A 21 Savage Look Into – Business Income, Risk, & Expenses

A Conclusion to Side Hustle 101 Series 

Income

Music has always played a big part in people’s life.  Reading through my blog over the years, you will see that it is always top of mind for me. So when I drop some knowledge on the subject of income I could reference:

·         21 Savage – A Lot

·         YG – Big Bank

·         Jay Z – Big Pimpin

But I’d rather hit you with a simple rule I learned I learned from Warren Buffett: “Never Lose Money”. His second rule: “Remember Rule #1”. J  This rule is so crucial I use it as a baseline for my other pillars now:

·         “Never Lose Faith”

·         “Never Stop Learning”

·         “Stay Healthy”

Make sure your business and investments make more money than they lose and life becomes a lot easier. Stress over risks to your business and try to get the best return on your investment when you have expenses.

Risk Management

I spend most of my time stressing over things that will derail my pillars in life and my investments. If I’m eating unhealthy, why not cut back on sugar (easier said than done). If I want to reduce stress, why not focus on prioritization, time management, prayer, and meditation. You get the picture, but many people don’t think about risks UNTIL well they hit them in the face. A few examples:

·         Boeing – Recent crashes that have taken hundreds of lives may possibly be linked to not updating airplane software and a lack of pilot training.

·         Equifax – How ironic is it that the company responsible for our credit scores, history, and maintaining so much of our personal data is hacked ( A close second: Ashley Madison’s website hack and they promote discreet relationships for married people)

·         Lululemon – How smart was it for an athleisure company executive to mock curvier women who wear their clothes when that is your primary customer base

·         Netflix – How about when you do nothing wrong like Netflix, but you have the new “risk” that Apple’s new TV streaming service is now dubbed the ‘Netflix killer’

Well I think you get the point…consider all risks and focus on the biggest ones…your company depends on it.

Expenses

This is no one’s favor subject so let’s make it fun by keeping it simple. There is a reason why so many businesses were started in garages…for the free rent J So stop trying to play the part until you actually have money rolling in. Can you work out of your home or garage and forgo that pricey co-working space.? Do you have expensive software when you have one customer? I saw a show where a small business was going to trade shows every year and losing money (why go?).  Don’t get me started on a company car!!. I constantly evaluate: Office Location vs Co-Working vs Home-based; Software vs Spreadsheet; and Personal Car vs Company Car. Grow your business and make sure that next expense helps increase your bottom-line in the future.   After two good years, I decided to pick up the fully loaded BMW X5 e40 company car (I still have my personal SUV because that's for personal use). In the words of J. Cole on 21 Savage’s “A Lot” à ‘How Many Faking They Streams…I Can See Behind the Smoke and Mirrors People ain’t as Big as They Seem”.   Don't fake your streams and get a car you and your business can't support. Stay humble and grow your business smartly. Peace

Pics of my Company Car (and yes I plug in to get roughly 600 mpg...call me cheap)

Personal Finance - Budget 101 / Free Credit History

I often get a number of questions related to everyday finances and how a reader can improve their financial health.  First thing first, is to take care of the basic key elements.  The second thing is to is to do it as cheaply as possibly.  And yes, don't let anyone fool you...you can Do It Yourself (DIY)!  There are a number of personal finance lessons that I have written about in the past and I will attempt to go back and re-tag all those posts to include the labels "PERSONAL FINANCE".  I will create a link for easy access to these tips but remember you can search the site to find notes and tips to assist you get financially healthier.

1) Going On a Healthy Diet - Budget, Budget, Budget

I am personally a spreadsheet man myself.  I create a very basic Excel spreadsheet that I use to track all my budget needs. So search the Internet and you can find many tools to assist you with Budgeting 101.  The key elements don't change often, so follow these tips:

• Categorize every expense by type and don't use MISCELLANEOUS (Examples: Utilities, Food, Entertainment, Auto)
• Don't you cash unless remember to 'categorize' every penny...exactly "Don't Use Cash"
• At the end of a Month, your goal should be to have more "Income" than "Expenses"
• Don't be afraid to make hard cuts (sacrifice now for a better future, every penny counts)
• Pay down debts quickly, and FOCUS on high interest rates first (Credit Cards, School Loans, Personal Loans)
• Once you pay off debts, try to pay off any new debts 'Each Month'. I know every month
• Yes its okay to have FUN, but budget and categorize it
• Use the extra money from your budget to "Invest In Yourself". The goal is to create a rainy day account

I use spreadsheets and some people use envelopes, but the important thing to remember is to find a system that works for you and to stick to it. Just like working out.

2) Get on The Scale - Check Your Credit For Free

Unless you can pay for everything with cash, then you need to be honest with yourself and "Weigh In" from time to time.  Financially, weighing your self on the scale is "Checking Your Credit History".  This is the one time when you want your numbers to go UP! A higher credit number is much better than a low score.  Now don't get crazy, check your credit annually...no more, no less.  Look for errors and make sure you pay your bills on time.  There are 3 scales that you will need to weigh in with, and they are the 3 major credit bureaus: Experian, TransUnion, and Equifax.

DIY Tip: Don't listen to commercials or some salesperson over the phone, check your report FOR FREE.  Yes, the government passed a rule years ago allowing you and I to have a FREE view of our credit history, once a year...and it can all be done through one website!  If anyone else claims to offer this service, ask them if you will ever be charged...and don't forget to tell them that you are recording the conversation. That should do the trick :)    Here is the link:

AnnualCreditReport

My Reality Show: Pt.3 Homebuying 101

The good thing is I've picked the provisions in the stimulus bill that seriously has me thinking about getting me off the coach and spending money again. Now the catch is will I put in the work to get the job done. But my next dilemma is trying to find a step by step help to determine how to buy a house...oops forgot I live in Chicago and should say a condo or townhome.

I hope my steps will will assist anyone who is a first time homebuyer looking for answers.

Step one in my Homebuyer 101 steps:

1. I definitely will be needing a mortgage and my to get me going down the right path I wanna make sure that my credit history is clean and clear. My first goal this past weekend was to search through my credit report and make sure that there isn't any surprises in there. The only strange issue I ran into was that some of my father's credit history was mixed with my but luckily he has been reliable when paying his bills. At this point, take the time to dispute anything on your credit reports that you believe shouldn't be there. I've heard that it's best to submit your disputes in writing but the internet has made it pretty easy to also dispute something online. Don't forget to look at ALL 3 reports from the major credit bureaus,
Experian, TransUnion, and Equifax...because when it comes to a mortgage most banks and brokers pull ALL 3 to get a feel a good feel of your credit history.

The best thing is our work is now easier as the government has passed a rule that allows you and I to have a FREE view of our credit history, once a year...and it can all be done at one website! Please note that there is the only one website that will allow you to do this for free and it is attached here: https://www.annualcreditreport.com/cra/index.jsp

The others websites claim to offer this service but they come at price...so get it done for free.