by Solange Lopes | Jul 9, 2018 | Start Your Business
You’ve made up your mind, and have decided that you’re ready to start a side hustle. Maybe you need the extra money, or you’re itching for something new to do. Whatever the case is, you’ve made the decision to pick a side hustle. Now the question is: “What side hustle is right for you?”
In the current “gig economy” we live in, everyone seems to have a side hustle. From the financial analyst giving cardio classes at the local gym, to the lawyer creating artful paint works on the side, many of your friends and family members may already have one. However, as you get ready to embark on this new adventure and pick a side gig for yourself, you should be careful to choose one that suits your schedule, personality and abilities.
It’s one thing to have a side hustle. It’s another one to have a side gig that strengthens you, empowers you, and makes you some extra money. When I picked my own side hustle, it was based on what really motivates, inspires and empowers me personally. I did not want to invest any extra time, resources and energy on yet another to-do on my already busy list of activities.
If you’re wondering which side hustle is right for you, here are a few pointers you may want to consider:
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Identify your why
After all, this is an additional commitment you’re adding to your already busy schedule. Even if it’s just a side activity, it will require your time and resources. This is why it’s so important to make sure that your motives are aligned with who you are and what you are trying to accomplish.
Are you doing this just for the extra money? Or are you looking at the future and seeing a potential business opportunity? Is this to apply some of your dormant talents and skills? Or are you envisioning to bring your entire family on board some day? Is your motivation to create a freer lifestyle for yourself and your family? Or is it about creating spare income to go back to school or pursue another goal?
The point is, you must spend some time getting clear on your “why”. It will allow you to better define your side hustle and increase your commitment level. Additionally, your “why” will also be there to keep you going on those days that you feel like giving up.
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Start with your passions
Begin with passion. As much as you may want to be realistic, and maybe re-purpose some of your acquired skills, I find that passions make for the best side hustles. You already have to be practical in many areas of your life, starting with your day job. Why not pick a side hustle that taps into the skills, talents and passions you don’t get to explore at work?
Make a list of all the activities you enjoy doing. As a matter of fact, go a step further and list those you wouldn’t mind doing for free. This will give you a clear indication as to what you’re really passionate about. When you’re able to take money out of the equation, then you tru get clearer about what you love and…what you don’t.
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Check your schedule
Time is of the essence, and any side hustle requires extra time. If you schedule is already packed, you may have to re-consider what kind of side hustle you could fit in, and how you can re-arrange your time to do so. As such, checking your schedule is one of the most crucial steps to undertake.
Take an honest look at what you already have to do on your daily schedule. Assess how much free time you currently have on your schedule. Additionally, determine what you can let go of and replace with a side hustle of your choice.
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Narrow down your niche
Even after listing all the things and activities you enjoy doing, even those you wouldn’t mind doing for free, you may still have too much to choose from. As a matter of fact, you may now be more overwhelmed than when you first started. It’s normal. Many, if not most of us, have many interests and even passions we’d love to explore.
The next logical step is to narrow down your niche. This is a very personal process that requires you to look deep within, and explore which activity on your list would bring you the most fulfillment and would also have the post potential of developing well. You must also take into account the time that it would require, as compared to what your schedule would realistically allow.
It may take you a few days to come up with the right answer for you. However, I find that the more time you give yourself at this stage, the better equipped you will be to truly pick the best side hustle for you.
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Adjust your mindset
Devoting extra time and energy to a side hustle will also require a mindset shift. Do yourself a favor and adjust your mindset as you pick the right side hustle for you. Ask yourself questions such as:
“Am I mentally, emotionally and spiritually ready to pursue a side hustle?”
“Will a side hustle make me happier or overwhelm me?”
“Can I withstand the pressure of having a side gig?’
“Is this something I welcome in my life or do I feel resistance towards it?”
These personal inquiries will help you assess how you feel about integrating a side hustle into your life. They will also help you adjust your mindset from one of apprehension and maybe resistance, to one of acceptance and even excitement. This mindset shift will also serve you in the long run as you face obstacles and challenges running a successful side gig and business.
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Be open to experimenting
Picking the right side hustle for you is not a foolproof process. It may actually require a few tries before you find what really gets you going in terms of side gig. Be open to experimenting with a couple of ideas, if you haven’t successfully narrowed down your niche yet.
It takes some time to find out what you actually love doing. While you may have numerous passions and likes, experimenting with them may actually allow you to eliminate some and keep others. I experimented with freelancing, and writing in various capacities, before setting my heart on blogging and book writing. However, it took a few unsuccessful tries to figure out the right formula for me. Be patient with yourself as you go through this process.
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Learn from your mistakes
In the same way, be open to learning from your mistakes as you pick the right side hustle for you. Your process is very much unique. While it may take someone else about five minutes to settle on their perfect side gig, you may take longer to decide. As a matter of fact, you may start by picking the wrong side hustle, or have to adjust the side gig of your dreams to fir your personality and lifestyle.
In any case, look at the mistakes that may occur as you choose your side gig as stepping stones rather than obstacles. The more you can learn from them, the closer you may be getting to uncovering your ideal side gig.
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Enjoy the process
Last but not least, don’t forget to enjoy the process. Even if this is about making extra money to pay your student loans or get out of debt, it is still a process that can allow you to learn a lot about yourself. Enjoy the process of exploring something new, learning, and growing as well! Remember, if it doesn’t bring you joy, then you may have to re-consider!
Now your turn: How did you pick the right side hustle for you?
To Your Success,
The Corporate Sister.
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by Solange Lopes | May 30, 2018 | Start Your Business
You’ve heard it before: Entrepreneurship is not for the faint of heart. Whether you’re starting or running a side hustle, or involved full-time in your business, the process of becoming an entrepreneur is far from easy. I know it certainly wasn’t for me. When I started blogging while still working in the corporate world, I initially thought of it as a hobby. I started multiple blogs, freelanced as a copywriter and accountant, yet it took me a while to see myself as an entrepreneur and grasp what it really was about.
Despite all the buzz around entrepreneurship, not enough is being said about how challenging it truly is. The well-curated Instagram images and picture-perfect headshots of #bosses fail to describe the reality of it, and as such, fail to warn a generation of hopeful yet un-prepared entrepreneurs-to-be.
I admit to falling victim of this myself. Between all the #girlboss hashtags and the motivational posts more filled with fluff than reality, it’s easy to under-estimate the mountain that the entrepreneurial journey really is. There are so many things that very few are willing to admit about this journey. Many will tell you that yes, it is hard and uncomfortable, that it may even bring you to your knees. Yet, most will keep that part of it secret, making it instead seem like the overnight success phenomenon is real and reserved to only a lucky few.
Here’s the thing. As you may already have suspected, there is no overnight success, as most breakthroughs, especially in business, take at least a decade. Here’s another thing: there are tools you can use and re-use as you climb this huge mountain called entrepreneurship. And no, these tools are not reserved to a lucky few, but are accessible to each and everyone of us, granted you are committed to do the work.
From my own experience and speaking to many first-time entrepreneurs, here are a few tools to deal with your first few months as an entrepreneur:
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Cultivate mental strength
Entrepreneurship, as I found out, is first and foremost a mental game. It’s more about your mindset than your stamina and how hard you can work. Working for yourself also means keeping yourself accountable day in and day out, and not relying on a boss or co-workers to steer you in the right direction. This in turn can play serious mind games with you, as you may struggle with self-discipline and lack of gratification at first.
One of the biggest mistakes I made was to think that working hard on the outside would make up for the inner work that needed to happen on the inside. I’ve learnt that the opposite is true. You must prepare mentally first, and sharpen your mindset before even throwing yourself in the work. This means taking the time to attend to your own mental health, through practices like meditation, quiet, exercise, prayer and other personal ways to maintain your mental balance.
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Organize yourself
As a new entrepreneur, one of the first shocks you will experience to your system has everything to do with organization. If you’ve transitioned from the corporate world to being in business for yourself, you’ll be amazed at how challenging it can be to organize yourself now that all your work revolves around you.
In the beginning stages of entrepreneurship, it may be challenging to hire or outsource some assistance. You will be the administrative person, as well as the strategist, writer, and tech support. Both big and small tasks will crowd your schedule, threatening to make you totally unproductive most days.
The trick here is to prioritize your tasks in terms of what is most important (see below tip#6). It’s also a matter of keeping a strict account of your activities and being ruthless with what and who you allow in your schedule.
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Guard your time
As a new entrepreneur, time is your most precious commodity. There are so many things to attend to in your business that you will need every second you can get. In addition, there will be many more time-wasters than you’ve ever experienced. From people who just want to grab a coffee and pick your brain, to technical snafus in the middle of the day, interruptions are par for the course.
You will also be tempted to lump in as much as possible into your daily schedule, forgetting that there are only so many hours in the day, and yes, you are only a human being. As you step into entrepreneurship, remember to keep a ruthless watch about how you spend your time and what this time is really translating into. If your time is not creating opportunities or revenue, whether in tangible form (money) or learning, then you must re-evaluate.
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Build a strategy
You can’t do everything, and everything doesn’t belong in your business. This also means that you must devise and be clear about a strategy to follow, especially in your first few months as an entrepreneur. Don’t get me wrong, strategies can change, and it can take a long time to refine and finalize your ultimate business model.
However, you can begin to trace the outline of a strategy to follow in order to be clearer about what you must do, and what you need to leave alone. As a “writerpreneur”, content is key to me, and is at the center of my strategy. Whether I blog or consult, it’s built around content. In the same way, you must identify your strategy’s pillar(s) and build around it, so you’re not tempted to be all over the place at all times.
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Fail fast and fail forward
Let me say it as gently as I can: “You will fail as a new entrepreneur.” It’s simply par for the course. Whereas most see failure as a sad occurrence to delete from their memories, it is actually, especially in entrepreneurship, a blessing. That is, if you can leverage it by failing fast and failing forward.
I used to be scared of launching new initiatives and products for fear they would fail. What I’ve learnt is that if you don’t allow for failure, you don’t learn. If you don’t learn, you don’t progress. As you start your entrepreneurial journey, don’t be afraid to try things and fail at them. Create the blog, start the podcast, write the book, do what you are inclined to do as an entrepreneur. If your first product doesn’t make you uncomfortable, you’ve waited too long. Go ahead and try, fail, learn and try again.
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Think in terms of impact
If there is a BIG lesson I’ve learnt in entrepreneurship, it’s to think in terms of impact. Not in terms of money, or even results, but impact. How will your business impact people? How will it impact your bottom line? How will it make a difference in your life and that of others? This is the big picture.
On a day-to-day basis, ask yourself how your tasks impact your business in terms of profitability, reach and growth. Rank your to-do list by order of most to least impactful. This will help you in knowing what to devote more time to, and what to let go of. Ideally, focus on tasks that are making you MONEY, and growing your REACH. While at the beginning of your entrepreneurial journey, you may not be as monetarily profitable as you wish, you can still plant the seeds of monetization when you start thinking: “What should I do first to make my business more PROFITABLE and more GROWTH-ORIENTED?”
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Don’t isolate yourself
Entrepreneurship is a lonely journey. Despite all the networking events, the coffee dates, and all the social media buzz, it’s still very much an unconventional path in society. This also means that since the majority of people, and probably most people in your direct environment, are not entrepreneurs, you will experience a heightened degree of loneliness in your work. It’s hard to explain what it means to throw everything you are and everything you have into a concept and a vision that only you really understand, to people who may not get it.
However, you must fight this loneliness and refrain from isolating yourself. Join entrepreneurs’ associations, be willing to attend meetups, and keep networking with like-minded individuals. This doesn’t mean that you should shut yourself to the rest of the world. Keep your friends as friends, and work with those who get what you do. Don’t blame your direct environment for their lack of support, as it is often a lack of knowledge. It will keep you balanced and happier.
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Focus on the WHO and not the WHAT
As a new entrepreneur, you will be tempted to set ambitious goals and milestones for yourself. There is nothing wrong with this. As a matter of fact, you should keep setting the bar higher and higher for yourself and those you choose to surround yourself with.
However, getting fixated on certain accomplishments and objectives can deter from the real benefit of entrepreneurship. It’s not so much about what you strive to achieve, although that is certainly important; but it is about who you become in the process. You see, the goals you set should be so that you can grow into the person who can and is worthy of meeting and exceeding them. Without this understanding and foundation, your breakthrough and success may be short-lived and leave you unfulfilled and miserable. The last thing you want is to get to the top finally, only to have lack of character, discipline and integrity not keep you there.
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Stop blaming others for not supporting you
Many, if not most entrepreneurs, complain at some point or another of not being supported by friends and family. It is true that in many instances, those who are closest to us, can seem the most removed from us when it comes to supporting our entrepreneurial endeavors.
I’ve come to understand that everyone grows differently, and that your vision was given to you because it would make more sense to you than anyone else. I’ve also made peace with the fact that this growth process will also help uncover those who are no longer in alignment with who you are becoming. This is crucial as your environment can make or break your dreams.
In this sense, there is no point in blaming others for their lack of support. There is only the understanding that you are responsible for your own success, whatever your definition of it is. And that ultimately what others think about you is truly none of your business.
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Stop and breathe
Due to the lack of imposed time boundaries on entrepreneurship, it can be easy to overwork yourself, especially at the beginning of your journey. After all, there are no set hours or schedules. You are your own boss, and can work as long, or as little, as you’d like. The result is overworked, over-tired and inefficient entrepreneurs who end up burning out too soon.
I’ve learnt to take the time to stop and breathe, by designating a time out from work. Your schedule should include a start time, but also a stop time. Refrain from the temptation to work yourself to the ground and burn the candle at both ends. Yes, you may need to put in longer hours. What you don’t need to do is create a lifestyle that will destroy you rather than build you up. Remember, this is a marathon and not a sprint. You’re in it for the long run, and you’re in it to win it. It may take time, detours and pit stops, but you’re going to make it.
Now your turn: What have you learnt as a new entrepreneur?
To Your Success,
The Corporate Sister
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by Solange Lopes | Apr 20, 2018 | Start Your Business
Spring Break is our favorite family time for road trips. That’s when we pick a destination, pack our bags, lock our home and literally hit the road. Yet before we even put foot to the pedal, there’s a thorough process of planning, reflection and elimination that takes place. An offer is made, and we all participate in defining whether what we can do together and for each other as a family is compelling enough for all of us. I love visiting museums, while the hubby enjoys long drives, and the kids will do pretty much anything that involves high-energy activities and some level of sugar intake. In a way, our Spring Break prep process is a lot like writing a business proposal. We make one or many offers outlining what we can do for each other, why we’re the best at doing it, and sell our arguments around in hopes of winning the best deal for everyone.
In the same way, writing a killer business proposal is about presenting an offer to your prospects demonstrating what you can do for them in and why you are the best person/company to do it. If you’re a business person or an entrepreneur, you may know how important business proposals are. They cement business deals and set the stage for profitability in your venture. However, they must also be persuasive, compelling and clear enough to elicit a vibrant “yes”.
Here are 5 tips to make use of when writing your next business proposal:
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Identify your client’s needs
One of the three basic sections you must include in your business proposal is one about your client’s needs. Failing to have a clear and thorough understanding of what he/she needs will put you at a significant disadvantage. As such, the first section of your business proposal must answer the following questions, as related to what you can offer them:
- What current challenge(s) does your client’s industry face?
- What are the most acute of the obstacles faced by your client in their industry?
Ideally, you would have had prior discussions with your prospective clients, or researched them enough to gather related information, such as:
- When the problem/challenge originally began
- What has been done to remedy it before
- How much help is needed to fix it
- What they hope to achieve with your help
- When they intend to have the project completed
- The budget they have in mind
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Offer a compelling solution
The second most important section of your business proposal revolves around the solution you are proposing, and why you are the best to provide it. In this section, you must outline the following:
- How much you understand their need, based on your research, experience and even personal interest. This is where it’s useful to back up your arguments with applicable case studies, benchmarking and appropriate description of results you may have obtained before;
- What you will do to fulfill their need, including a detailed action plan with steps you will implement. Make sure to be as clear as possible and explain how each step will add value to your client;
- The results you will be able to get, and how these will tie in to the needs you have identified earlier in the report (refer to 1.)
- Why you are the best persona/business to handle this job. This is the part where you decisively include what you can bring to the table and how your unique skills, experience, qualifications and even personality benefit them.
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Be clear about the administrative details
A business proposal is not a business proposal unless it includes a strong and detailed administrative and logistical section. This is where you wrap up by including the conditions to your involvement in the project, namely:
- Suggested timeline
- Preliminary milestones of the project
- Proposed Budget
- Other terms and conditions such as project delivery, payment, etc…
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Use the mirroring effect
Have you heard of the mirroring effect in psychology? It’s the behavior in which one individual subconsciously imitates the attitude, gestures, or speech pattern of another. This can lead to building rapport and connection with the other person. As you write your business proposal, you can use this powerful concept to your advantage.
Take some time to observe and reflect upon your client’s particular ways of expressing him/herself. In turn, use the same tone, words and phrases to address them in your business proposal. It’s also important to understand the emotional and cultural patterns they may be responding to, so as to include them in your writing as well. This will help you build a stronger connection with them.
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Clarity and accuracy are key
Last but not least, you can increase your chances at having your business proposal stand out by making it as clear and accurate as possible. This includes:
- Eliminating any jargon or overly technical terms that can lead to confusion
- Using short and simple sentences and wording
- Inserting visual aids such as charts, graphs and other presentations to make your proposal clearer and more appealing
- Ensuring that your document is grammatically correct and free of misspellings
In conclusion, keep in mind that you are qualified to offer your solutions and services to this prospective client. Take advantage of this opportunity by crafting a thorough, clear and compelling proposal with these steps.
Now your turn: What has been your experience with business proposals?
To Your Success,
The Corporate Sister
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by Solange Lopes | Apr 11, 2018 | Make More Money
As a taxpayer, you may suffer from a tax refund delay in many cases. These include computational errors, incomplete tax returns, and incorrect deposit information. You may also observe refund delays in case of social security number mismatches, early or late tax filing returns, and tax return amendments.
However, there are ways that you can avoid these delays. Here are some of them:
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Keep copies of your prior tax records
Inaccuracies and incomplete information in returns cause many tax refund delays. Having and using information from prior years’ tax returns can help you minimize these as much as you can. Ideally, you should maintain copies of your prior tax records for at least three years.
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Be well prepared
If you’re not well prepared to file your tax return, you may experience delays in getting your tax refund. This is why you should strive to create a file of all necessary tax forms such as W-2s, as well as 1099s, and other mandatory forms. You should get these from the related institutions and banks throughout the month of January.
If you have received all the forms you need to file your taxes accurately and completely, you can attempt contacting your employers or the related institutions.
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E-filing
You can minimize the amount and extent of computing errors on your tax returns by electronically filing your taxes. Keep in mind that more than 90 percent of all tax returns filed nowadays are filed electronically.
It is much easier for the e-filing software to spot and check for errors. This is in contrast to paper returns which increase the likelihood of mistakes. Many, if not most tax professionals also have the ability to e-file returns.
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Direct Deposit
You also have the option of having your refund check deposited directly into the bank account of your choice. This reduces the chances of your refund check getting lost, stolen or undeliverable. However, you must check your bank’s routing number and account number to avoid that your refund be deposited in the wrong account.
In addition, the IRS requires you to indicate whether you had an individual health insurance plan throughout the course of the year in order to electronically file your return. You are also required to indicate if you qualify for an exemption or are under an individual mandate penalty.
To Your Success,
The Corporate Sister
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by Solange Lopes | Apr 5, 2018 | Make More Money
Most of my initial knowledge about money came from my childhood. I was raised in a single-parent household where money was not necessarily in abundance, and as a result I was made to understand that money is to be valued and comes from hard work. As I grew up and learnt more about money, I also realized that there’s a whole mindset around the concept of money. I’m sure you have received many messages about money as a child as well.
For many, if not most of you your entire mindset about money still comes from those childhood experiences and messages that you may have received. Some of us have added to this knowledge from our childhood through books, seminars, as well as more formal training. Others have transcended those messages and earlier experiences about money with their own acquired knowledge. The point here is that the way we treat money and the way we think about it largely comes from our childhood. Hence the importance of teaching children the right mindset and helping them develop the right habits around money.
It’s not until I became a parent myself that I started thinking about money, and the effect it has on families as well as entire generations. Thinking about money not just as a tool, but also as an ideology and a mindset helped me recalibrate my own understanding of finances. This in turn allowed me to teach my children a more positive and empowering message about money. From my experience as a parent, career and business woman, I have extracted various money lessons to pass on to my children. These are the lessons I would like to share with you today.
It’s important for us as working women to understand our own view of money, and adopt the right mindset and habits around my knee. Not only is it crucial for our own development and success as women but it also matters a great deal to our children and our families as they get a large part of their own understanding of money and practice of money from us.
Here are seven tips I would like to share that I have learned to myself about how we can as successful and driven working women teach our children about money:
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Start with your childrens’ mindset
As a child, my circumstances as well as the messages I received from well-meaning adults taught me that money is simply this tool we use to make purchases or live in certain conditions. As an adult, I was fortunate to learn that money is a mindset first. One that is rooted in abundance and not in lack. One that is based on the profound belief that we are always provided for.
However, this mindset should be rooted in positive action. As a matter of fact, no mindset can stand alone without the positive effect of consistent and persistent action. Begin by teaching your kids to form their own beliefs about money. You can do this through conversations and positive messages around the belief that we as people have resources, means and ways to provide for our own and those around us. Instead of having conversations rooted in limiting beliefs such as “We only have a certain amount of money” or “We don’t have enough money” or “Money is limited”,for instance.
Instead, try to foster positive messages such as “You are always provided for”, “Money comes to you easily”, or “You have the power to create the money you need at all times”. These are the same beliefs I grew up in, and I’m still having to learn the hard way. You can foster this by repeating affirmations with your children around money and abundance. You can also do this by involving them in the process of your family finances and challenging them to come up with innovative ways to create money, whether it’s through business ventures ,chores or allowances. The point here is to instill in them the clear belief that money is rooted in a mindset of abundance rather than lack.
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Teach your children about value.
One of the first concepts we often have to deal with as children and growing adults is that money is but a thing. For many of us, it’s just that thing that is included in our paychecks after one, two or four weeks of hard work. It’s just that thing that we use to buy the stuff we want or need. Very rarely do we learn to see money for the value it actually provides. This is because many of us don’t understand the concept of value to begin with. This is also because many of us have not been taught about this concept as children.
As a child, I was taught about money as a commodity. Yet, as I grew up and became an adult, I learnt about the precious principle of value, or receiving something in exchange for something else not just as a simple means of exchange but as a way of providing something that can serve the greater good. Today I teach my children to look less at the money then at the value they can provide through it. For instance, I strive to make them understand that the point of them doing chores and receiving an allowance is not just for them to get and spend money. It’s for them to be able to deliver a work of value that makes a difference and serves the greater good. In our family this greater good is the well-being of the family, and the fact that we can all benefit from the chores they partake in. When I discuss the work I do with them, I don’t discuss it in terms of doing something that can bring me money. Rather, it is something that I see as benefiting the greater good, as is the case for all of us.
Instilling in our children a sense of value for the greater good will not only turn them into proactive citizens who desire to make a difference. It will also help them not put money above the real value that it is providing. You can do this by attaching every purchase that you make together and for which you use money to the value it is providing. For instance, when you buy a toy for them, help them understand the value of that toy beyond its monetary value. Another example would be when you involve them in the finances of the family. For instance when you take them to the supermarket, help them understand the value behind grocery shopping, from feeding the family to staying healthy, and creating value for society by caring for ourselves. All of these are examples of simple things you can do to help you children understand that what is important is not just the money, but the value behind it.
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Teach your children to give
As a child growing up in a predominantly Muslim country, every Friday we had the tradition of giving away alms to the poor. This could be in the form of food, money or whatever we could provide to less fortunate people. Growing up as a Christian, I also learned of the spiritual importance of giving.
Later on in life, as I was learning about wealth and money, I learned about the concept of giving more specifically through tithing. The famous and incredibly wealthy Rockefeller used to give away 10% of anything he made. This taught me a precious lesson about giving that I tried to instill in my children as much as I can.
Giving multiplies what you have while serving the greater good. When you have a mindset of abundance, you cannot afford to see giving as something that diminishes yourself or your value. As a matter fact, the very wealthy tend to give away a lot, whether for philanthropic or strategic purposes. For example I make it a monthly practice in my family for us to openly give of what we have, whether we go to the Salvation Army or give alms to people on the street.
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Involve your children in the family finances
We often think that family finances belong to adults. We believe that because kids are too young, they’re not able to comprehend how we as adults manage the money that comes into the household. As well-meaning adults, we are tempted to think that it’s in their benefit to shield our children from the most delicate and difficult aspects of managing money as a family. However, this is a mistake. It is important, if not crucial for our kids to learn about the way money is managed in the family. The reason for this is that kids learn better by example.
An easy way to do this is to invite them to be part of the family budgeting process. While they may not be privy to all the intimate financial details you may deal with, they can still be part of the process. This will help them better understand the impact of expenses and revenue, and where they fit in within the whole process. Assigning responsibilities and chores to children can also foster a sense of value and self-worth, while teaching them the importance of money.
How do you teach kids money skills?
To Your Success,
The Corporate Sister.
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by Solange Lopes | Mar 28, 2018 | Make More Money |
Whether you have a side hustle or a full-blown business, you may be running into challenges when it comes to managing your small business finances. From keeping track of your expenses to deciding how much to pay yourself, dealing with money in your small business can be quite the challenge.
It’s well-known that one of the major obstacles to succeeding in business for anyone is money. This is even worse for women, who face significant challenges ranging from not being taken seriously to the lack of access to investors.
Learning to manage my own business finances has been a process. Even as a Certified Public Accountant (CPA), I had to set up some new financial habits and processes in order to effectively manage the money in my small business.
If managing your small business finances is on your list of business concerns, here are 7 tips you may want to consider:
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Track your business expenses by separating them from your personal expenses
Managing your business finances starts with tracking them properly. As working women, we handle so many responsibilities at once that we can be tempted to mix our personal and business expenses. In order to understand where your money is going, you must sort out which expenses are associated with your business.
What to do: Instead of dipping into your personal bank account, open a business account. Pay all your business bills from this account, as this will allow you to effectively track your expenses.
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Pay your business bills on time
As you do with your personal bills, take care of your business expenses as readily as possible. This is especially important if you’re just starting a business and you, like many other women, don’t have access to large sources of funding. Don’t allow credit card late fees and tax penalties to ruin your business’ financial stability.
What to do: Set reminders to pay your bills on time and avoid late fees. Set aside some time to go over your finances on a weekly basis to ensure that you’re staying on top of your expenses.
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Set money aside for your taxes
One question that many women entrepreneurs ask is how to manage their money, once they start making a profit. One of the first priorities when it comes to utilizing the profit you make in your business is to set money aside for your taxes.
What to do: Take into account your marginal tax rate and tentatively calculate the tax you may owe. Set money aside towards these tax payments as soon as you can. This will eliminate the stress many business owners face at tax time.
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Decide what you will reinvest in your business
Another concern of women entrepreneurs is how much to re-invest in their businesses, especially when they do not have access to large sources of funding.
What to do: Depending on the extent of your expenses as well as the money you set aside for taxes, determine how much you will need to re-invest in your business.
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Don’t forget to pay yourself!
While you should set money aside for taxes, business expenses as well as to re-invest in your business, you should also not forget yourself. Consider paying yourself out of the profits that your business is making as well. How much you should pay yourself will depend on your outstanding expenses as well as your current needs.
What to do: Carefully evaluate how much you need to set aside for taxes, expenses as well as business re-investment. Based on this, decide how much you can afford to pay yourself.
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Learn more about small business accounting
One of your greatest business powers is in understanding your business’ accounting. Whether you choose to take classes, or hire an accountant, commit to learning more about how your money works for you in your business.
What to do: Make the commitment to understand the basics of accounting as related to your business. Start by taking available classes or consult with accountants and bookkeepers, for instance.
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Minimize your expenses
It costs money to start and run a business. It took me a few months into my business to realize that some expenses were unnecessary or could be combined. As a result, I saved a large amount of money, which I was able to put back in the business and pay myself too in the process.
What to do: Comb through your expenses periodically and assess whether they are necessary.
To Your Success,
The Corporate Sister.
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by Solange Lopes | Mar 21, 2018 | Make More Money
When I look at all the brilliant and encouraging statistics about women starting businesses, rising to the top of their careers, or just breaking barriers and boundaries, I realize how powerful we truly are, as women. What I also realize is that as women, this also means we hold the keys to building generational wealth.
The concept of generational wealth didn’t mean much to me until I started having kids. Looking at my children, and wondering what types of financial struggles they would have to go through as they grow up, prompted me to think more about money and wealth. I would look around at some wealthy families, wondering what it took to creating the type of wealth that doesn’t just benefit us, but benefits family generations.
As a first-generation immigrant from West Africa, raised in a single parent household, I did not come from money. However, my mother strived to offer me a private education, which exposed me to some of my peers who came from wealthy families. From an early age on, while I didn’t’ fully understand the meaning of wealth, I could already see its many advantages. As a child, I could already understand that rich parents tend to have rich kids who tend to be (and act) rich.
Decades later as I started my own family, I didn’t forget my first thoughts about wealth. I kept asking myself how we, as working women, can build the kid of wealth that can be passed down to future generations. According to financial expert Tonya Rapley of MyFab Finance, setting a good example as to our relationship with money is invaluable.
Here are 7 other tips that you can apply as working women to build generational wealth, regardless of your current financial situation:
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Start with mindset
When it comes to money and wealth, it all starts with mindset. Wealth really starts in your mind! For many of us, a mindset of lack can be as detrimental, if not more, than blowing through your savings.
I personally had to do some work to cultivate a mindset of abundance instead of lack. Feeling worthy and deserving as a woman is the beginning of a healthy relationship with money. Unless you can see yourself as wealthy, you will not achieve true wealth.
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Study
Contrary to public opinion, wealth building can be learnt. You don’t have to be born with a silver spoon in your mouth. Instead, you can attend seminars and workshops, many of which are now offered online.
There are numerous personal finance and wealth-building books for women. Some of my favorites include Smart Women Finish Rich by David Bach, Women & Money: Owning the Power to Control Your Destiny by Suze Orman, and You Are a Badass at Making Money by Jen Sincero.
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Invest, invest, invest!
Only 45% of the 62 million salaried women participate in a retirement plan. Yet, women tend to be better investors than men. According to President of Personal Investing at Fidelity Kathy Murphy, “women have a long-term plan, and they stick with the plan”. However, many women are fearful to invest in the stock market.
Investing constitutes a large part of building generational wealth. Don’t be afraid to learn about investing, and applying your money to stock and property investments.
Investing in your children’s future is also crucial. Establshing a 529 plan for each child. to be regularly funded can avoid a lot of financial headaches in the long run.
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Teach your children about wealth
From an early age on, my mother instilled in me a strong appreciation of money. I believe it’s thanks to her teachings that I always took budgeting and wealth-building very seriously. However, I wished we had more candid conversations about money to prepare me to the various aspects of managing and growing money.
Now with my own children, I insist on having honest talks about money and wealth. Both their father and I make it a point to teach them the value of earning money through allowances and responsibilities. We also take them inside the bank so they realize the meaning of this institution. Entrusting them with some money to budget and grow through chores and side jobs, as appropriate, can also go a long way towards teaching them about the power of wealth.
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Diversify your income streams
As a child, I grew up with the notion that your income should solely come from your day job. Fast forward a few decades, I started making money through side hustles as well as my main job. This made me curious about diversifying my income streams. As it turns out, true wealth is built from a variety of sources. It is said that the average millionaire has at least seven streams of income.
Whether it’s through side hustles, building businesses, or generating passive income, creating and maintaining diversified streams of income is the key to wealth-building.
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Get a Life Insurance Policy
A life insurance policy could be a valuable asset, especially for those who do not have many assets. It can be a relief in case of an untimely death, and replace financial payments which could otherwise no longer be made.
Additionally, the payout could be used to invest in opportunities or even fund a business venture. However, you may want to invest in a whole term policy, as opposed to one that may expire, in which case you may lose the money invested.
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Don’t forget your will
When my grand-father passed away unexpectedly, he unfortunately did not leave a will. As a result, this negatively impacted the family’s inheritance. It taught me that as uncomfortable as planning for one’s passing can be, it is necessary to do so, as early as possible. It may be best to consult with an attorney if in doubt.
What other tips would you add to create generational wealth as working women?
To Your Success,
The Corporate Sister.
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