Make Your Money Make You Money
What it doooo. Been a minute since we spoke last.. I've been busy working on myself. Trying to spend more time on my passions. I really dove into writing the short that I mentioned in my last blog. I have two ideas I'm working on so I'm spending time on both until I figure out which to launch with. But anyhoo.. As always, I'm trying to stack up my papel, so lets talk.
Lately, I found myself giving a lot of my close friends advice on money. How to keep it, increase it, save it, invest it. All that. Now I'm sure some of you are thinking.. "What in the heck does Ciera know about money?" Well to answer that.. Everything. BOOM.. Just kidding. But I do know a lil something. And I'd like to share some tips with you.
A little refresher on my background. Ill keep it short. I grew up dirt poor with my mommy and sister and we pretty much built our businesses from the ground up. I never had help. I figured out everything on my own. When I say that. I mean it. EVERYTHING. Not many people had online stores 6 years ago.. Especially in my circle, so I had to research and figure out how to build a business with no cash. I started my business with no money. How? I sold straight out of my closet. These were items I had worn that I styled and resold as used items for my very first vintage store. With that money I ventured into wholesale. Where I bought ONE style and sold that. After that sold, I increased my inventory.
Are you seeing a pattern here? I only spent other peoples money. In the biz.. This is called OPM. "In the biz".. I've always wanted to say that. Anyhoo. Lets talk about increasing your cash with no cash.
If you have a business these should be your favorite 3 letters. If you do not have investors you have to create your own. These are your customers :) Use THEIR money to increase your revenue. Try not to use your own if you can. Let's say you sell tshirts for 20 and they cost you 5 to make. This mean you have $15 profit on each shirt. This is the money the customer is investing in your business. You can use $5 of that to pay for the shirt. You haven't touched your own money and you have some profit to play with. It's pretty darn beautiful and your bank account will love you.
Accounts and Points and All That Stuff..
Speaking of banks.. They are super important when you are stacking up your cash. They not only keep things organized but they put things into perspective. I have a personal checking, personal savings, business checking and business savings account. I haven't touched my personal savings since I started it 6 years ago and I don't really ever have to. I think its important to have an account you never touch just in case. Stack that shit up! My business savings is by far my largest account. Pretty much all of my profits from my business is there just sitting looking pretty. The only account I kind of sort of touch would by my business checking. And I say kind of sort of because I only use it to pay off my Amex. This is how I really live my life. Through Amex and points.
Amex is lifeeeee. I use them for everything because I love their points. I love to travel so I use my points through them for this. It also helps that its a pretty fucking cool card. It just looks cool in my opinion ;)
Investing Yo Shit
As an entrepreneur, you should first have an IRA. This is the retirement account for entrepreneurs. There is no 401k for us. You need it. Look it up. Start investing in it. To simplify it, you put a certain amount in every year. This amount is estimated by your accountant. You can only put in a certain percentage of your income because this is money the IRS cannot tax you on. You can't touch this money until you are at the age of retirement. I believe its 60. Dont quote me on that. But you get the point.
In addition to that, I started investing in stocks and bonds. Now when it comes to this, there is so much I have to learn but so far I'm doing great. I think its important to set something like this up if you have money just sitting. You want your money to be working for you.
Cash is Evil
If you own a business.. remember these words. CASH IS EVIL. Why? Because its hard to write off unless you keep every receipt. If you're down to keep all those receipts more power to you. But if you're anything like me, those things will get lost by tax season. This is why I don't fuck with cash. I use credit for everything and then pay it off. This way I have a record of everything and can write it off and on top of that I'm stacking my Amex points and cash back points on my other cards. I'm making my money work for me. If I spend a dollar on something, I'm always thinking that this dollar is contributing to my points or is something I can write off. Cash can't do that. Its in and out of my hands. No record.
In the end.. I want you to always be in the mindset of saving your own money or making it work for you. No dollar should be spent frivolously.
Let me know what you guys think below and excuse me for any typos. Until next time..