5 Tips to Live Frugally as an Entrepreneur

Being an entrepreneur has its challenges and you had to make sacrifices to get to where you are today. You’ve probably taken all the money you have and invested it into your business, which leaves very little for personal expenses. While the future will be bright, getting by when money is tight can become a chore and you have to learn to save every little bit extra you can. Never forget that it won’t be forever, and the sacrifices you make in the present will eventually seem like a distant memory you can look back on. If you are struggling to keep on top of your finances, the following are five tips to live frugally as an entrepreneur.

Budget Properly

If you struggle to decide if you can afford to start a business, a budget will help. Setting yourself a budget will make you spend the money you do have in a more frugal manner. Make up a complete list of your incomings and outgoings and see what you have left to spend on essentials. Any money you have left over is yours to do as you please with, although it would be wise to put some of it away as savings in case of emergencies.

Don’t budget in your head, you’ll go over and could find yourself without any money at all, or in debt. Remember to keep your business and personal finances separate. It’s a point that must be stressed as you may find it tempting to dip into your business funds when personal cash is scarce. Resist the temptation at all costs. You will at some point have to put the money back and it will lead to a situation where you are constantly trying to juggle money between your business and personal expenses.

Give Up Luxuries

Sacrifices are part of the lifestyle when you are trying to get a new business up and running. Just keep in mind that it won’t always be like this, and the pain you suffer now will be turned into reward when your business starts to see success. Took a look at your lifestyle habits and which ones are costing you the most and cut them out. Your budget will help you with this, and you might even be surprised at how much certain things are costing you. Subscriptions and memberships should be cancelled unless they are absolutely necessary.

You’re probably now thinking that life is about to get a lot less interesting, but your focus is on the success of your business and ultimately it will be all worth it. You could also take it as an opportunity to take up less expensive hobbies and habits. You are working long hours and you still need to find enjoyment, so perhaps start running, or even walking. These cost nothing and will be a good way to help you unwind and take your mind off the pressures of your business.

Get Your Finances in Order

Having all of your finances in order is going to put you in a better financial position and also means you will have one less worry on your mind. Financial problems contribute to a large amount of stress and mental health issues and if you have to deal with these as well as running a business, it could cause your mental health to deteriorate rapidly. This may in turn lead to the failure of your business. If you owe money, then now is the time to start making the right decisions towards addressing the issues.

If you need help, ask for it. Financial advisors will be able to put you back on track, and guide you through until your finances are in a better position. Student debt is another large worry for many, but you can approach a private lender and refinance your existing student loan so that your monthly repayments are lower. You can also talk to your bank and see if they are willing to come to new repayment terms for any money owed. They may be more flexible than you thought, as ultimately, they want their money back and it is in their interest to help.

Learn to Cook

Learning to cook will save you large amounts of money and will also give you the benefit of leading a healthier lifestyle which is essential when you are working long hours. When talking about saving money on your food, it doesn’t just mean stop eating takeout, but stop buying ready meals as well. You will save by just buying raw ingredients and then putting them together yourself to make a meal. Aside from the cost benefit, it is an opportunity for you to find a distraction from work.

This can also extend to other areas of your life apart from cooking. There are many skills we don’t know we have until we try, and if we’re not using them, we’re paying for them. If there’s something that needs fixing, see how you can fix it yourself rather than having to use a tradesperson. There are plenty of resources available across the internet which can guide you, so make full use of them and save yourself money at the same time.

Leave Yourself One Expense

The above tips all revolve around saving yourself money, but this one is going to tell you that you should leave yourself one luxury. Being an entrepreneur means you lead an extremely busy life and the time you can take for yourself is very limited. When you do have your own time, then make sure that you use it by doing something you enjoy. If it is a little bit more of an expense, then so be it.

If you live a completely frugal life with very little else other than your business, you will become resentful which may lead to you giving up on your business. It could also lead to you deciding to blow all of your money in one go because the pressure of your lack of cash has built up. By having that one luxury, you are showing yourself care and stopping any resentment, which will only be a detriment to both your business and your sense of self.