You know your business money management plan should include a retirement savings plan for your financial security. Here’s how to start one FAST!
The old saying, Pay Yourself First, is some of the best business money management advice you will ever get. If you don’t pay you into a retirement savings plan, who will? How do you do that? Here’s how.
Your Business Money Management Planning Should Include A Savings Plan
Out of every bit of income that comes in the door, immediately carve off 10% and put it in a savings account that you have designated for your long-term wealth building plan. I know that is a scary idea for a lot of business owners who have debt and past due bills to pay. My advice? JUST DO IT! As the weeks and months go by you’ll find you have adjusted to operating on 90% of your income.
The biggest benefit of this self imposed retirement savings plan is the financial security and peace of mind it gives you just knowing that cash is there. You will find that you actually stop worrying about money.
Think you cannot possibly put away the whole 10% to start with? Then take a look at your business money management plan from this point of view. Look at all of the suppliers you pay out of your income every month and get the idea that these suppliers are all on your personal payroll. Is there anyone you can fire and not really miss? Is there anyone you can cut back from full time to part time status? Just look at the bills that come in every month, or those checks, debits and automatic fees deducted from your accounts and you’ll see exactly who is on your “payroll”.
Here is an example. I was working with a business owner who was having a hard time cutting expenses 10% to put away in his retirement savings plan. We looked at every expense from the viewpoint that the supplier was on his business“ payroll”.
Playing The Business Money Management Wealth Building Game
Suddenly we were playing a game of shopping for alternative suppliers for things like telephone services, internet services, web hosting services, and credit card merchant services. We reduced the “pay” of some of the local service providers. We “fired” others and replaced them with less expensive, high quality services that didn’t hold him hostage with lengthy, punitive contracts. That saved a lot of money every month. He cut the phone company’s pay by getting rid of his dedicated fax line and got him a very low cost internet based fax service. We even fired his bank and got a new one with no monthly account charges and got the old bank off his payroll to the tune of $25 a month.
You can make this a fun wealth building game with your business cash flow and with your personal finances just by changing your viewpoint. Be the Donald Trump of your own organization. Take a hard look at who you are paying out of your hard earned income. Don’t be afraid to say “You’re Fired!” and change your business money management plan to pay yourself first by putting that money in your own retirement savings plan.
Leave a comment and tell us where you discovered you could save some money to put towards reaching your financial goals.
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Business Money Management – How To Start Your Own Retirement Savings Plan