A Penny Saved . . .

and you've taken your first step to starting a business.
Magazine Contributor
2 min read

This story appears in the October 2002 issue of Entrepreneur. Subscribe »

You and your spouse both work, and you're barely making it--how will you save to start a business? We asked David Bach, author of Smart Couples Finish Rich (Broadway Books), to share some money-saving tips:

  • Take a close look at your expenses. Keep track for a few months to see exactly where the money goes. (A program like Quicken or Money can help.) Divide expenditures into fixed (every month) and variable (change from month to month). "Go through it, almost with a knife, and figure out what you can cut," Bach says.
  • Reduce spending. If one person quits working to start the business, you'll only have one to work with. Practice living on that one income now. Things like switching from "super cable" to basic cable can save you from $50 to $80 per month. Clip coupons and buy generic-simple changes add up.
  • Open a dream account. Get a separate money-market account for your business and set up an automatic deposit for every payday-$50, $100, whatever you can afford.
  • Get your safety net. Before you quit your day jobs, make sure you have health and disability in place. You'll need it out there on your own.
  • Pay yourself first. The moment you start your business, get a retirement plan like an SEP or IRA. Says Bach, "The biggest mistake entrepreneurs make is to put every dollar they make into their business-it's really important that you pay yourself first." For more information and to find out about Bach's free seminars, check out www.finishrich.com.

More from Entrepreneur

We created the SYOB course to help you get started on your entrepreneurial journey. You can now sign up for just $99, plus receive a 7-day free trial. Just use promo code SYOB99 to claim your offer.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.

Latest on Entrepreneur