You had better plan as much for not having it as much as the way I have seen people go through it... The opinions vary on this board and others about how much money a provider makes or can make... the problem though is not how much money one can make, but how well they manage what they do make...And yes, it's the money that usually spoils it for people... try making 100k for two consecutive years only to go back to 50k the third year. The problem is you begin to develop an 100k lifestyle and if you are not careful, you begin to do "anything" to maintain the facade. Many of my top sales persons are seducted by the money only not to plan for a down economic year when all of their customers orders have been cut 50%. I have seen young providers put it up their noses and the mature ladies fail to plan for life after the 'red carpet'... and yes, hobbyists too, overextended and broke from living a lifestyle too rich for their means... So what's your exit strategy ladies (and hobbyists) for when the music fades (and it will)? I am curious.
I'm a professor. Most prof earn 50K-75K (that's if you have completed your Ph.D), but since I teach technology-related stuff I get paid in the 100K level (excluding research funds, consultancy, etc). I only work 7.5 months a year but get paid the entire 12 months. From mid December to January, I don't teach since it's winter break (Student break is prof's vacation as well). I don't work June, July, August as well - that's summer break for me. I continue to receive income, of course in those 4.5 months of not work .. nice huh ? That's why I got this Ph.D. Unlike the corporate world (where they discard older employees and hire younger one) and older providers (who don't attract clients anymore when they get pass 40+), most professors are better paid as they grow older. A 35 year old university professor, for example, is considered very young (most are in their 40s). Some universities even allow professors to teach until they are 70+ years old. So, if you get "tenured" as a professor - it essentially means you have a job for a lifetime. Although, a lot of tenured professors still move to greener pasture if they are offered better income and position. Some professors become Deans, and get paid 150k-250k.
100K is sometimes not enough, so I invest in real estate. Property, if chosen wisely, will always appreciate in value. Get a house as much as you can afford. When it appreciates after 5 years, you can either re-invest in another house. Or, you can get a house half the size. If you live in a house over 2 years, you don't pay capital gains tax, so it's tax free income. If your house appreciated 40K - 50K in 3 years -- that's tax free income!
-- Modified on 7/2/2004 6:35:33 AM
Oh well, just because the monetary opportunities were better in private industry I chose not to. Yes, I make more than the $75K per year, but am wondering whether the corporate BS is worth the additional money. Not to speak of the 3 months vacation! And it is true that older employess (with higher salaries) are sitting high on the list when companies downsize.
oh well - maybe not to late to get back onto the academic track.....
I'm too busy trying to chase the wolves from my door to be concerned with a "strategy"
Your comments really hit home 'greatrush' for less than 10 months ago I suddenly found my income down 33.3% . (took me years to get to where I was then "poof gone" )
How do you big earners handle the highs & lows? personally I have been dealing with depression ever since this downturn in my income. I've never earned BIG bucks. I can't imagine going from riches to rags so to speak.
A very timely post, I hope to find some answers also from the board.
Thanks for your honesty. This may sound like a cliche but I try to re-invent myself everyday. I have made a good living, but I can't afford to quit my day job if you know what I mean... so hang in there... this board is good about advice and in the end, you'll have to follow your instincts and keep it all together. Best wishes.
Two years ago, I was making 33% more than I am now. Last year, I was unemployed for eight months, and I had a family member pass away as well as several other people close to me that I had to help make through difficult times. As such, I am still clawing back towards solvency, which I hope to reach in a couple of months, but it has been a humbling experience, to say the least.
The good news is that I am not depressed, thankfully, as my new job is 100% less stress than my old, I have a lot of money owed to me (so I kind of have a savings account 
, and I am going in the right direction. I am looking forward to the fall. 
Most people will not admit it but many of life's "expenses" can be re-sized to a level that they can be managed. One important factor in the process of re-sizing is deciding what produces feelings of happiness. Do people really need large cars in most cases, or can they do with smaller cars and trucks. Do people need large houses that allow each of their kids to have separate rooms, while having "Rec" rooms or can they do with a smaller house.
All of us have been literally "programmed" to want more. Some of us are lucky enough to get more and never have problems. But most people are not fortunate and need to resize their lives.
Making a large amount of money, in and of itself, is not the answer to a happier financial life. One has to look no further than at famous personalities that made millions but are now virtually broke. Careful utilization of the money that one earns is the answer.
Part of the solution is as you say is to know how to manage your money. The other part is to realize that it takes money to make money. I too was a Professor for 23 year and only earn about $1 million in salary. However my investments over the same time eared at least 7 times that amount. Incidentally one of these investments is in a small mortgage lending company in Las Vegas that loans money (secured by a deed of trust) to individuals such as Dealers, Cocktail Waitress and Providers who cannot qualify for a bank loan because they don’t claim all their income. As a result I probably earned more money over the years from Providers than I have spent on them.
I am in sales and when I first started in my industry it was easy money. 6 figures just for showing up, many guys pulled in 500K in a year easily. The last couple years have been tough, companies aren't spending like they used to, and the easy money, and the big money, isn't there anymore. I still do ok, but I've abandoned all hopes (for now at least) of getting those big fat bonus checks.
Change is inevitable, but nobody can predict when these types of things are going to happen. You just have to deal with it when it comes. The only thing you can really do is make sure you quirrel away a nest egg in case you hit really hard times.
Roll with the punches.
Been there!!! Made 100K plus a year for over ten years and lost it all "Sept.11" Had to close the buisness and sell the assets for what I could get. The real kicker is that I had 32 years building the buisness and was ready to sell the buisness intact and have my retirement. No govt. help for small buisness if you wernt in NY or DC. I have been trying to start over at 54. Funds are running low . Both parents have passed away in the last 5 years and I split up after 21 years married. Started on anti depressants a little over month ago when I was really having a tough time. I dont write this to "harsh your Buzz" but to say THANK YOU to all the fine ladies I have met over the last few years who have provided the finest Diversion a man can ask for 1 hour at a time. There is no happy pill you can take that raises the spirit as well as spending time with a slightly exotic, completely Erotic beautiful woman. In the middle of all this crap you have allways managed to put a smile back on my face. THANK YOU
Living beyond our means! Isn't that the American way of life? I would recommend a book by Robert Kiosaki (Sp?) called “Rich Dad Poor Dad” for anyone who starts an independent life. It shows that making gobs of money can’t really help you unless you have the basic understanding of money. Great book!
I’d like to actually use this hobby as an excuse to work towards my ultimate goals. I’m looking for some investments (With the possibility of equity gain!) to finance the day-to-day costs of this hobby! Have I done it? Not yet, but I’m close!
Visit www.richdad.com for a wealth of insight into financial independence and freedom from the paycheck... I have wondered about if I had unlimited funds for the 'hobby,' might I see it differently. Thanks to all who are posting.
If you want to be financially secure, set and goal and make a plan you can stick to. I left a corporate job 15 years ago paying nearly 100K to relocate for wife's job paying more and started my own consulting business. Wife got excellent bonuses most of those years but we never spent a dime of that money and totally maxed out on 401K and executive excess plan. In fact we never took the bonuses...put into deferred account to draw on in retirement. So paid no taxes yet and its grown with bull market of 90s. I actively follow market and control investments with paid advisor so not hit too bad last few years of bad market. In short, I haven't worked in 5 years and wife just 6 months from early retirement with a great pension. May stay working a bit longer since she enjoys it and just promoted. We still live very well but never living as well as we could. Income in retirement will be about same as working with most guaranteed. Enjoy hobbying, spending within my budget that comes from investment returns, dividends, interest, etc. but never exceeding more than 1% of net worth in a given year. Know several people in my position who wasted their money over the years and wonder how we are doing so well. A little discipline goes a long way no matter the income level.
Even though retirement seems so distant when you're young, maxing out on all the tax-free or tax-deferred plans available to you is really going to pay out big time if you start early.
Looking ahead, my retirement is going to be very nice indeed--not because I was so smart picking stocks or mutual funds that did great (because they didn't), but simply because I started maxing out my IRA's and 401K's with my very first job. When I also had a job on the side (my own little biz) I then started a SEP-IRA (self-employed IRA)--anything I could find to give me a tax advantage down the road.
Besides 401K's and IRA's, the usual ideas of diversity apply too in your long term savings goals--investing in a range of stocks and fixed instruments.....paying off those high rate credit cards (always hard for me since I love to shop, LOL)...owning your own home...commercial or residential real estate investments, especially if your community ir growing rapidly.
I'd estimate that most providers of my acquaintance own a home or condo, but most unfortunately do not have much savings in the bank. Many will take the money from a session and go blow it at the mall instead of depositing it in the bank. (I go to the bank twice a week because I don't want all that cash beckoning me for impulse spending.)
Bottom line--start early--it really will pay off.
-- Modified on 7/3/2004 2:35:49 AM
Even those providers and hobbyists who are not so young can gain something from reading, thinking about and utilizing the suggestions of your post. I really like meeting providers that have their heads screwed on right concerning management of their finances.
It's great to see that you understand the simple principle of TIME. MOst providers are hung up with the flash and trips, the bling-bling and sadly, many are pushing it up their noses or worse. Stay smart and sexy.
Most ladies barely have a holding on strategy.
If you think that most ladies can retire comfortably, you're crazy.
Not gonna happen. Sad, but true.
"If you think that most ladies can retire comfortably, you're crazy" - Most ladies could very easily retire comfortably if they were smart about their money. $150K-$250K earnings per year in cash for 5-10 years gives them a huge window of opportunity to set themselves up for life. They could live well and still invest in real estate and rental properties, and sock away a several hundred thousand in the bank.
Unless you plan to live like the rich and famous, this could easily set you up very comfortably.
-- Modified on 7/2/2004 5:43:06 PM
I have met two providers in the last year who are apparently doing well. One owns her own home and two rental properties. The other has a job outside of providing and has invested in stocks and even with downturns, is pointing towards retirement with her investments and other job producing more income than most people make each year.
How did these two women do what they have done at comparatively young ages? I met the first one, who was 24 years old, last year. She had started in the business as a 14 year old and had supported "boyfriends" for about six years, then she had a revelation that caused her to dump the boyfriends and become a super saver and investor. She lives simply, even with her growing assets. The second was born into a poor family but was apparently taught how to save. She also somehow learned how to invest and uses her providing business to pump any client who has an investing or investment banking background for all the free advice that she can get. She then filters that information in making her decisions - all in all, one smart woman.
I have also, unfortunately, met the opposite of the two women above. The providers who are not using their earnings wisely are more the norm.
I mean how much cash do you keep as emergency cash in relation to your monthly expenses in case you lost your job? 3 months, 6 months, 12 months, 24 months???
I have enough for 5 years or so (assuming I cut my hobbying activity back to a normal pace!).
But I don't have a wife or kids, so my expenses are reasonable.
in reserves. While that is not nearly as good as some here, it is a comfortable level for me. I have a good job and plans for a second career if I stop liking my current line of work (I have a passion that I will take advanced training to turn into a new job if I need to). I also actively invest, that is how I have built reserves.
One thing about this hobby where I see that I am different on is that eventhough I prefer to pay good providers well for their services, I really do not spend a lot of money at it. The spending control comes from the fact that I am busy with my work and use the hobby to satisfy urges. also, I am not addicted to it, so I may see a provider once every 3-4 months. I noticed survey results posted above that indicate that most hobbyists would not pay more than $300/hr for a provider's services, I recently paid $750/hr, but where the hobbyists who will not pay more than $300/hr may see anywhere from 3-16 providers in a 3-4 month timeframe, I will only see one, so in the aggregate, I spend less, sometimes, a lot less.