Top 5 Tips on Building a 6 Month Cash Reserve

The top 5 tips weekly post is always full of hints and tips for small, home & micro business owners.

• Start getting into the habit of saving each week right now, at the beginning of the year.
  
• Add up all your monthly expenses so you can estimate how much money you will have left each month.
• If you are still in a day job, set aside 5% of your paycheck to start building a reserve.
• Try to save around £50 / $100 per week and you will soon have a nice financial cushion.
• Make sure that whenever you draw money from the business you set aside money for tax to avoid nasty surprises later on.

If you have additional tips, please share them in the comments section.

9 Responses to “ Top 5 Tips on Building a 6 Month Cash Reserve ”

1. Matt
   
   Said on January 12th, 2010 at 2:09 pm

   Good solid tip list, wish I’d thought about setting aside 5% of my paycheck back when I was first starting out, could have saved a headache or two. Lucky I’m still young enough to borrow a few denari from the folks lol.

2. john
   
   Said on January 12th, 2010 at 7:07 pm

   I really don’t know if these tips could be applied every week in real life. An unexpected problem which requires your immediate attention and of course money could arise at any time so you won’t be able to put in practice these tips. The best tip from my point of view would be to avoid unnecessary expenses. If you want to build a cash reserve try not to spend money on everything that comes in your mind. Pay your taxes, buy only what’s necessary and I am sure you will be able to build a cash reserve.

3. Frank
   
   Said on January 13th, 2010 at 10:21 pm

   I’m enjoying these Top 5 lists. I think the tip about saving money when you have a day job is a good one. I have friends who want to start their own business and I’d advise them to start saving money now even if it is a long term goal.

4. Laura Aridgides
   
   Said on January 14th, 2010 at 3:14 am

   How about looking for ways to reduce, eliminate or streamline? I’ve found that reducing costs, eliminating non-profit generating expenses, and streamlining business tasks all helps to increase the bottom line, which, then helps you save more money.
   To your success,
   Dr. Laura

5. Joey
   
   Said on January 15th, 2010 at 10:15 pm

   Very short blog post, but full of useful tips. Thank you so much for sharing. If for anything else people just need to live within their means. While trying to keep up with Jones’ people eventually rack up huge credit card bills and are screwed.

6. Mark
   
   Said on January 20th, 2010 at 10:36 pm

   This is good advice for everyone not just business owners. 5% is a good target too.

   Mark

7. lee
   
   Said on January 21st, 2010 at 10:06 am

   See who you are paying off debt to then list the highest interest rates. Then try and remove or refinance the most expensive lending.

8. Rubein
   
   Said on January 29th, 2010 at 10:24 am

   Cool! Short but strong – keep on giving us more tips.

9. Steve
   
   Said on February 24th, 2010 at 7:50 am

   I really like these short top 5 lists. This is great advice for everyone, not just small business owners

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