5 Expenses That Are Killing Your Wallet (And Your Business)
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The Small Business Administration states: “About half of all new establishments survive five years or more and about one-third survive 10 years or more. As one would expect, the probability of survival increases with a firm’s age. Survival rates have changed little over time.”
Let’s look at that again. 50% of new businesses survive 5 years or more. That means 50% fail. That’s a scary thought. So, the question isn’t about how many business fail, but why do they fail? The answer is pretty simple; the entrepreneur costs too much. Their expenses are just way too high.
Expenses are important whether they are a large, lump sum amounts or daily purchases that seem harmless. Today we’re going to discuss 5 expenses that are killing your wallet, which in turn, are killing your business. This list may be simple, but can maybe help you realize some of your bad spending habits. Let’s begin…
Coffee — Ahh how I love coffee. A nice warm cup to kick off the day is a guilty pleasure of ours. Now, I’m not saying to stop drinking coffee. Just stop going to Starbucks, Dunkin Donuts, or wherever you get your daily fix. Invest in a coffee machine at home and make your own cup of Joe. Think about how many cups of coffee you buy each week. What do you pay per cup? Now multiply that by 30 days. Multiply that by 12. THAThorrendous number is the amount you spend on coffee per year. YIKES! It’s time to cut that expense by simply switching to homemade coffee.
Stop eating out — We live in a world where people go go go without much preparation. When we’re in the middle of a busy workday, we tend to rely on fast food and pre-made meals to refuel ourselves. Instead of forking over 10 to 20 dollars for each meal, take the time to pack your own. There are so many quick and delicious recipes available online that will save you big by the end of the week.
Gym Membership — Ok, be honest. When’s the last time you went to the gym? If you don’t go at least once per week, it’s time to let go of your fancy membership. Switch to a cheaper gym with less amenities if you really do plan on going, otherwise, workout at home. There’s a plethora of free YouTube videos and at-home programs that will make you sweat, without breaking the bank.
Ca$h. What’s that? — With our credit cards loaded on our phones alongside apps like Venmo, spending money has never been easier. A simple tap, click, or swipe has money flying from our bank accounts. An easy way to avoid overspending is to give yourself a weekly budget, and keep that amount on hand in cash. This has you physically see the amount you have available to spend each time you’re ready to make a purchase. We tend to forget that our cards aren’t magical, limitless money machines… until there’s nothing left on them.
Cut the Cable — Last but not least, cut the cable! You can’t possibly watch that much TV to be paying such a hefty cable bill. Switch to a streaming service, like Hulu or Netflix, to drastically reduce your monthly costs (around 50%!). If you’re looking for specific shows or networks, Hulu has a variety of additional features, and you can pay-per-episode on digital retailers like Amazon and iTunes.
A few small changes in your spending habits can lead to big results. Also, if you’re not already tracking your expenses, then you should. You won’t know why you’re out of money by the end of the month if you have all of these unorganized expenses. A great money tracking app is called Spending. You can create categories, enter expenses and income, as well as export the report to a .csv file. Start tracking your expenses — you’ll see areas where you can make some changes and save big. Until next time… Happy saving!
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