Saving for entrepreneurs can be an afterthought, when you spend most of your time running your business. If you are a start-up entrepreneur, then you may be in for some lean times for the first couple of years as you grow your revenue. This makes saving very difficult. However, saving is extremely important since there is no consistent paycheck to fall back on during lean times. How do you save when your focus is on reinvesting into your business to help it grow?
I caught up with personal finance guru and bestselling author, Aisha Taylor, who provided these five tips that will guide you on how to save despite a lean and irregular income.
- Reevaluate your monthly bills. Ask yourself, “What are the non-negotiable bills that I have to pay in order to survive?” When you are considering your survival costs, only focus on groceries, housing/utilities, insurance, and transportation. Make sure you include medical insurance because, according to Harvard University, medical costs are the number one reason why people go bankrupt. Use a tool like Mint.com to understand how much money you are currently spending.
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