Surviving After Summer

Service companies are bad at saving money.  This is doubly true for the HVAC company and the HVAC Tech.  The Summer is a time for feast.  Yet, it only takes a change in the weather to leave many service techs searching for the change in their couch cushions.

I worked with a Service Tech, let’s call him “Ralph,” that was great at sales.  It was common for him to earn $3,000 a week in commissions during Summer and Winter.  Yet, he was always broke during the Fall and Spring.  He was making well over $150,000 for a complete year, yet he was broke half the time.

By comparison, I made about $36,000 my first year as a tech in 2001.  On $36,000 a year I was able to pay my bills, put my wife through college, and put back a small amount into my savings.

RELATED – Choosing talent over passion

Today, I have a business that is 100% debt free, and the only personal debt I have is my home.  By the end of this year, I will have my home paid for as well.  Even though my financial life isn’t marked by the same seasons as your life, I still have ups and downs.  Sometimes those downs are very low.  Without these 5.5 key strategies, I would be in big trouble.

#1 – Save 25% of Your Paycheck During the Busy Season

You probably make somewhere between 60% to 75% of your total income in 6 to 7 months of the year.  That’s when you should be putting back cash!  Don’t spend that money just because you have it.  Save it!  You will need it during the slow season.

#2 – Don’t Give All of Your Money to Restaurants

Restaurants offer so many benefits to the busy person.  It’s easy.  It’s fast.  It’s a great place to relax with friends and family.  It is also extremely costly!  I can speak from personal experience on this topic.  You can easily waste your savings on going out to eat.

Culture the money saving habit of eating at home.  Not only will it save you money, but it is healthy for the body and mind.  *Spending time at home with your family is a great bonding experience.

#3 – You Don’t Need that New Car or Boat

You will be tempted to go get that new toy while you have the money.  DON’T DO IT!!!

Why have a car note that will follow you around like a puppy during the slow season?  It will beg to be fed, even when you don’t have the money.

And for those of you that would buy a boat, “What are you thinking!?”  Boats are for people that have ample time, plenty of money to waste, and no debt.  If you qualify, then get you one!  If you don’t, run away quickly from the thought of owning a boat.

#4 – Create a Monthly Budget

Most people don’t do budgets because it scares them.  They think they are overly complicated things that only people with a business degree can understand.  This is simply not true.  You can do a budget!

All you have to do is account for the amount of money that comes in, and goes out.  If you get to the end of the list and have a positive number, then that can go into savings.  If you get to the end and have a negative number, then you are going to have to pull from savings.

If you would like to have a list of all the budget items needed, then DOWNLOAD THIS BUDGET TOOL by DAVE RAMSEY.

#5 – Read Financial Peace by Dave Ramsey

It is not an exaggeration to say that Dave Ramsey changed my life.  Before I got my finances together, I was contemplating defaulting on a car loan.  I was terrified.  Convinced that I was going to fail at financial success.  That’s where Dave came into the picture.  He told me to do simple things that I could do:

“Save more than you spend.”

“Stop getting into debt up to your eyeballs.”

If you can’t afford the Dave Ramsey book, then get all of his free goodies on his website.

#5.5 – Attend a Training Seminar

This may seem counter intuitive because training requires an investment of money.  However, if the program does it’s job well, then you should always receive a return greater than the investment.

It just happens to be that PRESS PLAY does an amazing job boosting performance for our clients.  We also back our programs with my personal promise, “I will give you back your money if PRESS PLAY doesn’t produce a significant return on your investment.” – Todd Liles

Great training will also give you a motivational boost when you need it most.

What other suggestion do you have for Surviving After Summer?  Please share on Facebook and LinkedIn.