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How An Entrepreneur Makes Money When They Don’t Have Any

How An Entrepreneur Makes Money When They Don’t Have Any

I understand what it’s like, I’ve been there myself, you have all of these big ideas that you know would work, make millions, go viral and so on, but you simply don’t have the cash to push them through. It’s frustrating, finding investment is hard, and you feel as though you’re in a vicious circle that you’ll never get out of.

But there’s hope! To make money when you don’t have any, you have to do two things.

1. Scale Down

Number one is scaling down. When you don’t have enough money, you need to have a certain mindset that can take you from location A to location B.

This mindset is made up of acceptance and compromise. Accepting the fact that you can’t go out and spend thousands on advertising, then compromising to find a scaled down version of what you originally wanted to do.

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This is where most people struggle because they aren’t willing to put out what they would call a…bad product/service. But for anyone who’s read the book The Lean Startup by Eric Ries, you’ll know where I’m coming from. For those of you who haven’t, I recommend reading it.

The Lean Startup talks about your MVP – Minimum Viable Product. This is a version of the product or service that requires the least amount of time and money spent but still does the job in a minimalist way. What’s the point in spending thousands on a new idea if you haven’t tested it yet, or worse, spending thousands of hours and wasting time you can never get back?

This is why sometimes, the one with the least money comes out on top. Having too much cash can be a burden, it makes you reckless and somewhat lazy. You begin to believe that flooding money into your idea will automatically make it work, but it doesn’t quite work this way.

Example:

Some of the best companies in the world were started from the absolute bare minimums. Take James Dyson for example. James was an inventor, had some ups and downs, but was fairly stable. There came a time in his life when he didn’t have too much cash to play around with. He had a big idea, yet couldn’t implement it.

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Instead of giving up, James turned to the MVP system and created a hoover out of a cereal box. (I’d love to tell you how). He hoovered the entire house twice and realized that his cheap product worked. This was step one complete; he worked with what he had where he stood and came up with something that could take him to the next step.

The Takeaway

I see so many people complaining about not having enough money, yet they haven’t even tried the basics. A world class website straight out of the gate isn’t realistic, but don’t worry. Just having something in place, a platform to build from is the most important factor. You can improve as you go, learn as you go and enable the business to move in parallel with your growing profits.

This system works very much like video games. You can afford better things and be granted access to more exclusive items/opportunities the longer you play and the further you advance. You don’t put the disk in and complete the game in 5 minutes with everything available to you.

Progression is progression, no matter how slow you go or from where you start, all that matters is that you’re moving.

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2. Be Creative

The second component is being creative. Instead of following a single given path, you need to search for ethical shortcuts, tricks, and opportunities that no one else spotted.

You see, if everyone is after the same goal, reading the same material and learning from the same companies, there will come a time where nothing differentiates you from your competitors. Being different, thinking differently and running as far outside of the box as you can definitely work in your favor when you’re broke.

Example:

Richard Branson may be the king of this strategy. When he first started out in business, before all of the billions, he too had similar issues in the financial department as I guess many of the people reading this have today. He needed sponsors for his new magazine, but of course, no one wanted to be associated with a new brand that had a small readership, no history, or proven results.

So what did Richard do?

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He contacted the biggest company that would get on the phone with him and told them that they could feature in his magazine for free with a double page spread. No catches, just a free advert that would point customers in their direction with no risk or money to be paid. The large company obviously said yes because they had no reason not to, it was free adverting.

So how did this benefit Richard?

Richard then went to smaller companies and showed evidence of this large company featuring in his magazine. To them, it seemed as though the larger company had bought a double page spread. Without hesitation, they all began signing up to Richard’s magazine and paying him for a feature. They must have thought, “If such a big company is doing it, then they must know something we don’t.” He used a form of social business proofing!

This cost Richard nothing but made him the money he needed to reach the next stage of his entrepreneurial journey. A simple creative thought that, for all we know, could have been the catalyst towards his billion-dollar fortune.

The Takeaway

Sometimes it’s the smallest, most simple and most overlooked features that can make all the difference. Having money is great, of course, it opens up opportunities, but there’s something about working with a small budget that heightens your senses, makes you hyper-aware to opportunity and more selective in how you spend what you have.

If you’re broke but have a great idea, never forget that you have the start-up advantage, something that larger companies have been trying to get back since they grew.

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Last Updated on January 2, 2019

How Personal Finance Software Helps You Get More Out of Your Money

How Personal Finance Software Helps You Get More Out of Your Money

Do you know what mental health experts point to as the biggest cause of stress in the United States today? If you said “money,” then ding, ding, we have a winner!

Three out of four adults today report feeling stressed out about money at least part of the time. People are either worried about not having enough money or whether they’re putting the money they do have to use in the best possible way.

Your money is either in charge of you or you’re in charge of it, there’s no middle ground. Using some type of personal finance software can help alleviate some of that money stress and better allow you to manage your money effectively. Without it, you may just be setting yourself up for constant financial worry. Life is already tough enough and there’s no need to make it more difficult by simply hoping your money issues will all work out in your favor. Hint: they won’t.

This guide will help you to understand how personal finance software can better assist with both accomplishing long term financial goals and managing day-to-day aspects of life.

Whether it’s tracking the savings plan for your child’s college fund or making sure you won’t be in the red with the month’s grocery budget, personal finance software keeps all this information in one convenient place.

What Exactly is Personal Finance Software?

Think of it like the dashboard in your car. You have a speedometer to tell you how fast you’re going, an odometer to tell you how far you’ve traveled, and then other gauges to tell you things like how much gas is in the tank and your engine temperature. Personal finance software is essentially the same thing for your money.

When you install this software on your computer, tablet, or smartphone, it helps to track your money — how much is going in, how much is going out, and its growth. Most personal finance software programs will display your budget, spending, investments, bills, savings accounts, and even retirement plans, levels of debt, and credit score.

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How It Leads to Financial Improvement

It shouldn’t come as a surprise, but people who regularly monitor their finances end up wealthier than those who don’t. When you were a kid, keeping track of all of your money in a porcelain piggy bank was pretty easy. As we get older, though, our money becomes spread out across things like car payments, mortgages, retirement funds, taxes, and other investments and debts. All of these things make keeping track of our money a lot more complicated.

Some types of personal finance software can help make things a little less complicated, setting you up to meet financial goals and taking away some of the stress associated with money.

Even if you already have a Certified Financial Planner (CFP) some type of personal finance software can be of great benefit. Whereas CFPs focus on the big picture of your money, they don’t handle the day-to-day aspects that determine your overall financial health.

It’s also not nearly as complicated as you might think and can take out a lot of the tedium that comes with doing everything on an Excel spreadsheet or with a pad and pencil.

Types of Personal Finance Software

When it comes to personal finance software, it generally fits into two categories: tax preparation and money management.

Tax preparation software such as Turbo Tax and H&R Block’s software can help with everything from filing income taxes to IRS rules and regulations and even estate plans. Plus, there’s the benefit of filing online and getting your refund check a lot faster than if you were to mail off your forms after waiting in line at the post office.

For the purpose of this article, however, will be focusing more on the personal finance software that aids with money management.

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Money management personal finance software will help you to see the health of your cash flow, pay down debt, forecast for expenses and savings, track investments, pay bills, and do a host of other things that 30 years ago would have practically required a team of accountants.

When to Use Personal Finance Software

So far we’ve gone over what exactly personal finance software is and how it can be a benefit to your money. The next logical step in this whole equation is determining when it should be used and how is the best way to go about getting started using it.

Below are four of the most common and practical ways to use personal finance software. If all or any of these apply to you and your money, then downloading some type of personal finance software is going to be a smart move.

1. You Have Multiple Accounts

There’s a good chance that when it comes to your money, it’s in more than one place. Sure, you probably have a checking account, but you may also have a savings account, money market account, and retirement accounts such as an IRA or 401k.

If you’re like the average American, you probably have two to three credit cards as well. Fifty percent of Americans also don’t have loyalty to just one bank and spread their money across multiple banks.

Rather than spending hours typing in every detail of every account you have into a spreadsheet, many programs allow you to easily import your account information. This will help to eliminate any mistakes and give you a bird’s eye view of everything at once.

2. You Want to Automate Some or All of Your Payments

Please don’t say that you’re still writing out paper checks and dropping each bill in the mailbox. While it’s noble that you’re doing your part to keep postal workers employed, we’re 18 years into the 21st century and you can literally pay every bill online now.

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There’s no need to log into every account you have and type in your routing number either.

With personal finance software you can schedule automatic payments and transfers between all of your imported accounts. Automatic transfers will help to make sure you have the necessary funds in the right account to ensure all bills are paid on the appropriate date. Late fees are annoying and do nothing but cost you money. It’s time that you said goodbye to them once and for all.

3. You Need to Streamline Your Budget

Perhaps the best feature of personal finance software is that it allows you track everything going in and out of your virtual wallet.

Nearly every brand of personal finance software out there has easy-to-read graphs and charts that allow you track every cent you spend or earn, should you choose. You might be pretty amazed when you see just how much you spent on eating out last month or if you splurged a little more than you should have on Christmas gifts last year.

Every successful business on the planet has a budget and using personal finance software can help you trim the fat on your spending in ways that affect your everyday life.

4. You Have Specific Goals to Meet

Maybe it’s paying off debt or saving for up something like a European vacation. Whatever your financial goal is, whether it’s long-term or short-term, personal finance software programs are one of the savviest ways to go about reaching those goals.

You can do everything from set spending alerts to notify you when you’re over budget to automating what percentage of your paycheck goes to things like retirement investments. The personal finance software that you choose should show you exactly how close you are to hitting those goals at any given time.

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How to Get Started

From AceMoney to Mint and Quicken, there ’s no shortage of personal finance software apps out there. Many of these programs are free to download and will allow you to pay bills, invest, monitor your net worth and credit profile, and even get a loan with the swipe of a finger.

Other programs may only offer you limited services and will require a one-time fee or subscription to unlock all that they offer. These fees can often vary from as little as two dollars to 50 bucks a month.

It’s best to start off with the free version and then gauge whether you’re able to accomplish everything you’d like or if it’s worth exploring one of the paid options. Often times the subscription programs come with assistance from financial planning and investment experts — so that can be a real benefit.

When deciding which personal finance software program to use, it’s also important to look at how many accounts you wish to monitor. Certain programs limit the number of accounts you can add. Be sure that if you have checking, credit card, and investment accounts to monitor, that you choose a service that can monitor them all.

Finally, when looking around for the right personal finance software that meets your needs, make sure that you’re comfortable with the program’s interface. It shouldn’t be expected that you recognize every single feature instantly, but if the features don’t seem readable and manageable to you, then you’re not as likely to use it and get the full benefits.

Final Thoughts

Personal finance software can go a long way in helping you to take control of your money and meeting your financial goals. It’s important to note, however, that some focus more on budgeting and expense tracking while others prioritize investing portfolios and income taxes. Explore several different programs and read reviews to find the one that’s right for you.

In this day and age, managing one’s personal finances in a secure manner that allows the user to have a real-time visual representation of their money is easier than ever before. With the numerous applications that are out there — both free and subscription-based — there’s no reason that every person can’t take control of their money and ensure they’re making smart money moves.

Featured photo credit: rawpixel via unsplash.com

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