A penny saved is a penny earned. We’ve likely all heard this maxim from Benjamin Franklin on more than one occasion and it is definitely a piece of advice that we should all take to heart. If you are reading this post and you’ve been following the online ventures of John Chow, then there’s a pretty good chance that you are not only interested in making money on the Internet, but you want to know how to make more money on the Internet.
That’s all well and good. Growing your income is always going to be appealing. The thing is that you have to understand how to best manage your money whether you’re making $100 a month or $100,000 a month. The same fundamental principles apply and it starts with having the right mindset. And a big part of this mindset is understanding that saving money (or spending it more wisely) can be very important too.
Forget About Rush Hour
Thankfully, when you dive head first and fully devote yourself to pursuing the dot com lifestyle, you are presented with incredible opportunities not only to earn more money, but to save more money too. Don’t get me wrong; it still costs money to make money and you’ll need to invest in the right places. The good news is that the very ecosystem of working for yourself facilitates more intelligent cost savings.
Let’s start with your commute. In both Canada and the United States, the average commute time for a full-time worker is just under half an hour. This means you’re spending about an hour each day getting to and from work, an hour that you’re not being paid for. This does not include the time it takes you to get ready for work in morning or the time it takes for you to get “out of” work mode when you get home.
It’s not just about time either. The commute can cost you a lot of money. If you drive, like many people do, it means you’ve got to pay for gas, oil, maintenance, and insurance, plus depreciation. By contrast, if you work from home as an online entrepreneur, your commute is from the bedroom to the home office and it costs you nothing. Indeed, you could go from a two-car household to a one-car household or, if you want to go even further, you might be able to get rid of your cars altogether. That saves you hundreds of dollars every month.
Put in the Bank
What about all the other stuff that goes with a regular job? You probably have to buy a new wardrobe now and then in order to maintain appearances, but when you work for yourself from home in front of your computer, you can wear whatever you want. There are no added expenses here. Since you’re spending more time at home, it likely means that you’re preparing more of your own meals at home too. That’s even more cost savings.
When you have to leave your house to get to your job, you want to have a cell phone plan that can cover all everything you want to do. When you work from home, you can rely more heavily on your home Wi-Fi for your smartphone. This means that you may opt to downsize your data plan and net some extra savings too.
But it costs money to run and maintain your own office, right? One of the biggest advantages to working for yourself is that you can write off your business expenses. This not only includes supplies. It can also include a portion of your utility bills, like heat and electricity. I’m not a lawyer or an accountant, so you’ll want to check your local laws to ensure you are in compliance.
I’ve Got My Mind on My Money
Does this mean that dot com moguls are compelled to live remarkably frugal lives? No, not necessarily. Those of us who make our living on the Internet like to eat out at fancy restaurants as much (if not more) than anyone else. The difference is that we can probably write off that meal.
And the richest people you see are oftentimes not the people you think they are. They’re earning, saving and investing with savvy and prudence.