Career Coach

Ten Ways To Manage Financial Stresses

by Lynn Berger

Many women are striking out on their own in entrepreneurial ventures. Some for the flexibility of being their own boss and some to work out of their homes. This can be both an exhilirating and a scary venture. This month, let's focus on the top 10 ways to manage the financial stresses you may encounter if you choose to leave your present job.

1. Don't focus on increasing revenue; reduce costs. At first, this probably won't feel natural or intuitive.
   
   
2. Recognize that working outside of the home is expensive. For example, you will need less formal clothing and your dry cleaning expenses may be reduced. In addition, lunches can be prepared and eaten at home. Finally, there is no commutation expense.
   
   
3. Identify ten ways money is spent in an unrewarding manner. Unnecessary expenses are those which can be eliminated without a significant reduction in happiness. The average household may spend 10-25% of their income on unnecessary items. It is also true that due to a lack of organization and resourcefulness the average family wastes 5-10% of their revenue.
   
   
4. Build reserves in other areas of your life. Get more love, friends, time, pleasure, knowledge, energy, and space than is needed.
   
   
5. Start thinking about and exploring additional income streams. This may include anything for which you have an interest, skill and/or passion. For example, you may tutor, consult, write, or create a new product or service and perhaps even sell items around the house that you do not use or need.
   
   
6. Clean out your closets you may find hidden treasures that may give you ideas for a new product and/or service. You can also donate unnecessary items and save the receipt for a tax deduction.
   
   
7. Rent don't buy. For example, use the local library rather than buy books at a bookstore. For example, consider renting videos rather than buying them.
   
   
8. Work out shared babysitting arrangements with neighbors and friends. In addition, consider the use of carpools for your transporting your children (especially for weekend soccer games).
   
   
9. Barter services with friends, neighbors and the community. For example, an accountant may want to barter services with an electrician.
   
   
10. Change your habits. Instead of shopping at the mall go to the park or take a walk. An added bonus will be a healthier lifestyle.