6 Costly Expenses You Should Cut
As an entrepreneur there are sacrifices you’ll have to make when your cash flow gets tight. Certain “normal” expenses become luxuries that you have to do without in order to keep your business afloat. From my own experience, I’ve learned that cutting a few nagging expenses is a great way to free up extra cash. These cutbacks didn’t hurt nearly as much as I thought they would, so don’t be afraid to scale back to help your business get ahead.
Here are six costly expenses you should cut:
1. Ditch your cable- Opt for Netflix, Hulu and even Redbox if you have too. I noticed my cable bill was more than $160 per month. That would probably be okay if I actually watched tv, but since I work all day and normally unwind with a movie at night, the cable expense was unnecessary. Instead I opted for Netflix, which gives me access to tons of movies for just $9.99 per month. I also added a $7.99 Hulu subscription so I wouldn’t miss all the great TV shows I love like House, Modern Family, and Undercover Boss. I have more than enough to watch, without the headache of a massive cable bill each month.
2. Eliminate the small reoccurring expenses for services you don’t use. It may only be $10 a month, so it’s easy to ignore, but those small expenses add up throughout the year. A few years ago I was tricked into buying a prepaid legal services. I never even thought about using that service, but it took $10 out of my account each month for over three years. I never paid attention to it until I recently shut it off. Although it’s just ten bucks a month, those wasteful expenses add up.
3. Consolidate your bank accounts to cut down on unnecessary fees. At one point, I had five different accounts open (personal checking, personal savings, business operating account, business savings account, and some other business account that did nothing but accumulate fees every month). I realized i was paying way too many bank fees, and decided to completely eliminate two accounts. Not only did consolidating my accounts help me save a few extra dollars every month, but it made it easier for me to manage my money more efficiently. I encourage you to assess your bank situation, monitor the bank fees you incur, and shut down any accounts that you don’t use.
4. Change your shopping habits. You may think this one is obvious, but this is an ongoing process since old habits are hard to break. If you feel the need to buy something every time you’re out and about it’s time to reevaluate your shopping patterns. Before you leave the house have a plan for how much money you can afford to spend, and stay under that budget. That may mean opting for generic brands at the grocery store or choosing to buy one pair of jeans instead of two. Entrepreneurship is about sacrificing short term pleasures for long term success. Don’t be wasteful in your spending. Tuck the extra money away for a rainy day. Business owners are always faced with financial surprises, so you’ll need that money one day soon.
5. Cut your phone service plan- this is one bill that is becoming increasingly unnecessary. You may not need a home office line and a cell phone. Your cell phone may be all you need. On the other hand, if you’re in an office all day, you could probably get away with an unlimited talk plan from Vonage for $14.99, and cut your cell phone plan down to a more reasonable rate. For a more professional sound, you can invest $10 a month for a voice messaging system that can greet your callers and redirect them to your cell or office phone. This is one bill that can have lots of surprises every month, so monitor your phone bills carefully, and adjust your plan or calling patterns to help keep your costs down.
6. Always search for special deals. You rarely have to pay full price for the products or services you want, so before you buy something search for a deal. I often check out sites like retailmenot.com for discount codes and coupons to help knock down a price. I even search on Amazon for special deals on “like new” products. I don’t mind buying a book that someone else already read, especially if I can buy the book at half price. Searching for deals will keep more money in your pocket and free up more cash for you to invest in your business.
While it’s important to focus on how to make money for your business, it’s equally important to figure out how to save money for your small business. Increase your cash-flow by cutting unnecessary expenses as often as possible the suggestions above are a few tactics that worked for me. You may have your own bills that you can reduce or eliminate altogether. Keep your eyes open for new ways to save money, and act quickly. Each month you wait equals more money down the drain. Every dollar saved can be used to fund the business of your dreams.
What costly expenses have you cut lately? Share your budgeting tips below…