundreds of Frugalist banner waving bloggers.  I've decided not to join their ranks this year.  Perhaps it's because this past week I indulged myself for the first time this calendar year, and bought a like-new pair of Shimano Ultegra 6800 shifters for my road bike.  It was time.  My 6700s were no longer working well, especially the left one.  I also bought a new chain to replace the five-year-old one.




What's my point here?  My point is simply that sometimes it's okay to indulge, especially if you've been "good" all year with your budgeting and savings.  You deserve to spoil yourself once in a while and buy whatever pleases your big heart.  Black Friday, therefore, presents the perfect opportunity to spend, with the added benefit of potentially getting good deals!  But if you're still under the Jedi mind spell of your favorite budget blogger, here are ten reasons why you should break their spell on you and shop on Black Friday:

1.  To channel your inner pirate.  Think of each store or retail center like a town about to be sacked.  To the first pirates go the best spoils.  I don't know about you but that excites the heck out of me.



2.  To help spur the economy.  We are not in Japan!  We are Americans.  So stop all the money hoarding and go out and shop.  Be a good American and help the economy out with your spending.

3.  To get your Christmas shopping done and save on gifts.  Okay, so stores do not always carry enough of the great deals for everyone outside.  But if you set-up camp early enough, you may be able to get a loved one the perfect gift at a discounted price.

4.  Cyber Monday is boring!  Black Friday is about spending anxious time with friends and family.  That nervous energy dissipated among your party has the ability to bond.  You and your compatriots will make memories on this Black Friday, especially if you all make like Caesar and "Veni, vidi, vici."  Just beware the "Ides of March" people, especially if your buddy is after the same exact thing.




5.  To avoid feeling regret.  If you don't go, someone else in your circle of connections will.  With Facebook, and other social media sites constantly helping people show off, you won't be able to get away from all of the excitement created by friends posting their Black Friday exploits.

6.  To finally get that upgrade.  You've postponed making a big purchase for a long time.  You've convinced yourself...or some frugal blogger has convinced you...that there is never a time to make a large purchase.  They're lying to you!  There is a time to make an upgrade type purchase...it's called, Black Friday!

7.  To burn off Thanksgiving dinner calories.  We all eat way too much on Thanksgiving day.  Why not get an early start on burning off that extra two pounds we all gain on Turkey Day by going out shopping?  The added perk is that you get to move through aisles at the store like an NFL running back hitting the hole.

8.  To channel your inner Tom Cruise as IMF agent Ethan Hunt.  Before Black Friday, you get to scour the ads and scout your targets, decide on the best plan of action, and execute your mission!  Fun, isn't it?

9.  To test your anger management skills.  You say you are total Zen?  Ha!  Well, let's see how you do when Handicap Grandma cuts you off in her motorized shopping cart.  You can also show your anger management coach you deserve your certificate because: "I survived Black Friday."

10.  To defy your inner money saving thoughts and everyone else telling you NOT to shop on Black Friday.  This is my favorite reason!

Telling you to go out and shop on Black Friday is easy for anyone to do.  I, however, also want to make sure you have the best planning guides and intelligence you can possibly have.  That's why I want you to go check out the best site for Black Friday deals at http://blackfriday.thepennyhoarder.com/#/.  My friends at ThePennyHoarder have a Black Friday portal that is second to none, and they will also be launching an around the clock live blog for 48 hours starting at 3 p.m. on 11/25.  Thanks for being here today, and don't forget to subscribe to this blog on your way out! 

Friday, November 13, 2015

Improve Your Budgeting And Save More With Quantitative Data

Welcome amigos!  I like to use data in my life.  Perhaps it's because I'm somewhat of a nerd and like to make the unknown, known with numbers.  The other day I was thinking how I could create the best meal plan (starting with lunch and dinners) with a set amount of money, my monthly grocery budget.  My parameters include having a starch, protein, and vegetable at each meal, and if possible, to make it as delectable as possible because nobody likes to eat food that tastes like cardboard.


Pic Credit

All this reminds me of how hedge funds are getting a leg-up on earnings reports these days.  You see, there are companies out there that specialize in extracting data that is of particular use in measuring something useful (information) to anyone willing to pay enough for it.  For example, companies have set-up cameras outside retail parking lots and are able to quantify traffic to a store (using fancy algorithms) by counting the number of parked cars over a period of time.  If the data spits out that a retailer has experienced several positive points in favor of increased revenue, not made public, then those with this data stand to benefit over those waiting for news releases.  Quant Hedge Funds use quantitative information to analyse the prospects of companies and favor the statistical over the subjective.
Pic Credit


What if we quantified our lives?  I've not seen financial bloggers talking about this yet as a means to save money, though some may have.  What would this look like?  Here are some examples:

You could look at your water bill, see how many gallons of water you used and do an experiment on showering.  Decide to shower for five minutes per shower for a month without changing anything else that has to do with your water use.  What does that do to your consumption numbers?

How about finding a route to work that optimizes the number of right turns?  This will save you money on gas and possibly commuting time.  Do you know how many miles you are driving per typical month?  Would knowing this information help you be more informed about your driving (gas using) decisions?

My favorite use of quantitative life data is making the most out of my family's grocery budget.  We spend $800 a month on food.  This is for all breakfast, lunch, and dinner meals, plus snacking.  $800 can buy you a ton of pasta if that's what you wanted.  How to make the $800 go longer than a month is the goal, however.  And this involves buying economical meats and starches, and so on.  Imagine if we treated our homes as if we were Chief Financial Officers or at minimum, owners of a small grocery store.  We would be responsible for taking inventory of every can, box, and bag in our pantry, the food in our refrigerators, etc.  Sort of what Matt Damon did on Mars in the The Martian.  Can you imagine having to figure out how long our food will last as if our survival was at stake?

Would you be so willing to buy that fresh, green, broccoli and leave it in a bottom drawer of your refrigerator...only to go bad because you forgot about it?  We waste so much food, not cooking it, at my house.  And I know I'm not alone in this.  Using a log, we could all better use our money so that we buy almost the exact amount of food we need each month, and not an atom more.

The next phase of personal finance is teaching people to take note and pay numerical attention to the items we consume.  If Hedge Funds are paying data mining companies hefty sums to gather useful information so they stay ahead of the average fundamental analyst, we should seriously consider adopting a similar strategy.  It is applicable to our own lives too!

Thanks for reading!  For more info on Quant Hedge Funds, go here: What is a Quantitative Hedge Fund?  By the way, this is not an investment endorsement...investing in anything comes with specific risks.  Recent news on this topic: This is the future of investing, and you probably can't afford it.       

Tuesday, November 10, 2015

7 Ways to Reduce Your Family's Money Stress

Welcome amigos!  The United States is by far one of the most hectic places to live in.  The stress in our lives comes in many forms, and from multiple directions, but I dare say that it is probably money (and the pursuit of it) that stresses us all out the most.  That's why I'm devoting this financial literacy piece to ways you can reduce your family's money stress.
Pic Credit

When I was working as a high school assistant principal, what stressed me out the most was not being able to be at home in the evenings on certain days of the week.  Working late kept me from spending time with my toddler children.  I also started to feel like there was a diminishing value to the money I was making (which was pretty darn good) in that the trade-off was often job related stress I brought home from work.

Do you feel like the money you currently make at work is not worth the headaches, and episodes of anger or frustration in your life?  But you're stuck, right?  Or at least you feel like there is no way out because perhaps you've talked to your partner, and the main concern is not being able to pay bills, i.e., keep up your lifestyle.

So both you and your partner are miserable.  Your kids seemingly don't get the best of you on a daily basis.  They in turn act up and add to the stress cloud above your head, and this is your life, being rained on constantly by stress.


Pic Credit

Enough!  My friend, put an end to this stress with the following suggestions:

1.  Tag in and out of the ring.  No, dad, you are not allowed to come home, take your pants off and watch the game on television while your wife who just got off work is in the kitchen trying to cook dinner with the kids running circles around her.  Dad is to interact with the kids while mom cooks dinner.  After dinner, dad and the kids clean-up while mom gets a break to shower or do something relaxing.  So that the routine doesn't get old, switch the roles so that dad cooks and mom interacts with the kids.  Here's the main point:  When partners work together like a wrestling tag-team to do whatever the parenting job entails, things go smoother each evening...and money solutions are discussed with more mental energy.

2.  Make a plan to downscale.  Before I left my job as an administrator, my wife and I thought about how we would bridge the difference in our combined monthly income.  The solution involved my wife working part-time (she was a stay at home mom at the time) in her previous role as a dental assistant.  We also cut expenses, e.g., having a gardener was eliminated and I took on the landscaping chores.  We also dropped to a less expensive cable television package.  Main point: If one of you has had enough of the work stress, make a financial plan to absorb the impact of less money before you make a work related change.

3.  Communicate your money stress to someone.  I worry more than my wife.  Probably because I suffer from anxiety.  Jessica is able to take my worry-loaded rants and transform them into moments of clarity for me.  Do you have someone that can do this for you?  Maybe it's your partner.  Maybe it's your parents.  Bottom line, if you keep your money stress bottled-up, it will explosively vent on someone...like your partner (when he/she buys something somewhat expensive without telling you), your child (when they ask for mall money), at work (when you are asked to pay for something), etc., and you don't want this!

4.  Teach your kids about budgeting and share your finances with them.  When your kids know where you and your partner stand financially, they are less likely to ask for an expensive game system on their birthday or to be placed in an expensive club sport with ridiculous equipment costs.  A money conscious kid cares about his/her parents worrying about money, and they will do whatever they can to help.  It sucks for them, but it could be worse...like living in a third world country with no access to water.

5.  Career advance one at a time, not in tandem!  Couples should not be competitive with each other.  The thought of both heads of a household climbing the ranks at the same time, and making more money sounds great in theory.  But it is a bad idea!  It is best if one person agrees to postpone their career (or educational) advancement goal until the other person has had a chance to do the new job and adjust to the additional demands.

6.  Be at peace with your sense of inadequacy.  Feelings of inadequacy is what makes our money stress turn into a monster.  "We're not making enough money!"  "I'm not able to buy my kids the things they deserve!" And so on.  If you harbor these emotions they will drive you nuts.  Instead, recognize what you do have in life.  Put the emphasis on all of the positive things going for you, like the fact that you have a roof under your head, food to eat, etc. and then go forward!

7.  Sleep, drink plenty of water, and get exercise.  If you and your partner take care of your physical conditions, money stress is less likely to facilitate you getting sick.  Exercising is like entertainment, i.e., capable of letting you temporarily forget your worries.  But it is better than entertainment because you develop a rhythm of the body that has tremendous health benefits...like combating stress!

There are many ways to fight money related stress.  However, the seven above are both free and effective.  Good luck!  

Saturday, November 7, 2015

15 Traditional Ways Teachers Can Supplement Their Incomes

Welcome amigos.  Today I'm continuing with my eBook giveaway segment, sharing with you some of the sections of The Ultimate Teacher's Guide to Supplemental Income.  This financial literacy piece is on traditional ways teachers can supplement their incomes.  By "traditional," I'm referring to jobs that are directly related to teaching or take place in schools.


Pic Credit

Without any more delay, here are 15 ways you can supplement your incomes teachers out there!


Traditional Ways of Supplementing

For lack of creativity or computer savvy, many teachers rely on tricks of the trade to supplement their income.  These traditional ways of supplementing your income are closely aligned to your current teaching job.
  1. Summer School Teaching.  If you are lucky enough to work in a school district that can still afford to put on a full program of summer school, then this is the way to make an extra $3K to $5K in about 6-7 weeks.  If the summer school class offerings are dismal, you will most likely be competing with veteran teachers for a slot.  Good luck with that.
  2. Private School Teaching.  No summer school classes to sign-up for at your school district?  Try the private school route.
  3. Paid Internships.  Companies and school districts work together to give teachers industry knowledge via paid internships during the summer months.
  4. District Offered Professional Development after school, on weekends, or during summers.  These are always being offered. You can also request (your Principal) to get paid for collaborating after school hours with peers on an important project.
  5. Taking on an extra section during the school year.  If you’re in line per your department’s totem pole of seniority, take the extra section and get paid an extra fraction of your salary.
  6. Sub for an absent peer during your prep period.  Tell your site secretary to always think of you (your open period) whenever a teacher peer is out and no sub is assigned.
  7. Get one of the available stipends for a club or coaching duty.  Check your school’s list of paid stipends and go for one!
  8. Becoming a Department Chair.  That has its own stipend.
  9. Supervise the After School Detention hour.  Admin can’t do it as they are stuck supervising dismissal.  It's your chance to get paid for doing some dirty work!
  10. Be the dreaded Saturday School teacher.  Many administrators would rather pass this off to a pair of teachers, rather than come back to the school on the weekend.
  11. Apply to become the next Resident Teacher at your local University.
  12. Become a Standardized Test Developer.  Private companies (or even your state) are always looking for teacher leaders to help develop the next test field items to torture students.
  13. Become a Consultant.  What’s the point of having a M.Ed. and awards for teacher of the year if you’re not consulting?  
  14. Private tutoring.  This is my personal favorite as it can be quite lucrative with the right business plan.
  15. Teaching an online class or actual course at a local junior college/university.

There are teachers who jump at the opportunities listed above, and those that get as excited about them as a faculty at a full day of mandated staff development led by administration. If any of these jobs float your boat, go for it, or someone else (mindful of their retirement) will in your stead!

Wednesday, November 4, 2015

11 Teacher Friendly Side-Hustles

Welcome back amigos!  Today I have a financial literacy piece aimed specifically for teachers, but it most certainly can be extended to other professionals.  I wrote this as a chapter or section in my last eBook: The Ultimate Teacher's Guide to Supplemental Income.  Without further delay, here it is:
Pic credit



Teacher-Friendly Sides


Last weekend, my wife, Jessica, my father-in-law, Travis, and I drove to Murrieta, CA to go checkout some land that was for sale.  My father-in-law has developed communities from the ground up and he was interested in these acres.  Jessica and I are real estate investors, but the developer’s role is one we have the least working knowledge of.  I’ll spare you the details of what we were looking for out of the land to make an offer to the seller.  However, if the life of an investor interests you, I highly recommend you subscribe to my blog and always have the latest on my ventures. I’ll start you off with a free copies of my eBooks.

We met the realtor at his Century 21 office, located in a strip mall a few miles from the property.  We were in a hurry, so we didn’t spend any time in his office, getting to know each other.  Instead, we had him show us the way to the site.  I’ve been told by many people, students, parents, and teachers alike, that I’m very easy to talk to.  Friendly, in other words.  So it was no surprise to my wife that the realtor and I talked more than business.  As it turns out, this gentleman was a full-time teacher in Riverside County.  He explained to me that he has been a realtor (on the side) for some time, mostly helping his teacher colleagues buy or sell their first home.  Family and friends are also some of his clients.  The owner of the land that was for sale was a friend of his.  He does several deals a year and supplements his teacher’s salary nicely this way.  I didn’t ask exactly how much he grosses each year from this side job.  Not because I’m respectful of people’s privacy or anything…well…I am it’s just sometimes my social filter is on the fritz…rather, I simply didn’t think of it.  Darn!

Not to worry.  I happen to work with a teacher who is also a realtor on the side.  He too has been working as a realtor as a side-hustle for some time.  The man has five children, can you blame him?  Similar to the realtor I met in Temecula/Murrieta (we were somewhere in between the two cities), my colleague does deals for friends, peers, and family.  He’s been able this year to ramp up his productivity and stated to me that he will gross as much as his teacher’s salary!  He’s been teaching for over 25 years so you do the math.

By now I’m sure you get that I’m telling you to consider becoming a real estate professional, a realtor, broker, appraiser, and so on.  These are great fits for full-time teachers, and no, I’m not just basing this on two people.  I know other teachers who work in this industry part-time.  Here are resources to get the ball rolling.


Resources:






How about just renting out a spare room in your house for a few nights a month?  Try Airbnb: https://www.airbnb.com/


Other side jobs I’ve known teachers to do include…


Event D.J.  For the “cool” teacher that knows all the music the kids listen to.  


Catering.  Find a catering company to work for that will let you work Friday nights and on the weekends.  This is when most events, weddings, graduations, parties, etc., happen anyway.


Waiter/Waitress.  The mother of one of my long-time friends, the best-man at my wedding, worked a side job as a waitress while being a full-time middle school teacher.  She worked both jobs for over 20 years.  No choice.  She lived in San Jose, CA, was divorced, had a mortgage, and three children.


Bartender.  Can you mix a killer cocktail?  If you can, this side job is for you.  Just think of all the tips you can get.  Who doesn’t love a bartender…I mean, c’mon?


Pic credit

Dance Instructor.  Can you Salsa, Waltz, Tap, or Tango?  Private dance instructors set their own hours and make decent money from people with two left feet.  I’ve been known to cut a rug.  In fact, I met my wife, Jessica, at the La Jolla Marriott, Salsa Dancing.  If you happen to one day see a picture of the two of us, you will see it must have been my dancing that did the trick…certainly not my looks.  Ha!


Instructor at a Gym.  Zumba, Yoga, you name it.  The opportunities to be a health instructor are endless with gyms popping up all over the place.


Network Marketing.  Many teachers have retired themselves from teaching doing direct marketing/sales.  It’s not just selling cosmetics or jewelry to other people.  Out of necessity, people who start these hustles learn valuable skills (selling, presenting, organizing, conversation, e.g.) that transfer to other careers.  Never close your mind to opportunities!  Simply learn to say, No, once you determine (after hearing things out) something isn’t for you.


Tax Preparer.  Okay math teachers, I got one for you.  Being a Tax preparer is a cyclical job.  You’re busiest just prior to, during, and right after the tax season.  I’ve known people with no prior accounting background working at H & R Block.  H & R Block will train you even:  https://www.hrblock.com/corporate/income-tax-course/.  Work for yourself if you don’t want to be employed by a company.


Retail.  Retail stores/shops in malls and outlets provide flexible scheduling and part-time hours.  They are always also looking for extra help during the Holiday season.


Other Seasonal Gigs.  During the summer you can work as a camp counselor or director.  Summer is also the time to become a recreation park leader or work at a rec center.


This is not an all-inclusive list of jobs you can check into, obviously, but it is a great start.


Sunday, November 1, 2015

5 Reasons Why You Need A Side Business

Welcome amigos!  The struggle is real, especially for all "employees."  Anyone working for someone else is an employee, and is economically in the worst kind of financial predicament: not being the boss.  So today's financial literacy installment here at CCM is for the majority of America's workforce.  The topic: 5 reasons why everyone needs a side business.



Pic Credit

First, when talking about a "side business," I mean just that--a part-time business that still leaves you with time to play with the kids, walk your dog, date your significant other, or hang out with friends.  I believe this is the most misunderstood concept about a side-gig, namely, the belief that it will "take too much time."  With just a few time management adjustments, for example, like watching less of the idiot box or waking up a half-hour earlier, you can enjoy the perks listed below, which these days, are darn near indispensable!

1.  Lower your effective tax rate.  As an employee, you are subject to the highest income tax rate.  The deductions are also minimal.  A business of your own adds the ability to deduct "business" expenses, and if within the first three years of starting out you're in the red, it comes off your ordinary income.  Look at it like this, when you don't have a side business, expenses like: your child's printer ink cartridges, your cell phone bill, the use of your vehicle, the purchase of a new laptop, and so much more...are all on you!  With a side business, these expenses in most cases, and to some degree, are tax deductible!

2.  Networking and branching out.  As a freelance writer and financial blogger, I've had the opportunity to connect with at least two successful start-ups, their leaders and founders.  I've communicated with multiple investors and business owners having nothing to do with my day job of a teacher.  These are all leads that result in potential money making ventures for me.  The same can happen to you!  A whole new world of opportunities opens up to you when you look to carve out any size niche in the business world.

3.  Added financial independence.  Okay, thinking you are financially secure with a job is screwy.  As an employee, you are always at the whim of a madman: the system.  Your actions are under a microscope 24-7, whether you think so or not.  Do something "wrong" and you're out.  Having a side-hustle gives you practice and experience for a potential outcome, the need for you to provide for yourself after a layoff or firing.  Why wouldn't you want the peace of mind that comes from knowing that if you were to lose your job, there'd be a safety net of making income waiting for you on the other side?

Pic Credit
4.  Mental elasticity.  You know what happens to a career employee that never leaves his or her own fishbowl?  They get stale.  A side-business is the perfect way to keep your mind sharp.  Finding information and solving new problems as you build up your side-gig will improve your day job creativity and possibly even make you more skilled.

5.  Extra income!  Even if your side business makes you less than $200 a month, believe you me, it helps!  My side business income has kept me from tapping into my emergency fund a few times this year.  You may be okay and could put the extra money to work by investing, something you wouldn't ordinarily do if you're a saver.

There you have them.  I'm of the opinion that it is now time for all career employees to seriously consider starting a business on the side.  If not for you, then for your children's sake, as there is no better way to teach someone how to do something than with experience as a frame of reference.  Thanks for reading!  Until next time.