I’ve decided to stay in Charlottesville, Virginia for the summer. It was a beautiful place to spend the spring and it’s been a great “home base” for my work. I’ve learned that it definitely helps a lot to stay put in one place when conference organizers are trying to book your travel arrangements! It makes planning so much easier when I know what airport I’m going to be flying out of.
Thanks to Craigslist, I found a fabulous cheap sublet with all of my “must-haves” and more … for just $425 a month! It’s a large room in an apartment with its own bathroom (pictured above), twin bed, dresser, desk and nightstand. There’s also a full kitchen, free internet and cable, plus a gym and pool on site. It almost feels like I’m living in a hotel room - except that I still have to clean up after myself LOL. I am subletting from a UVA student who went to DC for a summer internship. So it’s her lease, and I’m just staying here temporarily. I paid her for the entire three months up front, $1,275 in one check, which made it easier for both of us. She gets all of her money without worrying about me being a deadbeat subletter, and I get to have peace of mind knowing that my bill is already paid.
This place is by far the best, yet least expensive housing I’ve had since I gave up my apartment in August 2011. One month’s rent in DC is buying me THREE months rent here in Charlottesville.  It’s reduced my living expenses dramatically for the next three months, and will also help free up some money for my trip to ITALY this summer! Yes, I’m going to be visiting my #1 dream travel destination for at least two weeks very soon. But more about that later 
I keep thinking that I should have done this a long time ago.
I was reminded of this regret a few weeks ago at a networking reception in DC. I was talking to a guy who just quit his job to work for himself and asked me what tips I would give him as a new consultant. I told him to reduce his expenses ASAP.* The higher your expenses, the bigger your risk. When you start out as a consultant or coach or speaker or any business owner really, you need at least SOME capital to pay for your business expenses, especially if you’re still trying to find gigs and clientele.
I actually wish I’d given up my apartment in DC sooner. For almost 2 years it was a $1,200 monthly rent expense that required me to earn a LOT of money every single month. Thankfully, I already had consulting clients lined up so that I was able to bring in enough income to cover everything right off the bat, but that also means I was not able to SAVE very much for a rainy day, let alone travel. Once I gave up my apartment, though, I was able to work a bit less, be more creative and save up some money. I also didn’t feel as much stress from having to chase every dollar to keep up my expensive “lifestyle.”
If you want to start your own business (especially a fickle one like consulting, coaching or speaking), it’s not likely that you will be able to live life the same way you were before, at least for the first few years. The reason you can’t keep spending the same way because you’ll need the “extra” money to invest in supplies, equipment, technology, marketing materials, training, etc. You can’t keep shopping and swiping your Visa card at your favorite stores because you’ll need that credit as “back up” cash flow…for when clients don’t pay you on time, but the rent/mortgage still needs to be paid on the first of the month.
Of course, all of this becomes easier if you have a partner who earns enough to support you while you ramp up your new venture. Or if you have a ton of money saved up to carry you through the lean times. Even then, you may not need to cut as many corners, but it’s still a good idea to explore ways to save on rent and stop the trips to the mall.
*Obviously, this advice also works for saving money in general. When you stop buying stuff and reduce your living expenses, there will presumably be money left over for other things. The problem with new entrepreneurs, however, is that many of us just keep on living the same comfortable lifestyle we were accustomed to from being a full-time, well-paid employee. But I know from experience how that can be a huge mistake, especially down the line when you end up losing a client … or three.
How have YOUR financial habits changed since you started (or started planning for) your own business?
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By the way, the -$5000 of course is an exaggeration, but my point is, that as you reduce your expenses, seek to keep your head up and hold a positive attitude. Starting a coaching and consulting business is not easy and you will make mistakes. When you look and feel your best, you communicate your positive attitude to the world, and from my experience, this is an essential ingredient that clients purchase from coaches and consultants….a positive, graceful attitude (since we ALL experience challenges and change in life) Simple basic clothes that look sharp, clean and crisp are all that is needed. This means purging your closet of things that don’t highlight you in the best possible way. Take this streamline approach to other areas of your life, diet, fitness, your makeup bag, your home, and let go of all the things you do not want and start from a strong point, even if it means from scratch with the best that you have so you know what you are working so hard for…not to maintain the things you don’t want but to create the lifestyle and pay for the things you truly want.
Read my latest blog post…You Are On Stage: Schedule Pretty Time Daily (Video)
Rosetta, I loved this blog post and this is excellent advice. I’ve spent the last 3 years paying off debts and getting my spending under control so that I can finally make that leap into my business full-time. It took time but I’m so glad that I had enough forethought to get things paid off. My business is growing but my biggest expense is my apartment, which I own. I initially planned on moving out of NYC until it hit me that this is the perfect place for me to be to grow my business, so many of the opportunities are right here. So while housing is a big expense I’m willing to sacrifice in other areas.
Thanks for sharing.
Read my latest blog post…Was He the Last Good Man on Earth?
I loooooove your blog Rosetta! I’m working on cutting down my expenses. I’m giving up my expensive studio apartment to move in with a roommate, I’m looking to start a side hustle to get some extra income, and I’m looking up meal planning techniques to curb my biggest money drain: food. Thanks for the inspiration!
Such good advice I needed to hear. I want to start consulting or coaching in the education sector in addition to my full time job. I understand the need to cut expenses but it being hard living in the DC area which is not a saving friendly town. One thing I have started to learn is to find things/help for free. I found a financial advisor through one of my old jobs who has decided to help me for no cost. Learning how to get my money in order and set realistic goals is the first and most important step I need to make.
That’s a great first step! I love the DC area, but I just see housing getting more & more expensive even in the past year. I’m exploring whether I’ll ever move back to the city again, or if I’ll just live nearby in the suburbs, maybe with roommates & not have my own place.
This is fabulous advice here. Another advice I would give is don’t look broke either. You cannot afford to look that way. As a consultant and coach, since you are not selling anything tangible, prospective clients make snap judgements about your level of expertise and attention to detail by what they see…so it’s important that you look like you pay attention to detail. All I have to go off on is my instinct and intuition that you will take care of me, so this must be evident in the way you dress and carry yourself. Your clothes don’t need to be designer digs but they do need to be of quality, need to be pressed, iron and cared for, look crisp, be a perfect fit and be sharp.
Consignment stores in the best part of town are the best places to shop for clothes you will wear to market your business. Also…if you wear these clothes strictly to market yourself (say..for networking, public speaking, meeting a client) those clothes can be tax deductible as an advertising or marketing expense (check with your accountant). You may have -$5000 in your bank account (it can happen), but God…never look like it.
Since as a a consultant or coach, you are taking your client from where they are to where they want to be, then it is imperative that you look not only inspiration, but have a look of aspiration too.
Read my latest blog post…You Are On Stage: Schedule Pretty Time Daily (Video)