Forums: Discussions for entrepreneurs and small business.

Hey guys, my cousin and I are starting our own small business, we are going to try starting it up at least a year from now, my cousin and I want to have about 10k each before trying to get a loan also..

I`m starting a part time job soon, and im about to get a little bit over $600, instead of spending it..I want to save it and start off good on having a good amount of cash to save off from..

whats a good way to save the money? putting it in the bank the best way ?
what type of bank account ?

or if anyone else has any other ideas..

thank you.

hi gakhteebo,

It could take a while to save up that much cash, but I say go for it!  I am kind of doing the same thing, trying to save $5000 by designing logos part time.  You may want to park the money in a money market account so it would get about 5% interest and you could pull it out whenever you need to.  It won`t make you rich, but by the time you have the entire $10,000 saved you will not have lost any money because of inflation. 

Jim

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I need $5000 to start my new business! If you need a logo designed shoot me an email. I`ll do a logo for $75.

sprouse83@aol.com
www.sprousedesignsolutions.com

Someone was actually telling me about the money market account last night, I`ll look into that, thanks for the quick reply!

All banks are different but usually you will not get more than 1-2% from a money market unless you have a really high account balance. MM`s also require a minimum balance of $2k-$5k. 

Your best best will probably be an online savings account, such as ingdirect.com, there is no minimum balance and you will get 4-5% interest.

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Rebecka Melson | Virtual Business Services | www.vbsofok.com

Capital One has a money market account that is gving about 5% interest. ALso as someone said earlier so is ING Direct.  Check with your local banks as well. They may have an automatic savings program that can help you save the money.

The main thing is to remember what the money is for. Do not tap into it for any reason. Life will come at you fast, if you are serious about the business then do not fall to the temptaion of tapping into the savings account specifically for the business.

Is the $20,000 you plan to save for working capital or living captial?  Make sure you are saving money to live off of as well.

the 20k my cousin and I plan to save is just for the business only, I mean I have around $600 right now, and at the moment im not paying any bills, so its easy to save, also im not talking about saving all of my money..

just some and eventually to get to 10k myself and along with my cousin`s 10k. and it wont be hard for him since he makes a nice amount of cash.

I`ll check this stuff out though thanks for all the replys everyone.