Here are tips for an organized, logical approach to managing your expenses.
Categorize your expenses as short-term (may change within 6 months), long-term (may last up to a year), or fixed (rarely change). Then rank them in descending order of cost within each group.
Create a schedule to review each expense. Review short-term expenses more frequently than long-term costs because you can change these more easily. Look for more opportunities to cut costs.
Establish goals for reducing each expense by a realistic percentage. If you have employees, assign someone to each cost-cutting goal, or consider rewarding employees for finding ways to cut costs.
Note: If you own a small business it’s especially important to control expenses. The consequences of a smaller company spending too much are far greater than for larger companies.
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