There are some really easy ways to save money in your business without having to create a budget. Over the years, I’ve found that most people have a hard time sticking to a budget because it’s often out of sight when you’re actually making a decision about whether or not to buy something. (More on money management in this post.)
So here are my top 5 ways to find more money in your business without creating a budget…
Number One: Start a Wish List
Whenever you want to make a bigger purchase (or even a small one), put the item on a Wish List for at least 30 days. If you come back to it in 30 days and you still think it will be a valuable investment for your business and you have the funds, then go for it! This habit helps curb compulsive spending.
Number Two: Do Regular Expense Analyses
Reviewing your expenses on a monthly or quarterly basis is an essential practice for the health of your business. Oftentimes, we sign up for subscriptions and then forget about them, or we go to a cafe once a week to work and don’t realize how much that adds up. So go through your Profit & Loss report line by line and review where your money went. Does your spending truly give you a return on investment in time, emotion, or value? This will help you keep your expenses lean and form different spending habits.
Number Three: Accept Bank Transfers
If you send invoices to clients, you should absolutely have the option for your clients to pay you via bank transfer or ACH. This will limit the amount of processing fees you pay, which can really add up. QBO is my number one recommendation for invoicing because it has the bank transfer feature (as well as credit cards) and its already within your accounting program, so the bookkeeping aspect is easy! Another option is Stripe, which has an ACH feature that caps the processing fee at $5. If you use a CRM like 17hats, then you can accept ACH payments, as well as credit card payments.
Number Four: Allocate To Savings
If you don’t have any savings in your business you can start today by allocating just 1% of your income to a savings account. Then you can gradually grow that percentage up to 5% or 10%. It’s really important to have some buffer savings in your business for when things slow down or an unforeseen event happens, and this is a very easy way to build up that savings.
Number Five: Bank Strategically
Look for a bank that doesn’t charge you monthly fees and has a decent interest rate. The large national banks, like Wells Fargo, can hit you with a lot of frustrating fees. I’ve found that small local banks and credit unions tend to have the least amount of fees and the most customer-oriented policies. That being said, Ally is an online national bank for personal accounts and they have a great interest rate on their savings accounts. There’s no need to pay for account fees and it’s best when your savings accounts can earn interest, so take the time to find a good bank and it will pay off!
For more tips, tricks, and hacks check out my upcoming course Automatic Bookkeeping.