5 Strategies for Saving and Building Wealth as an Entrepreneur

One of the most incredible benefits of being an entrepreneur is that your wealth-building potential is up to you. You have complete power over how much you spend, how much you save, and how much money you can make. The possibilities are endless and to me, that is SO exciting. 

 However, as I have found out building wealth takes more than just working “harder” and working more hours. Building wealth and saving money takes a strategic plan that includes money management strategies and a whole lot of money mindset work. 

 Whether you are looking into investing in your business, building your savings, or working on bettering yourself as an entrepreneur, determination, and dedication are the keys to building wealth, ending the chaos, and turning your money sassy and sexy!

 Let’s walk through 5 ways you can take control of your financial future and see long-term success as a business owner.

Know Where Your Money Is Going

Let’s face it, saving money can be a challenge. I get it. There were many years that I was living paycheck to paycheck and thinking this was the norm. It doesn’t have to be! 

The biggest thing I recommend to my clients is to know 100% exactly where your money is going. This can often mean actually turning off all automatic payments and savings when we first start working together. This will help you become more intentional about where your money is going by being in control of where you are putting your money. Make a list of everything you spend. You will also want to make a list of exactly how much you want to save and where that money is going.

a green sprout plant rising up out of a pile of gold and silver coins

Don’t think about how much or how little you are able to save. The key is to just start. I suggest using a Capital One 360 savings account. They are free and you can have as many as you want. 

Personally, what I have done, is created an account called my girls, so that I put money in there to help with their school supplies. Then I have opened up another one and named it a place I wanted to go to the following year for vacation.

When we start wherever we are at whether it’s a dollar a week, five dollars a week, or $25 a month, whatever that looks like when we start where we are at we are able to move forward and that is where we will see progress being made.

Boost Your Tax Benefits 

As a business owner, boosting your tax benefits is one way that you can grow your savings. This means keeping accurate and organized records. Taxes don’t have to be something we avoid or hate!

a while calculator sitting on a blank grey background

There are a lot of tax deductions that entrepreneurs can subtract from their taxable income. Some expenses to keep track of: 

  • Rent 
  • Utilities 
  • Office supplies 
  • Software
  • Salaries and benefits 
  • Education 
  • Travel expenses
  • Marketing 
  • Insurance
  • Donations 

Understanding tax benefits may not be that simple for most entrepreneurs. Your best bet is to hire a tax professional who can help you understand your specific tax responsibilities and find the deductions that will help you the most. They can also help you navigate tax laws and regulations, ensuring that you take full advantage of all available deductions, credits, and strategies to minimize your tax liability.

Consistently Pay More Than the Minimum Payment Amount

Paying more than the minimum payment amount is a strategy that most entrepreneurs overlook. Paying only the minimum amount on your debt may seem like an easy way to manage your bills. However, when you only make the minimum payment on your account, paying off the entire balance can take a long time. This is because the majority of your payment goes toward the interest and not paying down your actual loan amount. 

You not only save a lot of money on interest, but you will also improve your credit score. Win-win! By consistently making larger payments, you are showing lenders that you are responsible with your finances which can boost your credit score.

A person holding a smartphone opened to the calculator app with a file folder laying in the background

This isn’t just a tip for your business. Consistently paying more than just the minimum payment on loans, credit cards, house or car payments, etc. can help you save more not only in interest but also help you pay down debt a lot faster. This means your money will be looking sassy and sexy in no time!

Even paying an extra $10 a month can make a difference in helping you pay off the debt quicker so you can instead focus on reaching your savings goals.

Have you heard of the snowball or avalanche method? The snowball method is where you pay off your smallest loans first. This will help you build momentum and excitement as you finish paying off each debt. The avalanche method is the opposite. You will focus on paying the loan with the highest interest rate first. This method will help you pay less in interest over time, but may not be for everyone. Pick which one you think will help you reach your goals the best.

Build An Investment Budget

If you’re looking to take control of your finances and start investing, you first need to create an investment budget. By setting a budget specifically for your investments, you can make sure you are placing your money in the best accounts and maximizing your potential returns.

When getting started with investments you should understand exactly what your financial goals are and the level of risk that you are willing to take. Understanding your goals and knowing how much risk you are willing to take on will help you learn how you will invest your money.

You will also need to have a clear understanding of your income and expenses. Create a complete list of your income and expenses to know how much money you have left over at the end of the month. You should also consider having an emergency fund in place before creating your investment budget. This way in case of an emergency you have money available to you rather than all your disposable income being tied up in investments that you either can’t access or will have to pay a penalty to get to your money. Both of these factors will help you decide how much you would like to budget for investing.

a hand holding a white smartphone looking at stock market analytics

Here are a few popular investment opportunities you can consider: 

  • Money market funds 
  • Certificates of deposit (CDs) 
  • Bonds 
  • Mutual funds 
  • Stocks 
  • Real estate

Learning how to invest can be overwhelming. I recommend having a solid savings and income plan before trying to invest. However, investing in the right areas can help you build wealth as an entrepreneur.

Invest in Yourself 

One of the biggest ways to build your wealth as an entrepreneur is to invest in yourself! Investing in yourself means learning new skills and knowledge that will help you grow your business and increase your earning potential. This will help you become empowered and feel in control!

Some great ways to invest in yourself: 

There are so many ways you can invest in yourself and your business. Learning new skills and information can be fun and a great way to not only grow your business but grow as a person too. By investing in yourself, you’ll be able to make smart decisions for your business and break free from the chaos!

Pro tip: I offer all of these investment opportunities plus more! Check out all of my offerings on my website.  

The bottom line is that building wealth and saving money as a business owner requires a plan and a commitment to reach your goals. Investing in yourself, knowing where your money is going, and looking into investment opportunities can help you to be confident and free from the stress of money.

You can see success as a business owner. You don’t have to stay on the merry-go-round of chaos. There is a way to secure your financial future. Building wealth is a life-long journey and something that I still have to work on every day. But, as long as you keep learning, growing, and taking action, you’ll be well on your way to reaching your financial goals as a business owner.