Plug the Leaks in your Bucket – Reducing Expenses

I was reviewing this year’s business revenues compared to last year’s revenues. I estimated that we increases our revenue by about 64% - give or take a percent according to what happens by the end of the month.

This sounds great but my expenses also grew tremendously. If you look at the analogy of a water bucket, the water represents our income while the bucket represents are ability to hold on to that money. Each expense symbolizes a hole or leak in our income bucket.

Most of us don’t realize it but our finances are filled with leaks – that morning coffee and donut, the desire for a fancy car, our wasteful lifestyle, etc., etc., etc. create a steady and constant drain. These hidden leaks leave most people scratching their heads in disbelief and asking, "Where did my paycheck go?"

Where is the first place to look for your leaks?

Yes, your recurring month expenses like your electric bill, cable, internet, phone, insurance, and cell phone.

Why?

Because... You can usually find savings in these areas that will not affect your lifestyle.

For example, I was paying for over double the minutes on my cell phone than my monthly usage therefore saving $90 per month. In my business, I changed my phone plan to fit my business needs and will save $40 per month. Because of poor reliability, I searched for a new provider for my internet service. By moving to a new provider and bundling all of my services, I am actually saving money.

With the pace of technology and rapid changes in industries, it’s a good idea to shop around and check each of these services every one to two years.