Why is budgeting so critical for a startup?

Because in the early stages of any business, you never see tomorrow unless you make smart decisions today. Learning how to budget a startup business can either make or break your fragile new company. I’ve started multiple businesses before. No facebook’s or yelp’s that have made me insanely rich (yet), but I have experienced marginal successes and flat out failures. I won’t go as far as saying I’m thrilled by failure, because that’s definitely not the case, but failure adds fuel to the fire and teaches you lessons you’ll never forget. In any startup business, the only thing more important than your concept and team is your ability to execute. Budgetyour resources wisely and make execution a staple of your business.

Use these 5 suggestions to get started learning how to budget a startup business.

Tip #1) Think before you buy. Always. This seems so intuitive, but I can’t tell you how many times I’ve purchased something for my business that I really didn’t need. It’s easy to get caught up thinking you need the newest hardware and software and all the toppings, but just remember that your in business to make money, not to spend it. Don’t get me wrong, you will need to spend money to see your business through. But it’s critical to limit your costs as much as possible until revenue is being made. Focus on building your clientele and enhancing your service before getting carried away with unnecessary purchases. Tip #2) Forego I.P. Many people may disagree with me, but for a startup with limited capital, the last thing you should be doing is throwing dollars at a high priced lawyer. Did you know that patent attorney’s charge up to $1,200 per hour?! If that seems slightly unbelievable, don’t worry, you read that correctly. And it’s true. Just filing a provisional patent cost me over $5,000. And you know what happened to it? Nothing. It expired before I could raise the extra $10,000 necessary to actually file the utility patent. Silly move on my part? Yes. But (expensive) lesson learned. My advice? Hold off on filing intellectual property until your business has shown real revenue and progress. Of course, if you have received substantial investments for your startup then I.P. may be a good investment. Tip #3) Outsource. As. Much. As. Possible. I know it’s election time and “jobs” are a hot issue, but in the United States of YOU, making more money than you spend is the only hot issue to be concerned with. And the unfortunate truth is that outsourcing to contractors overseas makes financial sense. Of course, the common adage “you get what you pay for” does ring true and you should consider that when outsourcing. That said, I have personally worked with quality foreign designers, programmers, data workers, and more at unbeatable rates. My favorite platforms to find affordable contractors are Freelancer and Odesk. Tip #4) Don’t Quit Your Day Job It sucks to hear, because I think most people who start a startup do so because they hate their job, but financial freedom in the startup world does not come easily. If you’re looking for passive income you’re better off investing in the stock market or niche sites. If you’re actually considering a startup, just know that it will take (a ton of) unpaid time and effort on your part. Many people will say that you’re not a serious entrepreneur until you cut your lifelines (i.e. quit your secure job), but if you want to create something and it has commercial potential, you don’t need to quit your job and nor should you. The income from your job will be valuable to your startup and your livelihood. Wait until your company is showing signs of sustainability before you politely tell your boss to f*** off. Tip #5) No, seriously. Have a plan. You wouldn’t go to war without a strategy, and the same rule applies to starting a business. It’s easy to get carried away fantasizing about how much money you’ll make, and how people will love you’re newest invention, but have you actually done the market research to validate that? Better yet, how are you going to get your product in the hands of all those customers who “are going to love” your product? Starting a business is tough and it does take an optimistic point of view to mitigate many of the difficult hurdles, but as a CEO and business owner, you need to balance optimism with realism. Make sure you’ve at least mapped out a business plan and have done some market research before you dive in head first with a fist full of cash.   I hope you’ve enjoyed these tips. Many of us know these are the savvy moves to make, but in the heat of the decision we often get carried away. Like most things, practice makes perfect. Practice budgeting and making the tough decisions and I guarantee you’ll get better at it. When you’re playing with your own money, it doesn’t take long to realize the severity of the situation. Take inventory and be strategic. The world is yours for the taking!

4 Ways to Get Fit Without Spending Money:

Tip #1) Elevated Push-Ups

Push ups on the ground are a good start, but the proximity of the ground beneath you limits you’re range of motion and decreases the difficulty of your push up. In order to get a better burn, elevate your hands and feet in order to increase the space between your body and the ground. An easy way to get these elevated push ups started is to use 3 chairs, separating two for each hand and one for your feet. If you don’t have chairs to use, be creative and use something similar. Check out the set of logs I recently used for my elevated push ups —–>

Extra Tip: Use variety in your work out. Do a set of push ups completely elevated, then do a set of incline and decline.

Tip #2) Jog

Jogging is a great exercise for many reasons. Not only is it healthy for your mind and body, but  you can do it anywhere for free. Jogging strengthens the muscles and bone density of your legs, hips, and back, and is a good exercise to improve your core stability and strength. Find different trails in your neighborhood and explore your surroundings while you get fit without spending money.

Tip #3) Jump-Ups

If you’ve ever wanted to increase your explosiveness while building your leg muscles, jump ups are a perfect exercise. Ideally you should purchase sturdy platforms like the ones shown to the right, but to get fit without spending money you can use a sturdy chair, bar stool, night stand, or something similar. What you want to do for this exercise is perform sets of controlled leaps from the ground to the top of the platform. The more controlled and measured your leaps, the better. As you get stronger and more familiar with the exercise you can increase the height of the platform and the distance of your leap. I like to do 3 sets of 8 leaps, while doing weightless lunges in between.

Tip #4) P-90X Ab Ripper

Ab ripper is one of the best, most difficult ab workouts I’ve ever done. It’s great because you don’t need anything fancy to do it — no bungee cords, medicine balls, or weights involved. Unfortunately you can’t get the actual video for free online, BUT, you can listen to the audio and watch somebody else do the workout on youtube for free. It’s not as good as the actual video, but it works and its free, which is all that really counts when your trying to get fit without spending money. Check out the video here.

Good luck getting fit. These are just 4 ways to get started, but there are many other methods that will get you ripped without having to step into a gym. If you enjoyed this, let me know and share your methods!

1. Buy seasonal produce

Veggies are always a great addition to your diet, but if you’re spending $2 for a bell pepper or $3 for an avocado, it might be a good time to rethink your produce buying strategy. Most vegetables are grown seasonally, and because so you’ll usually get the best deals during those times. Here is a great list of when many fruits and vegetables are in season. Save money on food and eat healthy by purchasing these vegetables during season.

2. Use coupons

Don’t just pick out coupons for Frito Lays chips, that would not be healthy. Stay focused on coupons that discount the price of fruits and vegetables, water, grains, breads, and other healthy foods in order to save money on food and eat healthy.

3. Pack a Lunch

Unfortunately restaurant food in America is about as unhealthy as it gets. Have you ever wondered why it tastes so good? It’s definitely not because all the  nutritious value. Actually, its the exact opposite. When something tastes to good to be true, it’s usually because it’s loaded with fats, sugars, and other unhealthy products. If your trying to save money on food and eat healthy, you can avoid this glutenous cycle by keeping healthy foods from home around while your driving, at the office, and everywhere else.

4. Bulk Up

Of course you can’t “bulk up” on products that spoil, but that shouldn’t stop you from buying pasta, rice, and other non-perishables in large quantities. Healthy grains are the foundation of a well balanced diet, plus they rarely go bad which will minimize the amount of food you waste.

5. Buy Storebrand

Stop spending extra money on brand named products. Most of the time their generic, store brand counterparts are just as nutritious but cost a fraction of the price. Make sure to read ingredients before switching to store brand, but I think you’ll find that most of the time the only difference is the name on the package and the price.

6. Grow a Garden

This can take a little set up and upkeep, but the taste of home grown produce is well worth it. You might think you need a ton of space to grow a garden, but it’s becoming easier than ever to grow food in tight quarters. If you need some help getting started, check out growveg.com’s helpful article about growing your own food in close quarters.

7. Save Leftovers

Have you ever considered all the money you waste throwing out your leftovers? Probably more than you care to know. If what you made the night before was healthy and delicious, fire it up again the next day for lunch. Not only are you saving yourself the time and hassle of cooking, but you’re putting healthy, sustainable food in your body.

Why Should You Save Money Everyday?

The better question is, why not? Even if you have stacks of cash in the bank, the fastest way NOT to blow it all is to be conscious of your spending and saving. Fact: If you save $10 dollars a day, everyday, and invest it at a 10% return, in roughly 30 years you’ll have over $1 million. There’s no secret here. This is the power of compounding interest.

Depending on your level of income and expenses, $10 a day may be more or less than you can afford to save. The point of this exercise is to find a comfortable amount of money to save each day and take action. Have you already started thinking about all the different ways you can save money everyday? I have. Let’s discuss them.

My Top 5 Ways to Save Money Everyday:

Money Saving Technique #1: Use Coupons for Everything

Conventional wisdom would have us believe that coupons are only good for grocery shopping. Wrong! Because of the Internet, there are literally coupons for everything. Before you purchase anything – big or small – do a quick google search for the product and add any or all of the keywords, “discounts, coupons, and deals,” to your search. You’ll be amazed by the amount of legitimate coupons and discounts floating around that can help your save money everyday. To learn more about coupon shopping, check out the helpful website Coupon Mom.

Money Saving Technique #2: Only Buy What You Eat

This can be a bit tricky, but think about all of the food that’s wasted in your household. This food didn’t just magically appear in your refrigerator, you purchased it. And when it goes bad, you throw it out. Essentially money down the drain, moving you away from your ultimate goal to save money everyday. Don’t get me wrong, I enjoy leftovers just as much as the next starving college student, but if you’re going to save food you have to make sure you eat it. Also, when you’re at the grocery store and you’re looking at fruit and vegetables, remember that most of it’s sold by weight. If you’re not going to eat all 9 bananas in the bunch, pick off 3 and purchase those only.

Money Saving Technique #3: Avoid Expensive Department Stores

I know that brand new swimsuit at Macy’s looks good, but you and I both know it’s overpriced. And when you’re trying to save money everyday, these are the details you need to be aware of. If you simply can’t avoid the brand name retailers, make sure your browsing the clearance racks. A better idea is to avoid those stores totally and do your shopping at discount retailers like Ross, Marshalls, and TJ Maxx. If you’ve ever been into one of these stores, you’ll know firsthand that there are gems floating around. The only catch is you have to find them. Think of it as a scavenger hunt for savings. You’ll be rewarded when you walk up to the cashier with 5 items that cost under $100.

Money Saving Technique #4: Brew Your Own Cup

Whether you’re into fresh loose leaf tea or a rich roast of coffee, save money everyday by making it yourself. At $1.65, the cheapest item on a Peet’s menu is a Kids Cocoa…probably not what you’re after. More likely, you’re ordering a latte or coffee that will run you anywhere from $2 to $5. If you weren’t already aware, both coffee and tea are very affordable commodities that can be brewed fairly easily. It will take some up front purchases to brew your own coffee, but most of the tools you need are reasonably priced. Plus, you purchase them once and they’re good for years. Tea, on the other hand, is extremeley cheap to get going on. Tea bags are very affordable, but I recommend heading down to your local Peet’s and buying a tin of loose leaf tea for $10. If you don’t have a Peet’s nearby, you can buy online here.

Money Saving Technique #5: Walk, Bus, Or Ride Instead of Drive

The cost of driving your car is more than just the gas it takes to get you from point A to B. At $3 or more per gallon, gas is no cheap commodity in itself, but gas is just the tip of the iceberg. The subtle costs are wear and tear to your vehicle (pushing you closer to your next pricey visit to the mechanics), bridge tolls, parking, registration, insurance and other incidentals. A great way to save money everyday is to substitute driving your car for any other method of transportation that doesn’t cost so much.

These 5 ways to save money everyday are just the tip of the iceberg. There are literally hundreds of ways to cut back on your daily spending. Be creative and analyze your life. Where can you afford to make cuts? Everyone is different and I’d love to hear how you are enhancing your life through savings.

Disney World Cash Hacks by Adam Fiennes is a short read that would be ideal to review right before your next trip to Disney World. He covers quite a few methods for saving money at the park and there is probably something in here for everyone. Even the most frugal disney tourist is sure to find one or two savings gems that they weren’t aware of beforehand.

Disney World and Disneyland parks are such fun places to visit, it’s a shame they have gotten to be so expensive. Between airfare, hotels, park admission, food, and gifts, it’s easy to get carried away and spend more than you intended.

Much of the savings information in Disney World Cash Hacks can be found on various forums and websites around the web, but for the very reasonable price of $3.99 save yourself the hassle and buy this book.

I’ve discussed some quick ways to save money on your next trip to disneyland here, but Fiennes has definitely done his homework and gives details for a number of other methods to save money while at the park.

I found Fiennes tips on saving money on food and admission to be the most valuable in the book. The cost of airfare and hotels are relatively inflexible (minus a few nifty tricks), but this book helps you realize that the real place to save money is inside the park. I would highly recommend this book to parents looking to show their kids the excitement and joy of a disney park without breaking the bank.

Hope you enjoyed this review. If you purchase the book, let us know what you think. As always, if you found this interesting do me a favor and share with your friends!

Don’t go to your job and spend all the money your making. Take more money home by eliminating unnecessary spending with these 4 simple ideas for saving money work:

1) Bring a Lunch (and snacks)
Bringing food with you is the easiest way to easily save money on the job. Packing a lunch will not only save you cash, but also preserve time and keep your body full of nutritious food throughout the day. The average price of lunch is around $10 per person. If you’re a full-time employee, that’s over $200 per month your spending on 1 meal per day. If you chose to spend that same $200 at the grocery store, you can most likely have food for the whole month.

2) Carpool
According to CNN Money, the average family was spending roughly $370 per month on gasoline in 2011, up from $281 in 2010. At $3.50 or more per gallon in many places in the US, limiting gasoline usage is becoming more and more important for many households. A great way to reduce gas usage is by carpooling to work. Just by carpooling with one other person you can immediately cut your gas expense in half. If you’re really looking to maximize gas savings, incorporate a few other co-workers in the carpool. This will not only significantly reduce your gas spending, but it will give you more time to bond with co-workers and will save you the hassle of driving every morning.

3) Ask About Employee Discounts
Many restaurants and cafes will offer discounts to employees of neighboring corporations in order to build a repeat customer base. Talk to your boss or upper management about any partnerships they may have secured with local businesses, and talk with the managers and owners of the shops near your office. If there are not already discounts in place, do everyone in your office a favor and see if you can get local shops to reduce prices for employees of your corporation.

4) Skip the Coffee Shop
Let’s face it, coffee isn’t cheap. Well actually, coffee is a relatively cheap commodity, but once it’s brewed and cupped by a Starbucks say sayonara to affordability. At $2.50 for a basic cup and over $5 for a specialty concoction, you can see how the spending adds up fast. The easiest way to divorce Starbucks is to keep a coffee machine in your office or cubicle. If your office doesn’t have a coffee machine, talk to management and get one. Another alternative is to switch to tea. Tea is cheaper than coffee, easier to prepare (no grinding, no brewing), and the health benefits are off the charts.

These are just 4 simple ideas for saving money at work. If you enjoyed this, share it with friends and co-workers!

The simple, yet life-affecting question nearly every student wonders at some point between applying and registering for college is: how can I pay for this? And with tuition costs rising at about double the rate of inflation, it’s a reasonable question to ponder. According to CNN Money, tuition at the average public university jumped 8.3% in 2011 to $8,244. Here are 5 ways to save money on college:

1. Apply for Grants and Scholarships
There are a number of grants and scholarships out there receiving so little attention they’re going un-awarded. Search cultural, religious, and professional organizations for annual scholarships that are under the radar. Nothing good is free, and applying for scholarships is no different. They won’t cost you money, but they do take time. Do yourself a favor and get started searching for scholarships today. Here is a good place to get started.

2. Establish In-State Residency
Paying out of state tuition year after year can be incredibly expensive. On average, an out of state student pays roughly 35% more in tuition than his/her in-state counterpart. Each state has different requirements for establishing residency, but it’s a good idea to consider residency before attending an out of state university. Take a look at each state’s requirements here.

3. Buy Used Text Books
This needs no explanation, but is a great way to save a few dollars each semester. You may run into some trouble with highly specialized courses that are constantly changing, but used textbooks should be available for most of your general ed courses. The university bookstore will have a good supply of used textbooks, as will websites like half.com and chegg.

4. Take General Ed at Community College
Don’t underestimate the power of a good Junior College. The average tuition at a JC this year was $2,963, compared to $8,244 at a university. Most general education courses are much cheaper at a community college, but if your pursuing a degree or intend to pursue a degree, make sure the courses you take transfer to your university.

How do you save money on college? We would love it if you shared. Cheers to Knowledge!

Disneyland is the happiest place in the world, right? Not when you’re spending all your money. Theme parks are getting more and more expensive to visit, but you can minimize your spending by following these 6 simple strategies:

1. Drive Instead of Flying
An easy way to save big on your next Disneyland trip is to pack up the car and make it a road trip. Driving by yourself may not be the smartest financial decision, but with the cost of airfare continually increasing, driving a family or a group of friends does make sense. Click here for road trip money saving strategies.

2. Don’t Stay at a Disney-Owned Hotel
Disney hotels are convenient but they’re unbelievably over priced. For all resort-owned hotels there is a two-night booking minimum and a standard room will cost roughly $800 per night. They’re nice hotels but not that nice. Check out the large variety of hotels nearby to get a better deal. Many will be a part of Disneyland’s “Good Neighbors” partnership program where you can find rooms more reasonably priced between $60 and $600 per night.

3. Use Membership Discounts
Triple A and Costco are just 2 of the companies that offer members special discounts on disneyland tickets, hotels, and vacation packages. Before booking your travel plans, make sure to check your membership programs for applicable discounts.

4. Bring Your Own Food
The cost of food at Disneyland is pretty ridiculous. A simple slice of pizza and a coke will run you $10 or more these days. Do yourself and your family a favor by packing healthier, more substantial food to munch on. This will keep your pockets full and your energy level high as you make your way through the park.

5. Gift Shop Elsewhere
Just like everything else at Disneyland, you pay a premium at their gift shops. With a number of non disney-owned gift shops nearby, you’re better off doing gift shopping outside the park. Usually you can find all the same items for 10-50% less money.

6. Use Season Passes
Season passes are expensive and are not worth it if you only plan to visit the park once a year. However, if you plan to make it back at least 3 or 4 times, a season pass is a good deal. Don’t settle for a standard price on your season pass though. Make sure you do price comparisons and online searches to find the best price as rates are constantly fluctuating.

Disneyland can be a chaotic, fun, family bonding experience. But don’t let it run havoc on your finances. Share these tips with your friends and family! And of course, let us know what your favorite ways are to save at Disneyland.

With positive reviews from Donald Trump and Darren Hardy, I was eager to dig into Charles Richards newest book, The Psychology of Wealth. What I found far exceeded my expectations and was a valuable read for financially unsure times.

Richards, a psychotherapist by profession, does more than just highlight common money saving strategies and tips. With this book, Richards attempts to explain how the average individual can become more financially savvy and prosperous through psychological adjustments. Richards argues that much of poor money management stems from “unconscious spending,” which makes sense. Anyone who spends thoughtlessly is not fully analyzing the situation, and is therefore subject to over spending and under budgeting.

Many people blame the recession and the government for financial problems, but Richards argues that healthy people deal with money consciously and responsibly. They are not afraid to approach and carry out their financial matters with a plan and a budget. People who possess “The Psychology of Wealth” will also display other positive qualities, such as self esteem, responsibility, determination, and achievement.

Improving your money habits can be difficult, and requires ongoing attention, but it starts with your mindset and attitude. Your whole world starts and ends in the 6 inches between your ears. Use the strategies in this book to overhaul your approach toward money.

All in all, a great read and highly recommended.

I just took a beautiful road trip along the California coast and was thinking about ways to save even more money on my trip. Depending on where you’re going, driving rather than flying is a good savings right off the bat. Here are 7 more ways to make your road trip more efficient and cost less:

1. Bring other people
Driving alone isn’t just boring, it’s also more expensive. Not only are you racking up miles on your car (pushing it ever-closer to its’ next wildly overpriced servicing), but paying for gas by yourself adds up fast. Find a friend or a family member to go with you, or even check the classifieds on craigslist for people looking to head the same way.

2. Buy Cheap Gas
Because trucks use so much gas, usually the cheapest gas is at stations that receive large volumes of truck traffic. These stations are able to offer the best price per gallon and when you’re filling up multiple times over the course of a road trip, every ounce of savings add up.

3. Bring Food Supplies
Don’t get caught on the road without at least a few bottles of water and some light snacks. Driving long distances can be pretty uncomfotable and the last thing you want to do is stop at a fast food joint every 3 hours. Not only is fast food actually quite expensive, but it’s generally unhealthy and will make your body feel worse while cramped in a car.

4. Remove Excess Weight
Before you take off make sure to remove everything in your car you won’t be using. For every 100 pounds of added weight in your vehicle, you reduce your MPG by roughly 2 percent. Travel light to maximize your cars efficiency on the open road.

5. Don’t Speed
Each vehicle reaches optimal fuel consumption at a different speed, but gas mileage typically decreases rapidly after 60 mph. In addition, there are more cops than ever on the highway and speeding is a hefty ticket. Try using cruise control to save gas, avoid Johnny Law, and keep your speeding to a minimum.

6. Bring Lodging Supplies
It’s always nice to pull off the road to rest when you’re driving long distances, but stopping at a motel each time will put a dent in your pocket. Instead, bring blankets, a pillow, and something to cover up your back windows to make your backseat a sleep paradise. You probably won’t feel as fresh as you would have with 8 hours in a bed, but sometimes all you need is a few hours of shut eye to get back on the road. In these situations, a pillow and blanket are essential.

7. Service your Car Beforehand
Don’t start your roadtrip only to have your car break down a few hundred miles away from your house. Make sure to have your trusted mechanics take a look at the vehicle before you take off. Get your oil changed, align your tires, make sure the vehicle has the proper fluids, etc. It can be a hassle, but do yourself a favor and be absolutely sure you’re car can handle the trip before you make it.