A staggering 50% of small-business owners wrestle with sleepless nights due to cash flow worries, as revealed by a compelling Square report. Whether you’re dreaming of starting your own business or striving for a mighty goal, we’ve got your back with four powerful and doable tips to supercharge your savings.”
1. Dig deep into your earnings and scrutinize every single penny you spend.
Embrace the power of technology with apps like Mint and Clarity Money, which will automatically sort your expenses into neat categories like food and travel. But if you prefer being hands-on and love organizing everything meticulously, you can opt for the old-fashioned pen-and-paper method or the user-friendly Expense app. Once you’ve cracked the code on your monthly spending, you’ll be amazed at the areas where you can tighten the belt. Picture this: if you find yourself splurging an extra $100 each month on dining out, consider cutting back on one dinner per week or brown-bagging your lunch a few times. Then, redirect that saved cash towards your ultimate goal, whether it’s a business venture or something else that sets your soul on fire!
2. Don’t let your fixed expenses hold you captive!
Break free from the chains of unyielding bills. Yes, you heard that right – those so-called fixed expenses can often be negotiated! Start by jotting down your regular recurring expenses, those sneaky monthly charges. You can highlight them on a paper statement or rely on handy apps like Trim or Truebill to bring them to your attention. Identify any subscriptions that no longer serve you, like that unused club membership, a streaming service gathering digital dust, or a box of goodies you can live without.
Trim and Truebill are your trusty negotiation partners, working on your behalf to secure lower rates on bills like cell phones, cable, and internet. However, if you’re the DIY type and want to keep all the savings for yourself, mark your calendar once a year for bill-bashing time. Arm yourself with patience and tackle those phone calls, all the while multitasking with low-priority emails.
Remember, kindness is key – charm those customer service reps with genuine politeness. Clearly state your desire for a better deal right from the start. Casually mention competitor rates, implying you’re not afraid to explore other options. If necessary, kindly request to speak with a supervisor for extra leverage. And don’t pounce on the first offer; instead, graciously thank the representative and politely ask if they can sweeten the deal even further.
3. Separate – and automate – your savings.
Creating a dedicated savings account for your small business is like building a fortress around your hard-earned money. By unlinking it from your checking and other accounts, you eliminate the temptation to dip into your savings for non-essential expenses. To make this process even easier, set up automatic transfers to your new account every time you receive payments. Picture this: Your money automatically grows, undisturbed, waiting to fuel your business dreams on the 15th and 30th of each month.
Understanding that saving doesn’t come naturally, smart apps come to the rescue! Meet Digit - an intelligent tool that connects to your financial accounts and studies your spending patterns. It quietly stashes away small amounts on your behalf, only notifying you when significant savings milestones are reached. For a mere $2.99 a month, Digit hides away money you won’t even miss, with a guarantee against overdrafts. But that’s not all! You can also set specific savings goals, like saving $3,000 in four months for a patent, and Digit will ensure your savings are perfectly distributed.
Another exceptional app is Qapital, designed to tailor savings rules to your unique spending habits. Whether it’s rounding up purchases to the nearest dollar or saving every time you indulge in a “guilty pleasure,” Qapital does it all! And if you manage to spend less in a monthly category than planned, Qapital automatically moves the difference into your savings. It’s like having a personal financial coach to help grow your business funds!
4. Make your money work for you.
Now that your savings are growing, it’s time to optimize them for maximum returns. Forget the traditional savings accounts with their measly 0.01 percent interest rates. Instead, opt for high-interest savings accounts available online, ensuring the safety of your funds with FDIC insurance. Websites like DepositAccounts.com can help you find the highest interest rates for any deposit amount, potentially earning you a 2 percent annual percentage yield on a $5,000 deposit!
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