WFH #1: Starting My Very Own Online Business

Like I mentioned a while ago, working from home is definitely NOT for everyone. And before I declared myself as one of those who is not suitable to work full time online, I would at least want to give it my best shot.

After checking out a few marketing forums and work-from-home blogs, I have decided to delve into eCommerce.

Before you hold up your hand and give me a big thumbs down, let me explain why I choose to go into eCommerce. Obviously, having an online eCommerce store has its pros and cons.

And I know the learning curve, not to mention the effort and time, to set up one is humongous but I cannot deny that fact it can be a pretty good source of income if it works out.

There are a few good online eCommerce courses that I am currently considering - and since setting up an eCommerce store is not as easy as just setting up a website and adding in a shopping cart.

I am really hoping to find an online eCommerce course that provides step-by-step details on setting up a full-fledged online retail store which includes how to best do marketing and promotion for the store and so on.

I named the prefix of the post title as WFH (Work from Home) #1 so that people who are interested to follow along my journey and progress can easily identify which posts to search for. :)

I will be updating my progress via another post once I start my online eCommerce education. Stay tuned...

Hurray!...a Salary Increment!

Most people are in cloud nine when they are given a salary raise. Oh wait, most people? Why not all people?

Some  Most people I know are unhappy with their increment in salary. Are these people truly worthy of a higher increment? I will leave this 'sensitive' discussion debate for another day.

Let's talk about what happen when there is a jump in salary. What do most people do with their new salary increment?

Let's say Joe's monthly salary is $2500 and he has just been given a raise of $125. A typical 5% increase in salary. Joe is both happy and overjoyed.

And so he decided to stepped up his lifestyle:

• get his monthly haircut at a more 'premium' saloon which is $40 instead of the usual $20
• more restaurant meals and clubbing with girlfriend - monthly expenses goes up from $500 to $700 a month
• signed up gym membership for $80 a month

From the look of it, most people, including Joe, do not really think there is anything wrong with this little increment in expenses since he has just been giving a raise in salary.

Well, let's do an analysis of his increment in salary vs his 'minor' monthly expenses.

- His increment in salary: $125 (up 5%)

- His new monthly expenses after salary increment - $300 (up 12%)

• $20 (haircut)
• $200 (restaurant meals + clubbing) + 
• $80 (gym membership)

There was a 5% increase in salary and that causes Joe to up his seemingly little increment in lifestyle expenses by 12%.

Let's assume Joe used to save $300 a month before the salary increment. After the rise in salary ($125) and his new increase in expenses ($300), he can now only save $125 (58% lesser in saving).

Most people, myself included, have not really looked long and hard into our monthly expenses and it remains a myth to me why people always tend to spend way more than they used to after a salary increment.

A raise in salary may not be a raise after all if we end up saving less each month

Oops...I Did Not See That Coming

Often time, we get too caught up with our pursue for self satisfaction and happiness that we do not foresee or consider the impacts of the decisions we made.

Are You Thinking of Quitting Your Job?

Quitting your job is often the most easy and satisfying part. You get to boost your ego and self-esteem after throwing the resignation at the face of your asshole boss.

Then what's next?

What follows may cause you to quiver in fear if you are not prepared for the decision/action you do today.

You may have a 2 to 3 months of exact savings to tide you over the next few months.

Most people save JUST enough to cover expenses for 3 meals, insurance, rent, commute, phone and utility bills. Probably Internet bill too.

Sound good and well prepared?

Not really.

What about things like:

• medical expenses - if machines can break down once in a while, so can we. If you have young kiddos at home, then all the more you should prepare for this.

• necessities - groceries, toiletries, cosmetics (vain-pots only) and so on...

• unexpected expenses - landlord may decided to increase the rental starting next month, that air-conditioner in the bedroom may decided to breakdown during summer time...

• recreational expenses - most of us have social life. See what happens when your best friend's birthday is around the corner, gifts for niece's full month celebration, seasonal events like Xmas...

• Unexpected turn of events - Oh no...you are unable to get a job for months and your savings are starting to dry up.

Start Tracking Monthly Expenses

Only by tracking your daily expenses will you be able to know exactly how much you will need to tide you over the unemployment period. Never try to convince yourself that you can live like an hermit after you quit your job.

Are you sure you can stay in-door every single day and will not think of meeting up with friends, shopping and so on? Stop kidding yourself - unexpected expenses like medical bills will not crop up...

Once you have a saving of at least 3 month that reflects your current expenses, you may be ready to choose an auspicious day to fire that boss of yours.