How to Grow Your Business Savings

Have your business savings been stagnant? It can seem tough to grow your savings account when you have to pay bills and save for taxes. If you want to prioritize your savings, you’ll need a plan! Here’s how to grow your savings account in a sustainable, enjoyable way.

1. Set your savings goal. Having an end goal in mind makes it easier to grow your savings account. Whatever your goal is, give it an actual dollar amount. Then, move on to the next step. For ideas like: (1) six months' worth of expenses; (2) enough for a new computer, camera, or other piece of equipment; and (3) your own year-end bonus.

2. Create your timeline. Set yourself a realistic timeline that feels just out of your comfort zone. Divide your goal savings balance by the number of months until your goal date. Of course, your timeline may look wildly different. Maybe you want to save way more or reach your goal quicker. Maybe you don’t need to save as much or you can take your time reaching that number. Do your own math to find your monthly payment.

3. Make adjustments in your business. As you’re working your monthly savings payment into your business budget, you might find that you can’t reach your goal as quickly as you want or need to. If that’s the case, you’ll need to make some adjustments to your business finances. Some suggestions include: (1) raising your prices; (2) eliminating unnecessary expenses; and (3) paying off debt. If you really want to grow your savings account, there are tons of adjustments you can make in your business to increase your revenue and minimize expenses.

4. Shift your mindset. Now that you’ve made your savings plan, it’s time to commit to it! When you’re tempted to spend money on something your business doesn’t need, reflect on your goal. Imagine how much quicker you’ll reach it if you don’t spend without intention. Stay focused on your savings balance, and celebrate as it grows.

Admittedly, it’s easier to make this mindset shift in your business than it is in your personal life. But once you start seeing progress towards your business savings goals, you might just be tempted to set some for your personal accounts, too!

For more strategies on budgeting and how to manage your money with confidence so you can focus on growing your business, contact us today.