Peace of mind is a luxury.
Some believe that ignorance is bliss. To a certain extent, that statement holds true. According to Buddhism’s Four Noble Truths, suffering is caused by craving. And craving only increases as we are exposed to new realms of materialism.
Take the following circle for example. As we advance in worldly exposure, ring-1 will no longer satiate our desires. However, notice how ring-2′s circumference is larger than ring-1; this is the same for ring-3 respectively.
What’s The Point?
At my SmugMug presentation last week, someone asked me whether it was appropriate to increase her prices dramatically. I suggested only under two conditions:
- if you are ready for the change (strategy, portfolio, website, business cards, etc.)
- if you have the financial cushion to survive the transition
Financial Cushion – imagine if you were ladened with bills and overdue payments. How can you think about anything else? Let alone, strategize for your business.
Shopaholic Lesson #5
Yes, I will be referencing to fictional books a lot. Rebecca Bloomwood’s (protagonist) father taught her one thing about shopping – it’s okay to be a shopaholic except that…
…you must either make more or spend less.
Bottom line – don’t bite more than you can chew. Growing or starting a business requires capital. Do it slowly. Give it time.
The moment you enter the negative (red zone), you will be so busy trying to not drown that you will lose sight of how to expand. Either
- make more money so that you can have peace of mind
- spend less money so that you can have peace of mind
- or a combination of the two
Again, peace of mind is a luxury; cherish it.
Lawrence Chan
P.S. My rule of thumb is to have enough capital to survive for an entire year without making a single penny (two years for me).
P.P.S. I still drive an ’04 Honda Civic because my peace of mind is more important than a fancy ride right now. I’m not suggesting that we all be misers — because I do go a little wild when on vacations — but just to plan accordingly.
P.P.P.S. Shopaholic lesson numbers are random so don’t try to look for lessons 1-4 lol!
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Wow I really like this post! I think I’ll go buy the book and have a read =)
Your posts are so entertaining and informative. While I am not someone who lives beyond their means….I sure would like to learn the trick to building up my finances in order to be able to live without making a penny for a year….for 6 months even. What i wouldn’t give to be able to make it to WPPI this year and find your booth. I bypassed entering your contest since I am not able to attend, but I sure hope to next year. This is the month of the year I get bummed when I realize WPPI is coming up and I can’t go.
Keep up the great work!
The scary “M” word! haha! that’s something I’ve been trying to figure out for years and still can not seem to get the hang of it! lol! I have so much to learn from you (I think I’ll be come one of your web-stalkers from now on… if you don’t mind
). I’m ready to listen to any and all your tips! 
Great post!
I think most people would be surprised at how many millionaires drive modest cars.
Great post!
I think most people would be surprised at how many millionaires drive modest cars.
Thanks awesome – thanks for this post =)
Thanks awesome – thanks for this post =)
Excellent inspirational post Lawrence. A very zen like attitude to keeping stress levels at bay. Thanks for that!
Excellent inspirational post Lawrence. A very zen like attitude to keeping stress levels at bay. Thanks for that!
Great Info. I think some people simply think that they can start charging higher prices every year regardless of their strategy or financial condition.
Great Info. I think some people simply think that they can start charging higher prices every year regardless of their strategy or financial condition.
Great blog, I really love the pictures
Great blog, I really love the pictures
the 1 year thing, yikes, but for someone starting out, this was not always the case for you, so would love to ask how to get to that point, great lessons of the shopaholic for sure ~
the 1 year thing, yikes, but for someone starting out, this was not always the case for you, so would love to ask how to get to that point, great lessons of the shopaholic for sure ~