I’ve got a very simple rule when it comes to my finances: I worked hard to earn it, so it’s got to work (and stretch) at least as hard and far as I do!
And as an entrepreneur myself, that’s admittedly asking a whole heck of a lot of my money. Fortunately, though, I’ve managed to find a number of sure-fire ways to do just this:
Create budget that (honestly and accurately) reflects your spending. Whether you’re in the red or the black, you can’t make your money work hard if you hardly know how much money you’ve got to begin with. Personally, I use an Excel spreadsheet that’s automated. It lists each day of the month and what bills go out when and for how much. Using this, I can also track and manage all my automatic bill pays that go out as well. This allows me to take advantage of my bank’s free bill paying service while easily remembering to actually subtract the money from my checkbook. (Want a copy of the automated spreadsheet for your own use? Just email me at Shannon[AT]ShannonMedisky.com and I’d be happy to email it to you!)
Put your money where it can grow. You don’t need to have tons of money at your disposal to make it grow. Now days, nearly every bank and financial institution out there offers some kind of interest-bearing savings and checking account. And, frankly, if you’re currently paying a monthly service fee for your checking account, you’re throwing money away! It may seem like a hassle to switch to a new bank, but in the long run you’ll be saving yourself a tidy sum of money. And saving money is even better than earning it because you don’t get taxed on it!
Stop giving to Uncle Sam and start keeping more of what is yours. The promise of a hefty refund can be a great motivator to get those taxes done and filed, but if you consistently get a large refund than you’re likely overpaying throughout the year. And doing so is essentially giving Uncle Sam an interest free loan! Stop doing it, and keep more of your money right where it belongs: with YOU! To find out what your withholding should be, use the free IRS withholding calculator.
Whenever possible opt for items that multi-task. You multi-task, so should your purchases whenever possible. Make an effort to purchase items that are multi-tasking wonders too. From food products that can be purchased in bulk at a savings and then transformed into a multitude of delicious delicacies to furniture that more than pays for its valuable real estate in your home by serving a multitude of uses, the more tasks, jobs or roles one purchase (and one cost!) can do, obviously the better!
Note from becky: Shannon and I met many, many moons ago when she had a wonderful blog called Making By Saving. Shannon is the author of the The Complete Guide To Stretching Your Dollar (which is an awesome book by-the-way!) and has several other books in the works.
Shannon Medisky is a leading expert in how to fail, how to be wrong the right way and how to capitalize on all windows of opportunity. A former educator, she has worked with children ranging in age from preschool through the 8th grade and is mom to two young boys, including one with a multitude of special needs. To learn more about Shannon, her mission to help kids fail and how doing so can help all kids thrive, please visit ShannonMedisky.com. You can also connect with Shannon on:Facebook: LinkedIN, Twitter, and Pinterest