Hanging your piggy bank outside your business won’t help you at all. Too often the focus for a business is making money, but that’s not where it should stop. Saving money is actually a way to make more of it.
Money guru Dave Ramsey reminds us all that it’s important to use real money. When at all possible, we should pay in cash. Ramsey suggests that we all should all avoid getting loans and using plastic money, so that interest rates don’t affect the bottom line. That’s not always possible as a business owner. Let’s take a look at other steps you can take to keep more money in your bank’s business account.
Getting Rid of Debt
Paying off debt takes a good deal of time and money. Interest rates skyrocket the payback amount depending on how much time it takes to settle the debt. Vow not to let that happen. Instead, use what Ramsey has coined as the Debt Snowball Method. Melt away your debt starting with the smallest amount you owe. Pay off that debt and then move on to the next one. This approach is encouraging because as these debts get paid off, you will have more residual income to pay off the next debt. What’s important is to get your debt down to zero. Aim to owe nothing to anyone.
We all have good intentions. We figure that once the bills are paid and we look at what is left, we’ll put some of that money into a savings account. Do better than that. Take a certain amount of your revenue right off the top and put it in a locked-down savings account where funds cannot be easily accessed. That money will grow without your realizing it – when the amount is taken right off the top, it’s not even part of the mix. Aim to pay your business before you pay anyone else.
Spend Year-End Money Wisely
Your accountant may congratulate you on having a successful year of transactions. Often then the suggestion is made that some of the profit should be spent. Do this wisely. Make investments that will help your business run more efficiently and successfully. Perhaps you would like to give each member of your team a holiday gift. Nice. Being appreciated is most often appreciated by others! Perhaps you would like to upgrade your phones or computers so that those tools can serve you better. That works, too. Aim to invest extra money for wise purposes.
Ease Up on Energy
Even tiny steps can make a difference to the bottom line. Just turning down the thermometer by one degree saves money at the month’s end. Also, bringing lunch to work is generally much more cost-effective than eating out. Even replacing lightbulbs with the energy-saving LED ones will provide efficient lighting for your office and save money on your electric bill. Initially the LED lightbulbs do cost more, but they do last longer. Aim to conserve energy to save money.
Give DIY a Try
That’s right. Do It Yourself. Armed with some tools, supplies, and a helpful YouTube video, routine maintenance for your office can be done by you. Those fees paid to a handyman can add up. Folks who work at the local hardware store will give recommendations for materials needed and often will provide helpful tips for getting the job done correctly. Aim to do the work yourself rather than paying someone else to complete the task.
The money that you save can be put right back into your bank account. Remember, though, that money saved isn’t the only asset with generous paybacks. Saving time also adds value to your business. We can all use an extra hour or two in our day! There’s a way that you can save time with your online marketing. Let The Six Figure Mentors help you do that. Take the step-by-step training that we offer so that you can generate unlimited leads quickly and successfully with our lead generation tool. Join us and launch your business online. Save yourself some time in order to earn more money!