Get a Boost with a Spending Freeze

It’s hard being an entrepreneur or small business owner and sometimes things can get tight. Why not try a spending freeze?

A spending freeze is a weapon in your arsenal against debt and it’s a big one. A spending freeze aims to take you down to the bare essentials. Nobody likes debt, and sometimes it takes a big change to launch yourself forward. The freeze can be just the thing you need.

Here are some ways to get your spending freeze started.

1. Make the choice to do it

All right, this sounds like one of those circular reasoning things, but it’s more than that. You have to make the decision to help pull yourself out of debt with the spending freeze on terms that you can stick to. It’s not going to be easy. Do what you need to do to ensure you keep it up. Visualize your goal; make a list of what you want; tell your friends and family your goal; see yourself the way you want to be and make the choice to get there. Whatever works for you to get the job done.

2. Create a “Wants” and “Needs” list

This is harder than it looks because we “need” so many things. Be harsh. You aren’t going to get ahead if you don’t pare down.

3. Stay positiveStay focused on your goals rather than the hardship of paring down. Don’t focus on doing it because you have to, focus on doing it for better living.4. Set a time limitHow long are you going to be on a spending freeze? You can’t be on it forever, so try to set realistic goals. A month? Three weeks? It might be better to start out small and work your way up to something longer. Or you might be the kind of person who rips the Band-Aid off fast and aim for a whole month. Either way, set a finishing line so you can see when you’ve crossed it. Put a time limit on your spending freeze (and don’t reward yourself with a spending binge.)5. Don’t do it aloneYou don’t have to be alone. Go online and find people who are doing the same thing. Or, try to find a spending freeze buddy. It’s not easy and having a support structure around can make all the difference.6. Initiate: Planning PhaseA decluttered lifestyle can help you here. Organize the spending freeze time period beforehand. Plan your meals, decide when you need to get gas, write down when your payments are going out. Figure out what needs to be done before you need to do it as much as possible so you will know to factor in the cost.7. Forgive yourselfI’m not trying to be deep and profound here (though if you choose to read it that way, I won’t stop you). What this step says is forgive yourself if you make a mistake or two along the way. Don’t dwell on them, but don’t ignore them. Acknowledge that you shouldn’t have spent and encourage yourself to stick with the freeze. Spending freezes aren’t easy. These steps are meant to help you along the way.Have you tried a spending freeze? How did it work out? Let us know in the comments below!

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Posted on January 21, 2013, in Biz Tips, Entrepreneur and tagged , , , , , , . Bookmark the permalink. Leave a comment.

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