Monthly expenses are absolutely evil, in the same way that recurring monthly income online is awesome.
Let’s take a closer look.
You make money online because you want to live on that money. You need that money to be free from a day job, or you need it to pay your bills, whatever. You are earning income online in order to use that money to live.
At the same time, you are spending money each month in order to live your life. Certain expenses are one-off, like when you buy a new watch.
Other expenses are monthly, and some are daily (like your latte) and some are weekly (like your Friday bar tab).
But, all of your expenses could be, (and probably should be) converted into monthly expenses.
So your daily latte might come out to around $120/month.
Your Friday night out might come out to about the same thing per month.
Then you have all of your other “normal” monthly bills: cell phone, cable TV, netflix, etc.
So one thing that you might do if you really want to be successful in a new business venture is to ruthlessly cut your monthly expenses.
Doing so gives you so much more freedom.
Doing so gives you so much more breathing room when it comes time to tally up your expenses and income totals for the month.
Your choices are pretty simple here: make it work or go back to a day job. You can push push push to make the business grow, but you also have to consider that some of your easiest gains to be had are in slashing your monthly expenses.
For example, I currently drive a cheap car (that is paid for) and I live alone in a cheap apartment ($470/month in rent). My other expenses are pretty basic. I do have a cell phone but my plan is only $27/month and I do not have any other monthly services with the exception of cable Internet. I do not own a television.
In all actuality if my online business started failing I could quickly make 2 major adjustments here that would likely save me from having to go back to the day job anytime soon.
Do you know off hand what those 2 changes are?
I would sell the car and get a roommate. Period.
Those 2 changes would result in a savings of around $700/month. This is HUGE.
Now granted, it is hard to be that frugal, because you lose the freedom that comes with owning a car. But if you absolutely need to shave dollars from your monthly expense bill, then that is the quickest and most direct path to doing so.
But imagine how much more economic freedom I would have in making my online businesses work out for me. Also, with no car, I would be more likely to put in more work hours at growing my online venture.
It is an extreme measure but it gives you extreme results. When you think of “frugality” then why not think BIG. Don’t just switch from name brand to generic dish soap and expect to see a huge difference in your bottom line. If you want to give your business the breathing room that it needs to grow slowly then you might need to make some drastic changes on the spending side.
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