Even if you aren’t a farmer, you know very well the plight of money pulling a disappearing act. You always end up with less money and more debt at the end of the month than you originally anticipated. Now, imagine a business with the same problems. Not very optimistic, is it?
So, cutting expenses and corners is essential for survival. Operations (like fuel, electricity, mortgage, etc.) can, and often do, drain a huge chunk of your budget, even after you have taken care of the direct expenses (seeds, buying livestock, food for the livestock, fertilizer, and so on). Here are a few pieces of advice on how to curb spending.
Sometimes we get overexcited because of the next big thing. Maybe you want to expand your corn-farming to turnips and wheat. Instead of keeping only cows, you may want to start breeding horses. Your friends told you about the new combine harvester that’s amazing? That’s fine and dandy. Sometimes, though, we figure that we don’t have enough to invest in something weird, and wind up losing a great opportunity.
Make sure you prepare a partial budget. You don’t need to be a farmer to know this is a good idea. Whenever a new project comes along, set aside a small capital. Do proper research on this new project of yours. Search online what the people are saying about the new technology and anticipated growth in the worth of grains. You should know better than anyone not to put all your eggs in a single basket. If the project succeeds, great! If not, you didn’t lose much.
A Nest Egg
Sometimes life hits you hard. That’s nothing to be ashamed of, and there are things no one can anticipate. There are natural disasters like drought or hurricanes. You can’t control that – that’s force majeure. However, you can get prepared well ahead of time.
Set aside a small quantity of money. It doesn’t have to be much – even a couple of bucks a day will do. Make sure though that your deposits are done every day, and that you don’t dig in unless absolutely necessary. That’s your rainy-day money.
Another option is to buy insurance. Do your research and make sure it is something you can afford. That way you get all of your bases covered. If you can’t afford it, invest in your mattress again. That money will help you survive.
Don’t Be Wasteful
Be frugal in your personal life. Not in a way that makes your kids wear rags and eat gruel, but in a way that you don’t buy the things you don’t need. There is no need for the Super Mega-Harvester 5000 that makes cocktails while doing all your work for you when all you have is a few acres of land and two goats.
Consider how much of your resources you waste daily. Do you need all the lights on? How much fuel do you have to use, really? You need to consider what you have to keep, and what you need to let go.