Why?

It makes returning items a lot less hassle!!  

It provides proof of purchase in case you need to request warranty service!!  

It documents the original purchase price in case you decide to take advantage of a retailer’s trade-in or trade-up policy!!

EASY PEASY RETURNS:   I decided to return a machine to Wally World that I’d purchased thinking my niece might like it as a replacement for her dearly departed Hello Kitty machine. Well, Miss A. had better luck with a different machine and took that one home.  As nice as this machine sewed, I didn’t need another sewing machine.  Fortunately, I was within the 90 day return policy. I dutifully packaged up the machine and accessories (sans original packing material), grabbed the receipt and headed to Wally World.  The retailer’s policy states that you have to have the original packing material and receipt to get your money back.  Otherwise, you get a gift card.  I was pleasantly surprised (more like thrilled) when the cashier credited the amount back on my credit card.

TRADING UP:  After a year of teaching kid sewing classes, I discovered that I really only need a couple of student machines. (FYI – I have FOUR – one personal, two donated and one purchased.)  Most students BYOSM in my area.  I actually purchased one sewing machine specifically for kid classes a few months ago.  Seriously considering taking advantage of the machine dealer’s trade-in policy. Machine now sells for less than I paid for it. Having receipt will give me $30 more in trade-in credit toward the purchase of a new machine – a serger, coverstitch or embroidery machine for the business – or that big ironing press I’ve been considering to cut down on time spent prepping t-shirts for t-shirt quilts.

REPAIR:  Being able to prove that I purchased the machine from a dealer meant that my sewing machine was repaired under warranty (at no charge to me).

I keep all of my original purchase receipts for big ticket items in a special binder.  You may decide to put them in a file folder, coffee canister or teapot that sits high on a shelf.  The only thing that counts is that you are able to lay your hands on the receipt whenever you need it.  Of course, paying by credit card serves as a back-up since many retailers can look-up the receipt via UPC and your credit card number – but having the original receipt is always best.

Did you know that your craft business has the ability to be a key component of your retirement plan?  

If you’re like a lot of crafters (including yours truly), you have a full-time job and work your craft business on the side.  My business was set up with the intention of it remaining part-time until I decided to retire from my school library job.  By this point, the business should be established enough to provide a reliable income stream to supplement our other retirement income sources.  Yes, I plan to continue working even after I “retire.”  That’s just me.  My craft business will provide income AND give me something to do.

These are important points.  Wes Moss, a local money show radio host, recently published a book about the keys to happy retirement:  You Can Retire Sooner Than You Think. It’s an excellent book that puts things in layman’s terms: You can order a copy of it here.

Doing the exercises in the book made me realize that hubs and I might actually be able to retire sooner than we thought. Why? Because as Moss’s research indicates, you really don’t need to have millions of dollars in the bank.  What you do need are multiple sources of income, a paid for house and a plan/purpose for how you are going to spend your time/money in retirement.  Your craft business can actually help in all three areas:  (1) provide a source of income in retirement, (2) provide a source of funds to help pay down the mortgage faster and (3) provide you a purpose in retirement (whether you sew for money or charitable causes).  If your craft business is your full-time business, you have a host of other retirement planning vehicles available to you – check with your CPA or business advisor.

I am somewhat of what Dave Ramsey refers to as a money nerd.  It’s true when he says that basic money management is mostly about behavior.  Once you learn (and practice) the simple behaviors that really work – live on less than you make, pay yourself first, learn to say no and practice delayed gratification – money management (and life with your spouse) gets a whole lot easier.  It also puts you in the driver’s seat of your life.  On it’s own, money doesn’t buy happiness, but having some savings does buy you time or the ability to do/get what makes your heart sing – or allow you to leave a job that’s making you miserable.

If you, like me, are still many moons away from official retirement age, but are considering retiring early – be sure you build up the “non-retirement” accounts in addition to your 401(k).  Financial rule of thumb is you can safely expect to withdraw $1,000/month from every $240,000 in assets in an “income generating” portfolio.  For years, we’ve concentrated on putting money into our 401(k) and 403(b) plans.  Now, we’ll shift gears to put more money in the non-retirement kitty.  Who knows?  I might actually be able to “retire” before my pension eligibility date.  That would be a good thing!