Having a financial reserve is the first step and the best option to open your own business. This allows you to start your project without getting into debt or borrowing.
To get an estimate of the size of your reserve, you first need to figure out the amount needed to start the business. Have you ever stopped to think about how to identify this value, the importance of keeping this in mind and having the discipline to follow the goals? That's what we're going to talk about today!
How to build your financial reserve?
The first step in building your reserve is to be clear about your goals. Plan how much you need to save per month, how long you will have a certain amount, what you will do to build this reserve and what financial investment you will choose to make your money yield more. Let's understand better:
- Know the initial investment of the business
To start a business all costs must be put at the tip of the pencil, objectively and after a lot of research:
- infrastructure (equipment, furniture, machinery, among others);
- rent and property tax;
- required stock;
- hiring employees;
- fixed monthly costs, such as water, electricity, telephone and internet;
- legal and accounting costs;
- systems;
- marketing and dissemination;
- Working capital.
In other words, research, benchmark and understand exactly what you need to buy or invest to start your venture. This is the time to list everything that is inherent in the business you choose. From there, it is necessary to Start your USA Business from India linking these investments and calculate the working capital and time for return on investment.
- Set a reservation amount
When defining how much will be needed to set up your business, establish a fixed amount to feed your reserve every month and get that money together. Be disciplined to save and meet your personal and professional goals.
There are a few ways to start that reserve: reduce monthly costs, increase your income—possibly by choosing a way to earn extra income—make investments, or sell some material good. Which way is best for you?
- Make financial spreadsheet
An effective financial spreadsheet is one that is easy for you to understand, update frequently, and is accessible at any time.
Start with an easy-to-use spreadsheet. There are mobile apps that specialize in financial organization! Many allow you to integrate data and export the consolidated spreadsheet. The most important thing is to evaluate the options, test and choose the one that will be really useful for you to enter the income, expenses and the amount that will go to the financial reserve.
- Choose where to store the money
Currently, there are several ways to invest the money in your reserve and the most interesting ones may be those that present less risk, but which also offer a certain monthly return.
Interested accounts from digital banks are good examples, as most are free, earn daily and have greater income than savings. Another option for those just starting out is the CDB (Bank Deposit Certificate) which is a type of investment in fixed income and is among the most traditional issued by financial institutions.
The rule here is to research, seek expert advice and not invest all the money in one place. Be careful.
- Have discipline
One of the problems faced by those who cannot build a reserve is lack of discipline. It is very common for people to use the amount that is set aside to buy something on impulse and that is not the priority at the moment. Thus, they do not reach their goal.
Read also: Auditors in Dubai
Keep in mind that you are looking for a goal and having the discipline to separate the money from your financial reserve, not using it with something that was not planned and having patience and focus every month are essential rules for those who want to succeed in life financial.
