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When you’re committed to your hustle, it can be tricky to find the funds to reinvest into your business, let alone enough to put into savings. While every spare penny might go into getting yourself established during the early days, it’s important to allocate some money for savings once your business is stable. You can see the impact of starting a savings plan at https://www.okcalculator.com/savings-calculator.html.
Here are some reasons why you should find a way to start saving today:
Impress Potential Investors
While the idea of selling your business might seem far-fetched or undesirable now, things might change for you in the future. Even if you don’t decide to sell, you may look at different partnerships, sponsors, and affiliate programs with major players who want to know that you can put your money where your mouth is. Your ability to not only be profitable but to set money aside will score big points in your favor.
“Life happens” is such a simple way to address the complex curve balls the universe throws your way sometimes. Consider this within the scope of your business. Perhaps a major client doesn’t pay for a completed job, or major expenses that you hadn’t considered arise. Having a nest egg can help you offset these without acquiring debt.
Outside the scope of your business, there are other things to consider like paying an employee to cover you if you require unexpected time off. Perhaps a major wind storm causes damage to your home that isn’t covered by insurance. It’s comforting to know that you have a fallback plan.
Retirement is such an abstract concept when you’re young. However long the days may seem, the years tend to fly by. Before you know it, you’ll be ready to hang your hat for good and spend your golden years relaxing by a tropical poolside. How can you make that happen? By saving now and taking advantage of the years upon years of interest you’ll start to earn.
You may be one of those hustlers who never stops working. In that case, here’s a bunch of extra money you didn’t expect to have that you can now spend on something you want.
As an entrepreneur, it can be nearly impossible to justify spending money or time (or both, since time is money in this gig) on leisure or luxury items. However, saving some extra dollars here and there can make that dream a reality.
Self-care is of the utmost importance for an entrepreneur. As women tend to put others before themselves regularly, it can be even more important for a female entrepreneur to take the time to treat herself.
Most people know that being self-employed isn’t a stress-free experience. Those who think they’ll skyrocket to success and put their feet up for the rest of their lives are usually disappointed.
Having money in the bank means you have one less thing to worry about. You know that if something goes wrong, you will be okay. This nest egg can relieve you of some of the pressure you put on yourself and help offset any fear of failure.
Experience Managing Money
You can never have too much experience when you’re in business for yourself. Allocating money to savings and tweaking your budget accordingly will give you more experience in money management and budgeting. This skill is highly transferable, whether you pursue more business endeavors, work for someone else, or take your learnings home to your family. If you have children, you should impart this skill on them as well.
As a woman in the entrepreneurial playing field, you’ll have your work cut out for you. Fortunately, women tend to be planners and having a savings program is the ultimate fail-safe.