Today for Tuesday Tea and Tips I want to talk about Four Ways to Save Money in Your Business. I don’t know about you but I sure appreciate having extra money in my bank and treating myself every once in a while to my guilty pleasures.
Four Ways to Save Money in Your Business
Have a budget and always track your money.
It’s important to know where your money is going. If you’re spending it wisely and if you’re getting a good ROI (return on investment).
- A budget will help track your income and expenses.
- It helps create financial stability and plan for the future or an emergency.
- A budget prevents you from overspending and impulse purchases.
- Know the price of running your business.
Do your research and plan ahead.
This takes a little bit of time but it’s so worth it and in the long run it pays off. One area of my business I like to save money is with my marketing products. For example, I like to keep a list of all the materials and products I use throughout the year, this helps me plan ahead.
- Check to see if the company you use offers sales throughout the year and when their sales occur.
- Only buy the product when it’s on sale.
- Buy in bulk. In most cases, the more you buy, the more you save.
When possible, pay your memberships annually instead of monthly.
- In a lot of cases when you upgrade to the annual membership, the companies will give a discount. Sometimes it’s a month or two free for the year.
- Cancel memberships you’re not using.
- Only sign up for memberships you are committed to using or that fit your business model.
Create a sinking fund.
A sinking fund is a strategic way of saving money for specific things you want to buy in the future. I love this idea because it prevents me from going into debt. I love using my credit card any time I can…who is going to say no to getting points or miles? However, having a budget and a sinking fund allows me to pay off my card monthly and avoid paying interest. Here is how you can start a sinking fund:
- Open a separate bank account
- Decide what your sinking fund will be used for. (i.e. new equipment, workshops, conferences)
- Determine how much money you need to save and due date.
- Make a commitment to deposit money to this account monthly (this is also part of your budget).
If you haven’t figured it out, I am a big believer in planning ahead and creating a system that allows me to save and have control of my money instead of money having control of me.
LYDIA GILLIS PHOTOGRAPHY is Denver based and Destination Seniors and Personal Branding Photographer.
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