Remember all that advice given to you as a kid about saving every penny you get? Trust me, its good advice.
In a world with today’s economy, profits are uncertain and businesses are struggling to find their feet. They focus too much on how much money they have left at the end of the month and then panic when they don’t have enough for bills, taxes or any other outgoings. Personal trips and luxuries have to be put on hold as there isn’t enough cash left after business expenses. It can cause a lot of stress and put a strain on everyone involved, which is never good.
That’s where saving comes in handy. Putting away as little as 10% of your monthly earnings will be the starting step in the process to better money management. A cash reserve will always come in handy if your business suddenly takes a downturn.
Say you have a bad month, and profits have fallen. You don’t know how you are going to pay your employees’ salaries, and incoming bills are looming over your head. In comes the savings. Having a pot of money to fall back on in a time of need is essential to a successful business. We will cover more on these savings pots in later articles and how having more than one savings account can really help your business thrive.
So if you want to succeed, and have a lot less money stress in the process, start saving today!