Tori Spelling – Unsung Financial Hero?
|July 2, 2008||Posted by Roshawn Watson under Uncategorized|
Once Dean, her husband (and yes I am upset that I know his name), heard the price, he instantly said “we cannot afford this.” I believe most people would probably have the same reaction. However, Tori’s answer was truly insightful and likely the product of growing up in a ridiculously wealthy household. Her dad, Aaron Spelling produced shows such as 90210, Melrose Place, 7th Heaven, and many others.
She said, “…but I will start a business, two businesses if I have to” so that we can get the house. In other words, she was saying that the issue was not whether or not they could afford the house, but how could they afford it.
Apparently, she is no stranger to entrepreneurship either. She designs and markets her own line of jewelery on the Home Shopping Network, and she ran the country Chateau La Rue Inn. She and her husband own a production company. Additionally, she recently penned a New York Times best-seller sTORI Telling.
Her way to solve her financial problem was not to slave away at a job but rather to create systems that generated money necessary to fulfill her dream. She decided (1) not to be confined by their incomes and (2) that building businesses are a better way for them to meet their goals.
Did you know that business-owners are about 5 times more likely to become millionaires than the typical employee? It is true because you will pay yourself what you are truly worth, and you will have to learn how to properly manage business finances to run it efficiently. In fact, the reason most businesses fail is due to debt (overspending, over expansion, and poor capital structure). In short, if you don’t learn how to manage finances appropriately as a small business owner, it is very likely that you will be among the nearly 60% who fail after 4 years. However, if you efficiently manage your business finances, don’t get too leveraged (avoid debt), provide a necessary product or service, and perform appropriate comparative market analysis (checking out your competition’s products and prices), you have a decent shot at being successful.
Business owners are more likely to win financially not only because the aforementioned skills are transferable to their personal finances, but there are often more favorable tax laws for business owners. For example, for those who have a home-based business, the ‘office-in-the-home’ tax benefit allows you to deduct a portion of you home mortgage interest (or rent if you do not own your home), real estate taxes, utilities and other expenses related to your home. Sometimes individuals also underestimate the autonomy of owning a small business. For example, it is a sad day when you have worked for 10-25 years, and your employer decides to sell the company or just eliminate your position, and you leave only marginally better off than when you started working. It happens! Due to current economic concerns, thousands are losing their jobs. Just yesterday, Starbucks announced that it is closing 600 stores in the U.S. costing up to 12,000 employees their jobs.
See also: HowMuch Money do American Idols Make?
Regardless of how Tori’s house story ends (I never finished the episode), the next time you are facing a financial challenge do not automatically assume that you cannot afford what you desire. Also, do not believe that the only way you can fixed the situation is by working overtime or getting another job. There is absolutely nothing wrong with work, but ask yourself whether working is the best way to meet your financial goals.
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Copyright 2012, Roshawn Watson, Pharm.D., Ph.D. All Rights Reserved.