Financial advice is easy to come by. Unfortunately, not all of it is usable, or even accurate. For example, many would tell you to skimp on your coffee and haircuts, when many rich people would actually disagree. Such behaviour can promote poverty and deprive you of the basic aim of financial independence: joy.

Taking away your small pleasures isn’t the way to go if you want to be wealthy. Becoming successful can come down to how you treat and think about your resources. Here are a few changes you can make that’ll help you financially grow your business.

1. Spending Too Much on Entertainment

Sacrificing your current enjoyment for future gain is a risky gamble at best, seeing as most businesses do not come with guarantees. Over-indulgence is just as bad. You’ll have trouble saving money if you spend over half of your pay cheque on passing fancies. Enjoy what you can, but enjoy within your means. Use the rest to fund your dreams and plans.

2. Settling for Inferior Products

You get what you pay for. When you settle for inferior products, you get an inferior experience. Think of it as an investment. Divide the price of the product by the number of years it’ll last and you’ll get a better idea of what it’s worth. A twenty dollar shirt that lasts four years is far more valuable than a ten dollar shirt that lasts one.

3. Overusing Credit

Part of your financial strategy will involve credit and debt. It will occasionally be necessary to use credit lines or loans, especially if you’re just starting out in your business. The problem is when you use it excessively on things that don’t further your dreams or goals. This can quickly backfire. Remember, credit is just like cash. If you can’t afford it and don’t really need it, it’s best to wait until you can.

4. Not Investing in Your Growth

There are a number of investments, such as educational courses, coaching or larger facilities, that can help you grow your investment. However these cost money. When you invest in your growth, you invest in the future. It’s important to manage this growth with sound investments.

You can do this by budgeting money for future improvements, seeking investors, looking into micro loans and researching possible business grants. If you don’t plan financially, you could end up keeping your business small.

5. Not Saving Money

This is the most basic of financial advice, but it’s also rarely followed. There’s a saying that money you don’t spend isn’t working for you. That’s true, but burning your bank account leaves you vulnerable to unforeseen incidents, which are inevitable when running a business.

Making a budget is only half of the savings equation. The other half is resisting impulse purchases. That isn’t to say you shouldn’t spend beyond the budget if the need arises. All it means is that purchase should be an actual need.

Most of these pieces of financial advice involve a mental shift. When you treat your money well and with respect, it tends to multiply. Spend it when you need to, spend it to enjoy yourself. Save some for a rainy day. Do all these things and you’re on your way to become a more successful and happier small business owner.

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