I often see so many entrepreneurs wanting to build something phenomenal. Want to build the next greatest website, or invent something that will change the lives of people around the world.
There are so many visions out there in this world today to build something better but very few of these visions get fulfilled…
They don’t get fulfilled because of the lack of money. So many young entrepreneurs, I will call them dreamers, never get started because they don’t have the tenacity and the willpower to do what is necessary to make their vision come to the forefront.
When I talk to one of these aspiring entrepreneurs I always ask them what they do with their day and how they live their life… and I often get similar answers which is a more expensive life style than they need.
Although I think one of the greatest ways to build your financial freedom is to make more, sometimes when you are getting started and you are an an entrepreneur, you can’t just focus on getting a better job – because your job is build your vision.
So I want to share with you a few things that you can cut back on if you truly and really wanted to save some money and make your entrepreneurial vision come to life.
#1 Get rid of your car
This is probably the most painful want to start with but getting rid of your car can save you a few thousand dollars a year if not more. If you take the public transportation system, such as using the bus, biking, or walking you could save quite a bit of money for the year.
I am not saying you have to get rid of your car permanently. I am saying if you’re looking to cut back in a big way to start your business sometimes you have to do things now to get the things that you want later.
Imagine some peoples car insurance bill is $200 per month. That’s $2,400 per year… and that depends on the car you drive, the location, and more!
Some people also pay $400 a month on their car bill to pay off their car. Add that into the mix and you got another $4,800.
That’s $7,200 or more of additional cash in a year! (P.S. you wont get speeding tickets taking the bus).
#2 Switch to a pre-paid phone or Skype
Many people pay $50 or more (I would say closer to $75) for their smart phone bill. Much more if you have a family all on one plan. If you switch back to the old times by using just a house phone you could save about $800 or more per year for your upcoming business.
Pre-paid phones can cost about $10-$15 per month or if you gowith Skype you can pay $25 for the whole year to call people all around the USA and Canada.
#3 Eat in more rather than going to a restaurant
Although I enjoy eating out just as much as anyone else, it becomes very expensive if you do that five times a week. If you average $20 per plate then that is $100+ each week.
Take it to a yearly projection and 50 weeks of going out will cost you around $5,000!
#4 Kill your entertainment & travel expenses
Sad to say this, but you may have to think out of the box to entertain yourself if you are used to going out for a $15 movie, going bowling with friends, or spending cash on entrance fees to get into places.
This goes along with taking luxurious vacations for the year. You can take a trip to a conference or a trip to Italy. Although one may sound nicer, the other may do much more for your future.
#5 Stop your subscription services
Cable, Netflix, Gym membership, or other services you pay for monthly can really put a lot of money back into your pocket.
Even if you just stopped a $20 membership per month – that is the same amount of money it costs to run your company newsletter (like with Aweber). It’s my goldmine and a cash machine every time I send out my newsletters… I would have rather had that then cable or Netflix when I was first getting started.
#6 Stop shopping for new clothes
If you need to always have the latest fashion, nicest shoes, and best shirts then cutting these things out can help you cut back on some cash spending. Make sure you have flexibility and versatility in your clothes and when you do – then you can mix and match.
You don’t need 30 outfits. Just a handful of really nice outfits will be fine and do your laundry… keep it simple.
#7 Make gifts rather than buying them
Some of the more expensive things to do for others is to purchase gifts.
We all want to give great gifts during the holidays, birthdays, or other special occasions – but this can become very expensive!
Rather than spending your money on gifts, do something nice for people like creating a little coupon that you will wash their car or make a gift for them like a little album of memories which can cost about $20.
#8 Stop bad habits (smoking and drinking)
If you smoke or drink then just kill those bad habits immediately. It not only hurts your financial state, but your health. I don’t even know the cost of cigarettes these days, but at $5 per pack – if you smoke 300 packs a year (that is less than 1 per day) – then that’s $1,500. Add a few alcoholic drinks to that and you are probably around $2,000
There are ways and things you can do to cut back especially if you are determined and motivated to get your business off the ground, but you just don’t have the finances to do so.
The tips I presented are just a way to get you started.
It may be a bit painful to change your habits, but if you are serious and dedicated to making it happen – then I know you can do it!