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Five Cost-Cutting Features of the Future Small Business You Can Embrace Today

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Five Cost-Cutting Features of the Future Small Business You Can Embrace Today
    From Images_of_Money on flickr

    The ins and outs of small business office savings can be tricky. There are the investments in the technology to worry about, the uncertainty of the economy to lose sleep over, and good old fashioned overhead to always keep in mind.

    The entrepreneurial experience is currently undergoing a transformational period. Fading away are archaic methods of the past. Developing are the efficient ways of operating an enterprise that await us in the future. One of the best ways to ensure long-term cost-cutting on the small business level is to let go of the old ways of business management and embrace these new efficiencies in achieving entrepreneurial opportunity.

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    The following are five ways to start integrating innovation directly into your business budgeting:

    Switch to Cloud Storage and Service

    Once upon a time, the most important decision a small business owner had to make when it came to IT was choosing whether or not to go with wired routers or switch to wireless. Data and software were by default something you kept close-by. But cloud technology is changing that.

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    These days you don’t need an IT team and independent server to manage a big online business. You can outsource these responsibilities to cloud storage services. You basically streamline your office IT to just the network and the computers. Data, software, and the products of combining both are all stored elsewhere, accessible immediately through an Internet connection. There’s a monthly cost, but compared to the costs of managing your own IT system it’s a definite money saver.

    Use Social Networks Instead of Private Networks

    Even with the use of cloud services many businesses are still tasked with having to establish a network for employees to connect and coordinate their efforts through. Even your cheaper business networks are going to cost a pretty penny up front. If you “need” a network for communication and mass-notifications, then why not forgo your own network and use something like Facebook or Google+ instead? Every employee is sure to be a part of these free networks and unless there are specific tasks that must be completed through a custom-made network, why pay for something else?

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    Practice a Paperless Policy

    Many offices have already banned the printer so it’s hard to call it a futuristic cost-cutter. But the day will come when businesses are nearly forced to give up paper because of costs. When starting a business, do so on the right foot by adhering to a no-paper rule. With the exception of hard copy contracts there’s nothing that needs to be printed in the office these days. Graphs can be instantly emailed, so can word documents and any other printable file type you can think of. Needless to say, the savings of not having printers and paper around are pretty high up there relative to the rest of your small business expenditures.

    Battle the Business Competition Like a Guerrilla

    New York City has hundreds of thousands of office square feet currently sitting around not being used. Part of the problem is that an overwhelming chunk of office real estate in the city is sublet. This is happening in most American cities. Take advantage of the unending amount of office space by making your business easily transportable, from one to another. Six-month leases can give you more freedom to invest in other more important aspects of your business. With laptops, lightweight furniture and a web connection any space can be perfect for your office.

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    Have a Work-from-Home Day

    One day out of the week you should send your workers home. Paying for utilities four days less every month can shave off seriously dough. In addition, the lack of commute means workers will spend more time being productive. This isn’t just optimism; studies and surveys repeatedly indicate that workers perform better when they’re doing their tasks remotely. Save money and increase output by giving your workers a chance to do their tasks from wherever they wish. In the age of cloud computing and instant communication, does it matter where anyone is in relation to their co-workers anymore?

    Entrepreneurs are going to have to think of an assortment of different ways to outmaneuver the draining realities of these tough economic times. No doubt many will come to embrace the cost-saving techniques that are inherent with advanced web access. There’s no reason not to believe that by the year 2020 nearly half of small businesses will be utilizing one of not all of the aforementioned methods of saving on a business budget. Therefore, there’s no reason why you shouldn’t be utilizing them today.

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    Last Updated on July 20, 2021

    Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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    Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

    Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

    Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

    Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

    In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

    Break Free of Your Finances

    Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

    When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

    Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

    Though it seems hard to believe, it is really very simple to get financial freedom.

    To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

    While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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    Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

    1. Stop Unnecessary Spending

    We often spend money inwardly, instead of objectively.

    For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

    To stop this habitual spending, log down all your spending over the course of a month.

    Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

    This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

    2. Plan a Monthly Budget

    This is a great opportunity to get serious.

    Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

    Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

    3. Cut-up Credit Cards

    Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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    If not, you may want to consider ridding your life of the burden that credit cards bring.

    Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

    Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

    4. Increase Savings

    There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

    It’s good practice to save up to 15% of your income.

    Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

    Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

    5. Invest Wisely

    Consider investing in funds.

    Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

    To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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    Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

    6. Invest in Gold

    There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

    You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

    Another way to invest in gold is through ETFs (Exchange Traded Funds).

    These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

    With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

    7. Stash Emergency Funds

    Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

    If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

    Make it hard to get your cash.

    Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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    8. Find Fabulous Mentors

    Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

    If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

    There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

    9. Be Extra Patient

    Patience is the key of financial success.

    Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

    So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

    Financial Freedom for All

    Anyone can achieve financial freedom, regardless of their financial circumstance.

    Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

    Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

    Featured photo credit: rawpixel via unsplash.com

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    Reference

    [1] Hartford Gold Group: IRA Retirement Accounts

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