Last night I attended the first of a series of Marie Claire women at work discussions at Ruth's Chris Steak House.
The guest of honor was Alexa Von Tobel of Learnvest. She was interviewed by the fantastic Joanna Coles of Marie Claire, and the discussion was positively enlightening.
Now, I'm already an avid LearnVest reader, and you all know I'm already taking budgeting to a new level this month. But there were some fantastic tips and comments that Alexa made directly to the entrepreneurs in the room.
There was one comment she made that completely rang true to me about entrepreneurs:
"If you knew what it would take, you never would have started."
I've said this before and I'll say it again. I've risked A LOT becoming an entrepreneur. Namely, a chunk of cash that could have been spent on vacations, dinners, and shoes...oh...and TIME. I have zero of that as well. But the point is, things are always harder than we expect - but often - they have the best outcomes. Alexa dropped out of Harvard Business School and took the huge risk to start LearnVest.
What surprised me the most is, SHE DID IT ON HER OWN! After all of my whining about being a "solopreneur" and how the tech industry often doesn't take me seriously because I don't have a "team" - here is a fantastic example of a woman who started her own business, raised $1m on her own, and now has a thriving company that has raised over $25m in capital and is now valued at over $100m.
And Alexa said it flat out - "It was so EASY to raise my $20m round - it took 2 weeks. But the first $1 million? It took a little over 6 months, it was grueling, and definitely, the worst part about starting up."
Boy can I commiserate. It IS grueling. It's draining and it's exhausting. Even though Happily Ever BorroWED has proven sales and traction, it's still a major push to pitch your business over and over, defend yourself, prove your passion and sell yourself on a daily basis.
But being the eternal optimist that I am - here is a shining beacon of hope: Alexa Von Tobel! She put it all on the line. She painstakingly tried to prove her concept and raise money all on her own. And she did it. And she's thriving. She BELIEVED in her concept, and trusted her instincts...and now...she's succeeding.
I love attending events like these because just when you feel drained, and helpless and tired...you feel enlightened again. Hearing different women's stories of success is thrilling and inspiring! It ignites that little flame inside of you to a full on BONFIRE!
But also - on a more budgeting note - Alexa mentioned her 50/20/30 rule. This applies to your salary. 50% should go to rent, groceries, transportation and essentials. 20% should go towards your future, or paying off debt and 30% goes towards fun.
Well...in looking at my salary - this is about how mine breaks out.
My rent ALONE is 49% of my take-home salary...gee. $22,200/year
well then groceries are about $50/week x 52 weeks/year - $2600
subway pass - $104 x 12 = $1248
2 cabs per week = $30 x 52 weeks = $1560
= $27,608/year on ESSENTIALS
That is 61% of my take home salary. SO that means I have to give up 11% of either debt or fun...and guess where that comes off of...
So - 20% - $9100/year should go towards paying off debt. Well - if this includes personal AND business debt? We're in trouble here.
Which leaves the 30% of fun - 11% of over spending on essentials = 19% = $8645/year. Which is $720/month.
$720 a month on FUN?! Have I been spending that? We'll see at the end of the month!
Thanks to Alexa Von Tobel for providing some insight on how I should be budgeting. I don't think most women have their own business debt - which is what has put me in this tricky situation of saving every penny. But I am lucky to have a FT job - I am lucky to have little personal debt (besides school loans) - and I am lucky to have this FIRE inside of me that is ROARING to succeed.
And since I truly believe in my Inten-Sati mantras: "Every Day, in a very true way - I co-create my reality"
