A limited budget is the most efficient way to save money the world has come up with.
We continue a series of articles on how to get or save start-up capital in times of crisis .
In this article, we will consider, probably, the most important and most effective way to save money that exists, has existed and will exist at all times and among all peoples … Yes, that’s just so pathetic and global!
And the advice is simple — you need to limit the budget!
Have you ever gone to a store?
What a stupid question — of course, yes. Now remember, please, have you ever gone to a store with a shopping list? Those who have not yet experienced this wonderful method of self-discipline should urgently try it tonight.
So, you go to the store. You leave hungry after a hard day at work, in which there was absolutely no time for lunch. The basket (or stroller) you came across is large, roomy. And gradually, as you move to the checkout, the basket begins to fill up. It begins to fill up with various things and products: necessary and, as it turns out, not very necessary. And even completely useless.
And now you come to the checkout. While you are standing in line, in the checkout area you can grab 2-3 chocolates, a couple of lollipops, a few chewing gums into the basket … You want to eat something!
After the calculation, one surprise arose: your check came out for 5 thousand dollars.
Suddenly? So it comes out completely unexpected every time. Last week it was 4.5 and now it’s 5!
But the paradox is that 2-3 days after this trip to the store, the refrigerator will again be empty. And again you have to go to the store.
What if we act differently?
If you limit your purchases from the very beginning by planning them in advance. I sometimes do this: I write down all the purchases on a piece of paper, and then I buy everything strictly according to the piece of paper.
There are two huge benefits to this method of self-discipline:
1) time spent on shopping is half as much;
2) money spent on purchases is also half as much.
The first happens because in the process you are not distracted by everything superfluous. Second, don’t buy anything extra. Everything is very simple.
How does this apply to business? Directly. A limited budget in business is the first rule!
In business, just as in personal life, people tend to spend money spontaneously or thoughtlessly. In addition, if spending is not limited, then the money will disperse quickly and without much meaning.
Therefore, in any spending, you must follow two important rules:
1) Always plan for any spending. If you are planning to start a business, make up a piece of paper with an approximate list of what you will need to purchase in the next 2-3 months. If you are already running a business, then this sheet should show the costs that you will bear to maintain and develop the business in the next 2-3 months;
2) All spending must be limited. If you originally estimated that you needed $400,000 to buy equipment, limit your budget to $300. Then think about how you can fit into that figure. In 7 cases out of 10 you will be able to find a way out!
Use these rules and save your money to start a business!