The Secrets to Saving Money For Your Next Business Venture

Struggling to Save Money for Your Next Business? Here’s how to do it

How good are you at saving money? Many people are average earners, but they find it extremely difficult to save money, say about $1000 to $5000 to start a small business. It’s not like the art of saving money is hard, or they can’t do it, but it is all about their spending habits and how they see the money. Are you a good money manager? How do you see money?

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You may be surprised, but many people are often scared when you mention the idea of savings to them. Not because they don’t want to save but because they feel like they have been trying to save for years but still can’t have enough. They feel like it is always hard for them to reach their targets.

“Saving money is not all about just saving money“

The Business Bird

  One common mistake is while trying to save for their projects, they often unknowingly create more problems for themselves. For example, they may try to cut down expenses on everything, in an attempt to quickly reach their target, but this often may lead to more problems in the future, which may swallow up their savings just for them to start the process all over again. 

  Savings don’t have to be hard. We will share the three most important things to do whenever you are saving for a purpose. 

THE ART OF SAVING MONEY WISELY

1) Spend more on the things that matter

We insist you should spend more on the things you need. These are the things that matter for your growth and happiness in life. Don’t hold back in the name of savings. Spending more on the things you need is an investment, and it has a kind of multiplier effect that brings in more money for you, which may lead to more savings.

  I know I should be telling you more about spending less, but the truth is when many people think about savings, the first thing they think of is spending less, but a question they can’t answer, is why they should spend less. 

 At times, spending less may sound nice, but if it would cause you discomfort down the road, then it is not worth it. You may attempt to save more and end up spending more. Read that again. How does it sound? 

I love spending more, it may sound strange to you, but this has been one of my favourite ways of saving money, it is the one I use most of the time, and I will tell you how it works. 

I think of savings as a long-term strategy

When I think about savings, I don’t think of cutting down on the little things I do that are meaningful to my life, like buying “coffee” for myself or a friend or helping someone in need. 

  It may sound crazy, but how many times would you be greedy to a friend or starve yourself because you want to save a dollar? 

Some people even cut down on things, like their breakfast, forgetting they need to stay healthy. They forget the adage “health is wealth”. You should ask yourself a question like, “What if I get sick because of poor nutrition?” 

 How much am I going to spend? Lol, sorry, but your long-term savings would be gone, and you may need more money to remedy your health issues. This often leads to borrowing, which may further reduce your ability to save more. 

Some people may argue that health care is free in their countries, but is the time you spend on a sick bed also “free”? So think wisely.

Most people who have attempted to save money by trying to save on everything usually get tired along the way, or they end up spending more in the long run. You should be thinking of money and savings differently because life needs to move on, and we need to move on with it in a comfortable way. 

You should spend more on the things you need. I’m not saying you should be extravagant or you should spend unconsciously.

 So how do you spend more on the things you need?  

When it comes to this, choose quality over quantity when making purchasing decisions. See savings as a long-term strategy. You should spend more on the things you need to be more happy and productive. An increase in productivity will have a positive effect on your savings.

 When you make purchasing decisions, go for the best quality you can afford and keep it for long. Low-quality products often cost you more in the long run. Be wise. 

You should make a list of what you need.

   Making a list of what you need to spend more on will help you to make conscious money decisions. Say you are a freelancer, you need a comfortable chair and not an expensive laptop table. A comfortable chair can help to boost your overall working experience and limit your back pain. 

Spending more to buy a comfortable chair may sound like you are wasting money, but hell no! You just made an important long-term money and savings decision. 

 The first is you won’t need to buy another chair for many years to come, but if you go for a cheap one, it won’t be as comfortable, and you would need to have it fixed or replaced more often, which would lead to you spending more money in the long run. 

 The second is working on a less comfortable chair daily, may hamper your productivity and may also pose some health issues. So think of how much you are losing daily because you decided to save more on what you needed to spend more on. 

When you spend more on the things that matter, you will have very little to spend on unnecessary kinds of stuff. For example, buying expensive calls and internet packages just to browse social media.

  I’m not saying you should not browse social media, but these may be the type of expenses you should cut. You don’t need to view every post or watch every video across social media apps. 

There are two big mistakes here that I know of. The first is you are spending more money on data packages which you may not need, and the second is you are failing to save time, which you can use to earn more and save more for your next business venture. 

 I will talk more about this later. The only reason you should regularly buy expensive data packages for browsing social media or surfing the web is if it makes you more money or adds value to your life in any other way. We can go on and on with other practical examples, but I hope you get the point. 

So, to save more money, you should have a shift in mindset, to spend more on the things that matter the most. This is a sure way to increase value and grow more wealth, which will lead to more savings. 

2) Try to Make more money

 If you want to save more, another great option is to earn more money. If you want to save more money, shift your mindset to that of abundance. For example, I won’t starve myself because I want to save more money, As I earlier explained, such strategies come with more consequences in the future that would cause you to spend more and even borrow. 

 What you can do is look for more opportunities to earn more. If you earn more, then after spending more on the things that matter and cutting down on expenditures that add little or no value to your life, you will be able to save more. Here are four ways you can earn more.

• Scale your current business.
• Acquire more skills and bargain for a higher salary.
• Get a better-paying job.
• Start a new side hustle.

3) Never you save more than you earn

Save more than you earn? How is that even possible? I grew up managing our family businesses and have worked with many small and medium-sized businesses.

 This habit is common among small business owners, especially sole proprietors. Many sole proprietors hardly keep track of their revenue and expenses. They are always just happy to know they have made some profits during a given period but hardly keep track of all their little daily expenditures, which may look small but often sum up to a large amount. 

 So, in their attempt to save more, they often end up saving more than what their businesses can generate during a given period. Do you call that savings? Remember when I earlier said, “ Saving money, is not all about just saving money?” this is a typical example. 

This approach collapses your finances and may instead lead you to borrowing to be able to sustain your activities, and this can hurt your savings. Instead of progressing, you will find yourself and your business creating bigger problems that may swallow you up in the long run. 

Final Thoughts 

A word for Beginners

When you are saving to start a new business or for any other purpose, focus less on the returns on your savings and more on doing the things that will speed up your process and give you the ability to save more.

 The truth is if you haven’t accumulated a lot of savings, the returns on your savings will be very insignificant in fostering your overall strategy. So, in the beginning, focus more on your savings and not on the returns on your savings because more savings bring more returns and not vice versa.