Reinvesting Vs Paying Yourself
In entrepreneurship and investing the question often comes up how much should you be reinvesting back in vs paying yourself out.
If you were 100% reinvesting all your profits for a while now in cryptocurrency you might be panicking because you never got to enjoy the fruit of your labor. Bitcoin was going be 20k each and now at 8k. Before it even got near the 20k mark people were already acting like it was going be 50k soon. Now many people are panic selling because they needed/wanted some money or frankly they want off the darn ride right now.
This brings up very real and important question. How much do you keep risking in your ventures in life vs paying yourself out?
The answer for @enjar is 80/20. Thanks for reading this that be 19.99 SBD made care of…
Now hold on one moment what kind of answer is that? Reinvest 80% and keep 20% for yourself less whatever greedy tax man taxes out of both portions of the pie. Those numbers don’t work for me you crazy time-traveling cat! Why I been selling or reinvesting 100% of everything sucker! Are you not just stealing the Pareto Principle and applying that to how much you should keep! I’m not quite sure that’s how that works but it works for someone.
At end of the day you need work out your own ratio.
Why Should You Even Be Reinvesting Back In?
How do you expect to get ahead in life if you keep blowing it all on overpriced items that are not creating opportunity to generate more income?
It takes money to maintain a competitive edge in different markets where money can buy market influence.
How do you expect to get the costs down and increase profit margin if you don’t invest in new technology?
Why would your top talent choose to stay with you if you are unwilling to compensate them?
Why would anyone choose a product that is not innovating and staying refreshing?
Equipment becomes less efficient over time and even breaks. You should really just pay to fix it by now or replace.
Taking advantage of tax avoidance.
Risk vs reward the more you put in the more you could gain or lose depending on how you look at it!
How Would This Apply?
Now do all these things apply to investing in cryptocurrency or running your Steemit blog? Of course not. Many of them can, however. Taking a better look at blogging:
Buying a better camera for better photo quality can increase that polished feeling and bring more eyeballs in.
Having more steem power makes you look more attractive for people looking to use their upvotes and time to comment. Not to mention the impact it can have on getting your blog visibility.
A laptop might enable you to be more mobile and create blogs while you are on break elsewhere or out of the office.
Backup hard drives for storing photos and your works in case you suffer a loss of data.
Having an emergency business fund in case equipment breaks so you can replace it ASAP and get back up and run. Being missing for weeks or months on site like Steemit is a major momentum killer and can set you back even further than that.
Taking advantage of tax write offs while enjoying new better equipment. That increase your own productively and can create quality of life changes that make things more enjoyable.
Why should you pay yourself some of the profits?
Burn out is a real threat no matter how much you enjoy doing something.
Life emergencies don’t wait to happen around peak selling opportunity.
It can take years to build things up and that is a long time to go without ever paying yourself a cent. It’s easy to become discourage when you never enjoy any rewards from hard work.
Learning tax mistakes before they become a real expensive issue.
Having more disposable income then you are used to creating priceless learning opportunity. Learning self-control when it comes to spending and staying under your means to extend out the lifetime of that extra money.
How would this apply?
I think a story would best fit showing this one. Since this is already long you will have wait for part 2!
Information
Written by @enjar about my own personal expenses when it comes to entrepreneurship and investing.
Interesting. One takeaway from this I may reconsider: I should probably invest in a better quality camera. It probably is not as expensive as I think compared to how much it could probably improve the quality of my original works posted here.
Decent quality images can seem to go far on Steemit. I have wonder a few times what is the ideal investment in one compared to increased readership it will bring in.
A camera is a large area I need to improve in myself. I’ve not done much research into one yet. Don’t know much about them and no idea how much of a camera I really need.
Holding off till around May then I’ll have a better idea on case usage, and how much of a budget I can put towards one.
I have been thinking about camera quality and I agree with @enjar, I think that decent quality images can make a difference. I personally think that most smartphones these days have more than capable cameras to create great images, but using the "auto" modes means that we may not get the effects that we are going for. I had my last phone get stuck bootlooping so it pushed me into a buying a new phone before I was really ready, so I will likely not be blowing anyone away, but I am hoping a time investment in learning to take pictures in the manual mode of my camera will make a big difference.
The quality of the image can distract from the intended message, but I think the content is key.
Until then . . . learning can be a
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safe/sure investment and doing what you love.
It doesn't hurt to learn
HOW TO PROMOTE YOURSELF.
The bitcoin story was faked by a banker, so,
it should be interesting what happens next.