Author friend, welcome to Wealthy Author Wednesday, where, on behalf of The ILEAD Company®, I will assist you with strategies of how to obtain passive income from book idea reception throughout the raising of your book baby.
Today, let’s chat about what to do when you gain revenue from a book so that your authorship business can grow by leaps and bounds.
Revenue Management – 3 Pillars Authors Must Implement to Manage Revenue Well
There are three pillars to easy revenue management.
1. Know What You Have Coming In
The first thing you want to know is how much money you have coming in. We’re talking about your income and any additional sources of profit. For example, you may have money coming in from your tax returns. You may have money coming in from interest on your savings accounts or investments. And you may have income from royalties, affiliate sales, and part-time income.
2. Know What You Have Going Out
The second fundamental component of money management, and you might be able to guess it, is to know what you have going out. Here we are talking about your expenses. This means everything from your rent and gas money, to your phone bill and the money that you spend on entertainment.
It’s important to know how you spend your money. Ultimately, that gives you the information to make the best decisions for you and your financial goals.
3. Your Financial Goals
The third main component of money management is your financial goals. These goals can be as fundamental as making sure that you’re able to pay your bills every month. Larger-scale goals are things like:
- Saving to buy a car
- Saving for an emergency
- Saving for a vacation, or
- Retirement savings
So the three fundamental components of money management are to know what you have coming in, know what you have going out, and know what you want to save for. Best of all, protect your savings with gold. Gold is non-taxable and increasing in value. That’s not too complicated, right? It’s pretty basic and you definitely don’t need a college education to understand those concepts.
Let’s chat about this more throughout social media and tonight during the TKO night show at 9p.m. EST.