By Sam from Credit Season.
Anyone who works for themselves knows the stress involved with running a business. There are always concerns about how to increase business and profit.
Coupled with that is the worry over money, and having enough to stay in business. Luckily there are things you can do to eliminate unnecessary spending and therefore create a more profitable business.
Find out where your money is going
The first and most important step to cutting spending is to determine where your money is going. Without doing that, you have no idea where you can make cuts to your budget.
Keep track of your spending for at least one month. Make sure you enter down to the last penny what you spent and on what.
Eliminate excess spending
After analyzing what you or your business spends each month, it should be easy to determine where the excess spending is. You will be surprised at how small things add up, and take a chunk out of your bank account.
If you feel you can’t live without something such as the daily coffee from your local coffee shop, then try making it at home instead. Use a travel cup, add your favorite flavor of creamer, and you are good to go.
Simple changes in reducing spending can make a big difference financially in the long run.
Reduce utility bills
Utility bills like heating and cooling can be huge for small businesses. Not only are electric and gas companies raising their rates on a regular basis, but cold winters and hot summers make for a pretty hefty bill each month.
It is so easy to either turn up or down the thermostat without thinking about what the cost will be. A programmable thermostat is a wise investment where you can have your settings automatically changed when you are away or at night to save on costs.
Eliminate credit card debt
In today’s troublesome economy, many people are struggling to pay off burdensome credit card debt. With high interest rates and multiple credit cards it can be difficult to keep up with the monthly payments, let alone pay the balances off.
Luckily there are things you can do to not only reduce your monthly debt, but also pay off those overwhelming credit card balances.
Follow these simple steps and you will be well on your way to taking a big bite out of your credit card debt.
- Pay more than the minimum payment.
- Pay off higher interest rate balances first.
- Call the credit card company and ask about lowering your interest rate.
- Cut up your credit cards except ones that are necessary for your business.
You will save yourself a lot of money, not only by not making credit card purchases, but also by not having bigger credit card balances to pay off.
Stop impulse buying
Impulse buying can have a big impact on your budget as well. It is so easy to see something you want in a store or online and before you know it, you bought it. Later you find out that you didn’t need or want the item as much as you thought you did.
A simple practice when you see something you want is to ask yourself is this really necessary?
Will my life be impacted negatively if I don’t buy this item?
You will find that in the long run you will save yourself a lot of money by taking the time to think about purchasing an item before you buy.
Being in business for yourself gives you a sense of freedom, but not if you don’t have enough money to stay in business. Be aware of what you spend your money on and have the willpower to not make all those unnecessary purchases.
Be committed and take the financial steps to ensure you stay in business and experience the freedom working for yourself provides.
About the Author:
This article is provided courtesy of Sam Burgoon, marketing and social media executive for Credit Season, a consumer finance website providing information and tools on personal credit services. Follow Credit Season on Twitter and connect on Google+.