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Live Your Life Like You’re Starting A Company

4 November 2009 One Comment

I have a close friend that recently just quit his job and is starting a company.  He’s in his mid-twenties, and sure the economy sucks, but neither is stopping him from going for it.  Very cool.  What I’ve really taken away from his journey is the way that a person who is launching a start-up manages his or her life and finances.  Then, it struck me as odd that we don’t manage our lives this way more often, even if we’re not starting a new company.

Unexpected Expenses

A few days after quitting his job, my friend’s air conditioner at his home went out.  Talk about terrible timing.  One day you’re losing income, the next you’re forking over several thousand bucks for a new A/C.  Because he is starting a company, every penny he spends is extremely crucial.  Loss of guaranteed income plus new expenses that goes into starting a company (rent, payroll, equipment, marketing, etc.) is a stressful scenario.  Then, you throw in a large, unexpected expense.

Because of the situation, you enter crisis mode to manage your money.  If we are to survive this tough time financially, we have to be very careful in our planning and execution.  No money should be spent on anything that is not absolutely necessary.  How many Americans should be living exactly like this today?

Crisis Mode

Americans are broke, are losing their homes, and are underemployed.  Yet, many Americans continue to spend money like everything is fine.  These people need to go into crisis mode.  They need to drastically cut spending, spending money only on things that are mandatory for living.

People should also be in crisis mode over their savings because frankly, most people aren’t going to be able to self-fund their retirements.  The macro-financial picture of our country as a whole is very ugly.

Are you having trouble getting ahead financially?  Maybe you need to initiate a crisis lockdown on your spending.  Imagine what you would do if you quit your job to start a new company from scratch.  How would you get by?  Write down some ideas and execute them.

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