Most people believe only “money-gurus” have the best money tips.
But, I know that you’re not like most people.
You’re an ambitious entrepreneur–whether having a six-figure income or earning your first dollar. The problem is overspending your personal budget and this trickling down your business.
Your bad money habits carry over to your business. As with anything, if you can’t manage something small you can’t manage something bigger.
So how do you go about spending less and saving more?
You can read finance/business books (recommended), learn from “money-gurus”, or from entrepreneurs. There’s nothing wrong with “money-gurus” (1% at least), but it’s best to learn from people you can relate to. That’s why learning from other entrepreneurs like you can help you break bad money habits.
Since starting my Podcast and interviewing entrepreneurs, I’ve adopted better habits. Each guest shared their success story and financial wisdom. The best part was being able to relate to these entrepreneurs.
If you’re struggling to save money, here are clever tips I’ve learned from 10 entrepreneurs that’ll help you pay off debt fast.
“Focus on earning more money” –Latisha Styles
Saving money is great until you’re forced to be (extra) frugal.
Would you be willing to penny pinch despite feeling miserable? Probably not. You need to find your sweet spot.
That’s why it pays off to have a side-hustle, so you aren’t limited by your income. Latisha shared her best advice was to focus on earning more money.
Here’s why, with a side-hustle, you’ll earn more the harder you work. This doesn’t mean earning money will be easy, but you’ll have unlimited potential. When you’re looking to pay off debt this can make all the difference.
Imagine starting a freelance writing business, earning $200 each month (a conservative amount.) This means you’d have an extra $2400 after 12 months. You’d then be able to apply all this money towards any debt you carry.
Continue cutting your expenses, but have more focus on increasing your income. You’ll pay off debt faster and feel happier that much quicker.
“Get organized” —Robert Farmington
How much are you spending on your groceries and other miscellaneous expenses?
Can you answer these questions?
If not, odds are that your finances aren’t organized.
Don’t feel bad, my finances aren’t as organized as I’d like them to be neither. Robert mentioned that getting organized allows you to make smart financial decisions.
For example, if you track your spending you’d know where your money was going. By setting reminders to review your expenses and goals, you’ll be in a better position to pay off debt.
To start getting organized download Personal Captial and import all your banks. Then, set reminders to review your finances every few weeks. It’ll be challenging to spend your money when you’re constantly reviewing it.
“Focus on spending around your values” —Debt Free Guys
There’ll always be a debate on the best way to spend your money.
Should go hard-core frugal or spend like tomorrow’s your last day? Neither extreme is correct but everyone’s answer will be different.
Not everyone enjoys shopping at thrift stores or spending money on high-ticket items. Instead, spend money around your values while hitting your financial goals. For example, buy a nice car but sacrifice the way you dress.
The Debt Free Guys believe prioritizing your spending around your values is important. The problem occurs when you’re spending your money without sacrifices.
Only because you can afford something doesn’t mean you should buy it. Instead, spend around your values. You’ll spend less and feel happier than if you’d bought every nice thing that came your way.
“Track your spending” —Stefanie O’Connell
You already know that you should use apps like Personal Captial to track your spending.
The problem is relying on these apps to do all the work for you. Most people continue to make bad financial decisions because they’re not tracking their spending properly. Stefanie recommends people to track their spending daily to improve their financial situation.
For example, track when your money gets deposited to your account, and where it’s being spent. Write this information down and categorize your expenses. Doing this daily will keep you up-to-date with your budget and cause you to spend less money.
To pay off your debt you need to make consistent progress. This is challenging to do when you’re spending as much as you’re paying down debt. Track your finances daily and see how much they’ll improve.
“Have great role models” —Ilia Griffo
The sad reality is that most people have bad role models when it comes to managing money well.
On the flip side, there are people who have great roles and grow up managing their money well. Ilia mentioned growing up with great roles models allowed her to find her own comfort–not relying on materialistic items to be happy.
I bet you have good intentions with improving your finances. You’d like to grow your income, pay off debt, and be financially well off. But, many times you’re surrounded with people who carry bad habits.
You don’t need to cut these people off your life. But, you do need to surround yourself with people who have good habits.
Get creative. Technology gives you the option to connect with more people than ever.
For example, you can use apps like Meetup to find groups with like-minded people. Join Facebook groups related to finance. Listen to business/money Podcasts, and read different types of books to expand your mind.
Eventually, you’ll be on a different level. Networking with like-minded people and picking up good money habits along the way.
“Make it a game, using the “double up” strategy” —Grant Sabatier
Saving is stressful.
Paying off debt is stressful.
Improving your finances will be one of the hardest things you’ll do in your life. So why not have fun through the process?
Entrepreneurs like Grant advise others to focus on one problem at a time. For example, if your goal is to build up a $1 million nest egg, don’t worry about this if you’re still in debt. Having ruminating thoughts in your mind about being far from your goal won’t serve you any good.
Instead, break your goal into actionable steps and take action. Reward yourself along the way to motivate yourself to keep going.
Grant used the “double-up” strategy to grow his wealth. For example, if he’d saved $500, his next goal was to save $1000, and so on. You can do the same or something similar.
Your goal is to continue to make progress towards your goals despite your challenges.
“Read a lot” —Michael Diamond
How often do you read per day?
Reading news articles or job-related material doesn’t count. If you aren’t carving out time to read daily, you’re delaying your debt paying process.
Michael attributes his success to reading daily.
As mentioned before, having a side-hustle is a great way to increase your income. But, your side-hustle is only as good as you are. If you’re earning $500 per month and want to double this amount you need to continue to invest in your learning.
Books are the perfect option because most people have access to them. They’re also inexpensive and you can easily buy them online.
But, what if you don’t have extra money lying around to buy dozens of books per year?
Go to the library and read from the hundreds of books that are at your disposal. There’s no excuse for reading other than choosing not to. Reading helps you increase your income, by learning from successful people.
Once you grow your income you’ll pay debt much faster.
“Move to a different location” —JLD
If you have a ton of debt and see no way out, relocating may be a viable option.
JLD at one point paid a high percentage in taxes for his business while living in San Diego. Eventually, a friend recommended him to move to Puerto Rico, and he took the leap. He’s now paying less money in taxes and enjoys great weather throughout the year.
The same can happen for you if you’re currently living in an expensive state like California. But, moving away isn’t easy. It’s hard to pack your things and move if you’re leaving your friends and family behind.
If you can’t move to a cheaper state, consider changing city, home, or to a nearby state. Everyone’s situation is unique, so it’ll be up to you to get creative. Saving money on taxes can give you the extra money you’ll need to crush your debt that much faster.
“Know that you’re not alone” —Anna Yen
You already know that paying debt is hard.
And, during your debt-paying journey, you may feel like you’re alone.
At least that’s how I’d felt at times. But, after speaking to many entrepreneurs I’d discovered this wasn’t the case. Anna shared she’d experienced financial setbacks.
If successful people like Anna can overcome their financial setbacks, so can you. Throughout your financial journey seek out for help through your family or friends. Be honest about your current situation and share your struggle with others.
You may discover that you’re not the only one experiencing the same challenge. Knowing you’re not alone will make your debt-paying process easier.
“Be patient” —Tim Tobin
You want to pay off your debt fast.
That’s why you’re reading this post and hustling hard. But, the reality is paying off all your debt will take time. So, you need to have patience.
Some of the best advice Tim received was to have patience.
This was where I’d failed in the past. I’d use all my extra money to pay down my credit card debt. Although I was making progress, I’d felt miserable for 18 months.
I may have paid off my debt at the same rate, feeling happier, if I’d had more patience.
To build patience break down your goals into smaller ones. This way you’ll build confidence knowing you’re making daily progress.
The fastest way to pay down debt is sometimes the slowest.
Here’s why–tracking your spending and reading a lot don’t yield immediate results. You won’t experience immediate benefits spending 2–3 hours analyzing your expenses. Nor will you see immediate benefits in spending hours each month reading new books.
But, one day you’ll wake up smarter and more organized. Eventually, adopting money habits that’ll allow you to cut all your debt and stay debt-free.
Can you imagine getting paid and not having to pay car loans, student loans, and credit card debt?
I know it’s hard to imagine especially when you’re still paying down debt, but I know it’s possible. After speaking with dozens of entrepreneurs I’ve learned that everyone experiences setbacks. But, it doesn’t have to end there.
You can either let your debt crush you, or crust it and be a better person for it. Money is a taboo subject for most families, which is why most people grow up with bad money habits. Most Americans carry thousands of dollars of debt and will continue to do so because of their bad habits.
You now know that entrepreneurs like you have overcome financial setbacks. The only thing stopping you from paying down debt fast is yourself.
Odds are that you carry some good money-habits. Browse the list and choose a habit you’re weak in. Then, work on improving this habit until you’ve mastered it.
As you’re paying down your debt remember to enjoy the journey. Before you know it you’ll wake up as a new person. One with better money-habits and happier life.
Chris writes personal finance and productivity articles for software companies. He gets fresh ideas through continuously investing in himself and interviewing successful entrepreneurs.