Everyone is looking for ways to save money for both their business and personal finances. We have all heard about obvious ways like brown bagging lunches, cutting out the morning latte, mowing your own lawn, etc. But what about ways that aren’t so obvious?
The key is knowledge….learning about things the average person doesn’t know. For example, let’s tackle your electric bill. Consider the electronics in your business or home and the electricity costs while they are not is use, as a result of the vampire effect of Standby Power. The vampire effect is termed from sucking electricity which equates to dollars spent in electricity. Standby Power is essentially a sleep mode for electronics that allows them to power up quicker. Convenience costs money. Consider unplugging the worst culprits and save money on your electric bill EVERY month. To learn more about Standby Power and which electronics use the most wattage, visit the Standby Power website from Lawrence Berkley National Laboratory. You can also visit Energy.gov for more information on energy audits, available tax credits by state, rebates from electric companies and lighting choices giving you the same amount of light for less money.
Using the same concept, keep digging to find more money to save. Go to your next bill and learn about how your money is being spent. Then explore your options with research. Keep doing this for each bill you have and you will find savings that will keep saving you money EVERY month. Digging deeper into how you are spending your money will give you opportunities to consider ways to save. Give second thought to anything that can be categorized as a convenience. All convenience items have potential savings. Businesses can use the same concept to explore each bill to find ways to save.
The next step is not only learn before you spend money, but to take what you learned, and make better choices. Take advantage of the internet and the wide range of sources for consumer reviews before you make a purchase. Consider value and don’t be sucked into thinking you are getting the best deal by paying the lowest price. If you purchase the cheapest toaster available but have to replace it every year, you might need to consider purchasing a better product at a higher price, that will potentially last you three times as long. The end result is you get more for your money and that equals savings. The same concept holds true for businesses. When making personnel choices, the value of an experienced employee with a higher salary cost may be the better choice, enabling you to achieve your objectives quicker.
Another concept for you to try is to recognize the benefits of “less is more”. Basically it means, with less things you save more money. Consider what you have that can be potentially downsized…cell phone plan, vehicle, home, cable subscription, maintenance plans, insurance, etc.
Digging deeper takes times but the rewards end up in your pocket. Develop these concepts of thinking with your business and personal finances and you will find money to save. Happy Digging!
The word BUDGET is always a dreaded word for everyone, but it is a necessary step in achieving financial freedom. To achieve financial freedom means you are managing your money rather than having your money manage you. You can be successful in reaching your goals in life once you have mastered being a money manager. To begin, you must start with a budget. A budget defines your sources of income and your expenses for a given period of time, usually by the month. To define your budget it is best to begin tracking your money flows going in and out. This is made easier if you use a financial app to track your finances. Kiplinger has a great article on five great financial apps that are FREE.
Holt Accounting & Tax Professionals, LLC 