Golden tips on saving to start your own business

Image result for how to save for start up business

Do you love being employed or have always dreamed of running your on business? If you want to be in business, you must come up with money to fund your dream. Now before you give up on your budget while on this mission, remember the Kiswahili saying ‘kidogo kidogo hujaza kibaba’

Challenges are normal its perseverance and determination that often turns out outstanding so don’t let go of your deepest desire. Here are tips to achieve your financial goal in the race.

Related image

Cook at home and bring your leftovers to work for lunch. You’ll save money, get a healthier meal, and spend more quality time with your family. Look for free recipes online and start cooking!

Drink at home. Stay out of the bars. Drinks are much cheaper when you pour them yourself. Alcohol is much more economic at the liquor store than at your favourite watering hole.

Image result for images of home drinking

Avoid 90 days, 6 months or one year — same as cash deals. If you do not have the money the day you are making the purchase, chances are you will not have it in 90-days, six-months or a year from when it’s due. Keep in mind if you can’t pay, the interest rate is hefty and is compounded back to your original purchase date.

(Gold plan)Create a run away

Image result for images of business runway

Far and away, the best way to budget for your dream job is to save up a cash cushion of at least six to 12 months’ worth of your living expenses. People in the startup world call this a runway. That’s because it’s essentially just a long period where you can focus on launching your new business without having to worry about being derailed by money troubles at home

Earn at-least what you are making from your day job

Image result for images of side hustle

Pretty much any responsible financial adviser will tell you that you need to save something before you quit your day job.

But, even that’s not always possible. Sometimes you lose your job for whatever reason — maybe it was a temporary position, maybe you were laid off, or maybe even fired (womp womp).

If you’ve already been hustling on the side, one option is to take your side hustle full-time and turn it into your own business. In this case, it’s best to already be earning the cost of your monthly expenses, solely from your side hustle. So if you need $2,500 per month to get by, you’d want to make sure you’re at least earning that much from your day job before you take the leap.

Related image

Focus your finances to start your business around three pools: A budget to run your home, working capital to launch your business and an emergency savings fund. Managing money to start your dream business can seem hard. However, if you practice these simple money management tips, you will have the money you need to be saved in no time.

Leave a Reply

Your email address will not be published. Required fields are marked *