Are you earning a lot, but you have nothing to show for it? One of the most common things we hear from business owners is that they’re making money but they feel like they should have a lot more saved. Many business owners have figured out how to make it, and now what they really need to know is how to save money.
BUSINESS OWNERS WANT TO KNOW HOW TO SAVE MONEY
Surprisingly, we hear this most commonly from high-income earners.
If you earn $50,000 a year, you need to know where every dollar goes. On the other hand, if you make $500,000 a year, it’s more than likely you have no idea where ALL of your money goes. You always have enough to cover your bills, but when you look at your account balance at the end of the month, it doesn’t feel like a reflection of the hard work you put in!
And here’s the thing: no matter how much money you make, unless you have clearly defined goals, you’re never going to end up saving enough for what you want in life.
By the way, goal setting isn’t just one of the best tools for how to save money. It also helps you find that elusive work-life balance. See what we mean here.
What do how to diet and how to save money have in common?
Similar to how millions of people attempt diets and fail time and time again because they don’t have clearly defined goals, it is the everyday choices you make that will help you reach your financial goals.
Again to the diet analogy: unhealthy snacking is often overlooked. But when it’s done regularly? These little snacks throughout the day add up quickly. They hinder your goals. And the problem is often that these goals aren’t entirely clear in the first place. It’s easy to develop bad habits if you aren’t striving toward good habits you’ve done the work of outlining for yourself.
Let’s say your overarching goal is to lose weight.
To reach that goal, you’ve made smaller, actionable goals, including eating a healthy dinner five nights a week. With this goal clearly defined, you’re a lot less likely to order take-out five nights a week for dinner. But if your goals aren’t as well-defined, and maybe you’re just planning to “eat healthier dinners more often,” it’s easy to find yourself indulging in pizza more often
The same goes for your financials.
If you’re spending frivolously throughout the month, you won’t have enough to put toward your big picture goals. And again, unless these financial goals have been thoughtfully structured, you’re a lot less likely to reach them. On the other hand, if you’re deeply connected to what your goals are, you’ll spend less on the things that don’t help you get there.
If your big picture goal is to “save money,” start by determining a certain amount you want to save each month. Then, your daily financial decision-making will become more in line with these goals.
(But we know talking about goal setting and actually setting goals are two different things. That’s why we’re proud to offer twenty-minute goal-setting visualization led by Visualization Expert Nicole Collet. Click here to find out more)
LET US HELP YOU REACH YOUR FINANCIAL GOALS
At Ocean 6 we help you get clear on your life goals and start allocating your cash to the things that matter most in life. If you’re excited about your financial future but you don’t have a plan, click here to set up a call. We’d love to help.
Did you learn a lot from this post about how to save money as a business owner?