Week 7

Cartoon of a worried man

An unexpected loss has left me a little worried

Looking back on this week is unfortunately a slightly disheartening experience. I have made my first, and hopefully last, net loss. It is not a huge loss, but neither is it a small one. Coming in at -£40.31 after all is taken into account for the week is hardly inspiring stuff. A combination of factors have led to this. One is the fact that it is a time where I’m largely focusing on new ventures which aren’t yet bringing in any money. The main factor though is that it has been a week of high outgoings – this provides a degree of optimism. These are all one-off costs and lay the groundwork future opportunities to make money. The largest expense by far has been £199 for a logo design for the new IT startup I’m working on. The other costs this week are some fairly minor expenses for building the website for the same project as well as a few deposits to trigger some cashback.

My main income this week somewhat surprisingly came through taking advantage of some cashback offers on Bingo sites. I’m not much of one for bingo and find it fairly boring really, but I noticed some good cashback offers this week – particularly tombola through TopCashback offering £20 on a £10 deposit. In all honesty I always go in expecting to win nothing, and because I don’t particularly enjoy bingo attempt to just stake the necessary money to trigger the cashback as quickly as possible. However, I managed to hit a pretty lucky streak and won a fair amount of money on 2 of the 3 sites I signed up for. I won £90 on tombola and about £35 on Coral, made all the sweeter by the fact it was also getting me around £60 from cashback sites. Without this turn of luck this week would have been a lot worse.

I mentioned the large expense on logo design. I thought long and hard about whether to splash out on this, part of me was reluctant to relinquish such a large sum of money, but the other part felt that without getting the image right it would be difficult to make the project work. I wanted to make it professional and as such decided to incur the fairly large cost. As far as logo designs go it is actually fairly reasonable – I went with a site called 99Designs which is a fairly novel idea whereby I put up my design brief and then designers from all over the world can submit entries and I eventually choose a winning design. It gives by far the most choice and variety for the cost. Whilst the nature of it means there is bound to be some rubbish, some good quality stuff comes in as well.

In Summary: 

Being slightly concerned about the way this week has panned out, I decided to get a bit more technical than previously and do some basic analysis on how things have been going. I decided to start by plotting a graph of my weekly net profits to observe the trend. This graph is shown below.

This paints a slightly worrying picture – after a good start and a trend of positive upward growth in net profit from week 3 to week 5, things take a sudden and alarming dip after week 5. This trend is clearly not going to help me achieve my goal, I need to be seeing the opposite effect if I am to reach my target. I decided to take a further look at things to understand just how serious the implications of this is. I next plotted my weekly earnings on a similar graph.

This makes for much more encouraging reading. Whilst there has been some degree of variation, the general trend has been upward from week 1. Simply put this means each week I am generally increasing the amount I make. This is the important thing – whilst I cannot ignore the effect of expenses, the expenses I have incurred recently have all been one off costs. As such, if I can continue to see a steady growth in income, it will begin to affect net income more directly as my expenses become more regular and less drastic one-off types. The expenses I have been incurring in the past two weeks have largely been investments in future opportunities and as such should help to boost the net profit in coming weeks. With this in mind, the picture is somewhat less bleak than it initially appears.

Revenues in Week 7:
  • Cashback               = £60.80
  • Mystery Shopping  = £19.00
  • Bingo Winnings       = £126.26
  • Returned Stakes      =£9.83

Less expenses of £256.20:

Week 7 Total: -£40.31

Running Total: £1046.32

For a full breakdown, see the balance sheet.
The Week Ahead: 
Growing profit graph

I plan to make week 7 an exception and move upwards from here

This week has caused me to be somewhat unsure of the week ahead. All of my earnings were from fairly temporary means and the projects I am currently attempting to launch, largely dog walking and computer services, don’t look like they are in a position to be bringing me any money in as yet. This makes me wonder how I am going to manage to gain income this week and makes me think I’m going to need to get creative. On the bright side I don’t have any more large expenses planned for the near future, so I’m very hopeful week 8 sees a return to profit, thus I’m going to set my target at a realistic £140.

Enter your email address to subscribe to my blog and receive notifications of more great new content by email.

Comments

  1. Enjoying following the journey and like the introduction of the graphs! Hopefully your chickens will come home to roost sooner or later on the new projects you’ve started. And who would think you could make so much off bingo….

Leave a Reply

%d bloggers like this: