The Network Marketer and His Budget Dilemma

Most people sign up for a network marketing opportunity or mlm opportunity and fail to realize that they are at that moment a business owner. The reality is if you do not treat you finances like that of a successful business owner, you will very quickly end up a depressing and frustrated statistic. In the world of business you have to know what your financial guidelines are for running a business. Many of you are thinking, but Markeith I just bought 20,000 leads and set up a web page surely there will be a large number of people who will come sign up for my opportunity and erase all my financial concerns? Maybe, but how long will that last if you are throwing away all you nuts like a squirrel on methamphetamine? Savings should be a part of your budget just like expenses and revenue because you never know.

There are tons of business opportunity websites that promote their product with pictures of nice cars and homes, some that don’t even bother to stand next to the car, and vacations- all the stuff people want to do. Yet, no one ever bothered to tell you not to commit financial suicide until now. Having a financial coach is just as important if not more important than having a business mentor, for starters most of the inner tools needed to build a business are also needed to build wealth.

So the next time you look at an opportunity and they start with the compensation plan pitch be sure and ask, “How much where you able to save last year?” If the answer is, “ Well I bought a boat, a house, 4 new cars, and clone a childhood dog,” run now! Do not get me wrong there is nothing wrong with having these things. As a network marketer and a business owner, you get to take advantage of a number of great write offs, and a even better opportunity to reinvest your money. No ride goes on forever, and some are really short so make sure you have the tough conversations and discover why you decided to be a professional network marketer in the first place.

So a few ideas:

1)Have a system in place to track your spending www.mint.com is a great tool to use.

2)Understand that the 2 worst times to make decision especially about money are when you are excited or afraid.

3)Know you limit and not just your credit card limit- know what your recurring expenses are and where they come from and continuously evaluate if they are worth paying.

4)Avoid high interest debt. I know you read Rich Dad Poor Dad..blah blah..but the reality is your business will likely grow over a year to 3 years. If you are on a tight budget and you add high interest debt it will get a lot tighter. Add that to the fact there are no guarantees. So let that be your last alternative.

5)Always read the fine print. Do not sign up for something and then realize you just incurred another monthly expense that you had not planned on or worse will have difficulty getting rid of.