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Ask the Entrepreneurs: 12 Ways to Shore Up Your Company Finances

Ask the Entrepreneurs: 12 Ways to Shore Up Your Company Finances

Ask The Entrepreneurs is a regular series where members of those involved in the Young Entrepreneur Council are asked a single question that aims to help Lifehack readers level up their own lives, whether in a area of management, communication, business or life in general. Here’s the question posed in this edition of Ask The Entrepreneurs:

What is one financial resolution that all aspiring entrepreneurs should make for themselves in 2013?

1. Track Your Monthly Income and Expenses

Nathalie Lussier

    This might seem a little too basic, but if you’re not doing at least some bookkeeping on a regular basis, you don’t have your pulse on your business’ numbers. Being able to look at how much money came in and went out in one month is crucial to any startup or aspiring entrepreneur. Even if you’re not bringing much in, you need to know that.

    Nathalie Lussier, The Website Checkup Tool

    2. Increase Your Rate of Savings

    Lawrence Watkins

      Becoming an entrepreneur can be a scary proposition, and one factor that keeps many people from making that leap is finances. If you’re living paycheck to paycheck, then it can be hard to make those tough decisions that may be rough in the short term, but very beneficial in the long term. Once you answer how you’re going to eat and where your’e going to live, you can then focus on your business.

      Lawrence Watkins, Great Black Speakers

      3. Can You Really Live on Ramen?

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      Erik Severinghaus

        It’s easy to assume that if you quit the high-paying day job, your expenses will decline in tandem with your income. In reality, that’s a lot harder after you’re used to nicer meals, vacation travel, etc.

        Before you quit your job, figure out what you can really live on for two months and test your ability to stick to that budget. It’s a great way to see if you’ll be happy living on ramen noodles.

        Erik Severinghaus, SimpleRelevance

        4. Take an Accounting Class

        Thursday-Bram

          Even if you never have to do any accounting work at any company you ever start, understanding the basics of accounting will be very useful. Just being able to read accounting reports may save your bacon if there’s a potential issue in your company that your accounting software or a human accountant haven’t managed to pick up on.

          Thursday Bram, Hyper Modern Consulting

          5. Create a Personal Budget

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          Derek Flanzraich

            Sometimes, amidst all the startup craziness, entrepreneurs forget to plan and organize their own finances at all. Then, all of a sudden, you’ve ordered expensive sushi delivery for dinner every night and the numbers keep stacking up. Take some time over the holidays to plan out your own budget.

            Derek Flanzraich, Greatist

            6. Join the Peer Economy

            Eric Koester

              The Peer Economy, companies that help you buy, sell, or transact with your peers (think eBay, Etsy, Airbnb, Getaround, Taskrabbit, Zaarly, Odesk or dozens others), is a great way to make money or save money. So participate—either by renting your couch out or staying in an Airbnb place when you travel; finding a developer or selling your services on Elance; or more. But just participate.

              Eric Koester, Zaarly

              7. Give Yourself Permission to Fail

              Dave Ursillo

                Every aspiring entrepreneur should give themselves permission to fail in 2013 because the greatest obstacle that every entrepreneur must (and always will) encounter is fear; especially fear of uncertainty and the unknown. When you give yourself permission to fail—financially or otherwise—you really give yourself permission to try in the first place.

                Dave Ursillo, The Literati Writers

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                8. Pay Down Debt

                Elizabeth Saunders

                  If you have personal debt, try to dramatically reduce or ideally eliminate it prior to starting your business. Having lower recurring expenses will give you more freedom to take risks as you build your company.

                  Elizabeth Saunders, Real Life E®

                  9. Real-Time Visibility

                  Robert J. Moore

                    Establish a system to access financial data about your company’s performance on demand and in as close to real-time as possible. This will allow you to feel highly in tune with business growth and tackle challenges as early on as possible.

                    Robert J. Moore, RJMetrics

                    10. Launch Their Company

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                    Aron Schoenfeld

                      Too many people network, brainstorm and whiteboard continuously and just keep adding ideas and layers to their concept. Aspiring entrepreneurs need to draw a line and say “this is our MVP and now we will build it.” Sitting on an idea does not help you or make you any money but building your idea into a product or business will help you validate it and test the marketplace.

                      Aron Schoenfeld, Do It In Person LLC

                      11. Find Great Clients

                      John-Hall

                        Improve profit through better clients. Having great clients really does matter with overall happiness of a company. Make an effort to improve profits by taking on the right clients, not just more clients.

                        John Hall, Digital Talent Agents

                        12. Keep More of the Money You Make

                        Brian Moran

                          Keep more of the money you make! Strive to make sure that your costs are under control, make customers happier, and focus on stimulating repeat purchases from new customers. That doesn’t mean becoming a penny-pincher, but if you have costs that aren’t advancing your bottom line, cut them out! A business is only as strong as the money it keeps at the end of the year.

                          – Brian Moran, Get 10,000 Fans

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                          Published on July 4, 2018

                          Top 10 Recommendations on Money Management Apps

                          Top 10 Recommendations on Money Management Apps

                          Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

                          The solution is simple, save more and spend less. But, we all know it’s easier said than done.

                          One problem is finding quality apps that save you time and money, and aren’t just hype.

                          Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

                          1. Personal Capital

                            When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

                            Here are some of its main features:

                            • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
                            • Discover hidden fees and how much they’re affecting your retirement plan
                            • Wealth management for investors requiring a long-term strategy

                            With Personal you’re free to track your expenses and net worth.

                            Available for: iOS and Android

                            2. Mint

                              If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

                              Here are some of its main features:

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                              • Effortlessly track all your bills and balances in one dashboard
                              • Categorized expenses to understand where you spend your money
                              • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

                              Feel at ease with managing your money by a reputable company that isn’t going anywhere.

                              Available for: iOS and Android

                              3. YNAB

                                Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

                                Here are some of its main features:

                                • Easily sync all bank accounts in one place
                                • Visually see your debt paying progress with eye-catching charts and notifications
                                • Customized categories setting saving goals

                                The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

                                Available for: iOS and Android

                                4. Wealthfront

                                  Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

                                  Here are some of its main features:

                                  • Variety of investment account options including IRA, Roth IRA, and more
                                  • Your portfolio composed of 7 different asset classes
                                  • Automatically rebalanced portfolio
                                  • Daily tax loss harvesting

                                  Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

                                  Available for: iOS and Android

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                                  5. Clarity Money

                                    If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

                                    Here are some of its main features:

                                    • Easily cancel subscriptions with one click
                                    • Synchronize bank accounts fast
                                    • Transfer money effortlessly between different accounts

                                    Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

                                    Available for: iOS and Android

                                    6. Acorns

                                      What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

                                      Here are some of its main features:

                                      • Automatic contribution option
                                      • Customized portfolio tailored to your needs
                                      • Low management fees ranging from $1-$2 per month

                                      Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

                                      Available for: iOS and Android

                                      7. Albert

                                        Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                                        Here are some of its main features:

                                        • Receive notifications for overpayments, hidden fees, and low balances
                                        • An Automatic budget that’s built around your spending and income
                                        • Easily track debt and set new financial goals

                                        While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                                        Available for: iOS

                                        8. Prism

                                          Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                                          Here are some of its main features:

                                          • View all your account balances in one glance
                                          • Bill due dates are automatically pulled and tracked
                                          • Receive early reminders for upcoming bills

                                          If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                                          Available for: iOS, Android, Windows, Amazon

                                          9. Mvelopes

                                            Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                                            Here are some of its main features:

                                            • Connect unlimited bank accounts
                                            • Real-time budgeting with auto transaction syncing
                                            • Low monthly $4 fee or $40 annual

                                            Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                                            Available for: iOS and Android

                                            10. Wallaby

                                              Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                                              Here are some of its main features:

                                              • Automatic recommendations for the best credit card to use for each transaction
                                              • A friendly user interface, displaying credit cards with their corresponding images
                                              • Free to use

                                              If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                                              Available for: iOS and Android

                                              Take control of your finances and experience financial freedom

                                              Picture yourself staying on budget and saving more money than you’d ever imagined.

                                              It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                                              You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                                              Featured photo credit: Pexels via pexels.com

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