You’ve purchased a franchise opportunity and have found a level of success you could never have imagined. After discovering the true meaning of being your own boss, now you’re wondering what’s next. How do you live this life of luxury while balancing your business… all without going broke?
Furthermore, it’s important to ask yourself how you will manage your franchise while traveling the world and living this amazing new life. Spending money can be addictive, and as your franchise succeeds, or perhaps as you open multiple franchises, resisting the urge to burn a hole in your pocket is hard.
Here’s a rule: only buy luxury items with passive income. If you are buying things you don’t need with your active income, you aren’t properly managing your money.
The last thing you want to do is dip into savings or bill-paying money to buy a new BMW or upgrade your kitchen. Don’t eat away at necessary money on unnecessary things.
Once you have properly separated passive and active income, and taught yourself what you should be spending what on, it’s vital to take a second look at how you are investing your money.
A good rule of thumb is to ensure early investments solidly focus on cash flow, rather than capital appreciation. Capital appreciation investments are often a far riskier proposal. Instead, turn your eye to cash flow and this will allow you to become much more disciplined – and less risk friendly.
Of course, there’s a lot more to luxurious living without running out of cash, but these are the basic principles that will keep you and your franchise afloat as you embark on a brave new journey of being your own boss.