A Quick Guide to Updating Your Short-Term Savings Plan
These days, a business can’t get anywhere without a little cash saved up for a rainy day. If you want to expand your business or make it more profitable, you will want to have a solid savings plan in action. Here is a quick guide for business banking that can help you reach your saving and business goals with success.
Figure Out Your Monthly Expenses
Although looking at your banking account can be a little intimidating, take the plunge and figure out what exactly you are spending money for every month. Determine what your necessary expenses are and what kinds of things you could do without. For instance, if you are tired of spending hundreds of dollars for internal printing every month, encourage the use of electronic format for documents. Once you know how much you need to run your business every month, you will be able to determine how much you can put into savings on a monthly basis.
Boro Park Brooklyn businesses Jewish Community Winter 1975-76 Minolta SRT-102 Pic A by Whiskeygonebad, on Flickr. This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.
Look into the Future
Ask yourself, where do you want your business to be in a year? What about in five years? The answers to these two questions should be the basis for your business banking savings plan. Now, write down what kind of things you would like to use with the money that you save. Determining what you will use your savings for will help motivate you and keep your spending plan on track for extended periods of time.
Decide Where You Will Put Your Savings
Although you can always keep your savings in your banking account, there are many more profitable avenues that you can take advantage of to increase your savings rate. There are a variety of different beneficial accounts for savings out there such as:
- Money market accounts
- High-yield savings accounts
- Money market mutual funds
Shop around and select an account with the most beneficial terms for your business as well as the highest interest rate for a higher return. Get a feel for these different rates by calling up your broker, credit union, or regular bank and get information about money market accounts online.
congerdesign / Pixabay
Stop the Excuses and Start
Putting money in savings regularly means that you will need to streamline the operating processes of your business. This may mean a few less company lunches or rounds of golf with a potential client. However, the only way you will be able to reach your savings goals is to take the plunge and commit. Not only will a successful savings plan help you reach your goals as a business owner, but it may even save you from getting into debt if your business runs into an unforeseen difficult situation.
Do you have difficulty saving? An automatic transfer program may work out in your favor. Many banks and other financial institutions offer programs that will take out a certain amount of money on a regular basis and transfer it to your savings account.
Whatever situation your business is currently in, try and get a savings plan started up so that you can continue to solidify your businesses’ success and plan for future hiccups. Following these few steps will help you get a jump start on a beneficial savings plan for your business.
Related Reading:
Avoid Falling for These 5 College Savings Myths – US News and World Report
The Most Valuable Brands in America, 2000 to 2013 – Businessweek
