Thursday, June 5, 2014

The Loudmouth Lifestyle and Thrift Core's 10 Tips For Early Entrepreneur Money Pains

Choosing the liberated artist's life and striving for true fulfillment requires sacrifice, usually of the financial variety! You can have both, but rarely when you're starting out. I've toyed with my own businesses on and off for years. I'm fresh into a new venture and feeling the financial burn, but I'm still saving and thriving. To help other artists in my boat I've enlisted another perspective (a newbie with fresh ideas) for ideas on keeping afloat (and fed!) as you navigate the tricky waters of starting a new business. Let's start with Stephanie's experience!



Hi everyone!  I'm Stephanie Shar and I blog over at The Loudmouth Lifestyle about eating well and spending less while still living a fun, fashionable life.  I guess you could say that Van and I have a lot in common, but our businesses are very different!  I'm a freelance writer and aspiring model building my portfolios and just starting out on my dream.  Only a few months ago I was still climbing the corporate ladder at my former career.

I've gotten a lot of questions about how I can possibly survive and make money without a 'real' job in a place like LA.  It's a valid point -- Los Angeles is the fifth most expensive city to live in (as a state, California ranks #1).  Although I'm still learning, I'm going to reveal a few things I've done to make ends meet.  Hopefully these tips will help you out, wherever you might be!

1. Plan + Make the decision that you will NOT end up on the street.  Make a plan before you put your two weeks in.  I knew I was going to leave my workplace about six months before I officially quit.  I started saving money right away and planning my exact course. More importantly, be mentally prepared. You need to BELIEVE that you won't end up broke and homeless.  Keeping that determined, positive energy going will prevent you from getting to that point.  

2. Take advantage of the free opportunities available to you. Yes, I'm on food stamps and I have free healthcare through Medi-Cal.  Why?  Because otherwise I'd have to dip into my savings for groceries, and I lost my health insurance after leaving my job.  This isn't 'working the system' -- it's using what I'm allowed to in order to survive!  If you qualify for any type of welfare or aid, there is no reason why you should be ashamed to apply.  You don't have to use it forever, but until you really start making money, you may need it. Don't be embarrassed, that's what it's there for!

3. Communicate with your loved ones. I don't know about your city, but in LA it's all about what you're driving, what you're wearing, or what club you're going to that night.  Everyone wants to look and be rich.  You don't have to be, and you don't have to pretend to be!  If your friends or family are going out somewhere and you can't afford it, just tell them. They might even help you pay for the night out, or change the venue so that everyone can go.  At the very least, you could plan the next outing for a cheaper spot.  You also shouldn't feel pressured to buy something every time you go shopping with a friend, or eat a big meal when you go out to a group dinner -- window shopping and munching on the free bread is completely valid.  Inform your friends of your current situation and if they love you, they will understand.  In fact, they will probably admire your frugality!

4. Set a budget and keep track of EVERYTHING. I didn't start keeping a budget until a few months ago and I'm so glad I started.  I wrote about my budgeting plan in great detail here, but the bottom line is, you need to keep track of every cent you spend.  It may seem tedious, but it will help you decipher patterns and decide where you need to cut back.  I was spending WAY too much on Starbucks and now I only swing through there maybe once a month.  We usually don't notice these things during our busy day-to-day lives.  Hold on to all of your receipts and open up a spreadsheet, old-fashioned ledger or both.  Create goals and hold yourself accountable.  Take control!

5. Use the power of technology. Download VSCO and edit your photos for free.  Get Viber and text/call people without a plan.  Save money on groceries with Ibotta.  Grab a cheaper taxi or hotel with Uber and Airbnb.  And, my favorite -- find the cheapest gas near you with GasBuddy!  (Anyone else dealing with $4.50 prices?  Anyone?)

That's all I've got for now, guys.  Follow me over on my blogTwitter or Instagram for more tips and ideas for your thrifty but fashionable lifestyle, and feel free to ask me any questions in the comments!  Thanks for reading, and a big thank you to Van for having me over today!


And hey again, Van here. Stephanie has the additional challenge of living in the priciest state in the USA! I'm luckily nestled in Jacksonville, Florida's picturesque Riverside community. Everything's in walking/biking distance and there are plenty of affordable apartments. Rent for business owners, however, is near-impossible to navigate- and without the population to support a local shop to boot! I still have those challenges, but I've got living on less down to a science.

I switched from being a full time marketer to reseller nearly three years ago and now I'm slowly making another transition, this time applying (and sharing!) what I learned from the first time I made this journey. These are my veteran tips:

1. Save + Have Your Business Operating Before You Leap: I had over $14K put away before I left my day job and blogged for over three years before my brand grew enough to become my day job. I didn't leave without a plan. I had savings, customers, and thousands of dollars in merchandise to sell.

2. Think of Ways to Slash Expenses: Call cable/internet/phone/insurance companies to see if you qualify for deals. Move to a lower-cost area and consider a roommate. My roomie and I paid $481.10 each total for cable/internet/rent/electricity this month and we live in a beautiful, super spacious 2 bedroom 2 bathroom apartment in the middle of a thriving area. (It's got an odd location above a corner store that scared other renters away. Their loss, our gain!)

3. You May Need Part Time Gigs in the Meantime to Survive. That's Okay: Perhaps you'll have to work a flexible part time job to make ends meet, that's normal. I take on different creative writing/design work, I work 2-3 days a week in a raw vegan kitchen and I resell vintage wares; it pays the bills while I transition to making creative writing my biggest income source.

4. Don't Spend Like You Did When You Had Full Time Employment. Don't Worry. It Gets Enjoyable: I'm not saying you can't indulge, but you can't have it all. My "splurge" is delicious, healthy food. I thrift for clothing/essentials. I still find excellent quality and downright beautiful clothing and household wares. (See: Name brand dresses I found for $2.50 each from a yard sale.) Choose a priority and utilize the thrift store, dollar store and bargain bins for everything else. Be creative and make what you can. (I make my own toothpaste / deodorant for example, not only cheap but effective and chemical-free.) Make do. I promise you won't feel deprived for long. Once these habits are incorporated in your life it becomes a fun challenge to make more things instead of "buy" and build up savings along the way.

5. Evaluate Every Single Business and Personal Purchase: Especially when you're starting out, spending wisely is critical. There's very little you need in your personal and business life to be successful so spend judiciously. My rule? I'm extreme. I buy NOTHING until it's absolutely necessary. I recommend you comparison shop, use discount cards/codes/memberships, and ask for freebies and sponsorships. Buy good quality so it lasts and only buy what you absolutely love. It's not just wise for your business, it creates a naturally zen, effortless lifestyle.

I earnestly feel like everyone should minimize and live beneath their means in these uncertain times. This post is for our fellow struggling entrepreneurs, but it's safe to say nearly everyone is feeling the burn and uncertainty right now. I hope these tips help whether you're starting out or you're a veteran looking for ways to save. We promise you won't have to work that corner or that pole to survive! 

Any tips for newbie indie business owners, or tips on saving during tough times? Do share in the comments, let's all help each other out.

*Note: I always appreciate when people share dissenting opinions, but please everyone, use tact when disagreeing. Please, no personal attacks. We're all above that. *
Daily thrifting updates, information, & Inspiration: Follow Thrift Core on Twitter and Facebook.

20 comments:

  1. Hi Van, great points no matter why type of self employment you choose. Especially the side gig part. You almost have to plan to lose money the first year and have another way to survive, and even in year 2 and 3 a side gig sure relieves pressure. Pressure that could rupture and cause you to give it up and go back to a 9-5 job. Hubby started his company 2.5 years ago and it is going strong - but - it is sure nice to have a bit of steady although small income from my parttime job. If our clients are late in paying we still have money coming into the household. Minimizing expenses like you have with a roommate are incredibly smart too. We downsized our house in size and $ by half and it is so much easier being self-employed with cheaper bills. Cheers!

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    1. I didn't know that. Thanks for sharing your experience with us! That was a big step on downsizing your house. I feel like these steps are worth it to be able to say you're really going for your dreams.

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  2. honestly I stopped after the food stamps part. I COMPLETELY disagree. Its there for those who *don't* quit their job. Its there to help people who are not unemployed/underemployed by choice. Yes I quit my job to be full time self employed but part of the "plan" is not taking government handouts. I don't appreciate paying more in taxes to cover you. I planned ahead to cover myself and my family without having to take more of your money away from you.

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    1. Hi Grace, thanks for your feedback. I apologize that my tips upset you; that was certainly not my intention. I believe that food stamps are there for those who need it, and for now, it is something that I need to survive. As Van mentioned in her comment below, I am pregnant, and I was working 11-hour days on my feet without breaks before I left my job. It was not a healthy situation for me, and yet another reason why I chose to start working from home on my own. I definitely do not plan on using welfare for the rest of my life, just until I get settled into a stable situation. I understand if you disagree with my point of view, but I do hope that clarifies things for you!

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    2. I'm coming back from work where I didn't get a good chance to read everyone's comments. Everyone's entitled to their opinions but I don't agree with personal attacks on this post and into the future. I do hope the post helps people learn some new things all-around.

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  3. Oh man, I'm disappointed! I heartily agree with Grace (above poster) on the food stamps issue. I understand your response but it is totally wrong to abuse the system that way. And yes, I completely believe she is abusing it. Her choice to quit- taxpayers shouldn't have to foot the bill. Makes my eye twitch! Your tips were much better and honest! I really hope you don't continue to promote biz owners who have such a skewed sense of entitlement.

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    1. I should note, I'm sorry, maybe I should have asked Steph to share it in her article, another reason she made the switch to full time self-employment is the fact that she's pregnant. She was working an intensive on-your-feet job in the heat and had to leave. I can see applying for medical assistance especially in her situation.

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    2. Just wanted to note that Stephanie likely paid taxes while she was in her former job--- she paid into the system, now she needs some help as she transitions. She will likely be paying into the system again when she gets her new career going. I doubt she is going to make food stamps a permanent lifestyle. Frankly, I'd rather my taxes go to a person like her than to, say, bail out greedy corporations or fund some CEOs golden parachute.

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    3. Thanks for that perspective. Working full time with no deducrions (single/no kids) she has certainly paid her dues to The Man. I know I have and contiue to and certainly have more qualms with tax dollars going to wars/ceos/etc.

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    4. Hi Caryn, thanks for your feedback. I apologize that my tips upset you; that was certainly not my intention. I believe that food stamps are there for those who need it, and for now, it is something that I need to survive. As Van mentioned, I am pregnant, and I was working 11-hour days on my feet without breaks before I left my job. It was not a healthy situation for me, and yet another reason why I chose to start working from home on my own. I definitely do not plan on using welfare for the rest of my life, just until I get settled into a stable situation. I understand if you disagree with my point of view, but I do hope that clarifies things for you!

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    5. Caryn, it sounds like you're the one with a skewed sense of entitlement. Does bigotry feel good? Does it make you happy? Because I find it disgusting.

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    6. I love opinions being shared so we can all learn, but on Caryn and Fenn's posts, please no more personal attacks.

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  4. Love that you suggest making what you can - I took to making homemade mayonnaise a while back and saved a ton! Great tip for entrepreneurs.

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    1. It's fun, too. I won't stop even when life's more "stable" :)

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  5. I apologize that my tips sparked controversy, that was certainly not my intention. I believe that food stamps are there for those who need it, and for now, it is something that I need to survive. As Van mentioned, I am pregnant, and I was working 11-hour days on my feet without breaks before I left my job. It was not a healthy situation for me, and yet another reason why I chose to start working from home on my own. I definitely do not plan on using welfare for the rest of my life, just until I get settled into a stable situation. I hope that clarifies things, and thanks again for having me, Van!

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    1. Stephanie, the criteria for receiving food stamps is that you meet a certain income guideline. You don't have to fill out an arbitrary moral questionnaire and you certainly don't have to apologize for anything. We all have different circumstances. Frankly, I am saddened that this discussion got derailed by a "shaming and blaming" ethos. I enjoyed all of your tips, and I especially appreciated the one about talking to your loved ones---and, I am going over to follow you right now :)

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    2. I'm back from an all-day kitchen shift to properly sound-off on things now! Feeling bad because everything was hastily read and responded to. Thanks for the kind words and feedback, Tilda. When I read Steph's post I thought there may be -disagreement- but didn't expect the harsh judgement, either. I agree, you don't have to apologize for anything. I don't feel like this post sparked true controversy but I do hope everyone appreciated the conversation because I've learned a lot because it was bought-up that I wouldn't otherwise.

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  6. In case Van decides to delete my shittier comments, I'll try to keep it nice here. (Although it's really difficult for me to be nice in the face of such obvious bigotry that is directed at a close friend of mine.)

    When I was in college, I definitely went to the food stamps office. After three hours waiting, I couldn't handle it. I decided that really cheap and unhealthy food was a better option than government help. I was raised by the kinds of people who don't believe in government help. I have never had insurance as an adult, and it has been over ten years since I last saw a dentist. I have never taken unemployment. I have never used WIC (never have been pregnant). However, I broke my leg in college and I filled out some paperwork and those medical bills disappeared. Also, in college, I couldn't afford food over a Christmas break, and I took a box of food from my church. I never felt guilty about those decisions.

    Aside from the fact that Steph is pregnant, I find it absolutely ridiculous that anyone should be forced to stay in a job they hate because someone somewhere has decided their ten cents a day is just too much for an artist to pursue her dreams.

    As for myself, what have I done when my art has earned me as little as $3000.00 in a year? Well, I've lived with my mom. And you know, I've received comments from my friends that I have it soooo easy because I can fall back on her. As if living on my own, in my own place, wouldn't make me feel like I were a more successful human being. I have taken random gigs doing weird shit. I've been on Craigslist and on some e-mail lists and I have done everything from helping someone move for $40 and a tank of gas to selling my own bodily fluids (hello plasma bank), and I even looked into selling my own eggs, but I'm too fat for that.

    I have survived off of peanut butter sandwiches for breakfast lunch and dinner because that is all I could afford. I have eaten granola bars with peanut butter on them because that was in the box from church. I have not so shamelessly let myself be invited to holiday dinners and begged for the left overs. I've walked when I couldn't afford gas or just spent time at home instead of driving 20 minutes to the beach when my budget was a tank of gas a week. I have cultivated a love of hiking and geocaching because they are super free activities. I have ditched out on plans when I didn't have the money and spent months avoiding friends...all of whom think I am a fucking idiot for being perpetually broke. I have sold everything I possibly could sell to make ends meet and lived in the closet of a kitchen pantry in an two bedroom apartment with four tenants.

    I sure as shit would've preferred to get some food stamps and some free insurance. And I'm currently on the waiting list for government assisted housing because I've decided I'm tired of being embarrassed.

    I've also given everything I can whenever I can. I donate all my old clothes to the Goodwill, have given homeless people food or money (and don't feed me your lines about them taking advantage of me), have rescued more than thirty cats over the years (and found homes for most of them). I have paid friends' rents when I was in a good period and given my home and my car to those who needed it. Because I do believe in giving back as much as I can...and because, unlike some of the above commenters, I'm not a bigot. I don't judge people based on my personal opinions. I don't spout ignorance at strangers who were putting themselves out there and sharing personal information with the internet.

    Some of y'all really need to check yourselves. I think both Van and Steph had really great tips. But at the end of the day, pursuing art is hard and going to a 9-5 or 9-9 job is EASY. So pat yourself on the back if you always work and don't take government assistance...if that's what you're into. I'd rather be honest and not a judgmental jerk.

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    1. I appreciate your story/experience/info, I've learned a lot from this.

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I love reading your comments. Thank you for adding to the discussion! I always reply to any and all questions.

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