Opening your own business has been a blast. You are finally free of the boss breathing down your neck and you have your billing cycle on autopilot.
It is nice to be able to take Wednesdays off, rubbing elbows with other colleagues at the golf course over a few relaxing swings of the golf club. If you were not currently experiencing the luxuries of financial freedom, you would not have believed it was possible. However, this is not the time to be careless with your money. Though it may seem like the money is rolling in with great momentum now, that is no guarantee that things will remain this way forever. Even successful business owners, those who do better than average, must remain concerned about their finances, saving money in clever ways to ensure future prosperity.
An Ordinary Savings Account
One of the more popular ways that people tend to save money is by tossing their income into an ordinary savings account. They might dip in now and then to withdraw what they need, but for the most part this money is out of sight and out of mind. As long as you maintain a decent amount of cash inside this account, the bank is not likely to charge you any fees. But, thinking the matter over, you start to wonder what other types of savings structures exist that you can use to pad your future.
The Envelope System
If you happen to have a lock box and a few envelopes, you can just as easily set up your own savings system at home. It is really pretty simple and can be maintained separate from your bank based savings account. The purpose of doing this is to tuck away money to purchase things you really want, but are not ready to shell out huge amounts of cash for at present. One envelope may be marked for the down payment on your next car. Another envelope may be marked for that trip you would like to take to Paris in the next few years. Whatever the goal, simply mark the envelope with the purpose you intend to save for and the amount you need to make that goal a reality. Using a secondary savings structure of this fashion makes it easy to save up for things without dipping into your savings account at the bank all the time. This in turn prevents you from causing your bank based savings account from rising and falling radically throughout the year, leaving that accounts method of increase rather constant as it should be.
An alternative to normal saving methods is to utilize secure investments to park your money in, which preserve your initial capital, but increase in value over time. This might involve a strategy such as purchasing bonds or buying collectibles that have a tendency to increase in value as time passes.
Parking money in an unorthodox savings strategy is nice, but if that strategy is also earning you money with minimal risk, that is even better. In this respect, savings and investing are not necessarily altogether different ideas. But, like having multiple income streams, multiple savings structures are also a great way to build wealth and ensure you are prepared to weather future financial bumps in the road. Therefore, it is financially beneficial to learn different ways of developing your own creative money saving structures.