(This post is part two of the current blog series: Overcome Your Fear :: Become A Mompreneur. To read the rest of the posts in this series, click here.)
So you have some ideas about what you might do as a mompreneur. You’ve explored some dreams and maybe even verbalized a deep desire of your heart. But the lingering question about money still looms over you, how much money will you really make?
Let’s be honest…there is a minimum that you need make in order for your family to stay afloat. But how much? Transitioning into a mompreneur will require a financial sacrifice, at least initially, and for most people making this financial shift is the hardest part. It requires a change of lifestyle, re-budgeting and sometimes even counting pennies.
How much money you will make and how much money you need to make can truly only be answered on an individual basis. By now, I hope you have connected to a few other mompreneurs that are doing just what you hope to do and you have a sense of what is financially possible. Assuming this is true, here are three essential steps for you to take as you plan for the financial implications of this transition:
- Create a budget. If you have never done this before, now is the time! You need to know how much you make and how much you spend. Start with figuring out where your money is currently going (a great free resource for this is Mint.com). Next, create a budget for your current family income and then one for when you become a mompreneur. (There are tons of resources on the internet to help you create a budget, here is an article that will jumpstart the process). This first step is essential in getting you started on the right path. It will help you set financial goals and keep your spending in check. Allow plenty of time to really dive into creating a clear and concise budget as it will be foundational to your success!
- Decide where you want to make sacrifices. There is no doubt that sacrifices will need to be made by the whole family. You will need to think carefully about what is most important for you, financially, during this season. Will you need to stop contributing to your 401K for a while? Cut your out-to-eat budget? Sacrifice movies, trips out and entertainment for a few months? Get buy in from the whole family as you make these decisions so that you feel you are in it together (because let’s face it…you are).
- Set aside some startup money. It takes money, to make money. How much you will need depends on what kind of work you want to do (this is the perfect question to ask another mompreneur that is doing just what you want to do, so that you can get extremely clear on your expenses). You may need to get a business license, website, business cards, some organizational tools or even just a few hours of childcare. Regardless, it will be important to factor in some type of money to get things up and running. Figure out how you can set some start-up money aside or even borrow some in order to get going on the right foot.
When you went to college you were willing to take on debt because you knew and believed it was an investment in your future. This is no different. You might need to take on a little debt to make this new lifestyle work. You would do the same if you were going to buy a car or a house, so I challenge you to consider this mompreneur life in the same way… as an investment. It is an investment in your future, your happiness and your kids.
Will the financial investment be worth it? In the next post we will discuss the importance of knowing your why so that you can unequivocally answer this question with a YES.