7 Tips for First Time Entrepreneurs to Save Money

Being a first time entrepreneur, you must be very excited, but this excitement may also overwhelming, especially when it comes to manage finances, staying within the budget and still aiming to get things done neatly. You might need to alter your personal financial plan to get along with your startup matters.

Well, if you are looking to make some changes in your financial matters, you have probably looked at some books or watched videos online. The information is not lacking in this department and it can be a bit overwhelming for newbies. Thus, it might be better to look for an abridged version that covers the most important aspects of the matter.

This article will be a perfect example of a place where you can become more familiar with what many agree to be the most important and necessary tips for financial matters.

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1- Spend Less than What You Earn

As silly and obvious as this one may seem, some people do not have the sense to not spend more than they actually make. Why this happens is a mystery for most individuals out there, but it still happens.

Knowing this is easy, but when it comes to actually stick to the idea, well, everything changes by quite a bit. If you happen to live in the state of paycheck to paycheck, you should try your absolute best of getting rid of this habit.

Small changes like unsubscribing to the non-urgent and or un-important services, working from home rather than renting an office etc. can make a big difference.

2- Save on Bigger Loans

You might be looking to improve your life and take out a loan for a car or something along the lines. There are plenty of great tools on the internet to help you with saving money and other resources. A good example would be a car loan calculator from Westpac.

Similarly, you can save on car insurance, health insurance etc. simply with a little online research.

3- Budget

You might stumble upon the word “budget” and not have the most positive associations. But the reality is quite different. It is not something that should induce you with fear or any other negative thoughts.

Starting a budget should be a priority for everyone who is experiencing difficulties with their finances. There are plenty of tools out there on the internet that allow you to keep track of every little bit of information.

If you have no idea where to start with this, consider reading this article from HuffPost which will give you motivation and help you to get started.

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4- Break Everything Down in Numbers

This tip comes from someone on Reddit but it really puts things in perspective and allows you to get a better understanding of how things are in reality.

Imagine you are making 3 thousand dollars every month. That would be about 100 dollars every day. Rent costs you 800 dollars, car insurance is 150 dollars, everything other imperative expense comes to a total of 1050 dollars.

It means that you are left with a thousand dollars, or 33 dollars every day. Want to save for a great vacation or a new gaming PC? Look at how much it costs and see how many days it would take to get the sum if you put aside 33 dollars every day.

5- Side Hustle

Saving money and cutting down on expenses is not the only strategy. Plenty of people believe that capitalistic society encourages looking for new money-making methods rather than methods of saving them.

There are plenty of ways of starting a side hustle, even if you have not had any prior experience with it. And while most of such odd jobs are done on the internet, you can find babysitting or similar gigs as well.

Even if you have already started your own business, it’s never a bad idea to invest little money in another startup with a potential to go big. But before you step into this, know all you need to know about investing in startups.

6- Have Measurable Goals

It is much easier to not get lost of the track if you have some goals in mind. For instance, you are looking to get yourself a house or something less significant. The endgame is not as important as it is working towards something, no matter how long that might take.

7- Credit Card

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Some individuals treat credit cards as a source of free money. While having one or two is great, expecting to avoid any consequences is silly at best. Whenever you buy something using a credit card, the money has to come from somewhere, right? And that something is the bank.

The debt can accumulate quite fast, and if you neglect the problem, you will have to pay for it a lot.

The question of whether you should get a credit card in the first place exists as well. Some banks give these out with not as much restraint, and it can be quite tempting. But if you do end up getting one, please make sure to not get caught in that terrible situation of overspending. And yes, make sure to keep your business and personal credit card separate.

In conclusion…

If you have been struggling with your finances and it has become a big problem, the time to take action should be now. Not taking any proactive steps will lead you to your doom, and the tips above should be a perfect starting point for everyone who does not have a lot of experience with managing their finances.