November 20, 2018
Are you preparing for a big purchase? As business owners there are all kinds of big things we can spend our money on. Whether you’re in the market for a new computer, a fancy scanner or printer, or the next course that’s going to move your business forward, we all have something we’re saving up for.
But how do we save up for something big? Sometimes the money can be tight and it can be hard to feel like you’re making any progress toward your goal. But I know you can do it, here’s how.
The first step to making a big purchase is to make sure you’re buying the right thing. Do you really need this item? Is it about time for a new computer or new equipment or do you have shiny object syndrome? Now that you know this is what you need it’s time to do some research. Where can you find this item for the best price or with the best bonuses? You’re about to lay down some serious hard earned money. Let’s make sure you’re getting the biggest bang for your buck.
Now that you know exactly what you’re getting and how much it costs it’s time to break that savings goal down into smaller pieces. How long do you have to save for this item? You want to take the price of the item and divide it by the number of months you have to save for it. Or if you like smaller, quicker goals break it down into weekly savings goals. And why not make this fun? Print out a coloring book style picture of what you’re saving for and color in a section everytime you hit that week or months savings goal. Sure it seems childish, but making your goals a game works.
I am a huge fan of budgets. I know, the other dreaded B word. But a budget is not a prison, a controlling overlord telling you that you can’t buy anything. A budget is actually permission to spend. It’s present you, telling future you that you can freely spend a specific amount of money without guilt or shame. Build your new savings goal into your budget. Make a plan for your money and stick to it. It will improve every area of your life.
Speaking of budgeting, put your savings goal at the top of your budget. Set that money aside first thing. The principle that things stretch to spill the space allowed works here too. Just as work expands to fill the time you allot for it, your expenses will expand to fill the space you allow. If you don’t set aside what you’re going to save towards your goals first then your business expenses will expand to the point that there will be nothing left to save. But if you first set aside what’s yours, then operate your business from the remaining amount you will find that you are able to spend less and save more.
Saving for a big purchase can be tough, but you can do hard things. Plan your purchase, break down the savings goal into manageable pieces and put that money away before you do anything else. I can’t wait to see what you accomplish!
Check out these articles
Worried you’ll miss your financial target in Q4? How to close out the year strong
Bookkeeping - You Need To Get Your Head Out Of The Sand
10 Quotes About Money That Will Inspire You to Pay Attention to Your Books
Related Posts
Cashflow is the lifeblood of a small business. Without money coming in things can turn sour quickly. But what if you’ve got the clients, and you’ve done the work, but the invoices just aren’t getting paid? Here’s how to get paid and get paid faster.
Read MoreAs a business owner you’ve faced the question of whether to raise your prices. Here are 3 signs that it might be time for a price increase.
Read MoreConferences, client meetings, and masterminds. There are many reasons to travel when you own your own business. And since you get to operate on your own time table that often means you can spend a few extra days exploring your destination. But when your travel includes both business and personal how do you track it to maximize your deductions and avoid an audit. Here’s how.
Read MoreWe’ve all been there, a super cool coaching or course opportunity presents itself and you don’t have the funds in your biz account. Perhaps you’re just getting started or perhaps you’ve already reinvested your cash back into your business. You’re so sure about this opportunity that you’re going to buy it with personal funds, but what’s the best way to do that? How do you avoid losing the projection of your LLC? How do you pay yourself back? Here are your options.
Read More