Why Spending Less Makes More Sense than Working Harder

By Carol H Cox

Image by rawpixel.com

When our budget is out of whack, getting it back in balance by spending less is usually easier than working extra hours to earn more. Let me say that again a little differently: Spending less money is easier than earning more money.

This may seem obvious, but it’s the opposite of what many of us do. The Internet is full of suggestions on how to make an extra buck in the gig economy. From ridesharing our cars, to delivering groceries, to completing online surveys, there is no shortage of ways that we can occupy our time to make more money.

But is making more always the answer? Maybe deciding to consume less is something we need to consider first. When we need to come up with a little extra money in our monthly budget, it’s more efficient to not spend on something than it is to work extra hours at our job or do some side-hustle to bridge the gap.

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Sole Proprietor Banking Options

By Carol H Cox

Photo by rawpixel.com from Pexels

When there’s only you at the helm of your business, you essentially are the business. And it can be tempting to mix your personal funds with that of your business. If you’re starting off small, it might seem at first much easier to just to use your existing personal bank account to make business purchases and to make business deposits. Why bother with opening another bank account, right?

Well, after a few shipping expenses, supply purchases, website hosting fees, book purchases, website design fees, subscription fees, and so on, you’ll soon be spending lots of time keeping side records of what belongs to what.

Was that book you purchased last month a personal expenses or a business buy? What about that trip last week to the post office? Those Amazon purchases, were they all personal or some business, and which were which?

I think you understand what I’m getting at here. It is so much simpler to track your business financials if you start out with a clear dividing line between your personal affairs and your business affairs.

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