Woman Drains savings, Racks Up Debt Blaming ‘girl Math’
Mackenzie, 26, from Melbourne, FL, works “four or five” jobs and side hustles. She considers herself an entrepreneur, but she’s drained her retirement savings and emergency fund – wracking up thousands of dollars in debt – in the process.
She told Caleb hammer on a recent episode of Financial Audit that she used to work as a project manager at Walmart, making around US$50,000 (CDN$70,000) a year before she quit. She took money out of her 401(k) – the american equivalent of a RRSP – to buy a car, drained US$14,000 in savings and racked up debt to start a nail salon business, all of which she blames on “girl math.”
“Girl math” is a term that emerged from TikTok as a way to describe the “seemingly intricate and often ridiculous ways women justify an extravagant or unnecessary expense,” according to a social media glossary from Later.
Hammer was opposed to her using the phrase, saying, “You’re going to make everyone hate women … Why bring to your entire gender this negative connotation that you’re unable to manage money?”
Mackenzie makes about US$500 a month as a nail technician, a business she just started, splitting US$742 a month in rent with another technician. That works out to US$6.25 an hour for 20 hours every week. She also spent a few thousand dollars on startup costs because the “old salon stuff” had “bad energy.”
“Well, I girl-mathed the hell out of it and it made sense to me at the moment,” she told Hammer.
Mackenzie also has a part-time job at a burrito restaurant, working an average of about 20 hours a week at US$15 an hour plus tips.
“So to be clear, you make three times what you make [doing] nails … and you work just as many hours doing that,” said hammer.
Here’s why her “girl math” doesn’t add up.
There are approximately 1.22 million small- and medium-sized businesses (SMEs) in Canada as of 2023.
is Your Side Hustle Ready to Be a Full-Time Business?
So,you’re dreaming of quitting your 9-to-5 and diving into your side hustle full-time? That’s fantastic! but before you hand in your notice,it’s crucial to honestly assess if your business is truly ready for prime time. It’s more than just passion; it requires planning and readiness.
Starting a business comes with numerous expenses, such as rent, utilities, supplies, inventory, and startup costs. If you expect customers to automatically start showing up, you could be setting yourself up for failure.
A solid business plan,backed by thorough market research,is essential. Are you offering a product or service that people actually need or want? Consider Mackenzie, who wants to open a nail salon.How many nail salons are already in her neighborhood? Is the market already saturated? Does she offer something unique to attract customers?
Don’t quit your day job just yet. It’s smart to build a solid client base and a strong reputation *before* going independent and possibly draining your savings. You’ll also need a marketing plan to drive new business. Remember, advertising isn’t the same as marketing.
Being an entrepreneur can be incredibly rewarding,but it’s also challenging. Careful planning and realistic expectations are key to success. Don’t underestimate the importance of financial stability and a proven market for your product or service.
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