EP#50 – Transcript

Planning Your Ideal Lifestyle Budget

Hello there, ladies and gents. How are you doing? Jo here and welcome to the Your Lifestyle Business Podcast. Now, today I’m doing a slightly different episode in that this is a replay of a Facebook Live I did in my Your Lifestyle Business Facebook Group. If you are not a member, I will put the link below the show notes. Do please go over to Facebook and type in Your Lifestyle Business and you will find us, and look for groups, obviously, Your Lifestyle Business Groups, and come and join us. We are a community of like-minded lifestyle entrepreneurs all building a business you can run from anywhere in the world, whether that be your kitchen table or a beach in Fiji.

And I, unfortunately, right now as we speak, I’m in lockdown here in Phuket, Thailand and I cannot go to the beach because the beaches are closed, but that is another discussion altogether. So, I did a Facebook Live in part of a 10 day Facebook Live challenge. A friend of mine challenged me to do 10 days of Facebook Lives because this is an important lesson, because I was a bit uncomfortable doing Facebook Lives and it was pushing me out of my comfort zone. And so, we felt 10 days was a good, solid timescale to immerse myself in doing Facebook Lives and obliterate the fear. So, if there is anything that you are currently uncomfortable with, you really want to tackle it, but you’re a bit scared, maybe it’s making video, maybe it’s delivering content, maybe it’s writing blog posts, whatever, why not set yourself a 10 day, a 14 day challenge or get a friend to, and immerse yourself in it for that short, intense period of time? That should help you then overcome and obliterate your fears in that area.

So, that’s what the whole point of this was. Today is day two. I did not record day one for the podcast because it’s literally me going onto my group and saying, “Hi, I’m doing a Facebook Live.” So, this is day two, pure, unadulterated content, Planning For Profit.

So, today’s episode is all about getting very clear on your outcomes by calculating what I’m calling your ideal lifestyle budget and then creating a very specific monetization plan so that you can build your business with purpose. This is the difference between aimlessly building a business because you don’t really know what you’re doing, or where you’re going, or why you’re doing what you’re doing, and building a business because you have very, very clear and specific outcomes and you know exactly what it is you want to do.

So, you’re creating your ideal lifestyle budget, i. e., the amount of money you need in order to live your ideal lifestyle every month, right? Then you create a very specific plan as to how your business is going to help you to achieve that income, to generate that income. And now every blog post you create, every video you do, every podcast you create, it is all taking you closer to your very specific goal.

So, I hope you enjoy today’s episode. It was my first. I did one Facebook Live going, “Hi, I’m going live,” and then this was my first content one. So, I do trip over my words a little bit a couple of times and get myself all a bit hot under the collar, but it’s good content. I hope you enjoy it. I hope it helps. And do please come and join the group. The link to it is in the show notes, so if you have any questions or queries then you can ask away in the group. Thanks for listening. Hope it helps.

Hello ladies and gentlemen, how are you doing? Jo here and welcome to today’s live. Today is officially day two of my Facebook Live challenge. Now, I am trying out my Yeti mike today. I hope that it sounds good and you can hear me and all the sound is pretty… I’m not sure how close I’m supposed to be. So anyway, we will just crack on and see how we get on. So, thank you very much for all the votes yesterday, everybody voting as to the kind of content they wanted to hear over the next few days. The most popular one was planning for profit. That was number one. Then over the next few days I’ll be going through the other content subjects that I was talking about yesterday.

So, today we are going to talk about planning for profit. Basically, what that means is you defining exactly what it is you need to earn every month. What is the income level that you need to generate in order to live your ideal lifestyle? Now, the whole point of a lifestyle business is to do something you love. So, I’m not actually really ever talking about completely giving up working or doing anything unless that’s actually what you really want to do, get to a point where literally your business runs without you and you have complete freedom to do whatever it is you want to do, whenever you want to do it. But in the meantime, hopefully you’ll be doing something you really love to do while growing your business, while building your income and while generating what I’m calling your ideal lifestyle budget.

And of course, the goal is to give you more time freedom. So, whether you get to a point where you don’t have any involvement in your business anymore because literally you’ve been able to outsource everything, or whether it’s something you do for two or three hours a day and it gives you the rest of the day to go and spend time with your loved ones, or go and travel the world and explore or whatever it is that you really want to do with your time, that’s the whole goal of running a lifestyle business. It’s, number one, doing something that we love to do every day. And then number two is giving us that time to be able to go and do the other things that we love to do, our hobbies, and spending time with our family and all that kind of stuff.

So, what we’re going to discuss today is: how do we get there? What do we need to do to monetize our business, to give us what we need to live that kind of life? So it starts with, number one, you need to create what I’m calling your ideal lifestyle budget. And just for anybody that’s joining us and leaving comments, just to let you know, I will look at comments and answer any questions or anything at the end of the session. So your ideal lifestyle budget, what is that? How do you create it? Well, basically, it is an exercise where you sit down with a Google Doc or a piece of pen and a paper and you start working out your dream life. What does your ideal life look like and how much is it going to cost you? I mean, that’s literally it.

So, you want to get quite granular here and look at, “Okay, so how much do I need for accommodation?” for instance. So, is that rent on where you’re living? Is that your mortgage? Is that actually because you’re traveling around and you need a monthly budget for hotel accommodation and all that kind of stuff? It’s working out how much it’s actually going to cost you to live each month. Something I was thinking about last night while I was thinking about today’s live, is that you might get to a point where you’re paying off a mortgage and you want to pay off a bit more. So, let’s say your current mortgage payment is 300, 400, $500 a month or whatever. And you might say, “You know what? I want to pay this off faster. So, my ideal monthly budget is 750 or a thousand bucks,” or whatever it might be.

So, it really is about sitting down and saying, “Right, so how much does it cost me to live somewhere every month? How much money do I need to eat? How much money do I need for stuff, for shopping, what have you? How much money do I need for travel expenses?” Maybe you want to be able to hire a yacht every now and again, or go and do some extravagant stuff, or hire a speed boat for a day. How much do you need for some of those fabulous extras? I mean, this is your ideal lifestyle, right? And so, you’re basically sitting down and saying, “Well, you know what? To live my ideal lifestyle, I need X thousands a month.” And for some people that might be a couple of grand. You might be super happy just rolling around the world, house sitting for other people, chilling out in gardens, down the beach, eating fresh fruit, blah, blah, blah, whatever. That could be your life and that might cost you a couple of grand a month.
Or, you could be somebody who really wants to live it up. You want to stay in the best hotels, you want all the nice things, and then you might need 10, 15, 20 grand a month. It’s entirely down to you and what your ideal lifestyle looks like. So that’s step number one, sit down and work out that ideal lifestyle budget. This is your goal number. And when you are really specific and clear about that number, then that gives you the power to start setting very measurable goals in your business. You’re able to now look and say, “Right, I know I need $5,000 a month. That’s my goal number. So now what am I actually going to do to go out and begin to generate $5,000 a month?” That’s what we’re going to talk about next. Sorry, I’m just flicking around in my phone here to get to my notes. I had a bit of a technical issue before I came online again, as I always do at the moment, coming on these lives, but I’m going to get it, hence the 10 day challenge.

So once you’ve written out your ideal number, now what we need to do is go out and figure out how we’re going to get it. And the reason this is so powerful is because when you go out and you start your business, if you don’t have that ideal number, then you’re kind of flailing around in the dark, right? When you start your business, you’re thinking to yourself, “Well, I want to start a business and I think I want to kind of go and do this. I’m pretty into affiliate marketing. Maybe I want to do e-commerce. Maybe I want to go and sell how to make jewelry. Maybe I want to sell my jewelry. Maybe I want to go and do print on demand,” whatever. You’re kind of going around with these ideas, but you don’t have anything really specific and concrete because you don’t have that absolute number. So you get that number first and then you can say, “Right, I know I want to go out and generate $5,000 a month in my business, so what do I now need to go and do that?”

So, step number two is to go out into your industry, into your niche, and have a look and see, how are other people monetizing their business? So, for instance, I’ve actually written a blog post about this in my 30 Day To Build Your Own Information Marketing Guide, which is coming out in a few weeks. And I give an example of, let’s say that you’re an avid gardener and you love gardening. You spend all day in your garden, and you love making videos about gardening, and you love blogging about gardening, and your life would be just living for your garden and helping other people design amazing gardens and all the rest of that kind of stuff. So, you work out your ideal number. Let’s say it’s $5,000 a month, right? And you know that for $5,000 a month, oh my gosh, you can go and buy a house with the most beautiful garden. You can spend your life doing that garden, you can blog about it, you can make videos, you can tell the world about how to do their amazing gardens using your garden.

So, what you want to do now is go out and start looking at all the different gardening sites online and asking yourself, “How do they monetize? How is it they actually generate their income?” So, for instance, I went on to a garden… In fact, let’s do it, let’s go onto my screen and I will show you. So, this is called The Middle Sized Garden. Okay. So, this lady has a gardening blog and the way that she monetizes her blog is, in her blog posts she has affiliate links. So, she’s affiliating for Amazon mainly. So, you go through her blog links and she talks about different equipment to purchase in order to do the different things that she does in her garden. And she affiliates for Amazon, so you can go and click on the links and she will get a commission for recommending the certain equipment for her garden.

So, she’s writing all about her garden. She’s making videos about what she’s doing in her garden. She’s written a book. So, she’s got a book that she’s selling as well on there, so she’s monetizing it via a book, and she’s also doing sponsorship. So, she actually goes out and if somebody has a brand that they want her to endorse, she’ll go and have a look at the brand and then she might write a blog post about that and then she’ll get paid commission to write a blog post about that. She also does some coaching and she mainly does coaching on blogging, funnily enough. You think she’d do coaching on gardening, but she actually does coaching on blogging and she helps other people build successful blogs.

So she has built this blog over time, probably mainly through SEO, making sure that she’s using popular search terms, et cetera. So, she’s grown her traffic massively, so you can see she’s getting around 150,000 visits a month, and from that she gets commissions from any things that people buy off Amazon. She’s selling her own book and she sells her coaching and brand endorsement. So, that’s how she is monetizing her business. Another site I was looking at the other day, which is just phenomenal, actually, these guys are called A Beautiful Mess. This started as just like a small lifestyle blog, two girls just writing about stuff that they love to write about, and this has grown over the years and these guys are monetizing from every single angle you can imagine.

For starters, they have got AdSense on this site, which I hate. I’ve got to tell you right now, I cannot stand AdSense. I think it really breaks up the user experience. On a mobile it’s awful because your site is constantly kind of just reloading all the time as the AdSense is coming in. I click off most sites that have AdSense on it and I just find it awful. But I guess it is a way to generate income. These guys also do a lot of advertising, so you can put banner ads on their site and they’ll charge you for that. They also do brand sponsorship. So this is kind of a lifestyle, home decor, recipes, that kind of stuff. So people will come and say, “Hey, I’ve got this amazing whatever to put in my home. Can you please have a look at it and endorse it? If you love it, can you write about it, tell your fans about it, maybe put it on Instagram, et cetera?”

So, they’re generating money from essentially being influencers as well now and reaching a big audience with their blog. The blog is littered with affiliate links, so they affiliate for all sorts of people throughout here, either by Amazon… I’m not sure if they do Amazon, but courses, and equipment, and whatever you can think, affiliate marketing, referral marketing. It’s basically where you take somebody else’s product and you recommend it. You might think I’ve just talked about that with brand endorsement. It was two slightly different things. Brand endorsement is when a brand will actually pay you a specific fixed fee for going and writing or talking about their brand or posting on Instagram or something like that. Affiliate marketing is where you will go and recommend something you’ve used and then you will get paid a commission every time somebody buys that product. Okay?

They also have e-courses, so they have courses all about… Sorry, I’m just looking for it. There’s the link here. They’ve got courses on photography, courses on Instagram, courses on blogging, courses on interior decor, all sorts of stuff. These girls have got it going on, let me tell you, with their courses. Look, video basics, launching a podcast, blogging, all of that kind of stuff. They also sell books, so they’ve written their own books. They’ve got beautiful picture books and stuff. I’m not going to go around too much on here because the Internet’s quite slow with the Ecamm Live software on to do the live. But if you go and actually have a look at their site, they’ve also got lovely picture books, interior design style picture books, et cetera. They’re also selling apps. They’ve got Airbnb, so they’ve actually got their own properties that they rent out via Airbnb. And they do lots of different partnerships and stuff like that. So, there’s so many different ways that you can actually monetize your business.

So, exercise number two is to really think about and list out all the different ways that you can monetize your business and generate that ideal lifestyle budget number that you need, okay, to live your ideal lifestyle. So, once you’ve had a look and you’ve generated some ideas, and you’ve had a look through all the different sites, and you’ve made a little list of all the things that you require doing, now it’s time to really do some digging and try and figure out, “Okay, well how much is each of those potential income generators worth?” Okay? So, let me just go back to me here. Here we go. So for instance, if you wanted to do AdSense, making your money from AdSense, well, what do you actually need to do in order to generate X amount of money from AdSense? If you go out and you start digging on Google and stuff, you will find lots and lots of information out there.

For example, I actually went out and had a look at AdSense. Even though I don’t like it, I don’t recommend it, I just thought, “You know what? Lots of people are doing it like Nomadic Matt, for instance.” I love Nomadic Matt. I think he’s awesome. He’s got lots of great information on his site. He’s a travel site, but he uses AdSense. I hate it and I think to myself, “Why do these people use Adsense?” So anyway, I went out and started looking into: how much could you earn from AdSense? And the broad and average calculation is this chap at a site called rankxl.com, he worked out that you’ll need around 60,000 visitors a month to generate around $100 a day. And actually, it depends on what industry you’re in and therefore how much commission you’re going to get paid by AdSense. And he actually found that he started to generate $3,000 a month after he’d done about 100 to 150,000 views a month.

So, that gives you an idea of the kind of traffic that you’re going to need to generate to your blog if that was a path that you wanted to go down. So let’s say you decided, “Look, I want to be a blogger. I want to SEO my site. I’m going to write every single day. I want to talk about what I’m passionate about. I don’t want to have to sell courses. I don’t want to do launches. I don’t want to do anything like that. I just want to make money from people actually reading my valuable information, so AdSense is the way to go for me.” Okay, great. You now know and have a very clear idea that you need to get your blog to a point where you’re generating between 100 to 150,000 visits a month to earn about 3000 bucks a month on AdSense. So with that number in your head, you now know, “Great. Well, if I go out and I’m doing 300,000 views a month, then I might be earning $6,000 a month. And if I can get half a million hits a month,” and so on. Yeah.

So, now that gives you a very specific and clear goal on how to monetize your information if that’s what you want to do. Okay? So, let’s give another example from A Beautiful Mess, the site I was just showing you. Let’s say you wanted to sell a book. So, let’s say that, I think Vicky might be watching, and I know Vicki is launching a business in skincare. So, let’s say that Vicki was going to launch a beautiful picture book about skincare. It was going to be a gorgeously laid out book. It was going to have all the different steps on how to care for your skin and all the different things that you need to do in order to come out with beautiful, hydrated, young looking skin. And she sold that book at, let’s say, $19.95. And let’s say her goal was $3,000 a month. So, she would need to sell 150 books a month to generate $3,000. Okay?

So her goal would now be, “Okay, great, I’m going to launch this book. I know I need to sell $150 a month.” How clear is that now, that you can go out and you can get onto Instagram, or Facebook, or on your blog, or your website, and your goal is to sell those books? And you know your magic number is 150 in order to generate the money that you need to create your ideal lifestyle. Let’s say that you did some kind of video course or something like that and the price for it was $197. Well, now you’d need to sell 15 of those a month to get to the magic number of three… Sorry, I’ve changed to 3000 because that’s what’s on my blog post and I’m not quick enough to calculate 5,000 as I started.

So, if you were selling something that was $197, you know you need to sell 15 of those a month in order to generate your magic number of $3,000. So look, the goal is, is that you come out with a list of potential ways that you can monetize. If you’re selling products on your website and those products are 30 bucks a pop, then you work out your numbers from there. Does that make sense? So, you’re sitting down and you’re basically going through exactly what it is you need to sell in order to get to your magic number. And that gives you some clarity. Now you’re not just going out there and sort of throwing content out there and seeing if it sticks or doing the odd live to see if that’s going to work and generate some engagement or whatever. You’ve got a very specific and very clear plan.

I need to go, “I’m going to sell 150 books a month on this particular thing. They’re going to cost 20 bucks and I need this many in order to make, say, $3,000. And my whole focus now is, what content do I need to create to sell those books? Who do I need to speak to? What influencers do I need to reach out to? What do I need to say on my videos? Do I need to talk about my books? Do I need to talk about the things I’m talking about in the books to then promote the books? What different promotion strategies do I need?” Do you see what I mean? You get very, very clear then on exactly what it is you need to do. All right, so that’s basically writing down exactly how to monetize your niche.

Once you’ve done that and you’ve got a list of things, then it’s about deciding, “Well, now what’s my priority? What do I actually want to focus on?” Because you may have, “Okay. Well, I could generate AdSense because I’m going to be blogging because I want to increase traffic to my blog. I’m going to do some advertising because if I’m generating 50,000, or 80,000, or 100,000 visits to my blog every month then I can advertise, I can actually go out and I can get some money advertising that. And I’m going to have a shop and I’m going to sell my books, or I’m going to sell my products, or I’m going to sell some courses or whatever. I’m going to have those on my blog.” But you can’t do everything all at once, right? If you try and do everything all at once, you’ll overwhelm yourself and you’ll end up doing nothing.

So, it’s now about taking those ideas and saying, “Right, what do I want to do first? And number one, what’s probably going to be the most profitable?” That’s probably the first one you want to go for. Number one is, “Which one is going to generate me the most amount of profit for the least amount of work?” Yeah. Or the least amount of traffic is probably a better way of looking at it. “Which product is going to generate me the most amount of return for the least amount of traffic?” Because, traffic takes work, right? And so therefore, “Which one is it I want to work on first?”

Prioritize them in an order. “Number one, I’m going to go out and I’m going to create an e-course. That’s the first thing I’m going to do,” right? So, just going with the skincare again, “I am going to get myself, I’m going to lock myself in a room with a friend. I’m going to spend an entire two days doing skincare routines, taking video footage, talking about all the different things you have to do, going through a morning routine, an evening routine, how to keep your skin hydrated through the day, all that kind of stuff. I’m going to do a course and I’m going to sell it for 97 bucks. That’s the first thing I’m going to focus on. So, I’m going to take out a couple of days. I’m going to do that now. I’m going to get it live and I’m going to spend the next three months selling that course. That’s my priority. And while I’m doing that, I’m obviously creating lots of fabulous content to get people to my website, or to my Instagram account, or to my Facebook page, wherever my home is going to be.”

We’re going to be talking about that on another live. “So, I’m going to be growing my audience and engagement at the same time. But my main goal is to go and sell this course because the faster I can start to generate that income, the more I can then invest back in my business and generate more streams of income, which is going to take me to my ideal lifestyle budget.” All right? And then, of course, you need to go out and make it happen. That’s it. The secret ingredient to all of this is actually making it happen, making it real, taking action, execution, all of that kind of stuff. All right?

So really, this exercise shouldn’t take you longer than a day or whatever. Just sit down, a quick recap, work out your ideal lifestyle budget. Look at other brands and people in your industry or your niche to see how you can monetize your particular brand and niche. Create a list of all the different products or services that you could sell. Work out, dig deep and really get to grips of how much traffic you need in order to make X amount on advertising, or how many of your courses do you need to sell? Or how many books do you need to sell or whatever? Get to the nitty gritty of the numbers so that you’re very specific about what it is you need to sell.

Then make that, turn that into a priority list so that you know where you’re going to start and now rather than just aimlessly going into starting your business and saying, “Well, I’m going to get out there and build my Instagram account,” or, “I’m going to build my blog,” or, “I’m going to build an audience,” or whatever, rather than just aimlessly going out there, you are now actually going out there with a purpose and you know exactly what it is you need to do to take you closer to your goals of having the lifestyle that you want to live.

So, that’s it. So, thank you very much for joining…

Thanks so much for listening to today’s episode. To join in the conversation, please head over to yourlifestylebusiness.com where you can find links to podcasts, show notes, and sign up to download my free e-book, How To Build A Business You Can Run From Anywhere In The World. Also, make sure you come and join our Facebook community. Just search for Your Lifestyle Business on Facebook and you’ll soon be sharing ideas with like-minded entrepreneurs all on the same journey. Lastly, if you have a moment, please subscribe and quickly rate this podcast on iTunes. It takes a 10th of a second to hit the little stars and your rating will ensure it gets out to more people and impacts as many as possible with the message, “Make it happen!” Thank you so much. See you next time.

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