How much money is enough?

[spaceboy]

Hi Everyone,

Just decided to take a day off from my business today and just out on a walk with my dog for a little self reflection.

I wanted to ask self employed people out there a personal question which is

'How much money (profit) do you aim to earn per week or per month? And how much amouht of money is enough for you to feel content?

The reason I ask is probably due to a weakness in my character and how I evaluate progress. however week in week out I work as hard as I can to earn as much as I can but if I get to Wednesday and I have only earnt £100 I start to panic

So let me start things off

I aim to earn £1000 per week anything over is an absolute bonus anything under I feel that lack of achiement but in all honestly I could easily survive on £500 per week to pay mortgage/bills etc

Would be interesting to see how other people look at things

Cheers

 

[liams7]

This is all relative and depends on your goals surely.

If you live at home with your mum and only have £300 a month out goings then £1000 a month is probably good enough if all you want is not to work at tescos.

If you have a family and a mortgage then as long as your covering this most people would be content if they have a lifestyle business.

If you are looking to build a business then you would need a plan and only that plan can tell you how much you need to earn.

You could check to see if you did it as a job what would you get paid and are you earning more than that as a freelancer as then at least being freelance your not loosing money if thats the right term to use.

 

[spaceboy]

Yep I agree with everything you have said.

I have a mortgage and family and £500 profit per week we can scrape by on but I am not content with that perhaps because greed overtakes? However I am happy with £1000 per week as I can then easily afford a comfortable lifestyle and put a little aside each week to grow my business

I believe the way I am looking at this has set me up for failure as I put so much pressure in earning that money it really takes the fun out of everything and creates stress. I guess i just wanted to know how much the average self employed person aims to earn per week but I agree there are many factors at play and different for everyone so maybe I won't seek the answer I was looking for

 

[liams7]

What do you do?

 

[Mike W]

As Liam says, it's all relative. You'll also probably find that what appears a lot today isn't tomorrow.

I remember years ago earning £60 per week and was over the moon when, having moved into direct sales, earned my first £200+ cheque. After a while, then earning £15k pa, I envied those earning £30k+ and some. But each time I earned more, surprisingly I found myself spending more.

So, although this may sound bizarre, getting to earnings of £60k+, and for quite a while, when the company had problems and my earnings fell to £40k ....I felt skint!

 

[Davek0974]

Depends too much on the individual.

Personally, we could survive quite happily if I took home £550-£600 a week, we have no kids at home and mortgage is clear now.

More is always a bonus and we could save for a rainy day but to survive happily, in todays climate then that would do it. Of course that could all change tomorrow, next week, next month.....

 

[spaceboy]

What do you do?

I run a vending business refilling and stocking drinks and crisps in outlets across London boroughs

 

[spaceboy]

Depends too much on the individual.

Personally, we could survive quite happily if I took home £550-£600 a week, we have no kids at home and mortgage is clear now.

More is always a bonus and we could save for a rainy day but to survive happily, in todays climate then that would do it. Of course that could all change tomorrow, next week, next month.....

Well that's the ultimate goal Dave and congratulations on achieving it (paying off the mortgage) that's part of the problem ai have due to living in the South it is the main cause of the pressure I face in meeting my financial commitments

 

[spaceboy]

As Liam says, it's all relative. You'll also probably find that what appears a lot today isn't tomorrow.

I remember years ago earning £60 per week and was over the moon when, having moved into direct sales, earned my first £200+ cheque. After a while, then earning £15k pa, I envied those earning £30k+ and some. But each time I earned more, surprisingly I found myself spending more.

So, although this may sound bizarre, getting to earnings of £60k+, and for quite a while, when the company had problems and my earnings fell to £40k ....I felt skint!

Perhaps this is physiologically my main worry Mike! Getting used to a comfortable level of earnings and worrying so much that one day my business makes a decline and coming to terms with the drop of income and decrease of living standards?

That's the main problem with being self employed rather than a secure salaried job, you never know where the next cheque is going to come from

 

[Ian J]

I remember years ago earning £60 per week and was over the moon when, having moved into direct sales, earned my first £200+ cheque. After a while, then earning £15k pa, I envied those earning £30k+ and some. But each time I earned more, surprisingly I found myself spending more.

I started my working life with a well known insurer earning the magnificent sum of £8 per week plus Luncheon Vouchers and even in the very early seventies my ambition was to reach the heady heights of £2,000 pa

 

[Ian J]

Perhaps this is physiologically my main worry Mike! Getting used to a comfortable level of earnings and worrying so much that one day my business makes a decline and coming to terms with the drop of income and decrease of living standards?

That's the main problem with being self employed rather than a secure salaried job, you never know where the next cheque is going to come from

There's really no such thing as a secure job anymore

 

[Darryl Wright]

I personally aim for £1000 per week profit, I can survive on £500 per week, so if I have a bad week which would be £600 per week I'm still earning over my lowest amount, Going over also gives you some money to cover any holidays, and sick days, Good luck for the future

 

[FEAR]

Read T Harv Ekers "secrets of a millionaire mind" - we're all conditioned to accept certain levels of income, and our expenditure increases alongside it unless we decipline ourselves to save or invest. It's an interesting read, how much money is enough is really a how long is a piece of string question

 

[spaceboy]

I personally aim for £1000 per week profit, I can survive on £500 per week, so if I have a bad week which would be £600 per week I'm still earning over my lowest amount, Going over also gives you some money to cover any holidays, and sick days, Good luck for the future

Thanks Darryl,

Sounds like you are in a similar boat to me regarding income expectancy. When you wake up on Monday morning do you worry if you are going to reach your goal or not? Or are you more laid back and just go with the flow?

 

[spaceboy]

Read T Harv Ekers "secrets of a millionaire mind" - we're all conditioned to accept certain levels of income, and our expenditure increases alongside it unless we decipline ourselves to save or invest. It's an interesting read, how much money is enough is really a how long is a piece of string question

Thanks for the recommendation! I will order the book on Amazon now

 

[spaceboy]

There's really no such thing as a secure job anymore

I agree Ian but I do think being employed is a lot 'safer' than being self employed! For example if I were employed by a large corporation such as BMW, I would be pretty confident my job would be safe for the foreseeable future! With my business it may not even exist this time next year!

 

[sirearl]

That would depent on ones personal circumstances allied to what you think is important in life to you.

 

[Darryl Wright]

No not really my business has an amount of anual servicing so I know that I've got a certain amount coming in every month, But one thing I've learn't (the hard way) is to market your buniness daily even if it's at night when you've just sat down after a long day, just 30 mins day gives you 3.5 hours a week (7 days I work ) which can be enough to get an extra couple of clients per month

 

[spaceboy]

No not really my business has an amount of anual servicing so I know that I've got a certain amount coming in every month, But one thing I've learn't (the hard way) is to market your buniness daily even if it's at night when you've just sat down after a long day, just 30 mins day gives you 3.5 hours a week (7 days I work ) which can be enough to get an extra couple of clients per month

That makes sense and perhaps I should do something similar.

Darryl, in that case do you worry about losing clients? Or worry about maintaining the current number of clients you have? I'm in a similar position to you for example I know that with so many vending machines out there they will all combine to produce an average amount of revenue per month but I do find myself worrying about losing sites which would result in a reduction in combined sales. So back to your point, getting new business is essential

 

[Darryl Wright]

Yes all the time , I've lost several contracts to larger companies who can do the job cheaper not better but cheaper, because they have the numbers and pay staff less. I've started social media marketing, because its basically free to do and it can be done at any time. Try looking at competitors and see what they do, if they have a good idea use it. I've even priced jobs just to get them but didn't make much money , So I now only price to make profit, we all havea value and we should stick to them.

 

[MASSEY]

It's a question i often ponder and it is difficult.

When i was first working getting an irregular income i envied people on full time minimum wage jobs. Once i got my full time and slightly better than minimum wage jobs i envied people earning £10 pounds and hour. We always want more and more.

The thing that makes it worse when you are self employed is your money isn't your own in the way it is for someone who gets a salary every month without fail. You also have to plan and put money away for the rough times. If your bank account hits zero, you're done so we have to squirrel away.

I know people who couldn't even scrape by on £500 pounds a week, they probably spend £250 a week on beers and fags so it would earning so little would feel like a death sentence to them.

I don't think i will be happy until i earn £150k a year

 

[sirearl]

It's a question i often ponder and it is difficult.



I don't think i will be happy until i earn £150k a year

Don't work like that for most,the more they have the more silly things they seem to have to spend it on.

Its how you manage your life that is the key to happiness.

 

[paulears]

I used to worry about money, and tried to get as much as I can. Now I'm in my 50s, my desire for money has waned considerably, and I am happy turning down rubbish work, and doing things for myself - I have no idea how much I earn, it appears to be sufficient, I seem to have enough for my needs. I have options to earn more, but I don't always take them? Chasing the last pound is now something that I just cannot do any more. If the bank balance looks less healthy, then I say yes to a few more jobs, but now, only the ones I fancy. It's rather nice, actually!

 

[spaceboy]

It's a question i often ponder and it is difficult.

When i was first working getting an irregular income i envied people on full time minimum wage jobs. Once i got my full time and slightly better than minimum wage jobs i envied people earning £10 pounds and hour. We always want more and more.

The thing that makes it worse when you are self employed is your money isn't your own in the way it is for someone who gets a salary every month without fail. You also have to plan and put money away for the rough times. If your bank account hits zero, you're done so we have to squirrel away.

I know people who couldn't even scrape by on £500 pounds a week, they probably spend £250 a week on beers and fags so it would earning so little would feel like a death sentence to them.

I don't think i will be happy until i earn £150k a year

Yes I agree completely, the more we have the more we tend to want but to be honest the only thing I want is stability and regularity. £150k per year should be good enough for me

TBH my main goal for what I want my business to achieve for me is to pay off my mortgage and have enough money to retire on by the time I'm 50 years old as well as provide a nice standard of living up until then. So.... Not a lot to ask!!!!!!!! I don't mind working hard to achieve this though

 

[spaceboy]

I used to worry about money, and tried to get as much as I can. Now I'm in my 50s, my desire for money has waned considerably, and I am happy turning down rubbish work, and doing things for myself - I have no idea how much I earn, it appears to be sufficient, I seem to have enough for my needs. I have options to earn more, but I don't always take them? Chasing the last pound is now something that I just cannot do any more. If the bank balance looks less healthy, then I say yes to a few more jobs, but now, only the ones I fancy. It's rather nice, actually!

I liked reading your post Paul and I guess where you are at right now - financially and mentally are perhaps what most of us strive to get to. You seem to have found peace in the way your run your business regarding the money side and I envy that! Money takes constant control of me and it's hard to distance myself from it but perhaps that's because I am 30 years old starting a family. I often try and take some time out to think about the things I do have rather than the things I don't and it makes me feel better (for 5 minutes) and then I carry on worrying as if the time out I took never actually happened!

 

[spaceboy]

Yes all the time , I've lost several contracts to larger companies who can do the job cheaper not better but cheaper, because they have the numbers and pay staff less. I've started social media marketing, because its basically free to do and it can be done at any time. Try looking at competitors and see what they do, if they have a good idea use it. I've even priced jobs just to get them but didn't make much money , So I now only price to make profit, we all havea value and we should stick to them.

Well selfishly it's nice to hear others are in the same boat as me and have the same worried and anxieties I face in a day to day basis. good luck with your social media marketing, it has inspired me to take a look at how I can apply this to my business

 

[Jane101]

How much money can be enough?

Can a human ever be content with amount of money he has, even if he/she is filthy rich?

 

[BartJr]

The answer is: there is never enough

 

[iconic]

That makes sense and perhaps I should do something similar.

Darryl, in that case do you worry about losing clients? Or worry about maintaining the current number of clients you have? I'm in a similar position to you for example I know that with so many vending machines out there they will all combine to produce an average amount of revenue per month but I do find myself worrying about losing sites which would result in a reduction in combined sales. So back to your point, getting new business is essential

spaceboy,

You seem to worry a lot about loosing clients?

Just make sure that you look after the clients that you do have to the best of your ability, and keep the marketing up in order to find new clients - try and focus on the positives and push the business forward.

If I loose a client for some reason I go out and replace them with 2 more - it works for me...

Andy

 

[JEREMY HAWKE]

I used to worry about money, and tried to get as much as I can. Now I'm in my 50s, my desire for money has waned considerably, and I am happy turning down rubbish work, and doing things for myself - I have no idea how much I earn, it appears to be sufficient, I seem to have enough for my needs. I have options to earn more, but I don't always take them? Chasing the last pound is now something that I just cannot do any more. If the bank balance looks less healthy, then I say yes to a few more jobs, but now, only the ones I fancy. It's rather nice, actually!

Me to and those of you on here for a while may see this being reflected in some of my posts .
I'm a granddad and I more concerned these days about being a good granddad than being Mr highlife in the fast lane . I could do loads more especially now with the economic upturn and some of the new opportunities out there but this week I am mostly concerned that my lawn is too yellow for the end of April . That said I'm lucky though I can still run every morning and still got my fitness so if any of you in your 20s or 30s that might feel you can out do me ....You cant

In the old days I would chase and take on any deal going .We had some good ones and some real bad ones !!!. I also feel that as you get older you are less willing to take the risks . My business is a lot smaller now but has no risk and no big credit accounts like we carried in the past .
So if we dont make any money this week I don't care because we may make some in May !!

 

[paulears]

I think that's two of us who have realised that family and friends are far more rewarding than working 12 hour days! But this is simply down to having done it and gone out the other end. My business has never made vast sums of money, but my mortgage is paid off, I fund everything through bank account balance, no loans, what I have, I own. Now I'm at that stage it's easy to say I can be choosy. Too many younger people MUST generate X amount each month to stand still. My kids are like this, and I help them rather than blow the money on holidays. Money definitely does NOT make you happy if you have to worry about making more! Ten years ago I worried about money, now I don't.

 

[Nuno]

There are stages of 'how much money is enough'.
A lot of the more experienced members are happy with no mortgage and no day to day worries, spending more time with their families.
Others will get to this stage and then see money as a way to measure success against competitors. For these people 'the one with the most in the bank when they die, wins'.
Not very deep or fufilling but the way people live, and for them no amount of money is enough.

 

[Deleted member 59730]

For these people 'the one with the most in the bank when they die, wins'.

Sell them shrouds with pockets.

 

[BustersDogs]

It's never enough. I go into my customers houses, some have a kitchen that's bigger than my entire ground floor and I think 'one day I'll have a big house like this'. Then those customers say 'I like to look at the big houses when I walk my dog'. hmmm. I thought they already had a big house...

But compared to my three brothers, one in a mobile home, one in a 6th floor flat and one lodging in a room in a friend's house, I probably have a big house.

I have goals for my business, not for me personally as my business is my hobby and my hobby is my business. So as long as my business has an income that allows me to carry on my hobby and pay my bills, I'm happy. The profit isn't so important, because my hobby counts as a business expense. I am trying to change this way of thinking (last year I cut out all loss making services,although we still have a few breakeven), but we're in a bit of a dip at the moment due to a rogue staff member (now on his way out, as this year is the year of cutting the loss making staff!) and once we've rebuilt again I'm aiming to improve the profits.

I just have to stop spending on dogs and dog shows and dog equipment that the business doesn't *need*.

 

[Talay]

Loose aspirational demands for "x" hundred thousand a year are meaningless as once you have it and you buy the larger house, newer cars, better holidays etc., you actually need to earn more as the upkeep of such things is quite an amount.

It is easy to drift into a lifestyle where £100k plus spending on "necessities" becomes the norm and cutting back becomes a harder challenge than earning the money to keep spending !

 

[hogo192]

It is depend on your life style and nature of satisfaction, if you are following the quote "Simple Life & High Thoughs" then 500 pounds will be enough but if you follow glamor life style then you will not satisfy with 1000 pounds. It all depend on your nature of satisfaction.

 

[vvaannmmaann]

The typical family of four in London took home a gross household income of £79,571 and have £22,546 a year left after tax, childcare and essential spending such as food and utility bills. Once mortgage costs have been stripped out this leaves them with £347 a year.

http://www.telegraph.co.uk/finance/...w-much-cash-is-left-after-mortgage-costs.html

 

[Nuno]

Those Lunnuners will be making tax free capital gains on their property in excess of their gross income.
Leveraging is a bit of a problem sure, but after a few years of relative penury, and it is only relative, they will have done quite well, thank you.
Unless of course the next, coming, crash puts them under water, makes them live with negative equity.
Poor, poor old Lunnuners.
(Actually I do feel sorry for them after living in the heap of odure called London for many years, and now waking to bird calls and a lack of sirens, which really is a better option. Its not just the money.)

 

[miggygreene]

Well, the truth is there's never enough. I know I never seem to have enough for all the things I want to do.

A lot of people have no idea how much retirement or a dream vacation in the future will cost. Others would simply over save, or worse yet, take on too much unnecessary risk to achieve life's certain goals.

But really, the question of "how much money is enough?" is different for each of us.

 

[spaceboy]

spaceboy,

You seem to worry a lot about loosing clients?

Just make sure that you look after the clients that you do have to the best of your ability, and keep the marketing up in order to find new clients - try and focus on the positives and push the business forward.

If I loose a client for some reason I go out and replace them with 2 more - it works for me...

Andy

Thanks for the encouragement Andy, your right about keeping my current clients happy and I do my best and not a bad job either but the nature of my business is that you are always losing sites so I constantly need to go and get new business which proves harder and harder each year