Allocating Capital

Once you get a business built up, it’s time to start investing a portion of your earnings into growing the company or building a retirement fund for yourself. You can’t be tutoring forever, and you need to have a plan for supporting yourself in the future. Here Eric explains some simple strategies for tutors to start setting aside some income and investing it.

Show Notes

Some people enjoy tutoring and aren’t interested in growing a company and hiring employees, which I understand. You might like driving around to people's houses and doing in-home sessions. But eventually, like when you're 80 or 85, you're going to want to stop tutoring. You're going to want some retirement funds, and planning on Social Security might not be a good bet.

It’s a good idea to save 5% to 10% of your earnings and reinvest that back into your business, if you want to grow your business. Or if you don't want to hire anyone, you can still invest 5% to 10% of your earnings into a Fidelity account or Vanguard fund. Set up an IRA or Roth IRA. Do some research on those. They can end up generating tax free earnings. I would recommend looking into a Roth IRA, that seems like a pretty good option for most people. 

What you do with the money you save depends on how active you want to be. A good place to start is buying some index funds. The Total S&P 500 Vanguard index fund is good. Stick some money into there every month. Eventually you'll be surprised at compound interest. It's the eighth wonder of the world, as Einstein said. You start with some income from your tutoring, and then eventually your investment income might be greater. At that point you can still keep doing the tutoring, because you enjoy it. Or not. 

Most of us get into tutoring because we like helping others and want to make a difference. And that’s great. But it's also good to think about ourselves and our families. Putting some money away in case a catastrophe happens is a very good idea. 

If you want to be more active, you could buy some shares of companies, like Facebook, Microsoft, and Berkshire Hathaway as long term holdings. Buy some and hold it for 50 or 60 years. It's probably going to be worth a lot more at that point than it is now. Especially some of those strong companies with a moat that aren't going anywhere. There are thousands of people right now working at Microsoft, trying to make a better company. And if you own some shares, they are literally working for you. Even the CEO.

What is Earn $30k to $70k as A Math Tutor Part Time?

This podcast will reveal some simple strategies to get your first clients, grow your business, and market your services online as a tutor in any subject. There are five mistakes even experienced tutors make that can be costing you a LOT of money. Are you falling into any of the common traps? You might be surprised.

Eric Earle has started 4 different tutoring companies and been working in the tutoring industry for over a decade. Currently he runs his tutoring businesses remotely and travels around the world looking for awesome surf spots.

Along the way, Eric has discovered some tactics that are insanely effective to establish a tutoring business from literally nothing and grow it into a full time enterprise.

One of the biggest myths he came across is that you have to lower your rates when you’re first starting out. This is super pervasive and it’s simply not true. You can charge premium hourly rates right from the start, you just have to do it properly. Eric will show you a foolproof method in this podcast. Don’t discount yourself. Charge what you’re worth.

Whether you’re just starting out as a tutor or a seasoned pro with a thriving business, the hacks and secrets in this podcast will help you land more clients and scale your tutoring more effectively. You can use these strategies regardless of whether you’re meeting clients in-person or tutoring them online. This podcast will make you money!

Eric Earle is a tutor, entrepreneur, and investor. After science and math tutoring changed the course of his life, Eric saw the potential of tutoring to make a significant positive impact. He grew his tutoring business in Portland, Oregon, and soon needed to hire a staff of other tutors to meet all of the demand. He is also the founder of mathtutoraustin.com and the national tutoring platform zoomtutor.com as well.

It was at a neurology clinic high in the Himalayas that Eric had an epiphany: he realized he wanted to go to medical school. The problem was, he’d already graduated from college and hadn’t taken any of the math and science classes required for admittance. He went back to school to work his way through calculus, physics, organic chemistry, and biochemistry but the topics were unbearably difficult. Eric hired a tutor and, with diligent work, was able to turn himself into a top science student.

This experience with tutoring showed Eric that there is no limit to what we can become with the right teachers. He now supports tutoring and education through his businesses. He is here to share what he has learned about business, investing, tutoring, and life though this podcast. Hopefully you find some of his teachings valuable.