Whether you’re a humble employee or a thriving entrepreneur, we all need to plant the right seeds for our financial and career success
Don’t put all your eggs in one bank
After the banks crashed internationally in 2008 we all now know that it’s no longer safe to put all your eggs in one investment basket. Having learnt that lesson the hard way, wise investors now spread their investments as well as their savings, and even their insurance and retirement planning.
My job’s safe…
If you work for a company there is always the chance that, despite your best efforts, the company could get into trouble or lose a big client and either have to make cutbacks or close up shop. Lose one big client or big deal and you could find yourself at the back of the unemployment queue.
Plan E for employee
No longer do people spend decades working at one company and, increasingly, less and less people are working for companies. Everyone is moving towards outsourcing and employing freelancers or consultants. Great news: you can now be your own boss. However, you need to tread carefully. Don’t just leap into the world of self-employment because it can be a short trip of a few months in which you can move from being hungry for success to hungry for bread and water. Build your side businesses or turn hobbies into money making ventures WHILE you are still employed.
When do I jump?
Don’t leave a vaguely decent job to be self-employed until such time as you literally can’t afford not to. It’s about the head ruling the heart. Many people are desperate to leave a frustrating or boring job and convince themselves they will make a living from their great new business venture.
You have to let your head rule this decision. You jump into self-employment when you can’t remain any longer in your job. For the entrepreneur, that literally means when you are making so much money that your daytime job is really costing you money.
How are you going to pay for that?
Why is it that some of the richest people pay cash for some things and yet they take other things on terms? Simple, they value their money. They will look for the very best deal on any offer and the one that allows them to use their money in the best way. That’s why some millionaires might buy their next Mercedes cash yet pay for their photocopier over five years. Each decision will be based on the deal on the table.
Don’t run your business into the ground…
Any business can hit troubled times, but there’s a problem if you ‘run it into the ground’. The problem is in your approach. If things start going wrong you need to address them and refocus, trying something different. Just stubbornly saying “I won’t let this go down” doesn’t help. If it’s a lost cause then knowing when to abandon ship is essential. You can either lose a lot of money or a lot more money.
Godfrey Madanhire is a life coach and professional motivational speaker. Based on his life experiences (merged with extensive knowledge of the concepts and skills around motivating and inspiring individuals) Godfrey has held seminars helping people grow as well as guiding them to take charge of their current finances and their financial futures. His client base includes MWeb, Engen and the South African Institute of Chartered Accountants.