MONEY COME, MONEY GO- FINANCIAL DISCIPLINE
The cost of greatness, the way to wealth, a side hustle then financial freedom as we have learnt by now, is top focus and unshakable discipline. Above all else let’s not forget that we would eventually need to commit our works to God, yes we shall hustle but results are ultimately being produced by the Lord. What is financial discipline? Merriam Webster defines discipline as a way of behaving that shows a willingness to obey rules and orders. In a scenario where you have no source of funds whatsoever in order to begin that hustle, we could start by saving little by little especially if you have a source of income. That is, you can start by saving small amounts then grow your account gradually. Develop some form of financial discipline set towards your goal. At this point you have realized which business you would want to invest into, examples including but not limited to vegetable farming, boutique, a beauty spa or a catering business plus many more ideas. Saving can be a nightmare. Just like your business it demands a lot of sacrifice and motivation. You can never build a million-dollar dream with a minimum wage end of-the-month-wait-mentality. If you don’t get serious about your financial manners you’ll never make serious money. The two go together. The average fool refuses to do extra hence misses all opportunities because all opportunities are hidden in sweat and effort.
Most people would often wonder how much capital one would need to start their side hustle. This is a frequent question. Costs for starting a business vary depending on the type of business; some businesses are capital intensive while others are not. In some instances you will find there is a person who can start with 50 thousand capital while another can start with 200 thousand. To know the amount of capital required, you will need to estimate your business costs which may include rent, stock, equipment, marketing and so forth. It’s best to note all the business expenses down and approximate costs for each since this will guide you in knowing the amount of capital you need to have saved or borrowed if you are taking a loan. You would not expect to include rent expenses plus stock with a capital of fifty thousand unlike a person with two hundred thousand capital, your best option would be to establish your business online as you gradually progress to a physical location.
Most of us especially us young people have this YOLO (You Only Live Once) mentality in spending. I know I’m guilty of this. It might not seem like fun when you have to turn down moments like outings with friends or resisting the urge to buy something but in the long run this discipline will definitely pay off. Give yourself a challenge by actively refusing expenses that are tempting and develop new habits like cooking at home instead of eating out, avoiding impulse buying etc. When you start to make progress you will feel excited about the surge of money in your savings account. Knowing that you have the self-control and discipline to achieve your money objectives gives you the energy to overcome temptations and challenges thus completely transforming your financial life. Having a financial plan would help you as a guideline for your spending. If possible have a separate account solely just for saving for example a fixed deposit account that would allow you to deposit over a number of months but can’t allow you to withdraw. Also consider merry-go-rounds or otherwise known as chamas. Please note that you should not limit your finances so much or fix yourself in a tight spot that you are almost left with nothing to sort your basic needs or emergencies.
How about for some of us that have already established their business ideas and have started making profits? My applause to you for having achieved this milestone. Still this is not the time to start celebrating by withdrawing profits from your business for your own personal consumption. Remember we want to go big. Re-invest some cash back to the business to increase its value which may attract investors. Buy more stock or equipment or employ more marketing techniques to increase your customer base. Continue making plans for your profits that will be sustainable for the long term. This is about setting your company up for future growth and long term success. Consider saving some cash aside since at times in business there are tough times for example considering that we are just from a Covid-19 pandemic. You could also use some of those profits for expansion of your business, this might be space expansion like opening another branch, hiring employees hence increasing production and many more depending on your business plan.
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