Running a business from home can sometimes mean an unpredictable income that varies from month to month, therefore, tips on how to save money can be helpful and necessary. Even if only a few suggestions work for you and your family, it will get you on the right track to a financial safety net. Most experts recommend having at least six months worth of income in the bank. That may seem like a long way off, but it is doable and your whole family can participate in saving money.
1. Utilize Penny Banks
It doesn't matter what type of savings jar, penny bank or box you want to use, just use them. You will be amazed at how many coins can accumulate in a short period of time. This is a great way to engage the children in the process of saving too. There are always coins to be found in the cushions of the couch, in the laundry room, in the car--everywhere!
2. Pay Yourself First
Pay yourself first? Yes! For the best results, set up a savings account that takes work to get to. Then, set up an automatic deduction or deposit system. Plan to have a certain amount deducted from each payment that you receive. This can mean either a percentage of your earnings or a specific dollar amount. Once the money is safely in your savings account, forget about it. When you pay yourself first, you really won't feel deprived and can feel proud for what you accomplish in savings each year.
3. Set a Realistic Goal
When you think in terms of saving enough money to live on for six months, it can seem overwhelming. That's why you should set a series of smaller, more attainable goals. For instance, discuss a three month goal with your family and works towards it together. Once you make it that far, up the ante in terms of money saved and time line.
Saving money can actually be a fun challenge when you look at it from a different perspective. Your children will learn important lessons in financial management as well.