Saving money can be difficult, especially if you are running a small business and you can’t always afford to put chunks of money away into a savings account. However, having a rainy day savings can be that little safety net that you can rely on if you ever need to. Not only that, but if you are running a small business, it’s a great way to brush up on your finances and introduce some new habits that could help you with future plans that you may have for your business. We have complied some of our top tips to help you get started:
Starting a rainy day fund doesn’t mean that you have to cough up hundreds of pounds every month. Figure out how much you can afford to put aside once you have paid all of your essential bills and expenses. Breaking it down into manageable chunks will make it easier to manage and stick to. Start off by putting £10 per week into a savings pot and go from there. You can always increase your deposits over time, but setting yourself a manageable minimum amount means that you’re less likely to get overwhelmed and start to worry about whether you can afford to keep saving.
Review your Finances
This is one of our biggest financial tips, whether or not you’re saving for a rainy day fund. Reviewing your finances on a regular basis is really important to make sure that you are spending your money where it matters. Conducting a financial review gives you an opportunity to identify any unnecessary spending you may be doing. Not only that, but it can also identify areas where you could save money too. Do you buy supplies as and when you need them? Consider whether buying bulk could save you money in the long term.
Choose the Right Savings Account
Don’t just save your money in a tin that you keep stashed in your bedroom. Not only will that make it easier to dip into your savings, but you’re also missing out on the chance to earn from your savings too. Shop around and look for a savings account that rewards you with interest. You might think that you’re not saving enough to accumulate anything worthwhile, but for a small business, every penny counts!