Someday, when you’re a successful entrepreneur, you’ll have too much money to count.
At the moment, though, you need to save enough to make this dream a reality.
The following steps are all you need to do this successfully. While becoming an entrepreneur takes more than money, you’re about to learn how easy it can be to save enough to get started.
Create a Budget
This is something everyone should do regardless of their goals in life. Sadly, most people don’t have a budget.
As an entrepreneur, you not only need a budget, but you need one with a special category for the funds you’ll be setting aside to achieve your goals.
Just like the other expenditures on your list, you must be specific about the money you’ll be spending.
Therefore, think long term. How much money is it going to take to launch your venture? How much can you realistically set aside for it each month?
Keep in mind that you can always revise your budget. The important thing is simply putting one together. As time goes on, you can change it accordingly.
“Pay Yourself First”
That advice comes right from the most famous investor alive, Warren Buffet.
He wasn’t talking literally, but his recommendation still applies here.
What he meant is that entrepreneurs need to invest in themselves each and every day. In other words, while you’re working for someone else, make sure you’re working for yourself at some point, too.
While this might mean building your prototype, learning a skill, or networking, it also refers to that budget of yours.
If you don’t treat your entrepreneurial venture as something that deserves your money just as much as your rent/mortgage, utility bill, or groceries, you risk putting your success on hold.
Take this seriously and pay yourself – or, in this case, your entrepreneurial dream – first.
Use a Money-Saving App
These days, technology has made just about every aspect of our lives easier. Everything from tracking the calories we’ve burned to monitoring our sleeping habits is now possible through smartphones.
You can also use yours to make sure you’re sticking to your budget. Budgeting apps are also great for getting detailed insights into how you spend your money, something that’s incredibly important for saving it.
Some of the best money-saving apps on the market are:
Pick one and start using it to help you keep your spending on track.
Put Off Any Nonessential Purchases for 30 Days
Even though you have a budget and an app, you will undoubtedly run into the temptation of an impulse purchase from time-to-time.
You could try simply telling yourself, “No! I’m on a budget!”
That may even work.
Over time, though, it might get harder to do that. You’re only human and only have so much willpower.
Many people have found that the 30-day rule makes things much easier.
All this means is that you’ll put off any nonessential purchase for 30 days.
When the temptation arises, go ahead and write down the day on your calendar when it will be completely acceptable to make that purchase.
You know what happens?
Chances are that you don’t even think about it after a day, maybe two. By the time that 30th day comes around, you’ll probably have no interest in making that purchase whatsoever.
“Never” is a tough word for the part of your brain that craves instant gratification. That’s why it’s usually met with rationalizing.
“It’s not a big deal.”
“I deserve this.”
“If I don’t buy this now, I might not have a chance to later.”
If you tell this part of your brain that it’s not “never,” it’s just “30 days from now,” you’ll find it gets much quieter.
You’ll also discover that it gets much easier to not only put off these purchases, but avoid the impulse altogether.
Never Go Shopping without a List
You’ll still need to make purchases, of course.
However, whether it’s grocery shopping or buying a new outfit for work, don’t leave your home without a list. Then, only purchase what’s on it.
If you go grocery shopping and your budget allows you to spend $50, that doesn’t mean you have to.
Before you ever arrive at the store, put together a list of the things you know you need and then buy only those things. You’ll not only keep to your budget – you’ll realize greater savings, too.
Use Cash When You Go Out with Friends
It’s okay to still have fun. Saving money for your entrepreneurial venture shouldn’t require that you live like a hermit.
If you’re like most people, though, it can be easy to lose control a bit when you’re out with your friends. You might have two more drinks than you had planned on or order a slightly larger meal.
The way around this problem is, once again, to plan ahead.
What does your budget say you can spend on a night out with friends?
Whatever the amount is, go to the ATM, withdraw it, and then leave your plastic at home. No amount of getting lost in the moment or peer pressure will be able to make you spend more.
Begin Financing Your Entrepreneurial Venture ASAP\
Another way to save your money from impulsive spending is to use spending to your advantage.
When you created your budget, you came up with a certain amount you’d need for your entrepreneurial venture.
This number can probably be broken down into smaller milestones, though.
For example, maybe you need to hire someone to build your site or help with your prototype.
Whatever the case, spend your money on these things as you go.
Not only will this help move you closer to your goal and ensure that money goes to its rightful place, but it will keep you motivated, too. You’re actually making serious traction toward becoming an entrepreneur!
Don’t let poor saving habits stand between you and your dream of becoming a successful entrepreneur. You now know everything you need to begin setting aside money to fund that goal.