Easy Ways to Save Money Without Sacrificing Too Much

When you need to save money, it's not a wise solution to starve yourself. By simply making practical and the right decisions when it comes to your lifestyle, you can actually save a lot from your earnings. There are several ways on how you can achieve this if you will only take a closer look on some of the things that are being overlooked on your day-to-day routine.

To help you out, here are some easy yet effective money-saving tips, and you don't have to starve yourself just so you can save some bucks.

1.    Learn the skill of secondhand buying

Buying used things can cut the cost up to 50% or more, and with a little effort, you can get almost-new stuff for half the price. You can check local craigslist and other similar websites to see if there is a listing of the particular item you want to buy. From DVDs to cars, everything can be bought secondhand and usually in great condition.

2.    Wait for sales

Whether it’s clothing or electronics, sales come and go often, and you should keep your eyes peeled. If there is a specific item you are looking to buy, then it’s worthwhile to wait a bit and see if it gets listed as being on sale. You can wait for holiday sales or clearance sales. Better yet, just ask a store agent if there will be any upcoming sale, and they will surely be able to provide a date estimate.

3.    Aboard the DIY train

The Web is flooded with do-it-yourself ideas to make pretty much anything in your home. You can create beauty products, smartphone stands, cleaning products, cloth racks, kitchen accessories, storage spaces, decorations and much more. Simply do a search on Google for what you want to make, and there should be a DIY tutorial. There are even DIY apps to easily find amazing DIY projects.

4.    Use a money-management app

Money management is the key to money-saving, and thankfully there are many cool smartphone apps that can make this task a breeze. Mint is a great money management app for Android and iOS that lets you handle all your accounts and expenses in one place.

5.    Do online shopping wisely

Online shopping is a great convenience, but in order to save money you need to make sure you get the best deal online. There are hundreds of stores that sell the same item at different prices, so it can be a little hard to get the best bang for the buck. Thankfully, there are many shopping apps and tools available to get the best prices on the item you need.

Furthermore, there are many apps to find great deals on your favorite products. Slickdeals is a good website for finding cheap and even free deals. Take advantage of such tools to ensure you get the best price for your favorite products.

6.    Use coupons (the right way)

Today, coupons are available for almost everything, and you can save big on your favorite items. Websites like RetailMeNot or even a simple Google search can easily get you a coupon for your favorite store, service, or an item. Usually, you can save up to 50% on things using a coupon code.

Fund Your Own Business With the Help of These Methods

It can be a very challenging thing to succeed without a solid financial backup no matter how great the business idea is surprisingly, the best source of financing can be from out of your own pocket. The term “self-financing” includes using your own money to invest directly in the company and using your personal assets as collateral for outside funding. When you self-finance your business, it gives you complete control of your company and the independence to do what you want. Here are some ways you can self-finance or fund your own small business.

Personal Savings

Saving up the money to fund your business ahead of time saves you money (i.e., no interest) and security, though it does involve risking your life savings. If you need to ramp up your savings quickly, consider picking up a side job at nights or on the weekends. You can also sell some of your possessions to add to your savings. If you have old boxes of collectibles accumulating dust, sell them for fast cash.

Life Insurance

Borrowing against life insurance offers another valid financing option, but it does come with some risks. You can typically borrow up to the cash value you’ve accumulated at a reasonable interest rate. Unlike a conventional loan, you won’t need to pay the loan back. Instead, any money you take out will be deducted from the amount your beneficiaries receive when you die. However, life insurance loans are subject to some tricky taxation and compound interest. If you pay your loan interest out of your policy, the IRS views it as income and will tax it accordingly. You’ll also be subject to compound interest. Take these disadvantages into consideration before withdrawing your total cash value.

Home Equity Loan

If you own a home with a sufficient amount of equity from paying your mortgage, think about taking out a home equity loan or home equity line of credit, also known as a HELOC. Home equity loans provide a one lump-sum payment, while a HELOC works similarly to a credit card, where you only pay interest on the outstanding balance. Both carry a low interest rate as compared to other forms of financing. However, putting up the family home as collateral certainly raises the stakes for the business. You must ensure you will have sufficient cash flow to make your payments or you may lose the home.

Credit Cards

If you have a stellar credit rating, you may be able to fund your business by solely relying on credit cards. It may be one of the most expensive ways to self-finance your business, but many successful business owners have made it work. To avoid the slippery slope of credit card debt, shop for a good interest rate, and avoid zero percent interest cards that shoot up to astronomical rates after 60 days. Create a payment plan to stay on top of your debt.

Investments and Securities

Borrowing against your investments and securities as collateral offers an easy way to raise the money you need at a low interest rate. You can borrow up to the initial margin limit of your stock, typically 25 to 50 percent. The downside to taking out a margin loan is maintaining enough equity in your investments to avoid margin calls. If your stock drops and you don’t have enough equity to maintain the margin limit, you’ll need to supply more money within a certain time frame. If you don’t have enough cash within that time, your brokerage may liquidate your other securities to satisfy the call.

Bootstrapping your business successfully requires a clever combination of assets, cash flow, and penny-pinching. The road to success may be a long one, but in the end, it may be worth it because you won’t have a bank, venture capitalist, or small business loan to hold you down.

5 Common Reasons Why Business Plans Fail

There are obvious reasons why business plans fail -- missing crucial deadlines for finishing the business plan or drawing unattractive profit projections are just some of those instances that may repel potential investors. On the lighter side, there are also those more subtle reasons that investors and banks lose interest to. By learning these tips, you can avoid the often overlooked mistakes some people usually make when writing a business plan.

1.    Bad business idea

Nobody likes to talk about it, but the main reason why business plans fail is bad ideas. Most ideas look great on paper—but all too often, companies realize they have invested in a bad idea once it is too late.

To avoid this, smart businesses are using “user-driven development” (UDD) to build new businesses. Lots of ideas seem great until you figure out that the market doesn’t actually want your product. In order to ensure that a business idea is sound, entrepreneurs should search for product validation by reaching out to their target consumers before sinking huge amounts of time and money into the project.

Firms that want to innovate with a focus on customers often hold small meetings with the potential end users where they describe the project and then ask users for their opinions. After the first round of discussion, the firm can go back to the drawing board to incorporate the helpful feedback. Second and even third rounds can enhance the final product’s popularity.

Avoid wasting time on a bad business plan by gauging the market sentiment toward your project before investing a significant amount of time and effort.

2.    Employee compensation is not incentive compatible

Business plans can fail because employees are not compensated in a way that aligns the goal of the employee with the goals of the company. For example, if an employee is paid with annual or monthly bonuses then the employee will only do what is good for the company in the short run. Startups and small businesses can offer more customized salary packages than large multinational corporations.

For example, instead of offering a standard salary package of retirement plans, child-care assistance, savings program, determine what the employee wants the most. For example, elderly employees may not be motivated by child-care assistance, so don’t focus on that in their package. Secondly, instead of offering an upfront payment of 2 percent of the company’s stock, offer a salary that pays that 2 percent over several years to ensure that the employee stays committed in the long-run.

3.    Un-balanced team

Another common cause why business plans didn't work out is that the team is not balanced. Say for example a tech business plan that was making a health application for smartphones. The problem is, the team did not have a single developer or IT specialist involved. If the business idea requires 80 percent of the labor hours to be performed by a software programmer, then the team needs at least one developer onboard. It is important to keep in mind that venture capitalists sometimes refuse to fund companies that only have one founder or have unbalanced teams.

4.    Missing financial projection details

The “numbers” are actually the most interesting part of the entire document for most investors. Break-even and return-on-investment (ROI) calculations are also parts of a good business plan. Do not forget to factor in future expenses. For example, if the company needs to purchase new office equipment every three years, then the discounted value of those expenses should be included in the forecasted financial projections. Of course, the figures are only estimates, but they are important benchmarks that can be used to measure the company’s progress toward achieving their goals.

5.    Failure to improve business plan after receiving feedback

Once you have finished writing your business plan, it is a good idea to send it out to at least three people before showing it to potential investors.

Think of these three people as your board of advisors. Ask them to read the plan and look for logical gaps in the content. If one advisor recommends a change that you disagree with, do not ignore his advice. Instead, ask the other advisors for their opinions and then make a decision. Edit your plan according to their constructive criticism, and thank them for their help.