When you’re self-employed, savings isn’t as simple as the days of old when your employer’s payroll department set up transfers for you. When it comes to savings, I’ll admit that it took me a while to get the hang of being my own boss.
Just thinking of all the years that went by with opportunities to increase my nest egg and save for retirement still blows me away. I really do think that banks should make it have a mandatory discussion when setting up accounts to make entrepreneurs aware of the savings deposit features.
Speaking on their behalf, “Hello Mr. or Ms. Banker! We need you to make it more convenient for us to set money aside.” f
Nevertheless, there really is no reason to cry over spilled milk. Instead, you can take matters in your own hand.
Today there are several different options to get better results with savings. I am going to outline a few for you below.
First, let’s start with the traditional manual deposits. Believe or not, this is still the preferred way for the Baby Boomer Generation who have yet to be embrace managing money over the internet. I work with entrepreneurs to help customize money management systems. One of the aspects of my role is to recommend ways to get more done faster. This often means moving away from manual labor and put the routine on automation. However, with the rise in identity theft, getting their approval for mobile apps to do banking is generally out of the question. But there is still another way to save time. Even if you decide to skip the technology, you can also save time by mailing in checks rather than going to the bank. Assuming that your deposits aren’t in the form of cash, you can contact your financial institution and mail deposits. It will take a few extra days to arrive but if you’re busy in business, then it is certainly worth a try.
The second way to streamline savings deposits is to utilize account to account transfer. This works if you have an online banking access setup. Even if you do not have accounts at the same bank, this option may be available by adding an external account. The transfer between banks aren’t instant and may take several days but the benefit is that you are still in the habit of building savings.
Finally, you can step it up another notch and utilize apps, like the one at Digit.com to help you put savings on auto. I’ll tell you that it has certainly been a great tool for me because it has helped me to have more discipline and stop blowing money on technology. Here’s what I mean.
This year my daughter is a senior in high school and parents know how expensive the senior year can be. So she and I came up with a budget to cover the costs so that I would not have to rack up debt on credit cards. The amount that we came up with was a little uncomfortable for me and I really didn’t see how I would manage it. That’s because my spending habits were out of line with my financial goals. Fortunately, using the app has allowed me to automate the transfers and to be on track with savings goals.
While this example is one of personal goals, it works just as well for people in business, too. In fact, I highly recommend it for goals such as:
- Hiring seasonal staff
- Paying in full for planned professional development courses and taking advantage of discounts
- Saving up for annual business taxes