Jeremy Tauri: Spend and earn more

A lot of people struggle with saving.

When you think about saving money, you probably imagine things like cutting costs or reducing spending.

A lot of people struggle with spending now to save money later.

Sometimes it is okay to spend more money in the short term if you are going to make or save more in the long run as a result.

When profit statements are better - and look like they will remain positive - it can be instinctive to spend more.

Here are some tips to help you get more out of your spending.

Get value.

It is important to remember to purchase based on value, not cost. Think about what you are going to get back over and the initial cost.

Some business spending is motivated by a desire to pay less tax.

This is usually a false economy - it is cheaper to pay the tax. Tax is based on profit, which makes your business more attractive if you are looking to sell in future. Finding more ways to reduce income or expenses can reduce the value of your business.

Spend on good advice.

You can learn how to increase income by talking to experts.

Accountants, lawyers and financial advisers offer a wealth of experience. Make them part of your team and see them more than once year.

Invest in technology.

I still see people with cellphones from the past decade. If you are in business, you need to upgrade. Phones are replacing PCs in many industries, so get some advice on what you could be doing better.

Donate to charity.

Charitable work is an excellent way to boost your business profile. It also allows you to network with contacts who may provide opportunities for greater gains in the long run.

If you are ready to spend money, do it strategically to maximise the long-term return.