Peter Norris – Money
November 27, 2013 § Leave a comment
- Money – Universal exchange system.
- Cost – Something surrendered to gain something else.
- Profit – Excess of income after all costs.
- Income – Money generated on undertaken activity.
- Profit = Income – Cost
Pete asked us to calculate every single thing we spend during the year, from food to clothes to memberships, etc. I honestly don’t know how much I (or I should say my parents) spend a year (more like I don’t want to know) but I know it’s a lot, and I am blessed with the current lifestyles I lead. It got me thinking about just how hard it will be to carry on this standard of living when I am earning for myself, and that I will have to earn a certain amount of money if I want to maintain it. He then went on to talk about tax, etc, and I found it rather eye opening.
You need to charge a professional rate for your work. By doing this, you send out the signal that you’re good at what you do and that you’re confident in what you’re doing. £25 is the starting point for this.