When money is concern, expenses is something that puts your money out of your pocket and makes you wonder why there’s always no money in your bank. Are you simply just spending every dollar you make?

Be in control

It is extremely important to be in control of your expenses. If it goes out of control, your expenses can turn into a liability. That’s when you use your credit card to buy something. When you are in business, every cent do count. Especially when you are just starting out, you need to really monitor on what you are spending on.

For instance, when you start an online business. There are 2 basic things that you need to have, a hosting and an autoresponder, and also maybe a domain name. That will probably cost you less that $50 a month. Being new in business, there is a high chance that you will be tempted to buy some courses on internet marketing which will cost your thousands of dollars or some magical software that claim it can do this and that for a few hundred over dollars. Some of them are genuine stuff but most are not, so be very careful on how you are going to spend your money. Here’s a useful question I will always use when it comes to buying something…

“Will it help or improve my business, in terms of profit and functionality?”

Don’t be shy to ask yourself this question several times before you buy something. After all you are in business and you’ll want to profit.

Don’t spend on unnecessary items

Be smart when it comes to money. We are all humans, and humans like to be pampered. We tend to buy things just because it’s nice, fashion, trendy, high tech or whatever the reason may be to make ourselves look good. Just few days back I was having an annual Chinese reunion dinner at my grandmother’s place and my aunt show me her latest iPhone! My dream gadget! Definitely without a doubt I would like to have it! It cost about $1200 here in Singapore and it’s worth it for a Mp3, camera, storage, Internet and email function device. I was really tempted to buy, seriously.

So, I asked the myself, “Do I really need it at this point of time?”

The question is easy and my answer to myself was simple. I don’t need such a high tech gadget now because I won’t be able to use it when I’m on military duties. Case close, question answered, I don’t need it so there’s no need for me to have it.

This question saved me $1200. I could have easily bought it without even considering if I need it a not.

It’s a good practice for anyone to cultivate a habit of asking yourself questions such as “Will it help or improve my business, in terms of profit and functionality?” or “Do I really need it at this point of time?” to make sure that you keep your expenses to the minimum. You will probably have your own set of questions to ask.

Maybe you have other ways of controlling your expenses, hoping for a good sharing here!

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