Pulse List 5 tips for entrepreneurs who wish to understand money

As an entrepreneur (or if you are aspiring to be one), you need to understand money and how it could work for you and your business.

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Naira and Dollar play

Naira and Dollar

(Investors king)
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If you think back and try to add up every single Naira you have made, how much money do you think you’ve made in your lifetime? How much money do you have saved right now? 

As an entrepreneur (or if you are aspiring to be one), you need to understand money and how it could work for you and your business. 

Here are five tips to help you save more money:

Once you play the money game enough, you get good at it. play

Once you play the money game enough, you get good at it.

(Google)

 

  • Money is a game: This is the first thing you have to accept and internalize. If you play any game regularly enough, you get good at it. Once you begin to understand that money is a game and you learn to play the game effectively, you will start to see the gains in the form of impressive savings. 

  • It’s a doubles game: This is so important. If you have N1,000 and you double it, that’s N2,000. If you keep doubling, you will get to N1 million in nine doubles. So how quick can you double your savings? First, you have to consider your risk tolerance (the older you are the lesser your risk tolerance) and your time horizon (the time in which you want to accomplish a certain level of saving). Once you have these down, you can figure out how many doubles you need to get to your goal and go after that.

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  • Timing: There is a timing aspect to everything you do as an entrepreneur. You have to figure — through experience — what time to stay light and cut off staff, when to stay liquid, when to invest, when to exit and so on. Once you know how to time the moves you make with money, you automatically generate more and have more for the rainy day.

  • Boredom: Always do something to create more money. Money does not stick around if it is bored. Same way you would leave a girl or guy you are dating if they are boring, money does not like to just sit somewhere. Put that money to work and watch even more money come in.

Your secret account could be the difference between the survival and failure of your business. play

Your secret account could be the difference between the survival and failure of your business.

(Feex)

 

  • Secret account: This an account that no one knows about. Not your husband/wife, boyfriend/girlfriend, father, mother, sibling or best friend. No one. The purpose of this secret account is for it to serve as your emergency fund. And don’t think there won’t be emergencies. You run a business — there will always be emergencies and an emergency fund could be the difference between the survival of your business and its demise. 

There are many other strategies of money that you need to figure and a lot of them cannot be taught. You will figure them out through experience and failure and trials. To get you started, you can try out those mentioned above and see what works for you. Happy hunting!