Half The Price of a Starbucks Cappuccino (Email #25)

I first exposed this little exercise to some of my clients in 2008.

The simple concept blew their minds.

I'm going to share it with you now.

The concept is as relevant now as it was back in 2008.

Go fetch a pen and notepad.

Do it now.

Draw a line down the middle.

In the left hand column write "living expenses". In the right hand column write "lifestyle expenses".

Now write down all your recurring living expenses in the left hand column.

Everything.

If you have to pay for it on a recurring basis, get it down.

Next to each living expense, work out the DAILY dollar amount you pay for it, and write it down.

If it's a monthly expense, multiply it by 12 then divide it by 365.

If it's a yearly expense, divide it by 365.

You get the idea.

Igal, a previous student, sent me a picture of his list:


Now...

Focus on your "living expenses" column first.

It's the most important one.

Afterwards you can have some fun and do the same for your "lifestyle expenses" column.

Here's a real lifestyle expense example...

In November I'm attending a Mindvalley event in the Dominion Republic at a 5-Star all inclusive resort.

Costs (me and the missus):

Flight: Spain to Miami (return): $2,333
Flight: Miami to Punta Cana (return): $1,570
Accommodation: $2,160
Tickets: $1,699 (each)

Total: $9,461 (or $25.92 per day over a year)

So I would write down "AwesomenessFest: $25.92" in the lifestyle expense column.

(Note that lifestyle expenses can still be tax deductible if they're a businesses expense.)

The process is simple.

Do it now.

(I'll wait...)

Cool, all done?

Now to put this all into perspective for you.

Here's a list of my living expenses (if you can't see the image then you'll need to enable images in your email client)...



Yup ... $88.92 pretty much covers everything.

Now the total daily figure is really not that important.

It's just there to give you the big picture number.

What's important are all the little amounts.

Now here's the key...

Build out multiple mini-income streams to support each item on your notepad.

(Or one that starts off small, and then with daily nurturing, grows bigger each day.)

Think about this for a second.

I'm not suggesting you go out and try and build a $10,000 per month business out of thin air, right out the gate.

Especially if you've never even made 100 bucks in your life before on the internet.

You'll fail.

That's for damn sure.

No ... I'm talkin' small, baby.

You think you can build something that earns you 10 bucks a day?

Back to your notepad.

What you need to do is look at each item on your list as its OWN mini goal.

Now, one by one, you build out these little mini-income streams to support all the items on your notepad.

For example:

A little $10 a day campaign would cover these items for me:

1. Electric - $5.71
2. Water - $1.23
3. Car Insurance - $2.78

Total: $9.72

See how easy that is?

Now so long as I keep this little $10 a day campaign singling along, I NEVER have to worry about the electric bill.

... and the water. And the car insurance.

Ever.

Hope that all makes sense.

I'll end off with one final example to demonstrate this.

I have a little new "TLB" campaign that's just 68 days old.

As I write this email it's August 26, 2013.

... and it's 13:11pm local time in Spain (or 04:11am Pacific Time).

Meaning, because this is a ClickBank campaign, it has only been running for 4 hours 11 minutes so far today.

(So still another 19+ hours to go.)

Here's the Facebook Advertising results so far today:
http://tinylittlebusinesses.com/images/email/260813-fb-4354.png

Here's the ClickBank commissions after 4 hours today:
http://tinylittlebusinesses.com/images/email/260813-cb-4354.png

Spend: $23.26
Commissions: $128.22
ROI: 551%
NET Profit: $104.96

That one tiny little campaign, after just 4 hours, has already paid for ALL MY LIVING EXPENSES.

... and (almost) also my trip to Punta Cana.

I don't touch this campaign either.

This particular one is a set-it-and-forget-it kinda business.

Hope this was a helpful exercise.

Once you have your "living expenses" list written down.

... join TLB and we'll help you with the income streams part.

http://tlb.io/join.php?v=e25 ($49.95/mo for 7-months)

Andre "break it down" Chaperon

P.S.

Come to think of it...

TLB costs $49.95 per month for 7 months, right?

What's that? ... $349.65 in total.

Or around $1.67 per day (for 7 months).

Do you know that a Starbucks Cappuccino (grande) clocks in at around $4.32 a pop.

Whoa! ... that's over double the price of TLB.

So with your little $10 per day campaign you can join TLB, and wipeout two grande Starbucks Cappuccino's per day.

Imagine the buzz? :)