Ways to Cut Costs as You Begin Your Entrepreneurial Lifestyle ...

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Ways to Cut Costs as You Begin Your Entrepreneurial Lifestyle ...

The internet has made it easy for people to take on an entrepreneurial lifestyle because of the various guides and tips that become readily available through a simple search engine. This has led to a surge of small businesses and independent contractors.

Among those who are jumping onto the entrepreneurship train are women. More women are taking on entrepreneurship but are struggling to handle it financially. This is because the cost associated with actually achieving the goals needed to be a successful entrepreneur are steep. Not only does it cost you money, but it also costs you time, family and friends, and can disrupt the balance you are accustomed to within your life.

When you can successfully manage your expenses, all the other sacrifices needed to be entrepreneurs are not as severe. So the key to mastering your finances to succeed in your entrepreneurial lifestyle is knowing how to cut costs with insurance, subscriptions, and other bills.

Cutting your finances can be as easy as inquiring about car insurance discounts from Allstate. No matter how you cut costs, the money you save from it can be dispersed toward your business venture.

1 Track Your Spending

To know where and how you need to shave expenses, you need to know where your money is going. The best way to do this is by going through your bank account and writing out what you spend money on. Most banking apps provide a chart or diagram that gives you this data. It will separate your expenses into various categories, such as food, bills, entertainment, etc. It will detail how much money you spent in each category during the month.

If your bank does not offer this data to you, there are apps that you can download and connect to your bank account to separate your expenses and explained above. Using an app or the information provided by your bank is more painless than manually writing down your costs by yourself. Usually, those who do not know where the money is going have a more challenging time building savings.

2 Create a Budget

One standard financial planning tip for families is to build a budget. Despite this being a common tip given to people who are trying to save money, it is one thing that most fail at because they do not create a detailed plan for their budget.

Yes, the basis of budgeting is to control your spending and to set limits, but many do not know where to control spending or where to limit themselves within their spending budget. This is why it is vital for everyone to track their spending and to create a detailed list of what they are currently spending money on.

An excellent way to organize finances into an effective budget is by using the 50/30/20 financial management model. This model means one will use 50 percent of their funds for necessities, 30 percent for spending money, and 20 percent for savings.

Though every person cannot balance their money like this, they can adjust the ratios to their personal needs and adapt it to their lifestyle. Fitting expenses into the percentages associated with this model may include completely cutting out all spending on entertainment or food. It may even require you taking on a side gig to increase the money flowing in. Though this may seem daunting at first, in the long run, it can help you genuinely succeed in your entrepreneurial lifestyle.

3 Make Saving Money Fun

There are various lifestyle changes to help someone save money, but what most online guides do not teach is how to have fun while saving money. Many individuals look at saving money as something miserable and torturing. But the more money you save, the closer you are to financial freedom. Not being restrained by the financial burdens associated with living is more thrilling than any expensive designer bag.

My family and I are goofy individuals who also happen to be competitive. Instead of dreading the fact of saving money, we made a silly and competitive way to save money by playing games. For example, we save money by using a “Swear Jar” and making bets. I would say to my fiance, "I bet you five dollars you cannot make this shot from there," and whoever wins the bet has to put their own money into our savings account.

It sounds frivolous and childlike, but that is what makes it fun. Before we know it, we can save a large amount of money by only having fun and enjoying one another. Though you do not have to play games to save money, you can find a way that works best for your lifestyle and personality.

4 Lower Your Insurance Rates

Aside from a mortgage or rent, car insurance rates are usually among the highest expenses that a person has to pay each month. So this is a crucial area where entrepreneurs can strive to save money. To achieve this goal, one should first know what factors affect their insurance rates. These include:

- Geographical location
- Age
- Gender
- Marital status
- Years of driving experience
- Type and age of the car
- Driving record
- Insurance claims history
- Credit history

Once you know what factors play a role in the rates you are given for your car insurance, you can inquire with your insurance provider about lowering them with any discounts they offer. With those factors in mind, here are some other ways you can reduce your auto insurance cost:

- Shop around with various insurance providers.
- Compare insurance costs before buying a specific car.
- Ask for higher deductibles to lower your monthly premium.
- Reduce coverage on older cars that are paid off.
- Buy your homeowners/renters and auto coverage from the same insurance provider.
- Maintain a good credit record and score.
- Take advantage of low-mileage discounts and monitoring app discounts.

5 Remove All Temptation to Spend Money

Email newsletters and catalogs that are mailed directly to your home can easily tempt you into spending extra money. They are even more tempting when they feature significant sales at your favorite stores. Email newsletters from your favorite brands are even how someone becomes addicted to online shopping.

The best way to avoid temptation is to unsubscribe from these newsletters and to discontinue any catalogs you have mailed in. It also helps to invite your friends over to your home instead of meeting them out somewhere for your girls’ night. Removing any other form of temptation will help as well with sticking to your budget.

About The Author:

Imani Francies writes and researches for the insurance comparison site, TheTruthAboutInsurance.com. She earned a bachelor of arts in film and media and specializes in various forms of media marketing.

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