5 Ways to save money to start your own business

How to save money to start a business

Starting your own business is a great goal.  You may have a great plan to hand and know your brand but no matter what kind of business you are starting you will need to finance it.  Fast Income has put together a guide on how to save money to start a business by cutting back and changing a few things in your day to day living.

5 Ways to save money to start your own business

#1 Budget

Create a strict budget, there are many great phone and PC apps for this that can help you with your day to day spending. They provide you with great reports and some of them will link to your bank accounts as well as various investment accounts.Invest in a high-interest savings account and stick to your monthly savings plan.
Avoid using your debit or credit cards and keep them with you only for emergencies.  Draw out a certain amount of cash each week and pay with cash.  You will be amazed that on the great discounts you can get at some places with cash.

#2 Pay off your mortgage as fast as you can

If you have a mortgage try to pay off a little extra or double if you can each month. You will build up a good credit rating and save on interest.

#3 Keep your car

If you are going to buy a new car make sure it is a good one that you can pay off quickly and keep for a long time to come.  If you already have a newish car look after it and pay it off as quickly as you can.

#4 Cut down on utilities

Watch your heating and water bills.  Try cut down where you can even if it means you may have to wear an extra jumper or pile up the blankets. Or invest in good insulation.  Cutting back on the heat and water bills is also good for the environment.
Keep down your mobile device costs and go prepaid where you can.

#5 Buy smart and cut down on entertainment costs

Buy in bulk when you can.  Cook and eat at home rather to eating out or going to a take-out place.  You can take your leftovers to work for lunch the next day.
Drink at home instead of the pub or at least cut down on drinking at the pub.
Make your own coffee and invest in a good thermo-mug to take it with you if you need too in order to cut down on coffee shops or Star Bucks expenses.