It can be difficult to stay debt-free when you’re running a small business. However, you don’t need to be a financial expert to control your finances. Use a bit of common sense along with some simple money management tips, and you can learn to live within your means. You’ll be better off financially as you learn to grow your business and your money simultaneously.
Below are a few tips that can help.
Purchase in Bulk
To save both money and time, buy bulk quantities. Buying in bulk is always cheaper when you are going to use everything you purchase.
You can also save time and energy by dedicating one day to cooking meals for the week. In this way, you can use the meat you just purchased in bulk while it’s still fresh.
However, quantity purchases you make at grocery stores during a sale are only worthwhile if you are going to use all of the products you buy. You only save money if you can use what you purchase. It doesn’t matter if it came in bulk or on sale if you waste it. Make the most of the bargains you find, and don’t waste your money.
Avoid Extended Warranties
If you really want to stay debt-free, avoid extended warranties. These contracts are real money-makers for the merchants and manufacturers who sell them. They are not such a great deal for the rest of us.
What’s more, most products come with 90-day or even year-long warranties. And usually if something is going to go wrong, it will do so in within that period.
Never Pay Full Price
One way to improve your finances and remain debt-free is to refuse to pay full price for anything. So don’t be a brand loyalist. Use coupons whenever possible. If a coupon for a brand you’ve never tried makes it less expensive than your usual brand, be both adventurous and frugal. Try the new brand.
Shred Sensitive Documents
You must have a good method for getting rid of financial documents safely to protect your finances. If an unscrupulous person should get hold of your personal and financial data on a piece of paper you threw in a trash bin, they could end your debt-free status in no time at all.
You can purchase a document shredder at any home office store. So don’t simply throw away your documents where they can make you a target of identity theft. Be thorough and protect yourself.
Get Advice When You Need It
If you have already managed to wind up in debt, get the advice of family members to become debt-free again. Your relatives could have a wealth of experience and knowledge about financial issues. Even better, if a family member happens to work in the finance industry, turn to that person for advice.
You might find you’re more comfortable talking with a relative about your money issues than you are with getting advice from a stranger. Make sure, though, that whomever you speak with—whether family member or friend—is good with their money. In that way, you’ll get advice worth the taking.
Stay out of Debt
If you want to have truly sound finances, avoid debt altogether. Take out loans only for big ticket items such as a new car or a house. However, as much as possible in your daily finances, avoid credit purchases and either pay cash or go without.
Learn from Your Mistakes
However hard we try, we’re only human, and we’re going to make mistakes.
You can learn to use your past mistakes as learning experiences, however. Perhaps when you were first starting your business you got into debt over your head. Maybe it’s taken you some time to get back on track with your credit. If that’s the case, use that experience as a learning tool to keep yourself debt-free in the future.
For example, if it took years for you to dig your way out of a financial hole, remember how you got there in the first place. From now on, avoid making the same mistakes and stay debt-free.
Stay Debt-Free by Being in Control of Your Finances
As you have learned, any person can control their expenses and grow their assets. What’s more, you can learn to stay debt-free and have the happy financial life you dream of. By carefully thinking things through and following the tips here, you will be able to develop a budget, lower your debt, and put money into savings. Ultimately, you will gain control of your finances and become debt-free.
About the Author
Carol James is a writer and senior editor at EssayLab service for help with assignments. She has a master’s degree in social sciences. Additionally, she writes articles and reviews on various subjects. If you’re looking for someone to do great writing for you, get in touch with her.