Save a white pound for a black day
When we talk to business owners, whether it’s small businesses or large, established businesses, we’re always surprised to find that thinking stays narrow, focused on the here and now.
But when we talk about the essential difference between running a business and working as an employee, it is the gap between the narrow mindset that focuses on the present and long-term thinking and planning.
Imagine for a second you were transposed into the karmic driven world of Earl. A child thinks about what is happening now, what is happening this morning, what he is eating now, what he will play with, who his friends are in kindergarten. You, as parents are preoccupied with thoughts like where is the family going to live and in what car will you be able to put everyone including a stroller?
The same goes for business. Just as without managing the course of affairs the family will not function, so too your business, if you do not think ahead, you will find yourself facing a broken trough. The proverb: ‘Save a white pound for a black day’, it’s not just a proverb, it’s a longevity that from the moment you adapt it, you will find yourself in a much better position than you were in it, feel confident, know what’s going to happen.
How do you do that, how do you save and manage the money of your business? Some tips and thoughts on this in the next article.
First of all, start saving
Many people mistakenly think that what they need is more money. But the truth is that if you do not know how to conduct yourself properly, even all the money in the world will not really help. We all know the story of the new millionaires who won the lottery but very quickly lost everything. This is because they did not know or have learned how to save money effectively, in a way that will save them more.
So how do I save? We all know that the State of Israel is not a particularly cheap country, we all know that spending on a business is no small expense, so how do you still manage to run your business effectively and not have it run by you? First of all, our recommendation is always to be neat. Start writing down everything, all your expenses, from the smallest things to the biggest ones. We would recommend keeping a diary of the kind in the first month that will give you a picture of how you manage your money. Notice that you are literally recording everything. Many times we see real estate consultants who forget to list the coffee they purchase when they sit down for a meeting with customers, others forget to write down in detail how much fuel went out on trips to different points around the country. Note that only after you list everything can you understand how much money you need you will understand how much you need to earn each month to make a living and to keep you aside for extra security.
If every month you try to set aside money and put it aside, you will probably find out very quickly that you are unable to meet the target. After all, there are countless things we need, why would we want to save after that? Even the business always needs something. Once it’s a logo, once it’s business consulting, every time something new.
Therefore, we recommend that you first create a program in which you automatically leave a sum of money aside. These can be five hundred shekels, a hundred shekels, a thousand shekels, it does not matter. As long as the money goes out automatically and you do not invest thought in it, you will quickly discover that you can save quite a bit without any effort.
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