Getting your startup off the ground is tough enough as it is. Breaking through when you’re broke makes your job even harder. You don’t have the luxury of a nest egg to keep you comfortable until you can find funding and get your startup running. You’ll have to fight tooth and nail to keep yourself afloat without any help from savings. With all your focus on your business, it’s not always easy to live a frugal life. If you need help finding ways you can save money, take a look at these simple yet effective tips to keep you on a tight budget.
Start with a budget
Next to a winning lottery ticket promising multiple millions, a budget is the most important financial item you can have as a startup founder. It’s also significantly cheaper than sinking your money into the lottery. Free and easy to make, a budget can help you determine what your personal financial limits are, so you know exactly how much you can spend without going beyond your means. It also helps you determine how little you can earn and still make your responsibilities in a month. Perhaps more importantly, a budget can help you identify destructive spending habits that jeopardize your ability to pay for the necessities. Check in with this guide to figure out what these harmful spending habits look like, so you can eliminate them from your budget.
Change the way you bank
Traditional banks don’t offer a convenient or frugal way to save or spend your money. The top 10 US banks charge anywhere between $7 and $15 every month just to use their basic checking account. The only way to waive these fees is if you keep the bank’s minimum balance in your account. These banks require between $100 and $1,500 sitting in your checking account before you meet these minimums. These minimums make it hard for anyone living on a tight budget to do something as simple as keep a checking account.
Traditional banks also make it hard to access financial support when an emergency puts your budget to the test. Luckily, FinTech solutions are challenging these banks by offering no-fee banking accounts and other online alternatives to conventional services. In going online, they’re eliminating many of the barriers that stop people who can’t afford to use checking accounts and secure financial assistance. Now you can open a no-fee banking account with a mobile bank the same day you get an online loan from a lender. These lenders offer online convenience for those who wouldn’t normally meet a bank’s borrowing criteria.
Though it isn’t easy, you can make your startup work even if you’re on a tight budget. Changing the way you bank and eliminating unnecessary spending are two of the simplest ways to keep your personal finances on track. Only when you can balance your household budget will you have the freedom to take on necessary risks to get your startup.