Friday, October 1, 2010

Top Line - Bottom Line

Students, it's the weekend, tests are over, time to go to the local pub and kick back a few or hit the movies for a little well deserved RnR with friends.  One problem, you don't have any money!  Why? 

Struggling Graduates, trying to make it in this crazy adult world, the bills seem to hit you all at once.  One problem, you don't have any money! Why?

Single Parents, you've got mouths to feed, diapers to buy, a college fund to set up for the kids.  One problem, you don't have the money! Why?

You are either going to answer this question one of two ways...

"I don't make enough money" or...
"I have too much debt"

Both answers are correct, BUT its not that simple.

I'm going to explain it to you by way of Top Line - Bottom Line.  

Lets start with the Top Line

***Top Line, is a business term that simply refers to a company's Total Revenues.  When a company is "growing its Top Line," that means they are doing whatever they can do to increase sales revenue.  Simply put, they are trying to earn more money.

Think of your life as a business. (Jane Doe Co. LLC) Businesses have to make money to keep going, and so do you.  Money is necessary to buy supplies, manufacture goods, pay expenses, promote growth.  A company can not pay its debts without producing adequate revenue.  So it would be safe to assume that the more money a company makes, the more stable its financial position is, right?

Not Quite... A company can be making money out the wazoo, but at the end of the day, if their expenses are sky high, that company will suffer a loss. 

***Bottom Line, is a very broad term that refers to anything that may decrease a companies earnings.  When a company is said to be "improving the Bottom Line," it means they are trying to cut costs.  Costs can be anything from employee wadges, to the raw materials used to manufacture goods.  Many costs are unavoidable and necessary to keep a company going, like raw materials mentioned above.  Others, like marketing expenses can be scaled down a bit.  Unnecessary costs, like paying for every employees lunch, can be cut out completely. 

Usually when a company is trying to boost is revenue, it focuses on either the Top Line, or the Bottom Line. 

You, however, need to focus on BOTH. 

It's not enough to just make more money.  You must incorporate the two.  Earn more money AND cut your costs.  This will result in you being able to keep more money in your pocket, pay bills, go out, and save. 

Here are some tips to grow your Top Line:
  1. Get a second job, nobody said living was easy
  2. Make money online
  3. Donate plasma
  4. Collect cans and recycle them for cash
  5. Put cloths you don't want anymore on consignment
  6. Bar tend, I hate to advise anyone to moonlight, but I do it and make good money
  7. Students Sell Class Notes for cash or become a tutor
  8. Students, buy granola bars and apples in bulk, sell them to hungry piers in the hallways for a dollar
  9. Fall is here, rake leaves
  10. Take pictures, sell them online
Here are some tips to improve your Bottom Line.
  1. Quit spending money on retarded crap, if you don't need it, don't buy it
  2. Whenever possible, walk to your destination instead of driving
  3. Don't go out so much, the dance club will get by without you
  4. I know you like your peddi and manni, but they are expensive and not necessary
  5. Stop shopping for new clothes.  Just because it's on sale doesn't mean you need it. 
  6. Use coupons wherever you shop.  You can find thoes online or in the local paper
  7. All extras like Netflix, HBO, expensive mineral makeup, and organic chocolate ice cream must go (guilty as charged)
  8. Don't buy your child everything they cry for.  Trust me when I tell you, that is the quickest way to spoil a child
  9. Stop eating out or switch to the dollar menu
  10. Stop paying for car washes, do it yourself, or let the kids do it!
  11. Quit smoking and dipping.  It's bad for you anyway
***One big thing I've noticed alot of college students and teens running into is tickets (speeding - guilty).  Speeding tickets and DUI's cost lots and LOTS of money.  I racked up over $1,000 worth of speeding tickets before the age of 20.  What a big waste.  Be responsible people.  No one needs this added cost.

RECAP:  Earn more, Spend less...easy hu?

So there you go.  Try it out, and let me know the outcome. 
Any other suggestions to earn more and cut costs? Share with us!

Good Luck


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