Coronavirus

Choose Wisely – Side Hustle Edition

March 26, 2020 by tanya

When the status quo gets interrupted, one is forced to pay attention and make an assessment. I’m referring to a true, honest assessment. No delusion. No excuses. No fiending ignorant. Right now, one can either act like a deer in headlights, or recognize what’s happening and take action.

We’re in the midst of a pandemic. The novel coronavirus, COVID-19, has upended life in the United States and other parts of the world. Local governments are minimally operative, restaurants and many other businesses are closed (with restaurants being allowed to provide food via take out and delivery). Individuals are being asked (or in some cases, being mandated) to stay at home. Many hospitality and retail workers have lost their jobs. Others are working from home. When outdoors, many of us are practicing social distancing by staying at least 6 feet away from other people. If you’re living in the United States, you know that life is very different right now. People’s lives are at stake. So are people’s livelihoods.

The economy is in shambles. In addition to worrying about staying healthy, many of us are concerned about how we will continue to earn income and be able to provide for ourselves and our families.

We hear about multiple streams of income. At this point, we’ve heard it enough to know and believe that it is absolutely the way to go to not only increase income, but to hedge against risk. If one source of income disappears or becomes unstable, the other sources of income can take up some of the slack. We get that. It makes perfect sense.

To rely on one source of income is silly.
~ single girl

That’s why we have such a strong side hustle zeitgeist these days. In addition to someone’s day job, they also drive Uber (and Lyft). In addition to working as an employee for one company, people freelance on the evenings and weekends as a contractor.

I, too, totally understand and believe that multiple streams of income are necessary – absolutely necessary. To rely on one source of income is silly. So, like many, I have other hustles. In addition to having licenses to practice law in 2 states, I also have a real estate sales license, and 2 securities sales licenses (see my post https://singlegirlslaysdebt.com/a-14000-windfall/ about a $14,000 commission I made last year). I’ve also done some teaching.

My rationale in choosing these additional income sources was that they could provide me with higher paychecks. With real estate and securities sales, agents (in the case of real estate) and representatives (in the case of securities) get paid commissions. So, what you make is based on a percentage of the deal. If the deal is a small one, the commission will be small. If the deal is a big one, though, the commission will be much larger. Since the amount of work necessary on each deal isn’t always commensurate with the price on the deal, the idea of getting a commission seemed like a really good idea to me. But it wasn’t such a good idea – not when I want my hard work to be smart work.

When I got into my side hustles, I thought they made perfect sense. They relate to what I already do, so I thought I’d be in a good position to utilize the knowledge, network and background I already have. It was a good natural next step. From a short-term perspective, I guess it makes sense. At least, I thought it did.

Here’s where I made a misstep: I chose side hustles that don’t properly leverage my time, even though they’re “professional”. The problem is that my side hustles involve the provision of professional services – and I am the provider of the services. I didn’t use my knowledge and background to create products that could be sold time and time again and that could produce money even when I’m not actively working. Instead of taking the time to create at least one income stream that isn’t directly related to my time, all of my side hustles are based on my individual effort. Not the best idea.

I’m still trading my personal effort for money. He regrets it. I don’t want to be his age and be regretful too.
~ single girl

I recently spoke to a man who has been in the securities industry for over 30 years. I asked him what he would have done differently, knowing what he knows now. He said that he would have built a business that wasn’t so dependent on him – something that could be deemed an asset that could be sold. With the choices I made for side hustles, I am on the same track as this guy. I’m still trading my personal effort for money. He regrets it. I don’t want to be his age and be regretful too.

The good thing is that, with additional licenses and services I provide, there can be more checks and the checks can be bigger. The bad thing is that, if I’m not working, there are no checks. I’ve positioned myself to be able to make more money, but that position is one that ties me to trading hours for dollars. And all of my dollars are tied to me doing the work. None of my side hustles can function in my absence. I haven’t set up streams of income that don’t rely on my continued, individual effort. In the same way that a stock portfolio should not be limited to just one stock or one industry, my income streams shouldn’t all depend only on my individual efforts. This model that I’ve set up is stupid. Really stupid.

Coronavirus Cocoon

March 20, 2020 by tanya

Photo by **Lisa Fotios** from **Pexels**

In my last post, I wrote about seizing this mandated seclusion as an opportunity to get some things done. I’m committed to taking my own advice.

For the last couple of months I’ve been feeling led to “go into the lab.” The lab is where things happen – a place that doesn’t get penetrated by outside influences. It’s a place designed for focus, creativity and innovation. I’m not sure who originated the term, but I’m familiar with it because I’m a hip hop fan (90s and 2000s hip hop, since I can’t even understand what these new hip hoppers are even saying) and I went to college on the East Coast. I heard the term a good bit in my late teens and early 20s.

“The Lab” – The lab is any place where you can go to focus, practice your skills and get work done. Go to the lab when you need to straighten something out.

~ Urbandictionary.com

I’m feeling the need to really buckle down, focus and make significant progress on some things that I need to get done. And I’m feeling like I need to take some extraordinary action in order to get the extraordinary results I’d like to get. Sometimes, that’s necessary – big action for big results.

When I was studying for the bar exam, I was laser focused. In the initial months of my studying I went to work, worked out, cooked, went to church and studied. That was about it. I didn’t go to social events. I didn’t shop (other than for food). In the final 2 weeks of before my exam, all I did was study and exercise. Nothing else mattered to me at that time. I had to pass this exam! I was willing to cut out anything unnecessary in order to do that. I didn’t want to go through the process of studying for months again. So I ate, breathed, and slept the bar exam materials. And I passed.

My bar exam success was based on 3 months of focused time and effort. I’ve learned first-hand what that level of focus can produce. There’s tremendous value in focus – in deciding upon a particular thing and working toward it.

I wish everyone well, but you need to focus on yourself. You need to stop putting your hand out. Everyone wants handouts. Everyone wants things for free. You’ve got to put in the work. You’ve got to grind. You’ve got to go through the struggle, and you’ve got to get it.
~ Conor McGregor

I’ve learned that guys call an extreme version of this isolation and focus “Monk Mode.” I say that it’s an “extreme version” because Monk Mode includes the cessation of indulgences in sex, porn, masterbation, alcohol and some other things in which a true monk wouldn’t engage. I don’t know if I’m committed to giving up aaaaallllllll of that at this time. I’ll marinate on it.

A tip that I’ve come across in learning more about Monk Mode is that it is critical that one have very clear, hopefully quantitative, goals for one’s focused isolation time. In other words, like other goals or processes that involve sacrifice, the “why” must be very clear and motivating.

I’m feeling the need to really buckle down, focus and make significant progress on some things that I need to get done. And I’m feeling like I need to take some extraordinary action in order to get the extraordinary results I’d like to get.
~ single girl

While I’m still in the process of figuring out what my cocoon will look like and what the exact, defined goals would be, I do have some ideas. For example, during this time period, I won’t be going on dates that I don’t really, really want to go on (compare this to being “fine” with going out with that person and seeing what they are like). This will mean that my focus will be on activities that make me and my business better and limiting or diminishing non-productive activities. I’ll be very conscious and conscientious about what I’m consuming (from food and liquids to written and video media). My communication with others will be more controlled and regimented (i.e., I won’t allow for as many random conversations throughout the day). These are just some ideas.

I was feeling this way before the whole coronavirus self-quarantines and social distancing that we’re doing now. Considering what is going on, I’m thinking that now might be a good time for me to get started with this or to, at least, start preparing to do it.

4 Great Things To Do While You’re Coronavirus Cooped Up

March 17, 2020 by tanya

The coronavirus has life around the world in upheaval. The crazy thing is that with me stating that “the world” is in absolute shambles, I’m not exaggerating – at all. Economic markets are volatile, people are staying away from each other in order to help contain the virus, and there is a general, heavy sentiment of uncertainty not just in the United States, but in many other countries.

That said, I understand and support the fact that we really, really need to isolate ourselves to reduce the spread of the virus. I’m all about that #staythefuckhome life.

In addition to the good staying home provides in helping to reduce the spread of the virus, staying home also presents some other great opportunities. While staying healthy (and trying to help keep others healthy), there are several things we can do to make the best of being cooped up in the house.

(1) Clarify and Decide

Are you in the same position now as you were during the 2008 economic downturn? Now is the time to think about and plan for how you will position yourself to be in a better position for the next downturn. It is important to see things for how they really are, then become very clear on what you want them to be.

What’s your current situation? What kind of job do you have? What is the likelihood that your employer will be able to continue to stay in business and pay you if the current circumstances continue for much longer?

What I’m getting at is that this is a chance to start playing chess, instead of playing checkers from a strategic life standpoint.

What you have at your fingertips is justified seclusion. That’s really an opportunity to think. It’s a chance to stop moving through life unintentionally and to devise a plan.

Write a clear vision for where and how you want to live the next time an event of this nature occurs. Economies are cyclical so be assured that another economic downturn will come – whether it’s due to a pandemic or some other reason. Something like this will happen again. Decide what you are willing to do to be in a better position when that happens.

(2) Stop Procrastinating

You know all that stuff you’ve been saying you “need to do” but haven’t? Now would be a good time to start addressing those things. You have nowhere else to be! Since it’s not safe for you to be in these streets like you have been, you can tackle some of the projects that have been on the way back burner in your life for too long.

Procrastination also applies to the other things that you’ve been saying you need to do, but haven’t. Yesterday, for example, I had someone reach out to me saying that he’s been putting off adding his wife to the deed on their property and he doesn’t want to put it off any longer. Since I’m a business and real estate attorney, he reached out to me so that he could get the ball rolling on that process.

Have you been putting off certain other “life stuff” that you need to start handling?

Do you have life insurance?
Do you have a will?
Do you have any of the pictures in your phone printed and hanging in your home? (There are online services that will do this for you.)

Now’s your chance to start getting some of those things off of your to-do list.

(3) Get Your House In Order

This one piggybacks on the previous opportunity. You’re stuck in your home, so get it together. You know all of that stuff you’ve got around the house that you’ve been saying you’ll handle, but haven’t yet? Now would be a good time to start working on them. When was the last time you did a deep, deep cleaning? Are your cupboards organized or in disarray? What about that stack of mail that’s been sitting in a drawer or in a corner somewhere? Aren’t you tired of it?

I’m a firm believer that one’s external environment is reflective of their internal environment – how they are thinking and feeling mentally. When I’ve got stuff all over my countertops and papers strewn all over my desk, know for sure that I’m mentally out of order. Sometimes the first thing I do to pull myself together is to pull my space back together. It makes a huge difference.

I have 3 friends whose homes are in shambles. That’s not judgment – it’s fact. They are embarrassed to have visitors and they, themselves, don’t like their physical environments. Since I know them well, I can say that their minds are often as cluttered as their environments. And their embarrassment about letting others into their living spaces impacts their personal relationships. I think it also impacts how they feel about themselves. They live in a constant reminder that, though they feel they have some areas of their lives together, there’s at least one area where they’re really falling short.

From the moment you start tidying, you will be compelled to reset your life. As a result, your life will start to change. That’s why the task of putting your house in order should be done quickly. It allows you to confront the issues that are really important. Tidying is just a tool, not the final destination. The true goal should be to establish the lifestyle you want most once your house has been put in order.
~ marie kondo

They won’t take the time and energy necessary to organize and to clean their environment. And it really takes time and effort. A significant amount of time and effort. What should you have more of right about now? Time. But cleaning up and organizing is worth every minute. As famous declutter and organizer, Marie Kondo, says, “From the moment you start tidying, you will be compelled to reset your life. As a result, your life will start to change. That’s why the task of putting your house in order should be done quickly. It allows you to confront the issues that are really important. Tidying is just a tool, not the final destination. The true goal should be to establish the lifestyle you want most once your house has been put in order.” So, clean up. Declutter. Get your house in order.

(4) Buy Some Stuff

I’ve been reading and listening to financial and market commentary. Prior to the COVID-19 outbreak, financial experts were predicting an impending recession – a recession that was anticipated by late 2020 or early 2021. Now, financial experts are saying that a recession is almost certain (though one hasn’t yet been officially declared) and will be coming sooner than originally anticipated.

I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.
~ WARREN BUFFET

If you’re in the position to take advantage of the “on sale” stock market, you have an opportunity. If this continues too much longer, there may be some real estate on sale as well. Remember, some people thrive in economic downturns. Perhaps that can be you.

Instead of considering myself to be “stuck in the house,” I view this as an opportunity to be “in the lab” (that’s a 90s hip-hop term). This is a time to do some evaluating and to get some things done. If you make this a Netflix and super chill situation, I’m pretty sure you’ll regret it later. Be well.

Is a $1,000 Baby Emergency Fund Enough?

March 13, 2020 by tanya

Photo by Fusion Medical Animation on Unsplash

It’s crazy out in these streets right now. The President has declared a national emergency and has restricted air travel to and from 26 countries. The Dow Jones Industrial Average posted the largest single-day drop since the 2008 economic downturn. Major events like the SXSW (South by Southwest) concert and Coachella have either been cancelled or postponed several months. The rest of the NBA (National Basketball Association) season has been suspended. Schools are closed. Disneyland, for God’s sakes, is closed! Worst of all, toilet paper on a store shelf is nowhere to be found. You can’t even get it from Amazon.

Though I’m not panicked, I’m now in a state of being reactive. I feel the need to obtain a bunch of household supplies because I’m concerned that they won’t be available in a few days or next week when I need them. I hadn’t planned on doing this, but am doing it now. Why? Well, because everyone else is taking all the stuff.

This comes amid concerns about the spread of the coronavirus in countries around the world, including the United States. It has now, officially, been declared a pandemic. What concerns me about this situation is not the virus itself (except to the extent that it could impact my parents and other elderly loved ones), but how people are responding to it. The level of fear and the corresponding actions that are being taken in response to it are concerning.

Though I’m not panicked, I’m now in a state of being reactive.
~ single girl

Seeing how people are responding and the corresponding changes that are being made in business, and general life in the United States, is making me ask myself, “Is $1,000 enough?” Considering the fact that I work for myself, will I be okay if things continue as they have been?

Anyone familiar with Dave Ramsey’s Total Money Makeover program knows that he advocates a baby emergency fund of $1,000 as the first among several baby steps to financial freedom. The idea is to use the small emergency fund to “cover those unexpected life events you can’t plan for.” In other words, this is supposed to cover those things that you cannot see coming . . . or that surprise you.

Among the exceptions to the $1,000 fund amount are situations in which an emergency is clear and eminent – an emergency for which $1,000 simply would not be sufficient. I’ve heard Dave identify such an emergency situation as one where, for example, someone has a baby coming and doesn’t have insurance coverage or when one knows that they will be losing their job.

(1) Given what is happening now, I’m asking myself some questions.

(2) Is the corona virus and the mayhem it is causing a sufficient emergency to justify saving more?

(3) For those who are self-employed, should one have a higher amount?

(4) Is a $1,000 emergency fund sufficient for someone in extreme debt (over $300,000) like me?

How will this impact my business? Can I turn it into a positive situation? If things continue as they are, will I have enough money? I do not want to borrow. I’ve turned over a new leaf. I. Will. Not. Borrow.

But I only have $1,000 in my savings account. I have a few sinking funds – for car maintenance, home maintenance, personal care and gifts, but those aren’t savings accounts. Those are accounts with funds for expenditures that I know I’ll need to make eventually, even though I don’t know exactly when or how much I’ll be spending. The sinking funds are accounts that allow me to protect my monthly cash flow by having funds already set aside for the handling of certain life things. While I like seeing funds in these accounts, having the money there is a proactive measure, not a safety net.

Since I started my debt free journey last year, I’ve had only the $1,000 baby emergency fund. Though some months have been better than others from an income perspective, I haven’t strongly considered increasing my emergency fund amount until now.

And nnnnoooooowwwwwww . . . I’m thinking that this is a certified emergency situation – one that would warrant me saving a bit more money and putting it to the side. What these circumstances will yield is very uncertain. I’d like to be in a better cash position, even though I hope I won’t need it.

What financial moves are you making in response to this pandemic? How much do you have in savings and are you comfortable with that under the circumstances?