If you want to run a successful company, you need to have a solid understanding of finances. This means being disciplined with your investments and finding strategies that make saving more fun. After his first experience with entrepreneurship, Tori Dunlap dedicated his career to financial literacy.
At just nine years old, Tori invested in a local vending machine business and later sold the business to pay for college. After her graduation, she took a full-time marketing job to save up her $100,000 for investment in her next company.
Her money-saving journey caught the attention of major publications and inspired her to launch her brand. her first $100,000 To help others achieve the same thing. Tori today is new york times He is a bestselling author and podcast host. Additionally, her company educates more than 5 million women each year about financial literacy and business building.
Four principles of key money management that entrepreneurs should follow
Want to learn from Tori’s success? Follow her advice on saving and managing your money to increase your financial literacy and help you run your business efficiently.
1. Clarify your needs
The key to managing and saving money is understanding why you need it in the first place. Building wealth is much easier when you have a clear vision and goals. Earning money for the sake of earning money doesn’t keep you motivated, nor does it help you make informed decisions about where to invest your money.
“Start by getting some therapy with your money. Find out where you’re stuck with money, when you’re about to spend money, when you’re about to ask for more money, and what’s going on in your brain and body.” “It’s important to understand what’s going on,” says Tori.
2. Have a positive mindset about money
Accept the fact that you need to learn and unlearn some of the negative thoughts you have about money. “Money, like anything else, is an acquired skill and something you become bad at. It will be uncomfortable and you will feel very vulnerable as you develop it, but give yourself grace and learn how to develop this skill.” Understand that you are learning, and like anything else, it takes time,” says Tori.
While saving money over time, it’s important to maintain a positive outlook and remember what you’re working on.
Adopting a positive mindset will help you build wealth faster while maintaining a positive attitude toward yourself. Consider your beliefs about money and reduce the feeling of intimidation and taboo around money.
3. Save slowly but consistently
Before launching her brand, Tori saved about 27% of her take-home pay. “That money went right into savings or investments,” Tori says. Tori also threw away all the extra money she earned from her side hustle.
Throughout her 20s, Tori continued to save a certain amount of money each month. Now she has set up automatic payments to move money from her daily account to her savings, so she doesn’t even have to think twice.
“Diet is not only good for your physical health, but also for your financial health. If I’m told I can’t eat fried chicken, I only want to eat fried chicken. So when it comes to money, it’s about saving, It’s important to find a balance in achieving goals such as investing, paying off debt, etc., but also finding ways to spend your money on things you love,” says Tori.
4. Choose strategic investments
When saving money, it’s important to choose an investment account that’s right for you. Managing your money becomes easier as your account grows automatically.
“I started investing as early as possible and maxing out my Roth IRA. Any business owner, or someone who wants to be a business owner, should take advantage of tax-advantaged accounts like 401k, IRA, SEP IRA, etc.” says Mr. To get the most out of your money, you need to find the best place to invest it so that it grows naturally.
Money gives you the freedom to explore new ideas, jump on business opportunities, and pursue your dream career. Saving money doesn’t have to feel impossible. You can start with a small percentage of your take-home pay and a smart investment account.
Tune in for the full investment account for entrepreneurs and some of the best money decisions Tori has ever made. Shopify Master episode.
