My Slush Fund strategy for growing your business
The key to success in business is starting small and growing from there. Businesses need money to grow just as much as plants need sunlight and mammals need food. Without reinvesting in your own business, you're dooming it to failure.
I was very poor when I was younger and that has created a bit of a problem in my life. To put it simply, it hurts to spend money. I actually have trouble spending money on something, no matter how much I may want it or how useful it might be.
It took me weeks to finally invest in a laptop despite the fact that it improved my ability to make money.
Eventually I stumbled onto a cool technique that lets me spend money on my business without the constant internal debate. I call it "The Slush Fund Strategy" and it all started with video games.
I love old computer games and there is a website called GOG.com (I'm not affiliated with them) that sells these games. They often have weekend sales where the games are about $2 -$5. I rewarded myself every so often with a new game.
I did this by leaving a little bit of money in my PayPal. If I had $105, for example, I would only transfer $100 and leave the rest in there. It was a slush fund, money I didn't need to care too much about. I used it to buy anything I wanted, from books to games.
Why this works for your business:
I soon saw the benefit of this for business. When you have a slush fund, it's basically free spending money. You don't need it to live, you don't need it for bills, and you don't need to think twice about spending it.
All of your living expenses are already covered and you can budget for them accordingly. The slush fund is extra money.
Here's how the strategy works:
Leave 10% Behind
That's really it. Just leave 10% behind when you transfer the money to your bank.
There's no need to worry about budgeting for business growth because you can just follow the 10% rule.
The beautiful part about this is that it's a cumulative strategy. There's no need to spend that money right away. If you can't think of some way to spend it to help expand your business, just leave it there.
This slush fund starts to grow. Eventually you can have quite a bit of money left behind while, at the same time, having plenty of money to live on. The money in your bank account can be used for life and the money in your PayPal can be used for busienss.
PayPal Accepted
Since so many sites and service providers accept payment through PayPal, you'll never have to transfer the slush fund to your regular bank account. The money in the slush fund starts to be nothing more than a set of numbers.
It's not "money" in the way you usually think about it so it's much easier to spend.
I thought I'd share this with you guys because a lot of people have trouble budgeting money for growth and expansion. This is such as a simple tactic that it can be applied to any sized revenue stream with equally effective results.
To top it all off, this is also a great way to create a positive cash flow. When you still have 10% of your previous payment left over, the next payment (if it was the same size) would leave you with 110%. The next one would have you at 120% and so on.
After a while, as long as you have a continuous source of payments, you'll be making more money than you spend. That's exactly how you get rich!
Just leave 10% behind, let that slush fund grow until you need it, and then reinvest it in your business.
I was very poor when I was younger and that has created a bit of a problem in my life. To put it simply, it hurts to spend money. I actually have trouble spending money on something, no matter how much I may want it or how useful it might be.
It took me weeks to finally invest in a laptop despite the fact that it improved my ability to make money.
Eventually I stumbled onto a cool technique that lets me spend money on my business without the constant internal debate. I call it "The Slush Fund Strategy" and it all started with video games.
I love old computer games and there is a website called GOG.com (I'm not affiliated with them) that sells these games. They often have weekend sales where the games are about $2 -$5. I rewarded myself every so often with a new game.
I did this by leaving a little bit of money in my PayPal. If I had $105, for example, I would only transfer $100 and leave the rest in there. It was a slush fund, money I didn't need to care too much about. I used it to buy anything I wanted, from books to games.
Why this works for your business:
I soon saw the benefit of this for business. When you have a slush fund, it's basically free spending money. You don't need it to live, you don't need it for bills, and you don't need to think twice about spending it.
All of your living expenses are already covered and you can budget for them accordingly. The slush fund is extra money.
Here's how the strategy works:
Leave 10% Behind
That's really it. Just leave 10% behind when you transfer the money to your bank.
There's no need to worry about budgeting for business growth because you can just follow the 10% rule.
The beautiful part about this is that it's a cumulative strategy. There's no need to spend that money right away. If you can't think of some way to spend it to help expand your business, just leave it there.
This slush fund starts to grow. Eventually you can have quite a bit of money left behind while, at the same time, having plenty of money to live on. The money in your bank account can be used for life and the money in your PayPal can be used for busienss.
PayPal Accepted
Since so many sites and service providers accept payment through PayPal, you'll never have to transfer the slush fund to your regular bank account. The money in the slush fund starts to be nothing more than a set of numbers.
It's not "money" in the way you usually think about it so it's much easier to spend.
I thought I'd share this with you guys because a lot of people have trouble budgeting money for growth and expansion. This is such as a simple tactic that it can be applied to any sized revenue stream with equally effective results.
To top it all off, this is also a great way to create a positive cash flow. When you still have 10% of your previous payment left over, the next payment (if it was the same size) would leave you with 110%. The next one would have you at 120% and so on.
After a while, as long as you have a continuous source of payments, you'll be making more money than you spend. That's exactly how you get rich!
Just leave 10% behind, let that slush fund grow until you need it, and then reinvest it in your business.