“Too many people spend money they earned…to buy things they don’t want…to impress people that they don’t like.” –Will Rogers
Running a business is not always easy – there will always be the need to manage your money well. Managing it well means that you and the business will benefit.
Here are 5 great tips for you to follow what you SHOULDN’T do with your money.
- Don’t invest in quick get-rich scams –
It is tempting and sounds easy to invest your money in ventures that are aggressively promoted online; don’t give in. Scams spread like wildfire and are not worth anything even though you will have friends who will encourage you to invest in it. Avoid it at all costs. Stay away from crafty scam artists.
- Choose between wants and needs –
As an entrepreneur, you must be able to tell the difference between wants and needs. Wants are not needs – you need things in life to live but you don’t always need wants that only encourage being lavish with things you really don’t need.
- Don’t give in to impulsive buying –
Impulsive buying happens to all. But as an entrepreneur, you must develop the mindset to evaluate a purchase before you go in for it. Take time to study what you want to buy – especially if it is a big ticket item. Evaluate the cost against the need for it. Resist the impulsive buying spree – especially during special occasions when you feel less able to say no. You must learn the principles of self-control and not being indulgent especially if you want to develop your business.
- Manage your money – well –
Make a list of what you make and what you need to spend. Remember to refer to it at least once a week. Keep a tab on yourself when it comes to spending. Be on your guard at all times – you need to be able to manage your money well if your entrepreneurial journey is to be successful. Keep in mind that good financial principles will always serve you well; work on them and keep fine-tuning.
- Don’t mix your business up with your financial needs –
Don’t dip into the till even though you might need money badly. You must understand that the business is separate from your personal funds. Never mix the two. You can take a salary or an allowance that can be spent on yourself. It is bad business to mix both; you will end up with a failed business. Keep an allowance or a salary aside to be used every month; the rest must be accounted for and kept in the books of the business.
Remember that being an entrepreneur is a lifelong journey – you don’t become a success overnight and it takes a lot of work but you must start at the basics. The most basic one is being able to manage your money the right way.