637 - Household Economics Stage 3
Organize 365 Podcast
Intro
This chapter explores the transition from cutting household expenses to increasing income through side hustles. It highlights the importance of establishing operational systems and effective communication among family members to manage household tasks alongside new income-generating activities.
In stage 2, you were starting to think about small pockets of time that you could make random amounts of money because there isn’t enough income to cover the expenses that you have reduced as much as possible. There may be something that has become more steady and you are making more than $600/year. This is a Schedule C on your taxes, where you submit a 1099 or claim the money earned. In 2009, I had 11 schedule C’s that I eventually combined under one LLC.
Do You Like Chicken Cacciatore?
I do! My mother-in-law gave me her recipe. I found I liked to bake it a little differently than her. I re-wrote her two sided index instructions, down to one side, the way I make it for my family. I like that it’s no longer stored in my brain. I just grab my instructions and make dinner, in fact anyone in my family could do the same. This is the same idea as an SOP (standard operating procedures) for your business. You should write down the process to complete the tasks for your job/household manager role. In the event there is someone new taking over one of your tasks, audit the steps to make sure it’s accurate before you hand it off to the new person, child or spouse.
Passion Turned Side Hustle
Now let’s say I make it for my neighbors and they love it. Let’s say they start to pay me to bake for them. I start making pretty good money each week cooking for them. I could also be baking my family the same meal at the same time. My invisible work I originally did for my family has become paid work that I now report to Uncle Sam through my taxes. It’s important to track all of my expenses in making the meals like mileage to the grocery store, the grocery bill, portion of my gas bill for using my oven, and when I start to expand to other people the mileage for delivery. This information is added into the monthly P & L, which you can track in the Organize 365® Income & Expense Binder. If you aren’t a good cook, you could babysit, clean homes, tutor, dog sit, Uber, Door Dash, bookkeeping, Fairy Godmother for a family, or direct sales **but make sure you are profitable. What do you have a passion for and you are good at? Will people pay you to do that? Be confident completing the job (that saves them time) and accept the money for a task you may do for your family for free. I suggest any side hustle you could charge at least $20/hr up to $60/hr or an amount per day like $100/day.
The Value of a Systems
If unpaid work is not optimized, then you cannot add in paid work because paid work (side hustle like baking for your neighbors) will always supersede unpaid work (your personal house work and baking Chicken Cacciatore). The complete Home Organizational Bundle; Sunday Basket® for weekly checks and balance, The Paper Solution for information management, and The Productive Home Solution to set up your house to effectively serve your family for the phase of life you are in, and planning days to audit your systems. Good operating systems in place allow unexpected events to feel like speed bumps instead of falling off of a cliff. Now you are ready for stage 3. Your systems are in place, you are documenting your income and expenses, and you have freed capacity to focus on making your side hustle more profitable. Now you can bake Chicken Cacciatore for everyone!
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