MBA1106 5 Ways to Save Money To Start A Business

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I don't have the money to get this thing off the ground. Well in today's episode I'm going to show you how you can get the money, how you can save the money, how you can have a plan of action. This is not theory, this is practice. This is how I started every business I had when I had a full time job when I was side hustling, I couldn't just start a business with no cash. I had to have a plan to save that money so I can start that business. These are five ways I've tried that have worked for me. This is going to throw away all the excuses of not being able to start that business because of financial reasons. Now I want to tell you before we get started, I want you to have an open mind with each of these. I want you to seriously consider doing each one of these because if you do all five, you're going to increase the chances of you having the money sooner than later to start that business and to change your life to live the life that you want. That's not just some feel good. I'm telling you, that's the reality. You want to be able to start that business so you can start living the life that you want to build something for yourself and put something out in the world that you're proud of. So let's get started, let's get into it. Let's get down to business. All right, Again, have an open mind as I go through each one of these five ways to save you money so you can start that business. I'm gonna start with the one that's going to make the biggest difference and allow you to save so much money, you can probably start that business sooner than later. But you guessed it, this is gonna be the hardest one to do. But if you have, again, an open mind, if you keep your eye on the prize, if you focus on the reward, meaning that you're gonna get to start that business, you're gonna be able to be your own boss and build something for yourself. And all the reasons why you wanna start that business, focus on that. This is not gonna be that hard. So number one is a downgrading. You have to sacrifice. If you want something in life, you have to sacrifice your lifestyle just a bit so that you can be able to afford the investment to change your life. Now, for some people, this is huge. This is hard. But for others, it may not be. But for most it is. But if you focus again on the reward of having a business, this won't be hard. So let me give you some examples of downgrading. One of the easiest ways to save money is to change where you live. Maybe it's hard for you to move to a different state or a different location, but you can downgrade your house. Whether it's selling your house and buying a smaller one, or changing your rent rate, going to a smaller apartment or something that has cheaper rent, that's going to allow you to save X amount of dollars every month that you can reinvest in your business. You might think this is drastic, but this is not permanent. You're just changing your expenses for the time being so you can start this business. And then you can always go and find something even better than where you are today. If moving house is not an option for you, but I want you to consider it as an option. Okay, then downgrade your car. If you have a car that you've paid, you could sell it and buy a cheaper car. If your car is worth $30,000, sell it. Buy a $15,000 car. $15,000 can do a lot in terms of starting a business, especially an online business. If you're financing a car again, you could do the same thing, trade it in finance. A cheaper car, a used car, Same thing with a lease. Cars change. They come and go. You can get a better car down the road. When you've built your empire, delay gratification and downgrade these bigger purchases in life so you'll be able to have the cash so you can start that business. All right, number two, second way to save some money right now so you could start a business in the near future is to pay off your debt and do it the right way. I learned this from Dave Ramsey. So, say, for example, you have two credit cards. One card has $10,000 in debt on it, and one has $2,000 in debt. Let's say everything's equal. Let's say the interest rate on both are the same. You should do everything you can to pay off the one with the bigger debt. Why? Because you're paying more interest. You're paying that interest rate times 10,000, right? You're paying interest on a larger amount of money, therefore, you're paying more interest. So the faster you could pay off that card, the more money you're going to save, the more money you're not going to spend on interest. On top of that, when you pay off your debt, you're going to have those credit card payments. You're going to have that extra cash every month that you were spending paying off your credit card. You could save that money to start that business. You should also call those banks or those credit card companies to see if they can do some sort of deal. You have to ask, you have to negotiate. A lot of these credit cards will have a grace period where they can give you six months of zero percent interest where you can save so much money. Right there, depending on how much debt's on that card, to pay off that card in six months, call and see if you can negotiate a better rate. Speaking of negotiation, that leads to number three. You need to negotiate the rates for your biggest expenses in life and maybe even in business. If you have a current business, let's say, for this could be your mortgage, this could be your rent, this could be your car payment. Getting a better finance rate and saving some money. This could be simple as hiring a better accountant for a certain amount of money to save you a whole lot of money on taxes. Where are you spending the most money every year? What are your biggest expenses? Negotiate those so you can save some cash. All right, number four, this one might be a tough one, but it's temporary. And this is to cut your disposable income spending in half. So I want you to take a look at your bank account, look at your credit card statements, look at all the things you're spending on that are not necessities. You're eating out, vacations, coffees. Total up how much money you're spending every month on disposable purchases. Clothing. For most of us, we have enough clothing to, you know, be safe and to be warm, but we buy new clothes because it makes us feel good. But let's say, for example, we say for the next year, we're going to cut our disposable spending by half. We're going to look at everything. And some credit cards have this great little feature where it tells you where you're spending your money. But you can do this manually, even just looking at your account, and you might be surprised. You might be like, wow, I just spent $18,000 this last year on just disposable income purchases. Things like dining out and vacations and clothing and going out to the movies and things like that. It adds up over time. And I'm not saying never do that. I'm not saying don't buy new clothes. I'm not saying don't eat out. I'm just saying cut it in half. Just do it half as much. So if you go to the movies twice a month, go once a month, buy a new outfit and a pair of shoes every month, just make it every two months. You're not depriving yourself completely, but you're going to save a ton of cash. In a lot of cases, thousands of dollars. All right, the fifth way to save some money to start that business is to pay yourself first. This is something that I had to force myself to do. You, you have to see saving like a bill, like a debt, like an expense. So say, for example, you're going to need $6,000 to start that online business of yours in about a year. Instead of just hoping that your uncle's going to give you that money someday, set up with your bank account to pay yourself $500 automatically every month. So every month, your bank is going to take $500 and move it to a savings account. That way, in a year, in 12 months, you'll have $6,000. And you're just going to see it as like a direct payment. You're paying yourself first. You're making sure that you're paying your future self the money you need to start that business. That money gets taken out of your bank account without even seeing and just seen as an expense. Often, some of us, we just spend money. If we see there's money in the bank account. So remove that money before you spend it and make sure you pay yourself first to make sure that you save that money. That money's ready for you when you start that business. There you have it, guys. These are the five ways that have really worked for me in terms of saving money to start that business. Downgrading as much as possible. If you can downgrade where you live, you're gonna save a whole lot of money and you can start that business sooner than later. Number two, paying off debt. Number three, negotiating your biggest expenses. Number four, cut your disposable spending or disposable income spending in half. And number five, pay yourself first. There you have it, guys. Thank you so much for listening to the $100 NBA show. Don't forget tomorrow's free riot Friday. If you haven't left us an itunes rating and review yet, make sure you do that right now by leaving us on itunes rating review. Not only do you help us grow and share what you think about the show with others, you also enter our weekly random draw we call free ride Friday. Every Friday we give away a lifetime membership to one of our programs. This month we're giving away easy course, our 30 day course on how to build your own online course. It retails for $500 over at EasyCourse co, but you can win it for free by just leaving us on itunes, rating and review. On Friday, you can hear who won the draw. It's our way to say thank you for leaving us an iTunes rating and review. And once you leave us a review, you enter the draw automatically for every week. So just listen on Friday to see if you won. All right, thank you so much for listening. Before I go, I want to leave you with this. I know that money can be stressful and you need money to start a business, but this is a good start. Saving money to start a business starts you on a path of having a better relationship with money. It may seem hard at the start to sacrifice some of these things because hey, maybe you're working a job. It's stressful. You like to spend your money in certain ways to relieve that stress. But we get used to things. Once we get used to cutting our expenses in half, that becomes a norm and your happiness is really not affected that much. That's at least what I've experienced. I hope that helps and hope you take on these tips and I hope to see you in tomorrow's episode. I'll see you then. Take care.