Many successful new businesses are driven by passionate people who have more than making money on their mind. However, with recent research showing that small firms are finding cash-flow increasingly tight and that the number of late payments is rising, it is vital to ensure your finances are in order.
10 tips for long-term financial success
1.Save
Putting away some money each month will build-up over time, and you should soon be enjoying the effects of compound interest. This is where savings should gradually grow quicker as you earn interest on the interest already credited to your account. Whilst interest rates aren't very exciting at the moment, there are still some regular savings rates worth considering. Take a look at a comparison site such as Moneyfacts.co.uk for the latest best buys.
2.Invest
Give yourself the freedom to choose your future by investing wisely. Investing in assets such as shares isn't for everyone but over time they have the potential to provide a great real return.
3.Avoid Credit Cards
Credit cards are commonplace in our culture but buying things you can ill afford will always leave you thinking about the debts you have to repay.
4.Pay off your Debts
It's important to get a balance between living for today and planning for the future, but reducing your debts can be a great way to achieve financial freedom sooner than you might think. Think about making a regular overpayment on your mortgage - it will reduce the level of debt quicker than planned and can significantly reduce the amount of interest you will pay to your lender.
5.Plan
Think about what you really want to achieve, financial success is meaningless if it means doing a job you hate, or not having any time for family or friends. And many studies have shown that if you love your job, you're more likely to make it a success.
6.Check your direct debits
Direct debits can be great at reducing your workload, but make sure you check them regularly. Many people pay money each month for things they don't even know what they are. Check them out, and get rid of them if they're not what you need.
7.Don't Impulse Buy
Feeling down in the mouth? Don't try to
improve your mood with impulse buys. Those new shoes or gadgets waste
money and won't bring long-term satisfaction. Think instead about
dedicating your time and money towards things you really need or want
8.Do what you're good at
Running a business is a challenging task, and multi-skilling is usually essential for smaller businesses. But don't be tempted to do it all yourself. If it is something you struggle with, think about whether you could earn more in your business than it would cost to get help.
9.Value your Business
A common mistake is for new businesses to try to compete on price and be too cheap. Make sure your margins make financial sense otherwise you'll be working all hours for nothing.
10.Invest in yourself
Don't forget that your ability to earn money depends on your skills. Take time to Invest in yourself and it should pay dividends.
For further information, please go to www.jfsolutions.co.uk
