Can’t figure out why your bank account isn’t bigger? Perhaps you need to reevaluate how you manage your money. Here are some places to start:
1. Sweat the small stuff. Many people think spending $5 here and $10 there is no big deal. But if you saved that amount every day, it could add up to a very large pot of dough through compounding. For instance, saving $5 per day can mean saving $1,825 a year, which, with a 5 percent return, will turn into more than $20,000 in 10 years and more than $60,000 in 20 years.
2. Don’t pay bills early. Whether you’re paying personal or business invoices, keep your money earning interest in your own account as long as possible by paying bills when they’re due, not early.
3. Don’t pay bills late. Set up a system to pay recurring bills mortgage, utilities, and credit cards on time. If you’re getting hit with late fees for silly things like movie rentals, sign up with an online movie delivery service that doesn’t charge late fees.
4. Take advantage of trade show discounts. Scour exhibitor information to learn which exhibitors offer discounts during the show. Consider holding off making purchases until the last day of the show for possibly bigger discounts. Exhibitors might be more willing to offer price cuts to meet sales goals or avoid shipping products back home.
5. Make smart choices about insurance. Take the time to shop around for all your insurance policies, especially business, auto, medical, and home insurance. Raise your deductibles, bundle policies with the same insurer to get bigger discounts, and ask about discounts for such things as adding a security system. Also, keep a clean credit record because more and more insurers are using your credit information to price home owners’ policies.
6. Ask your vendors for discounts. Many vendors, such as your printer, might agree to discount their services if you agree to pay early or in cash.
7. Recycle printer cartridges. Printer cartridges are expensive. Typically, when you bring your used cartridge to the supplier, you get a discount on the purchase of a replacement. Check your phone book for a local recycled printer cartridge supplier.
8. Think before you sign up. Join only business organizations that can bring you business. Also, if you’re just starting out in the business, many organizations will allow you to join at a reduced rate or allow you to pay dues each month rather than in a lump sum.
Sources: Michael Fischer, author of Saving and Investing: Financial Knowledge and Financial Literacy That Everyone Needs and Deserves to Have! (AuthorHouse UK DS, 2005); American Express Small Business (www.americanexpress.com); Entrepreneur.com, Insurance Information Institute (www.iii.org); BusinessTown.com LLC
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