If you have owned and operated your craft shop for several years and are concerned about having enough money to retire someday, the following tips will assist with budgeting your money and setting aside a nest egg for the future.
Cut Corners Concerning Staff And Inventory
Write down a list of monthly expenses, concerning salaries and materials purchased from vendors. If you have more than one staff member tending to the shop during off peak hours, consider reducing the amount of staff that is on duty and taking up the slack yourself if necessary. Compare prices that are spent for materials with other vendors who sell the same items. If you can, purchase items in bulk to save money or revamp your orders and purchase the alternate materials.
Open A Savings Account And Make Deposits Regularly
Visit local banks and inquire about opening a savings account. Many banks offer incentives to new customers and may provide you with a cash bonus if you keep the minimum required in your savings account for a specific amount of time. While at each bank, ask about interest rates and the amount that you will need to initially deposit. After opening an account, attempt to disregard the cash that has been deposited so that you aren't tempted to withdraw it.
Make a point of depositing cash into your account whenever you have some extra money to spare. Make sure that all of your bills are handled before setting aside money for the account and do not overextend yourself by depositing a large sum that you may need at a later date. With regular deposits, your money will grow rapidly and you may be pleasantly surprised when you see how much interest you have accrued.
Hire A Financial Planner
Hire a financial planning professional to go over your accounts receivables and payables to determine if any additional costs can be cut at your business. A financial planner can also provide you with insight about cash deposits, retirement accounts, stocks, and bonds. If you opt to open a new account, you will be provided with options that are not risky and that will yield you the highest interest rate.
By determining how much money you will need to retire comfortably, you will be given advice on how much money to set aside and the number of years necessary to grow the nest egg that is desired.