Author: Chillmaadi Admin

What are the major personal finance mistakes that people do with their Personal finance management in India?

Personal finance management has always been tricky since the very beginning of the modern economy. And in India, people tend to get derailed while choosing the right tricks for managing the same. Moreover, they are not even aware of making the wrong selections for improving personal finance management. One will not make these same mistakes after going through this discussion.

Why is it not enough to invest in personal finance services?

Personal finance services like Fixed Deposits (FDs), Mutual funds, and Insurances will ensure monetary return and benefit. But you will still end up moneyless at the end of a financial year if you do not maintain your finance. So, here comes the personal finance management. A properly managed finance will ensure the optimum security of your finances.

The major mistakes to avoid

Imbalance in target and capability

Fixing a target of investment without realizing the capability is a major mistake. This way, personal finances get weaken. And the investor’s investment runs empty after some time. Always balance your target and capability for avoiding disruption in personal finance.

Fixing long term financial goal in the early days

Some people tend to fix long-term financial goals in their early career days. And after that, they realize how unworthy these are sometimes. You should start with long term insurances, mutual fund investments after stabilizing career.

Insurances are not a source of liquid money

Some investors cannot understand the real meaning of insurance. You cannot earn recurring money from insurances. These are for the redemption of monetary benefits after certain losses in life. So, you cannot expect liquid money from insurances.

Investing without a consistency

Investments need a certain level of consistency in life. You cannot expect a lot of returns without planned financial management. So, if you invest a lot for some years and stop doing the same for a few years, there will be the least benefit.

Ignoring retirement plans

Start with an authentic pension or retirement plan when you are young. Then you can invest a lot of money in premiums for bigger returns during old age.

Undisciplined expenditure

No one can save your finances if you do not know how to rule it. Undisciplined expenditure is one of the biggest reasons behind unsuccessful personal finance management. Regulate your needs as per your capability. And never go overboard with impulsive expenses.

Investing in gold

Indians love to grow their finances with gold value. But you must understand that the value of these precious metal changes as per world economy, stock markets, and many things. So, do not invest too much in gold.

Misunderstanding the types of insurances

There are lots of Insurance companies in the Indian market right now. So, the authenticity issue does matter for investing a huge amount in insurance. Always follow the guidelines of RBI to get the utmost help. Understand your need for insurances before investing in it. Keep it in mind that once you invest, you will have to pay premiums and keep repeating the same personal finance mistakes.

Depending too much on bank interests

In the Indian economy, banks are the primary sectors of investment. But now the scenario is changing with the passage of time. And, if you depend too much on the interests of deposited money in the bank, you will be lost. The scale of interests will be decreasing day by day as the modern economy is more dynamic.

Shopping imported products

India is still a developing country. The imported products come in the market with lots of duties. If you love to stock imported products, you will fail to save.

Having excess credit cards

Having too many credit cards can ruin your finance management. Shopping with too many credit cards can be confusing while paying the bills of the same. It might be surprising, but true. There are chances to cross your budget if you have countless credit cards. This is one of the major personal finance mistakes new professionals make.

Investing without asking any financial advisors

The Indian economy is changing day by day. So, it is better to ask a financial advisor for the professional management of personal finances. The information on the economic value is necessary to judge the need for the right amount of investment.

Finally

Managing personal finances can be easier with following these simple steps. Avoid the most common yet significant personal finance mistakes that people make while investing money. Likewise, personal finance management will be a lot easier than before in the Indian economy.

What are some good books or resources to learn about personal finance specific to India?

Books are always a person’s best friend for self-teaching. Learning about personal finances is not easy for a person without any guidelines. And a good book or meaningful resource can certainly aid in this learning. In India, the economy tends to fluctuate with time. So, you must be capable enough to tackle the personal finance goals with tested guidance. These books and resources discussed here can serve the purpose of the same.

Retire Rich: Invest Rs.40 a Day

Retire Rich: Invest Rs.40 a Day is a phenomenal book by P.V Subramanyam. He tells the reader how to plan early for finance after retirement. His formula to keep aside Rs. 40 a day for the old age is praiseworthy. How simplified modulation of personal finance he has shown to the reader! You will get every finance-related issues you need to know before retiring. The author has also guided about ‘Retirement Goal Setting.’

The possible doubts that come in a reader’s mind about planning sound personal finance are here too. Afterwards, the author has cleared the doubts with the power of his researched financial tricks. After going through this fantastic book, you will learn to spend in a regulated way without harming your daily expenditure.

Rich Dad Poor Dad

The fantastic author Robert T. Kiyosaki has some proven ideas about new ideas on finance. Rich Dad Poor Dad has mainly Kiyosaki’s personal experiences during his days in Hawaii. He has outlined six lessons for the reader. The book claims to be a personal finance book. The theory, established here, is tried and tested by many people across the globe. It is still valid for the people who are struggling to be happy with finance in India.

Once you go through the ideas framed in the book to maintain well-balanced finance, you will learn to be happy with your life. This book is not only on investment but also on managing life along with it. You will learn to venture in entrepreneurship and business. And this book is also well-known for increasing an urge in finance management.

You Can Be Rich Too: With Goal-Based Investing

It is simple to invest the right amount. But it is only easy if you know how to do it. P.V Subramanyam and M. Pattabiraman are the authors of this popular book on personal finance. You will never regret buying; You Can Be Rich Too: With Goal-Based Investing, if you read it correctly to understand the motto of the writers. A clear idea of personal finance management is here in this book. You will get some practical yet applicable ideas to enrich knowledge on personal finance management.

The book has a positive review on creating real ways to wealth. You can start it early so that you can be successful in being rich in the future. This book on personal finance management is worth reading.

You Can Be Rich: A Practical Guide to Financial Planning by Times Group

You can get some wealth acquiring ideas form this book called ‘You Can Be Rich: A Practical Guide to Financial Planning.’ This book has a perspective on Indian financial management. There are some well-described savings and earnings theories for understanding money better. Most of the readers have praised the financial-literature proven by the author. A perfect self-educating finance management book is here to grow wiser financially.

Think and Grow Rich

Napoleon Hill’s transformative book ‘Think and Grow Rich‘ has collected applauses worldwide. This book is a doctrine on self-help and self-guidance while venturing in entrepreneurship. Here you will get some worth to follow ideas to step into the process of being a wealthy person. The author’s personal quest on finance and life has helped to craft the concept of the book.

Final note

You can read these books discussed here to learn better finance management. The best way to educate yourself about finance is by reading these resourceful books for authentic guidance. Thus you will learn to manage personal finance without any professional help.

Investment is necessary irrespective of gender. And nowadays, women are becoming more finance conscious than before. Having sound personal finance is the primary concern of working with any working woman. The days had gone when women used to think that the husband’s salary is the sole earning source. Moreover, working women are more systematic to frame personal finance well. So, it is a good time to discuss some useful personal finance advice for working women in India.

Do not skip to invest in insurance

Insurances are one of the most significant milestones for well-constructed personal finance. Some working women might consider it is a negligible factor. But she must understand about the safety of her life. Life insurance is a must-have financial step in any woman’s financial journey. You should also judge other factors like a car, home, or any other stuff for protecting with any general insurance. Never neglect the long term value of authentic insurance.

Stop depending on other’s bank account

Some working women tend to use the husband’s or father’s bank account to deposit money. But you must understand the value of your earning. If you do not segregate your monthly income every month, you will be unable to do it after some years of working.

Self-educate on personal finance

As a young woman, you should start to save early for a better future. If you want to self-educate yourself, choose some best books on personal finance advice. There are many like Rich Dad Poor Dad, Retire Rich: Invest Rs.40 a Day, and so on. These books will make your wiser before starting any financial journey.

Build an emergency fund for you

Being a working woman, you must know that if you stop working, earning will stop too. In the future, you might have to stop working for a few days or months for personal issues. At that time, you will feel a need for money on an emergency basis. Personal finance advisors always suggest an emergency fund where you will invest every month. Then you will not have to depend on others even during bad days of life.

Invest in prospective careers

Self-improvement is the best way to upgrade earning. If you invest your money for a better course that can impart you a better job, do not hesitate to invest. It will revert better opportunities in the future. And your earning will increase too.

Stop investing too much in ‘gold.’

There is a tendency among Indian women to invest in gold. Indian economy considers gold as liquid money. But gold is not the best option to grow your personal finance. The market value keeps changing, and so does the amount of gold. So, do not go overboard while buying gold jewelry.

Take help from financial advisors

If you feel confused about finance, always seek professional advice from personal finance advisors. Their professionalism is the best thing to depend upon when it comes to financing management.

Do not let others operate your finance

Your income is your reward for the hard-working. So, do not allow others to control your hard-earned money. Be your operator of personal finance. Always keep your financial papers in secret places. And do not discuss financial planning with friends or relatives. Their lack of knowledge might misguide you.

Spend a little and save a lot

During your working years, you must learn how to spend a little and save a lot. It will reward you during your retired age.

Retirement plan

Always go for an authentic retirement plan. It will secure your old age. Never depend on others during old age.

Opt for loans if needed

If you need a loan, start it early. Do not wait and waste your time. Opt for house building loans or education loans for anyone in the family at the early period of the job. Otherwise, the burden of interest will increase at the time of retirement.

Final note

Personal finance is an important thing to learn. Every working woman should know the basics of it. Otherwise, the hard-earned money will be messed up.

National Pension Scheme (NPS) is an investment scheme aiming for retirement benefits. But nowadays, people get confused while choosing a retirement plan. There are many mutual funds available in the Indian financial market right now. So, it is better to get a comparison for a better understanding of both. After that, you can decide which one is best for you.

What is NPS?

• NPS is a National Pension Scheme based on only retirement plans. The government of India provides a backup for this savings scheme.
• Any self-employed or employed professional can open an NPS account. There are some tax benefits one gets after having an NPS account.
• NPS is a low to moderate risk investment option. It aims for optimum monetary benefit with minimum risk.

What are mutual funds?

Mutual funds are some investor-operated investment funds. The fund is for investing in buying company stocks and shares. And a professional fund manager manages the investment for a higher amount of return. And a mutual fund has a share of several investors.

A comparison to understand better: NPS or Mutual Funds

A brief comparison will help you to understand better which one is for you. Some essential factors will direct to the conclusion for choosing the best retirement plan.

Tax benefits

NPS has some tax exemption benefits. You can enjoy tax benefits under the section of 80CCD (1B). There is an extra deduction for investment up to fifty thousand in NPS Tier I account for this exclusive tax benefit. This additional deduction is over Rs.1.5 lakh, which is already in the section 80C of the Income Tax Act, 1961. Moreover, a person with an NPS account can avail tax deduction of 10% of gross income. It is under section 80 CCD (1) that is including Rs.1.5 lakh, which comes under Section 80 CCE.

Mutual funds do not offer such a huge tax deduction benefit like NPS. All equity mutual funds do not have such a facility for tax exemption. Equity-linked saving scheme or ELSS has a tax deduction benefit. It comes under section 80C of the Income Tax Act, 1961. So, an investor can get a tax deduction up to Rs. 1.5 lakh.

Liquidity factor

NPS does not offer liquidity of investment at a larger extension. You can withdraw a premature amount after ten years of investment. And for partial withdrawal, it is possible after three years. Partial withdrawal is 25% of the contribution. There are lots of terms and conditions for getting the permission of partial withdrawal. You can apply for money for purposes like house building, child’s education, or marriage.

Apart from the close-ended mutual funds, almost all mutual funds have the facility of liquidity. And there is no rigid restriction excluding the three years lock-in period in ELSS. So, you can manage your investment as per the market condition, risk, and other things.

After retirement income

The NPS scheme provides a full-proof retirement plan. The returns might not be very high, but it is the safest retirement plan in India. The inflation might affect the pension amount as NPS is related to market conditions. There is no tax exemption on the interest earned.

Mutual funds work in a different way than NPS. So, all mutual funds will not offer equal safety like NPS. But they might give you a higher return.

Final take

If you want to choose mutual funds as a retirement plan, you can select ELSS. Go for some hybrid mutual funds that customize retirement benefits. These generally come under section 80C for tax benefits. But always check with the asset allocation facility before investing in any. But if you want to lower risks for a lump sum amount as a retirement income, you can choose NPS. It has government security for added backup. But returns are higher in mutual funds.

PPF account or Public Provident Fund is a popular investment option among Indians. But the National Pension Scheme or NPS account also has a large number of investors in the country right now. When you are starting to save money for a more extended period, you will get stuck in confusion to select the right one for you. Most of the people do not know the necessary details of these saving schemes. And if you do not know the key factors of these two, you will be unable to select the best one.

What is PPF?

PPF (Public Provident Fund) is a government-backed savings option. You can invest from Rs.500 to Rs.1.5 Lakhs per year. And there is no such age limit or group to open a PPF account. It has a duration of 15 years for completion of the investment.

PPF has a lock-in period. So, once you invest in it, you cannot ask for withdrawing an amount. NRIs cannot invest in PPF.

What is NPS?

NPS (National Pension Scheme) is a pension scheme that is authorized by the government of India. It is a market-linked pension scheme. People from the age of 18 to 60 years can invest in NPS. NRIs can also invest in NPS. There is no such lock-in period in NPS like PPF. It means that one can save money until the age of 60. If you want to extend it more, you can do it for up to 70 years.

Which one to choose: PPF or NPS

It is very difficult to state only one investment option between these two. PPF and NPS are two different types of investment options. So, a direct comparison between these two is almost impossible. But you can judge some key factors of these investment options for choosing the appropriate one. Here is a brief discussion on the same.

Security and safety of investment

It is essential to have a safe investment. And you will never want to lose your hard-earned money in the name of investment. PPF is a low-risk investment option. Here the return is moderate. The interest rate evolves around 8%. So, for secured financing, you can always try PPF.

NPS is a market-linked retirement investment. The returns you get, it comes based on the activities of pension fund managers. But you can change managers as a result of dissatisfaction. The risk factor is low to moderate for NPS.

Investment returns

In the case of returns, PPF provides an average rate. It is around 7% to 8%. So, PPF is like a fixed investment and saving option. There is nothing unexpected in the case of return and risk. And NPS returns act as per the performances of the NPS Funds. You can get up to 75% allocation to equity with NPS. There are many pension funds in India offering high returns like SBI Pension Funds Pvt. Ltd, HDFC Pension Management Co. Ltd., and UTI Retirement Solutions Ltd. You can also choose some other pension funds. The performances of these funds keep fluctuating with the market condition.

Withdrawal and liquidity

PPF has tenure of 15 years for continual investment. And you can withdraw the partial amount after five years of investment or account opening. As there is a lock-in period in PPF account, the liquidity of the invested amount is almost none.

NPS account allows you to withdraw money after three years of account opening. But in terms of liquidity, it is also not much liberal. You can withdraw money only for specific issues like house building, marriage, etc.

There are lots of terms and conditions in both PPF account and NPS account for the withdrawal of money.

Tax benefits

PPF account has lots of tax exemption opportunities. You can enjoy tax deduction benefits under the section of 80c of Income Tax Act, 1961 with PPF.

You can enjoy a tax deduction up to one and a half lakh only. And you can also enjoy an additional tax deduction benefit under Section 80 CCD (1B) for NPS account. After maturity, 40% of the amount will be tax-free.

Final take

Both of the investment options are useful for long term investment. And PPF has a lesser risk than any financial plan. But if you focus on the retirement plan, you can opt for NPS. It will impart higher benefits. And you can enjoy your pension after the age of 60. So, overall, NPS is a pension fund dependent investment plan. And the return might fluctuate with market status. If you do not have any issue with such fluctuation, you can choose NPS over PPF for a higher retirement benefit.

PPF means Public Provident Fund. And SIP is a Systematic Investment Plan. So, before starting with any of these two, you must learn about the details. These two investments are related to long term financial goals. And if you are planning for an investment of fifteen years, you should compare these two.

Here is a comparison of PPF and SIP. Go through it to avoid some common mistakes people make while investing.

What is PPF or Public Provident Fund?

Public Provident Fund (PPF) is an investment scheme for savings by the Indian government. PPF is preferable to start with a fixed savings option. One can open the PPF account with the Post office or any reputed bank. The government of India introduced PPF to Indians in 1968 with the Public Provident Fund Act. It allows an investor to save for a tenure of 15 years. The minimum amount is like Rs. 500 per year. And an investor can save up to Rs. 1,50,000 per year.

What is SIP or Systematic Investment Plan?

You can invest in mutual funds through a Systematic Investment Plan. A SIP allows you to get some mutual fund units. So, you will not get harmed even when the value or price goes down. And here you can save a small amount at a specified interval of time. SIP is a market-linked investment option. The tenure has some time slots. It is like six months, one year, five years, ten years, 15 years, and even 20 years. There is no such lock-in period in SIP apart from ELSS.

A comparison of 15 years tenure of PPF and Mutual fund SIP

There are some factors in the basis of which we can calculate the benefits from both. These factors are:

Security and safety of investment

PPF is a low-risk investment option. The government regulates the interest rate of PPF. So, for a long run investment, PPF will be a risk-free savings mode.

SIP in mutual funds is a market-linked investment option. So, it cannot be as risk-free as PPF is. But some authentic mutual funds are excellent choices for a high return. Investment through SIP can ensure reducing market risk. But it cannot deny the risk at all.

Returns and benefits after investment

The interest rate of PPF fluctuates around 8% per annum. But it still promises an average return of your savings after 15 years. Here, you will get an assurance of benefits. You can opt for the PPF calculator online for calculating the amount you will get after 15years or more.

SIP in mutual funds also allows the investor to check with an online calculator. And SIP return rate is a bit high in comparison to PPF interest. But the interest rate is market-linked. But if you are a risk-taker, you can go for SIP for a more elevated amount of benefit.

The facility of liquidity

PPF has a lock-in period of 15 years. And you cannot break it like open-ended saving schemes. But you can take loans if you need based on your PPF deposit. You can make a  partial withdrawal of deposited money after five years of opening a PPF account.

SIP in mutual funds allows you to redeem invested amount even within a year of investment. But they charge a penalty for that. It is not valid only for close-ended funds. But you can always take a loan against the amount. But the interest rate for such loans is higher.

Tax benefits

PPF allows a tax deduction benefit up to Rs. 1.5 Lakh. It is under the section 80c of the Income Tax Act, 1961.

SIP in mutual funds redeems the earlier units first. Then the wealth gain amount gets taxation accordingly. They follow a First In First Out Principle.

Bottom line

If you are aiming for a low-risk investment option, PPF is a better choice. In comparison to SIP in mutual funds, PPF enables you to enjoy a tax-free life. But in terms of higher monetary benefits, SIP might be a better option if you ignore some market risks. But still, PPF occupies the first place in terms of the safety of investment for a longer period.

What is VPF?

VPF is a Voluntary Provident Fund. An employee can build such a provident fund with the preferred amount of contribution. VPF is also known as the Voluntary Retirement Fund. VPF is an investment option for saving. The investor can decide the amount, and it is quite flexible.

Some important facts about VPF

• VPF or Voluntary Provident Fund is a monthly savings scheme. Just like other savings schemes, it has an interest rate.
• The rate of interest is 8.65% per annum.
• VPF is a secure investment option with low-risk. And it is also easily transferable as per the change of the job.

Who can invest in VPF?

People who get salaries every month get a chance to start with an investment in VPF. So, you must be a salaried person for getting eligibility for investing in VPF.

Why do you need to invest in VPF?

VPF account provides many benefits to the investor. Employees will get tax benefits. And it is a popular finance scheme for in-service people planning for their retirement. The benefits of VPF are here:

Safe and secure

VPF is a low-risk investment option. It has a back of the government of India. As there is a little risk, almost every employee wants to invest in it.

Lucrative rate of interest

The rate of interest is 8.65% per annum in VPF. This rate is in the year 2019. In the financial year 2018-2019, it was a little lower. It was 8.55% per annum. So, the rate is increasing every year. And, once you start investing here, you will never regret it.

Easy processing

Opening a VPF account is quite simple. You need to ask your employer finance department to open a VPF account. And if you already have an Employee Provident Fund (EPF) account, this can also work as a VPF account.

Easy Transfer

The account of VPF is easily transferable. If you change the job, you can transfer the account, as well. Only there are some simple steps to follow for switching accounts.

Tax benefits to avail with a VPF account

A VPF account comes under section 80c of the Income Tax Act, 1961. You will get tax benefit up to Rs. 1.5 lakh with a VPF account.

Money withdrawal from a VPF account

You can withdraw money from a VPF account for emergency needs. But you must avail of this benefit after submitting Form-31. You need to provide some details, also like your PF number, bank details, and full address. You might also have to attach a cancelled cheque.

What is the difference between EPF, PPF, and VPF?

Who can avail?

Any Indian can open a PPF account if he or she is an Indian. But only an employed Indian can avail EPF and VPF account.

Interest rate

PPF interest rate is around 8% per annum. And EPF interest is 8.75% per annum. VPF interest is also the same as EPF.

Duration of investment

PPF is a long-term investment option. It has a lock-in period of 15 years. But for EPF and VPF, the tenure is up to retirement. And if one resigns, the duration will complete till the working period.

Tax benefits

There is no tax deduction on the maturity amount of either of the account. So, with PPF, VPF, and EPF, you get a lot of tax benefits.

Withdrawal

After five years of opening a PPF account, you can withdraw 50% of the investment. And for EPF and VPF, the withdrawals are partial. But there is no such lock-in period of EPF and VPF like a PPF account.

Final note

PPF is an entirely different type of investment option. And you need not be a salaried person to open a PPF account. VPF and EPF have lots of similarities in function. And only an employed or salaried person can open VPF and EPF accounts. If you have an existing PPF account, you can open EPF or VPF account. There is no boundary for keeping even all three accounts (PPF, EPF, and VPF) if you are an employed person.

Moving to a new house is expensive, but there are ways to save money while you move.  If you plan out the relocation and be patient, you can keep yourself from being financially drained and stressed.

Through planning, you can also make sure that the things that are important to you don’t get left behind by opting for a reliable service like movers and other similar moving companies.

1.  Donate or sell things that aren’t important 

The fewer things you’ve to move, the less expensive the relocation is going to be. You should start unloading things that you don’t need weeks or even months before your actual move.

You’ll also find some things that were an expensive purchase, but you don’t require them in your new house. The best option would be to sell them, and the money that’s generated can be used to finance your move. You’ll also be able to get a fresh start at your new house.

2.  Find free boxes

You don’t need a lot of new cardboard boxes while moving. Why spend extra on something that is most of the times used during big moves. Before you splurge the cash on cardboard boxes, try to get as many free as you can; from neighbours, friends and relatives.

You can also visit local stores to look for any free boxes. Some people who’ve just moved also list their old boxes on websites like Craigslist, so you can get them from there and return them after your move is complete.

3.  Pack yourself

You may be tempted to hire someone for packing, but that will only lead to extra cost. Why not pack most of the things yourself? The early you start, the more things you can get packed before the moving day comes.

Inexpensive packing materials should be used wherever possible such as old newspapers. You’ll be able to unpack quickly after the move if you label the packages and place them for moving in an organized manner.

4.  Don’t neglect the post office

The post office can help you to save money for books and magazines. You can opt for this service when there are a lot of books, newspapers you want to keep and magazines in your house. The U.S. Postal service has reasonable rates for magazines and books.

The postal service will get the books and magazines at your new house pretty slowly, but it’ll save you a lot of money in the process.

5.  Get people you know ready for moving day

Try to round up friends, relatives and other people who would be willing to help on the moving day. You can start telling about the big day in advance, and if you can also agree to return the favour yourself later on.

Talk to the people you know weeks before, because if you do so in the end, they may not be able to find time instantly, but talking before can allow them to schedule other tasks for later than on your moving day.

Plan everything ahead of the moving day if you’re serious about saving money. Waiting for long to plan and make decisions can cost you in the form of having no help or the required equipment when the time comes.

I belong to a women’s networking group for entrepreneurs. We get together every few months to share ideas, experiences, vent… etc. It’s not a large group, but we always have exciting gatherings because most have completely different businesses and therefore, very different experiences. Some of the stories are priceless.

We recently had a brilliant woman join our team. After being a Financial Analyst for years, she decided that she was tired of trying to climb the corporate ladder and started a residential cleaning company. She’s very candid about her experiences, which I love, and goes into great detail about some of the challenges she faces every day. Because I’m nosy, I found her stories fascinating. The reality is that her stories are quite entertaining.

To solidify that even when we’re adults, we can still act like kids, one woman asked the question “cleaning toilets can’t be much fun, can it?” Her response…

“You know what fun is? Getting paid to clean them.”

Her business has been a success in less than a year. In the first seven months of being in business, she’s had such a steady stream of new clients that she’s already hired, 9 people. Her business is growing so fast that she’s had to turn away clients until she expands her team.

How many of us have ever had to turn away business in the first year?

Her days are hectic. Not only is she cleaning along with her staff, she’s also responsible for employee management, marketing, customer service and business development. She barely sleeps, and when I asked her how she does it, she said that in another five months, she’d be able to stop cleaning and focus on the operations of her business. She plans to hire another ten people at that time.

I was impressed.

Fast forward a few days – I have a friend who’s been looking for a job for close to 2 years now. Unfortunately, she chose a field that is quickly dying. She’s thought about starting a business but can’t quite decide what to do. Thinking she would be excited and inspired, I told her about the woman with the cleaning business and how well she’s doing

“I’m not that desperate” was her response. She was visibly grossed out.

It’s not about desperation; it’s about making money.

Don’t we all want to make money? I thought my friend would jump on this. This is one business where other than insurance, bonding and cleaning supplies, you don’t have to put much capital into getting started. But the stigma was too much for her to overcome, which is pretty sad.

Sure there is a lot of elbow grease that goes into every job, but if you’re making money,  isn’t it worth it? If I weren’t working on a side business already, I would honestly think about getting into this. Even doing it alone can bring in a decent side income.

My friend still doesn’t agree. She’s still trying to find business ideas.

Would you consider this type of business?
How do you feel about the stigma of cleaning someone home?