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The other day someone I was speaking with said they didn’t want the cleaning service to come during a scheduled video conference, so the people on the other end wouldn’t know she doesn’t clean toilets.
A completely rational thought because a vacuum in the background can be distracting for everyone, but there shouldn’t be any shame to hiring someone to help! Outsourcing your to do list is called delegation, and when you delegate the least of your favorite tasks you make room in your day to do what you love doing.
As a business owner, who operates out of the home, you can become extremely distracted by the household duties that you don’t get any business related tasks done. Hiring a housekeeper to clean toilets, vacuum, etc, will remove the thoughts of needing to clean up and allow you to focus more on your work.
You can also miss out on a lot of activities, or adventures, by tying yourself down to household chores. You might have the kids involved in the daily upkeep, such as sweeping, but if you weigh the benefit of having someone take a little off your plate versus what your budget can handle, you may surprise yourself with how those few dollars here and there could add up to a lot of memories otherwise missed out on.
I reached out and spoke with a personal housekeeper and house manager for several families in my area, and heard many remarkable statements from these families of their appreciation:
“We don’t fight over dishes anymore, it’s a lot more peaceful in our house thanks to you.” - Husband and Wife
“I look forward to seeing you every week, because you give me peace of mind and for five minutes I have a clean home.” - Active Family of Four
“I hate cleaning toilets, I dread the job. I know I can schedule appointments when you’re here, and come home to the sweet smell of cleanliness.” - Real Estate Agent with an active family
“You’ve given me time to spend with my family, before we brought you on I would miss out on the kids’ activities or family time in the living room.” - Active Family of Four
“There’s no way I could get all of this done, he’s learning how to crawl!” - New Mom
“If I get all of my work done, I reward myself by having you come clean.” - Family with strenuous work schedules.
Maybe you’re looking forward to the State soccer game your child/niece/nephew is playing in, or the highly anticipated movie of the season everyone finally agrees upon, or maybe you just need to have more time for client meetings. By asking for help, and bringing in someone to take those few hours off your schedule, you can maybe even stop for ice cream on that adventure out of the house.
How does this make you money?
A few questions to ask yourself, write the answers down like a math problem:
How much do you make an hour?
x How long does it take you to do that task you want to delegate?
=How much money you are losing by doing this yourself
-How much would you need to pay someone else to do that task?
=What’s the difference in amounts?
If you are no longer spending 4 hours cleaning the house, while also helping the kids or bouncing through your emails, you can strictly focus those 4 hours on what you do want to do.
Chances are, it takes a professional 2/3 of the time it takes you so that is already saving you 1/3 of the cost of you cleaning the house yourself.
With that remaining 1/3 of the cost, you can reward yourself with a date with your family, or acquire another client/customer and increase your revenue. This is called a Cost Benefit Analysis.
You’ll be seeing a lot me write a lot about cost benefit analysis, because we make these types of decisions daily. But today I want you to consider how you can make money by hiring a housekeeper.
There aren't any typical tax benefits to hiring a housekeeper for your personal home, but if you own a company there may be a benefit. Please reach out to your Tax Advisor with questions about your specific tax situation.
This has bothered me for a while now, more like a few years. I’m super passionate about Finance, so much so that I’ve been doing my own taxes for 18 years, have a college degree reflecting this passion, and help others toward achieving a financial footprint to match their goals. My belief is that one year of personal finance needs to be required for high school graduation/GED. I could literally keep going on this, but let’s get back to the original purpose of this post.
... and the lack of information given as to why you don’t need to know that much about yours most of your life.
Don’t get me wrong, credit scores are very important. To loan underwriters.
What you need to be informed about is what a credit score is, and what it tells underwriters.
A credit score is a statistical number that evaluates a consumer's creditworthiness and is based on credit history. Read more
A credit score plays a key role in a lender's decision to offer credit.
That is all.
This is why apps/companies such as Credit Karma drive me up the wall. They create false reasons for anxiety, for a profit. Yes, Credit Karma gives you a free credit score update, but it is not at all close to being correct. One of my clients showed me their free Credit Karma score, and let me read the reasons as to why Credit Karma ‘gave’ them that score. One of the reasons of the lower score (a lot lower than I felt they should have) was that they were an authorized user of two different credit cards. An authorized user is NOT liable for any debt in which they are not the account holder, which means it can not be used against them for any reason. I had this person request a real credit score, one from a financial institution, and it was over 100 points higher. It was right where I felt their credit score should be.
The 100 point difference not only caused anxiety, as this client thought they weren't going to be approved for a great interest rate on a home loan based on the Credit Karma score, it also created a rift between the two of us as they felt I wasn't achieving their goals I had been working so hard on for several years.
You don’t need to monitor your credit score daily. You don’t even need to monitor it monthly, unless you’re waiting for a specific item on your credit report to be fixed. More on that another day.
What you do need to monitor
Your credit report, every year. This is what lists all of your debts, how well you pay them, your ability to pay them off, and if you’ve ever had a missed payment or anything else ‘bad’ that would lower your ability to get a great rate on a credit card or home loan. If you see something on your credit report that is wrong, you file a dispute with each reporting agency (there are three), and go through the process of having it removed.
You can obtain your FREE annual report from: https://www.ftc.gov/faq/consumer-protection/get-my-free-credit-report
This is the Federal Trade Commission website, and they list the only place federally authorized to provide your free credit report. You can request it online, and you will get a downloadable report, or by phone. If you request it by phone, be in a secure area as you’re required to provide your social security number.
If you’re ever a victim of fraud, or a data breach, please review the FTC’s website on Identity Theft Services. https://www.consumer.ftc.gov/articles/0235-identity-theft-protection-services