Surviving as a salary earner is not that easy especially for those whose monthly take home cannot really take them home.
Apart from escalating prices of goods and basic food items, salary earners also have to foot other bills such as house rent, medical bills, take care of dependants from extended family, pay children’s school fees and other sundry bills that put holes in the pockets.
This often times makes it difficult for salary earners to enjoy some basic privileges that are taken for granted elsewhere.
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The fact that small salary earners cannot depend on their monthly income alone makes it imperative for them to plan and start a business.
1. Stay debt-free
Be sure to offset all loans previously taken and expended for other things that does not yield profit.
Pay off your debts and start saving money on a clean slate so as to get ready for your business.
2. How much do you want to save monthly?
Once you have decided to start saving and also paid up your debts, it is time to decide how much you want to save monthly.
This means you have to plan your expenditure and how much goes into your savings account.
This can be done by arranging how much is spent on what in their order of priorities. Once this is done, stick to the plan and keep away the percentage earmarked for your future business. Depending on what you earn, you can save up to 10 to 15% of your monthly income.
3. Use automatic deduction method
If you are not sure you can stick to your saving plan, it is important you use the automatic deduction method.
This means you authorise your bank to automatically move funds to your savings account once your salary is paid.
This way, you will not have the opportunity to spend what should have been saved.
When you are saving to start up a business, keep your eyes on the ball and have a clear plan of when to start.
There should be a certain amount that would be enough to start up, depending on the line of business you are going into.
Do not wait too much since you may have to start small and grow. However, make you have things planned out so as to avoid regrets. You may not have to leave your job since the business you are starting may just be run as a side hustle, at least from the early stage.