1. Value every cent in your possession: Know that a drop of water makes a mighty ocean. A cent profit can turn to thousands or even millions if multiplied with a heavy volume. Every cent you loose reduces your chance to becoming rich. Stop loosing those cents by extravagant purchases but take advantage of buying at reduced prices by always making a bargain where possible.
2. Be accountable of all your income: This is a mistake most growing entrepreneurs are making; they think because they are earning little, they don’t need to keep an account. Keep record of your transactions no matter how small as this will help you to make performance evaluations and gain ideas on what areas to work more on.
3. Work on your spending habits and learn to save: We discussed earlier on this site that one of the sources of business finance is using your savings to reinvest back into your business. Always have a simple budget. It is amazing that when a budget is mentioned the first thing that comes through our mind is a technical accounting word meant for the accountants only. Everyone who can read and write should always make lists of his/her expenses in order of priority to avoid impulse buying. Try making a budget and it will surprise you that a little money in your possession can achieve a lot for you.
4. Carrying more cash than you need around will prompt you to spending more money than you should. According to Baryamin Franklyn, “Beware of little expenses, a small leak can sink a ship”.
Sunday, July 12, 2009
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