I’m sure in your entrepreneurial journey to start a home based business you’ve read plenty of books on how to achieve financial independence and follow the success stories of those who’ve made it big in business, like Bill Gates, Donald Trump, Mark Zuckerberg and the list goes on. One key question that often crops up is whether to save as much of your hard earned money as possible, and play it safe, or invest whatever you can back into your new business venture. We were always taught since childhood to save for the future, but if you think about it even if you are saving since you are in kindergarten, there is no way you will come close to become a millionaire or even billionaire?
Saving is like planting all your money in one small patch of earth and waiting for it to grow. That’s fine if you’ve got millions to put away and the interest rates are sufficient enough to support your basic needs and lifestyle. Then you’ll definitely be living the dream.
But while there is nothing wrong with saving your money for your future, investing is how a lot of the self-made millionaires really make their money. Buying assets or launching new home based businesses is like planting your money in lots of different patches. Some of the places where you put your money might be risky, but it’s the only way to find those magic investments, whether in stocks or new businesses, that will help your income explode, even if you work from home, and accumulate much faster than what the banks will offer you.
So, would you rather save or invest? Both have their merits. But it is only by making your money work for you that can really start making big profits.
A smart rule for managing your money is to spend just what you need to cover your basics, like clothing, housing, food, utility bills, taxes and entertainment, and put luxury expenses on the back burner while you’re getting your home based business up and running. Whatever you have left over you can then invest back into your business or to get as much interest as possible in the bank. Keeping separate accounts for investing and saving can also be would be really helpful in managing your finances efficiently.