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Four Smart Ways for Mumpreneurs to Save Money

Let’s admit it—mumpreneurs are true superheroines in disguise.

By Rebecca BrownPublished 5 years ago 5 min read
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They deserve all the credit for being capable of juggling their motherhood, everyday chores, and business.

And what’s even more impressive is that women-led companies in the tech industry are capital-efficient as they achieve a 35% higher ROI than those run by men.

However, it should be mentioned that 82% of small businesses fail due to cash flow problems, which is why it’s essential that every mumpreneur (and entrepreneur for that matter) needs to be financially literate, at least to a certain extent.

Here are four smart ways to help you save some money for a dry spell or a rainy day.

Bootstrap Your Business

It’s always better to bootstrap your business and be your own boss.

Investors and funders will restrict your creative and financial freedom, and in most cases, their primary idea is to make a return on investment.

The very fact that their interests and goals are much different than yours is a sufficient reason to think very carefully before opting for this scenario.

On the other hand, bootstrapping will give you the luxury of making your own decisions and mistakes, and actually learning how to run a business. And once it hits off, you’ll have an opportunity to reinvest your earnings and have full control over your company.

But, this will mean making certain lifestyle adjustments and living below your means until you build your nest egg.

Don’t be afraid that you’ll have to tighten your belt to the point of bursting because you can eliminate some spendthrift habits, and voila! Every month, some money will end up in your piggy bank.

Try some of the following tips:

  • Cook. Eating out is an expensive hobby—Americans between ages 35 and 45 spend more than $4,000 a year on food away from home. While it’s okay to treat yourself to a fancy meal from time to time, there’s no need to leave a significant portion of your monthly earnings at usually overpriced restaurants.
  • Make a shopping list. When you go to a supermarket without a shopping list, you most probably end up with a lot of groceries that you never thought you’d need and buy. By sticking to your shopping list, you’ll avoid the trap of making unnecessary expenses.
  • Stop using credit cards. It’s best to pay off all your credit card debts and get rid of these money-wasters or keep them just for emergency situations.

Create an Emergency Fund

When we’re talking about emergency situations, it’s a good idea to build a business emergency fund.

Every company hits a rough patch from time to time. Customers change their mind all the time, and sometimes you’ll have to reimburse someone who made a purchase and waited for a month before complaining. The problem occurs if you’ve already spent that money.

Or what if a really big client is late with their payment so that you can’t even cover your basic business expenses?

It’s obvious that you need to have such a fund which will always be accessible. You can start with $1,000, and try to reach the amount enough to cover a six-month worth of your business expenses.

While locking away this money is a counterproductive idea because the whole point is to have it at your disposal in case an emergency occurs, you can opt for an instant access savings account which pays interest and yet allows you to withdraw your funds any time you want.

Maximize Tax Deductions

No entrepreneur likes the sound of the word “tax,” but luckily there are different ways to retrieve some money you give to Revenue each year.

Self-employed entrepreneurs are eligible for a number of deductions for expenses incurred as the result of business operation.

Some of them include:

  • Advertising expenses. Promoting your business is of vital importance to the success of your business, which is why these costs are tax deductible. You’ve published an ad in the newspaper? Or built a new website for your company? All costs related to marketing and advertising are allowable expenses.
  • Rent and the associated expenses. Renting an office, water expenses, power, heating, and other costs which keep your business operational account for the biggest part of your business overheads. But you don’t have to worry about that because you can claim these as expenses and receive your refund.
  • Insurance costs. All insurance expenses, including health and retirement, are considered valid and justified, so Revenue will deduct them from your taxable income.
  • Car and travel expenses. Different repairs, insurance, fuel, and maintenance expenses qualify for tax deductions. Transport costs and fees, hotel room charges, and even meals you pay for while on a business trip are also deductible,

But, if you want to maximize these deductions, you should consider consulting an accountant for your taxes and see what your options are.

Increase Your Productivity

Work smarter, not harder.

What does this have to do with saving your money?

A lot!

As you know, time is money, and this means that by increasing your productivity and optimizing your work process, you’re saving both these two resources.

When you’re a mum, it’s very easy to lose track of time and engross yourself in doing the housework, getting kids ready for school, or cooking, especially if you work from home office.

That’s why it’s crucial to organize your time and follow the schedule closely. It’s a good idea to plan your day the night before and create a to-do list.

This simple tactic will allow you to prioritize your tasks.

Besides that, sometimes it’s better to outsource certain low-level tasks and pay someone to do them while you focus on more important, high-impact tasks. Counterintuitive as this may seem, as you’ll have to pay that someone, you’ll actually do yourself a big favor and grow your business.

In other words, such an investment is worthwhile, and it leaves you more time to spend with your family.

These straightforward tactics can help you deal with financial bumps in the road and save some money. This will give you a sense of security and stability every mumpreneur strives for, and reduce the pressure of business, which means that you’ll have more time and energy for your kids.

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