My Second Week Being Self-Employed

My Second Week Being Self-Employed

I see these guys a lot now…

Hey everyone. Yesterday, I announced on Making Sense of Cents that I finally left my job. I didn’t just leave my job yesterday, my last day was a little over 10 days ago.

It’s a little hard to judge my progress so far, since last week was FinCon and I did not get much done. However, I’m going to do an update anyways!

Many people have told me that they are preparing for the switch as well, and that they are wondering if I could do periodic updates on how the switch to full-time self-employment is doing.

Yes, I do realize that it has only been a little over one week, but I do think that you do learn a lot about yourself in that first month of self-employment.

I’m spending more money because… Well, I don’t know why!

Last night, we sat down and went through our recent transactions. We realized that we are spending much more than we usually do. This is due to a mixture of reasons, such as spending more money on fixing up the house (touching up paint and replacing things that we think we don’t like), and also spending more money on food.

We decided last night that we will be on a spending freeze. We will of course still take our upcoming trips, and also hang out with friends and family. We just won’t be going up to Target and Lowes every single day to buy random things.

I’m surprisingly not eating more.

One thing that I was afraid of when working at home would be that I would be eating everything and procrastinating doing work by eating. Well, that hasn’t been a problem at all surprisingly!

I’m sleeping, A LOT.

I’m going to blame this on the past several years where I was only receiving around 4 to 5 hours of sleep each night. My body is forcing me to make up for all of those years. I have been setting an alarm for most mornings so that I can get work done earlier in the day.

I have not worked out at all.

One thing that I thought I would be doing a lot more of is working out. Nope, haven’t done that at all. What is “working out?” 😛

However, the house has been really clean.

I must be procrastinating working out by cleaning. The house has never been cleaner!

I am working more than ever.

I have started a few new contracts this month so far. However, even though I am working more, I do not think that October’s income will beat the $12K that I made in September. I do think that starting in November that I will see my monthly income increase again though.

I am in my pajamas a lot.

This is sad to admit, but I am truly in my pajamas a lot. Luckily, my pajamas aren’t too disgusting (I’m a weirdo and I like to wear nice sweaters with yoga pants as my pajamas). However, sometimes I do wear some really old pajamas that I’ve probably had for too long. If I go out, then yes I will change, but right when I get home I change back to pajamas almost immediately.

I figure if I am at home alone, or if it’s just W here, then why get dressed? W probably thinks I am crazy but oh well. Am I weird? Or do most self-employed people get dressed in the morning?

I am loving what I am doing.

I am really loving what I am doing. The passion has not decreased at all, which isn’t surprisingly since it has only been one week. However, I always see myself loving this, so I don’t see that changing at all.

What else do you want to know about my first week being self-employed? Anything up there surprise you?

How did your first week being self-employed go?

 

Business Mistakes That Owners Make

As a relatively new business owner, I sometimes worry if I am doing something right or wrong. No, I’m not losing sleep over it, but sometimes I question if I could be doing something just a little better.

And, since I used to work with business law, I saw a good amount of mistakes that businesses made. Some were probably just honest mistakes, but others made me cringe.

 

Below are some mistakes that business owners make:

Throwing away receipts.

Receipts are important, and you should keep them. If the receipt is for a business expense, then you should definitely keep them. At the end of the year, you shouldn’t just be guessing what your business expenses were. You should have hard proof.

If you get audited, the IRS will want hard-proof as well. They won’t want just estimations of everything.

Keeping business and personal accounts intertwined.

If you are a business owner, or if you have a side job, do you keep your sales and expenses separate? Using your personal bank account for everything can get difficult, and it’s almost always best to just keep your business accounts completely separate from personal accounts. This also makes it a little easier for when tax time comes around as well.

Not hiring an accountant.

I’m going to guess that most business owners don’t have a background in accounting, so why is it that most business owners do most of their own accounting and taxes?

Never hiring help.

When I worked in retail management, there was a fairly large business next door which never hired a single person. He worked open to close and did everything on his own because he could not trust anyone.

This then led to his downfall because there was only so much that he could do with a high-quality level of service. His store completely closed down soon after he opened and he went out of business. And, this was after he sunk hundreds of thousands of dollars into his business.

Starting a business without a plan.

Having a business plan may be the last on your mind, but it should really be the first.  Do you know who your competition is? How long will it take you to make a live-able income? What type of funding will you need? Will you need to rent a space or can you work from home? Will you need employees right away? What will you be selling? How will you sell it?

Will your business allow you to eventually retire? I’ve been reading up on retirement on Suncorp’s website and this is something very important to think about when starting a business.

What other business mistakes have you seen? Have any horror stories to share?

 

Ways to Make Money Online

jofalltrades.com Home Office [explored]I say this every single week, but I am this close to making the self-employment switch.

Seriously, I wish I could give you the exact date, but lets just say that it is within the next day or two 🙂

Since my main site, Making Sense of Cents, has “evolved” and I talk a lot about extra income lately, it only makes sense that I receive many emails every week from readers about how they can make extra money as well.

With my side business (which will very soon be my main business), mostly everything that I do is online. I can work from the comfort of my home and create a schedule which best works for me and my services.

Blogging for money.

Not all bloggers make money, and I talk about ways to make money with blogging in my post on Making Sense of Cents.

With blogging for money, you can make money from affiliate links, ad networks, direct advertising, and so on. Blogging is not easy money though. You will most likely work for months or even years before you make any money.

Freelance Writing.

I don’t do as much freelance writing as I used to, but I am working on increasing this again. With freelance writing, you write for other clients. You might summarize documents for them, staff write on their blogs, create advertisements, and so on.

Start out slowly when you decide that you want to start freelance writing. You don’t want to get ahead of yourself. In the beginning, you probably won’t get paid as much, but eventually you can demand a higher rate once your experience and quality increases.

Virtual Assistant work.

I have been a virtual assistant, and I have hired virtual assistants myself as well.

A virtual assistant helps a business run, all while staying virtual (most likely at home or at their own virtual assistant business). You can be contracted for one project (such as fixing old articles on a website) or it can be a continuing job such as replying to e-mails and comments.

So, why would someone need a virtual assistant? A business is a lot of work, and if you can outsource some of the things that need to be done so that you can focus more on the end goal and direction of your business, then why not? Also, one person realistically cannot do everything. When help is needed, it’s best to look for it because your business could end up going downhill because of it. Trying to handle everything yourself when you realistically can not may not be a good idea.

Don’t forget to read my post on how to become a virtual assistant.

Sell products online.

Many people work from home and sell items online. You can create your own products, or wholesale from a company. You can sell on Etsy, Craigslist, eBay, and so on. There are so many possibilities!

Other ways that you can make money from home:

  1. Enter contests. There are so many contests out there. I used to enter many, and I actually won a decent amount as well.
  2. Take online surveys. I used to do surveys. Usually the pay is very low and the work is tedious though. However, occasionally you can score some free products.
  3. Mystery shop. Not all mystery shops need to be done on person. Sometimes you just need to call the store or send the store an email and evaluate their customer service. The mystery shop report is then most likely submitted online.
  4. Create an eBook.
  5. Become a website designer.
  6. Sell your photography online.

Do you make money online? Why or why not?