Over the past 10 years, my business partner and I have watched our personal finance website grow from a small Australian credit card blog to a $50 million global business. Along the way, I've formed a number of financial habits that have been crucial in helping me achieve my financial and business goals. Here are my top 10.
1. Develop and follow clear goals.
It is absolutely essential that you develop clear long and short term financial goals. Think about the financial milestones you want to hit in six months, a year, 10 years and write it all down. Create a clear (and realistic) plan to guide you, and review it regularly and adapt as your situation changes. Too many people put these things together and then put them away in a folder or drawer, never to look at them again. I put diary notes for check-ins, and when I review my plan, I ask myself:What have I achieved since the last check-in? Are these goals still realistic for the time period in which they were set? What tools do I need that I don't already have to make them?
2. Think about your options.
In the beginning, it can be difficult to bring your business ideas to life. A business loan can help address early financial difficulties and maintain cash flow. However, it's important to be careful how much you borrow, as you don't want it to turn into extra pressure later on. Compare your options to ensure you get the best deal for your business.
3. Remember that a first offer is only a starting point.
If every entrepreneur accepted the first “no” received, there would be far fewer businesses in existence today. Whether I'm trying to turn a 'no' into a 'yes' or negotiate a better price, I always try to come away with the best deal possible. This applies to business relationships and when making a personal purchase. I truly believe that the art of negotiation is something anyone can learn, and once mastered, you'll be surprised at how many people are willing to stray from their first offer. Right away, ask if it's the best possible deal, or even go so far as to suggest potential discount terms (for example, if you're buying in bulk or paying cash).
4. Incorporate outsourcing.
In today's digital world, we have the ability to work with quality professionals anywhere in the world, enabling companies to recruit the best talent as needed. By incorporating outsourcing, you'll likely pay less for high-quality work and avoid wasting funds on underutilized full-time staff. You may have to deal with international money transfers when outsourcing, but by comparing providers you can ensure that the overall costs of these services are still working in your favor.
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5. Watch your spending.
It sounds simple, but my rule of thumb is to always spend less than you earn. In America, for too long, we have taken credit for granted. Keep an eye on your income, regular expenses, and extra expenses, and don't forget to set aside space to save. This will not only give you a better idea of where your money is going and an increased sense of control, but it's also a great way to help you reach your financial milestones.
6. Bootstrap.
When Frank and I started looking, we worked on an old laptop that had missing keys, didn't pay us for years, and sublet rooms in our apartment to replace a income. Where you can, keep your expenses to a minimum. Think outside the box to make your money work, like using a coworking space to share services and equipment, or using assets you already own, like older computers and technology.
7. Grow, don't spend.
Don't spend your money until you've earned it, and don't bet on success. It may sound cliché, but it's important to expect (and plan for) the unexpected. By focusing on income, as opposed to expenses, you'll be much more likely to grow as a business. You never know when you might take a hit, so it's best to hold back on extravagant purchases for your company's financial security.
8. Invest in your team.
When it comes to the well-being of your team, my attitude towards money changes a bit. Your team is your family, the people who will accompany you to the top. By investing in it, you'll likely boost workplace productivity and create a culture of respect. At Finder, we have a strong training and development program, encourage team members to pursue exciting projects, and provide flexibility. Not only does this empower individuals, but it prevents burnout and inspires creativity, all of which are positives for our company as well as our employees.
9. Never stop asking questions.
We learn by asking questions and seeking advice from people more knowledgeable than ourselves. It could be a financial advisor, a business planner, or even a well-versed friend. The point is to actively listen and use the resources around you every day. This will be far more beneficial than sticking to what you know and staying in one place.
10. Stay humble.
Although Finder's global expansion is well on its way, Frank and I have never forgotten our beginnings, where we worked on that broken laptop, striving to achieve our early goals . We go back to our beginnings by starting in a new place, because it's a whole new market. My point is, no matter how much money you make, remember where you started, don't get carried away, and never lose the drive and passion that inspired you to take this journey in the first place.
Related: 4 Ways to Create Financial Security Without Salary Certainty
