We must learn to part our finances into shape. As an entrepreneur, it is compulsory you save because if you don’t have good savings, I like to call it “Bad Habit”.
So below are some tips that can help assist you in saving;
1. Save and Invest:
Don’t underestimate your ability to save and invest. With compound interest, even modest investments can grow overtime.
2. Know your investment self:
You are the best judge of yourself. Use that knowledge to find investments that are good match for you, based on your ability to tolerate risks.
3. Don’t put all your eggs in one basket
One way to reduce the risks of investing is to diversify your investment holdings. Think twice before investing heavily in shares of your employer’s stock or any single investment.
4. Put yourself at the top of your “payee” list
Regular automatic deductions from your bank account into a savings or investment account will keep you on track towards your short and long-term financial goals.
5. Do your Home Work
Asking questions about financial opportunities and checking out the answers with unbiased sources can help you make informed choices and avoid fraud.
Saving provides a safety net for life’s uncertainties. Emergency savings funds should have enough money to cover about 3 months of expenses. If you are just starting to build your emergency fund, aim for saving enough money to cover just one month expenses. Once you have established an adequate emergency fund, you can use savings towards other goals such as buying a car, going on vacation or making a down payment on a house.
Always keep two questions in mind whenever you save money:
What do you want to do with the money you saved?
How much will you need to achieve your goal?