This post on how to cut down on your business expenses is a great one at the start of the year, but really ANY TIME. We’ll walk through how to identify the things you need to stop paying for, pronto!
Do you realize how many things you pay for when it comes to your creative business?
I think I know. Until I do an audit and realize that I am paying for SO MANY things I forgot about or don’t use. Here is a simple method that I use to cut back on those expenses to stop the bleeding and stop wasting my own money!
LISTEN TO EPISODE 147- How to Cut Down on Your Business Expenses
STEP ONE – IDENTIFY YOUR COSTS
The first thing you have to do is figure out what you’re paying for. I’m mostly going to focus on recurring costs here. If you want to look at what different things you’re paying for each month, that’s a really different kind of evaluation. The recurring costs are a good and easy place to start!
How to Find Out What You’re Paying for:
- Check Paypal recurring payments (my recurring payments don’t show up, but you can try this)
- Check your bank automated withdrawals
- Check your credit card
- List out all of your paid tools that are recurring, not one-time
- Look at whatever you spent the last few months on your business (non-recurring)
STEP TWO – TAKE STOCK OF YOUR COSTS
Once you’ve got them all, make a big list somewhere. (Or a spreadsheet, if you’re that kind of person.) Then break down the costs in the same way. You can break it down so that you see how much they each cost monthly or annually, but make it even. (As in, don’t look at one in annual and one in monthly, as that doesn’t make sense.) Now it’s time for the deep, soul work.
Ask these questions about each recurring cost:
- Does it bring in money?
- Does it save me time?
- Does it bring me joy?
- Can I do without it?
- Do I have another tool that does the same thing?
- When is the last time I used it?
You don’t have to have a positive answer to one or all if you want to keep something. But these are the kinds of questions that will help you evaluate. I may keep something that brings me joy but no income. I may cut something that saves me time because my budget changed and I can do without it.
STEP THREE – CUT AND KEEP
If you can’t measure what it’s bringing you, haven’t used it in a while, and don’t plan to use it again, cut it out! Even if it’s a $4/month thing.
You might consider keeping something that you don’t use or that isn’t helping IF If you have upcoming goals and you WILL use it. Or if you think you might use it and the price will go up if you leave, then come back later. If you’re going to keep something for this last reason, make sure you’re not justifying to yourself.
STEP FOUR – USE YOUR THINGS
Whatever you keep, make a plan to USE it. If you are keeping a scheduling app for Pinterest, plan out when in your week you’ll use it. Really make these things you pay for work FOR YOU. Otherwise, cut them!
I’m a super clutter-y person and it feels so amazing to get rid of these things! I’ve been cutting down on some major expenses and it’s fabulous. I hope you can do the same and feel the same!
Want more planning tools?
Check out my annual planner!
Or sign up for the Digital Detox, a quick and fast email series with a small actionable decluttering item.