Do you feel like you can’t save money because your business isn’t making enough?
The 3 steps in this episode will help you start saving money right away.
They’re not money saving tips – they’re tips on how to set up your money system so it SUPPORTS in saving successfully!
So if you’ve been wondering how to start saving money as a small business owner, read on >>
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When I was going through my ‘broke single mum’ phase, I implemented these 3 things – and they helped me go from having no money to spare – to actually saving!
And if I was able to start saving at a time my income was basically zero, you can too!
What you’ll find is that as you start to consistently save even just a little, the gates will open and momentum will gather. A trickle will become a flow and then a flood.
And before you know it, you’ll be ticking off all those things on your financial goals list.
For me that was buying my dream house, buying an investment property, then another one, taking the kids on overseas holidays, Tick, tick, tick, tick!
All the things I used to dream about started coming true. And it happened a lot faster than I ever thought possible – because I dared to get started and allow the momentum to kick in.
And the same will happen for you! You just need to make a start.
So let’s talk about how to start saving money as a small business owner (especially if you feel like you’re not making enough money to save).
And while we’re here – are you clear on what you actually want? What are your financial goals? What do you want those savings for? Start getting clear & be specific! It will make a massive difference to how fast you can achieve them.
The wonderful thing we have going for us as business owners is that we have the opportunity to bring in additional income.. and the amount that’s possible is basically unlimited.
But the very FIRST step to help you start saving money is separating that business money from your personal money.
THAT’S STEP NUMBER 1: Your Business Pays You!
This will help you start recognizing and celebrating when your business is able to pay you. And that income from your business is money that can start going towards your savings.
Keeping your money separate from your business’ money is important because you’ll know that your business has enough to operate and your money is yours to spend.
STEP 2: SPEND MONEY!
Having designated spending money for fun stuff is important!
It helps you cultivate an abundance mindset and feel great about your finances.
The trick to spending money without guilt or worry is to keep it SEPARATE.
By separating your fun money, you’ll protect the money needed to pay your bills – and the money designated for spending.
PLUS, you protect your ‘fun money’ so you can enjoy whatever you choose to spend it on – without worry or guilt.
This helps you feel abundant & raise your vibration, making you magnetic to more.
Your fun money can be as little as $10 a week!
The amount is not important! It’s about the practice and the feeling.
Momentum will gather from there, bringing you more money to spend, have fun with AND save.
So separate discretionary spending from fixed expenses.
What’s the difference?
DISCRETIONARY SPENDING is money you CHOOSE to spend.
You can choose to spend it today, tomorrow, or not at all.
You also get to choose how much.
Let’s take haircuts as an example:
I could get a haircut today, next week or next year.
I can go to an expensive hairdresser or I can go to a much more affordable hairdresser.
It’s a discretionary expense. You choose when and how much.
FIXED EXPENSES are things you can’t avoid spending money on.
You also usually can’t avoid WHEN you have to spend it.
Rent, electricity, mobile phone and internet accounts and insurances are all examples of fixed expenses.
But the AMOUNT you spend on fixed expenses isn’t fixed either!
In fact, I highly recommend you review them and shop around for better deals. When our Magnetic Money™️ students go through this exercise, they literally reclaim THOUSANDS of dollars per year!
Most people tend to forget about and not review these ‘fixed expenses’ and end up wasting so much money.
That’s your money waiting to be reclaimed so you can put it towards those savings!
(in the video for this episode, I give you an inside peek at the Magnetic Money™️ Planner and show you how we lay out discretionary vs fixed expenses, so you may want to check that out)
Let me know in the comments:
Have you separated your discretionary spending from your fixed expenses?
Having this separation gives you the freedom to spend money guilt-free – without worrying that you’ll struggle to pay the power bill! And that goes a very long way towards your peace of mind – which raises your vibration and helps you become magnetic to more money 😊
And if you’re thinking, “What fun money, Miriam? I don’t have any! It all goes on bills!” be sure to watch the linked episode below. It’ll help you understand why you need to implement this kind of system BEFORE you can start consistently saving.
STEP 3: HOW MUCH?
Having a business or side hustle is awesome because you have the ability to bring in an unlimited amount of extra income.
But how much do you really need?
You need to be able to work that out. That’s why the Magnetic Money™️ Planner includes several handy calculators. One of them is literally titled: How much does my business need to make? (there’s a demo in the video of this episode)
You need to calculate your business GROSS income target so it can:
- cover its operating costs
- pay its taxes
- pay YOU what you need in order to pay your bills, have your fun money AND achieve your savings goals
If you feel like you’re not making enough money to be able to save money, this is what you need to do! You need to calculate that gap.
You need to know your target gross income.
Then you can make tweaks to your business strategy and make plans to ensure you achieve it.
(If you’re keen to get started on this, jump into the Magnetic Money™️ System Bootcamp! It’s where I walk you through the step-by-step process and help you set up a money system that gives every dollar a job to do and ensures you achieve your financial goals)
If you’d like to play with the income target calculator, get your copy here.
BEFORE YOU GO:
What will your first action step be? Let me know in the comments below.
See you in the next episode.
xx Miriam
GET YOUR INCOME TARGET CALCULATOR HERE:
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