Perhaps you have a dream business you’ve been itching to build from scratch. Or you want to pursue an entrepreneurial endeavor you know has so much potential for growth and expansion. Either way, you need sufficient funds to funnel into your business plans. However, cash is not easy to come by.
Unless you’re some trust fund baby, you likely work all days of the week to get what you want. Right now, what you want is to do business. Focus on that goal.
Sure, your odds of winning the lottery are pretty slim. You also can’t swap your identity for a more minted one that could fund your every whim. Finance-wise, the most straightforward and practical tactic is to live frugally. That’s something within your control.
Frugal living does not mean self-deprivation. It’s just a matter of smart money management. If you can have stuff for free, why pay up? Or if you can get what you need for cheap, why choose the expensive option? On that note, here are ways to live frugally.
Personal Saving Tips
Zero in on your expenses. Surely, you’ll find ways to reimagine your spending habits in such a way that saves you money. Here are some tips you must get behind.
- Spend wisely
The first step to pulling this off is knowing how to differentiate between wants and needs. The former is stuff you can do without. The latter are essentials. Even on the latter, there are ways to cut your expenses.
You can maximize couponing to augment your grocery budget. You can buy in bulk to get the most of the discounts. Wait for sales if you can, such as when updating your seasonal wardrobe.
Better yet, stop regularly updating your wardrobe. If you’ve seen Steve Jobs talking in his most popular videos, you’ll likely notice how he wears the same style of clothing again and again. That’s the millionaire mindset right there.
- Avoid debt
Avoid debt like the plague. Debt is money you don’t own. You will have to pay money, usually with exorbitant interest fees. And if you fail to make payments, the unpaid debt plus interests will yield compound interests making your debt balloon until you’re on the verge of financial ruin.
If it’s not necessary, don’t borrow. Instead, use the money you’ve saved. Even with credit cards, it pays to get clever. Use it only when it’s the safest or most practical option. Bring cash and pay cash whenever possible.
Or, at least, use a debit card. Doing so makes you more conscious of your purchases. Remember that swiping away with a credit card is easy for the brain because that’s money we have yet to earn. However, a headache follows once your statement of account hits the mail.
- Get techie
Technology exists for you to use to your advantage. Don’t get intimidated by it. For example, there are free budget apps at your disposal. They can help you monitor your expenses. That way, you’re always on top of your budget. You’ll less likely to overspend.
You can also use the internet to scour for sales and discounts. Maximize those opportunities to reduce what you pay for essentials like groceries.
Business Saving Tips
If your business is already operational, that’s no reason to stop being frugal. Frugality becomes even more critical because you want your entrepreneurial pursuit to grow. For that, you’ll need more capital. Here are business-saving, capital-building tips.
- Outsource: You don’t have to do everything on your own. Just because you’re a startup entrepreneur does not mean you must prove your business street cred by assuming all responsibilities simultaneously. That may prove costly in the long run.
You might fail to zero in on tasks that matter, which are the core components of the business. The more frugal way is to outsource non-core business tasks. If you’re new to the concept, read an outsourcing guide to get you started.
- Market: Stop subscribing to the adage that says if you build it, it will come. They won’t come if you don’t invite them. Better yet, entice them to come. Thankfully, doing so does not have to cost you an arm and a leg.
For example, social media marketing is pretty affordable. Maximize the technology to reach your target market faster. Most importantly, keep your audience engaged. Social media platforms like Facebook and Twitter have metrics to show you how your marketing efforts are doing. Learn how to read those metrics. Then fashion your marketing efforts based on the insights you gain.
- Get insured: Sure, this equates to expense. But it’s a necessary one. The last thing you want to happen is for your business to go through a rough patch without the safety net of insurance coverage. Business insurance will cover you for incidents like theft, vandalism, and fire, among others.
- Go paperless: Not only will you make Mother Nature happy, but you will also make your bank account smile. Paper costs money. There’s no point using them when you can access information digitally. If you go paperless, you save on other expenses, too—no need to buy clips, folders, and boxes. Furthermore, you free up space at the office.
Being smart with your resources can get you closer to your financial goal more quicker. If that financial goal is to have enough capital for starting a business or expanding one via active utilization of marketing channels, it will be at your fingertips in no time. Just get with the program, avoid pitfalls of business, and learn to adapt to a lifestyle sans excess.
Yes, it’s best to think of those unnecessary expenses as excesses. That way, you won’t feel like you are being too harsh on yourself or denying yourself all the good things life offers. This simple mindset recalibration should make the whole saving-up journey easier for you. It’s the first step to achieving a money mindset.
And once you’ve reached your financial goal, be just as clever in dispensing your hard-earned money. Make sure every business decision takes you closer to the ultimate goal of financial freedom.