Being thrifty can be a good thing, and many businesses are finding that out first-hand today. Some are learning it from necessity.
We don't have to hold onto every dime that we have and be miserly. We just need to spend responsibly. If it's something that we use on a regular basis and we need to replace or replenish it, we should go ahead. Even then, however, there may be some items that we can put off replacing for a little while.
If it's strictly a discretionary purchase - something we'd like to have but don't actually need to have it - we have to evaluate whether something else should be purchased instead - or the money just saved for something later.
If we run our businesses by budgeting for expenses like office supplies, travel, advertising, memberships, subscriptions, and entertainment, we may find that by being frugal we don't actually need to spend everything in the budget. Saving money in one area may come in handy for something else - or it could just be a nice savings that isn't spent at all right now.
One trap that's easy to fall into - and one which can undermine our financial health - is to spend every penny of the budget. Just because there's money in the budget doesn't mean that it needs to be spent. If something comes along that technically is in the budget but doesn't really need to be purchased or used, then we should pass. Save the money.
This is private business. This is small business. A few dollars here and there can matter. This isn't government where every penny in the budget must be spent to help insure that next year's budget won't be any smaller.
We don't have to hold onto every dime that we have and be miserly. We just need to spend responsibly. If it's something that we use on a regular basis and we need to replace or replenish it, we should go ahead. Even then, however, there may be some items that we can put off replacing for a little while.
If it's strictly a discretionary purchase - something we'd like to have but don't actually need to have it - we have to evaluate whether something else should be purchased instead - or the money just saved for something later.
If we run our businesses by budgeting for expenses like office supplies, travel, advertising, memberships, subscriptions, and entertainment, we may find that by being frugal we don't actually need to spend everything in the budget. Saving money in one area may come in handy for something else - or it could just be a nice savings that isn't spent at all right now.
One trap that's easy to fall into - and one which can undermine our financial health - is to spend every penny of the budget. Just because there's money in the budget doesn't mean that it needs to be spent. If something comes along that technically is in the budget but doesn't really need to be purchased or used, then we should pass. Save the money.
This is private business. This is small business. A few dollars here and there can matter. This isn't government where every penny in the budget must be spent to help insure that next year's budget won't be any smaller.
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For more information about my consulting, teaching, and coaching services visit my website at stevehoffacker.com (click to visit). I also maintain a blog on the real estate network Active Rain (click to access), and you can join this site and begin participating in the fun and networking opportunities by clicking here.
2 comments:
I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Sarah
http://laptopseries.net
Sarah,
I'm glad you found the site and that you plan on being a regular reader. If there are any particular subjects that you would like covered, let me know. If you follow me on Facebook or Plaxo, the updates to the blog appear there. :)
Steve
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