Press "Enter" to skip to content
  • save money
    Are you looking forward to growing your savings? If yes, you do not have to feel that it is a hard task owing to the hard economic times you might be going through.

5 Simple Tips for Growing Your Savings

Are you looking forward to growing your savings? If yes, you do not have to feel that it is a hard task owing to the hard economic times you might be going through. You do not have to follow what other people are doing because everyone has a financial situation that is unique. This means you need to use ways according to your specific situation.

Growing your savings requires proper planning and discipline in the way you spend your money. To help you in the process, here are top tips.

1. Create Realistic Goals and Set a Deadline

One of the most effective ways to grow your savings is to determine the amount you need and when. You have to be realistic, so that you do not fail in the long end. With a good deadline, you will be more accountable on how you are spending your money and the amount you are to save within a certain date.

managing finances

2. Get Rid of or Avoid Debts

If you have a pending debts, it is advisable to try to repay them as quickly as possible. By doing this, it will be easier for you to have a good plan on how you can save more money. When you repay your debts, you feel that a huge burden is taken off your shoulders and be able to plan your finances. In addition, try to avoid acquiring debts because the interest you incur should be your savings.

3. Create a Separate Savings Account

Another way to help boost your savings is to have a separate account for this purpose alone. With such an account, you will see your savings grow. It will also help you track the progress you are making on a monthly basis. This is a great way to avoid mixing your savings with the money you have to spend daily.

4. Follow a Strict Budget

Budgeting is vital to help save a lot of money. Growing your savings requires that you match your cash flow in an effective manner. Ensure you do not overspend on your daily expenses. An excellent way to do this is to create a spreadsheet that maps your income and all your monthly expenses. Such expenses include all re-current bills, rent among others. Check the last three to six months as your reference. This helps you reduce unnecessary monthly expenses and create an effective budget that will help you put away some money.



5. Have an Emergency Account

When an emergency occurs, chances are high that you use your savings to cater for it. This is one of the major factors that make most people fail to save. To avoid this, it is important you have a separate account for all emergencies that might occur.

Bottom Line

Growing your savings requires a lot of patience. You need to remind yourself of the goals you have set regarding your savings. In addition, you have to fight off temptations of spending your money on some of the things that you like.…

Important Financial Tips for Small Business Owners

Being a business owner requires you to wear many hats; you are busy meeting with potential and current clients, planning and executing the marketing and social media campaigns, trying to stay on top of fast-evolving technology, and dealing with employees.

One area of importance that is often overlooked by small business owners is their business finances. Here are several financial tips that can help you:

Borrowing Money

dollarsWhen you are looking for the correct way to structure or re-structure your company, think about your plans. Are you looking to get a personal loan or a mortgage in the next few years?

You should know that banks will not only look at your business income for the last 2-3 years, but also your income. The healthier those numbers look, the better the chance of obtaining business financing that could fuel future growth or enable you to acquire real estate.

Protecting Your Assets

The simplest way to protect your assets is to create a separate legal entity and to use different bank accounts and bookkeeping.

Credit Cards

Do not mix personal and business credit cards. This may sound simplistic, but do not charge more than you can pay in a month. Not all credit cards are created equal, so when you look to get your business credit card, weigh the benefits of each of them. Will travel be required in your business? If so, you might want to have a card that gives you benefits, such as frequent flier miles.



Budget

Many small business owners invest most or all of their savings in their business. The business effectively becomes their retirement plan. This would mean you are keeping all your eggs in one basket for your retirement. Diversify your investments to minimize the risk. When creating your budget, plan your expenses carefully and see how much each one will affect the volume of your business.

Risk Management

Life insurance is used to protect the business against the risk of premature death of key people. Universal life insurance allows you to save money on a tax-deferred basis as well. These policies are flexible. They allow you to quickly stop and start your payments after you have accumulated a sum of money in your insurance. It can be an appropriate vehicle for businesses that have an ebb and flow kind of income.

Health Insurance

business insuranceBusiness owners can insure themselves in addition to their employees in a group insurance. The contributions to that plan are tax-deductible to the business and nontaxable to the employees. If you have an individual health insurance for yourself, weigh it against a group insurance for your business.

To create and sustain a successful business finance, you will need to not only spend your time servicing existing clients and bringing others on board, running the day to day operations of your business and dealing with employees, but also keeping your eyes on your business finances. It is an area that is often overlooked by many and keeping tab of it can pay huge dividends.…

Mission News Theme by Compete Themes.