I had a long talk with myself last night. I had to ask myself the tough question that I’ve been skirting. The question is: What’s stopping me from going 100% residual with my online writing?
The answer is the same answer that stopped me from doing anything else in my life, FEAR. What am I afraid of? Not having enough? Not meeting financial obligations? Whacky cash flow? After careful analysis, I discovered that my biggest fear was cash flow.
When it Doubt, Let the Numbers Help You Out
I looked at my past few years earnings. Each year, my residual earnings exceeded my prior year’s total earnings. In other words, my 2010 residuals were higher than my 2009 upfront + 2009 residuals. This phenomenon occurred each and every year of my online writing career. So, if my current year’s residual earnings will exceed last year’s total earnings without having to write for DMS, why do I continue to do so?
Dollars, Cents and Planning
It’s time for me to set a plan in motion. Since I don’t make a lot of money with DMS, instead of going to them for emergencies, I’ve opened a “Mini-Emergency” savings account (I love my Credit Union). Into that account I place 10% of my daily residual earnings. My average daily residuals are currently hovering around the $75 mark so I place $7.50 a day into the account. The mini-emergencies are usually school centered. There’s always a fundraiser, team travel expense, gift for the coach, birthday party gift, etc.
If I get through one month unscathed (meaning the kids don’t have an emergency), the money will sit there until the next month. If we use some of the mini-emergency money, I’ll replenish it at the rate of 10% of my daily earnings. Having a mini-emergency fund removes the need to grab the occasional $17.50 article at DMS.
Putting on My Big Girl Pants
I’m stepping into my big girl pants and giving it a try. If I truly want to reach one of my goals of living 100% off of my residuals, I’ve got to take the step sooner or later. I choose sooner. Wish me luck!