I remember sitting in a company convention years ago cheering on a riveting speech by the keynote speaker. He was a millionaire many times over in the company and at the time earning just under a million dollars a year. The part of his speech that drew the most cheers was when he was addressing the newest distributors in the crowd. He congratulated those in the crowd that were willing to “skip a bill” to make it to convention and “didn’t know how they were going to make it home”. At the time I was one of the ones in the crowd that was broke, and I was cheering as loud as any other. However, now looking back I realize how disturbing that philosophy is.
My first several years in the home based business industry left me thousands of dollars in debt. I didn’t see anything wrong with it at the time as both my direct upline, and his sponsor had filed bankruptcy since they started in the home based business industry. In their eyes, and the eyes of many others it was ok to spend way more than you earned because some day it was all going to come together and the big checks would start to roll in.
For my first several years in the industry I made the same decision over and over to skip the bill because next month I would finally make it. Not until I heard a Tony Robbins CD did it become clear to me what a horrible philosophy that was.
Tony’s advice was to choose two things in your life that you have been putting off and get them done as soon as possible. For me, both of those things involved paying off some past debts. What a relief it was to not have those bills still hanging over my head, and it immediately changed my business building philosophy for the better.
The best advice I can give anyone starting in the industry is create a budget, and don’t ever spend more than you have budgeted. I think the number one people fail in the home based business industry is the same reason why any business fails. They run out of capital.
My first several years in the industry I had no budget and I had no income either. Since I have created a budget (and paid off my past debts) my income has double from one year to the next. And guess what else? My budget has increased also.