Small business owners need to put something aside from every check they receive in order to save for their futures. I call it “Pay Yourself First” and it is one of the cardinal rules of running your own business. Yes, I know, you have a lot of bills. Join the club. But before you pay any bill, take any trip, or buy any car, you need to pay yourself first, every month.

The rule to consider is that 10% of your net income (or 1% of your gross income) should go towards financial investments for your future, no matter what your income is. While this may initially seem like a significant amount to those who are not currently saving, once you begin to pay yourself first, you will hardly notice that the money is missing from your cash flow. You can also start saving slowly. What I mean by that is you begin with say 2%, then increase to 5% and then within a few months, increase to 10%. For individuals and families who are currently spending their entire net cash flow, staggering the amount saved over a few months will ease the transition phase.

Don't wait for the end of the year to add to your retirement accounts. If you do this, you are unlikely to set aside the same amount you would if you started early and made regular contributions. For example, if you wait until the end of the year to save for your retirement, it is very possible that you would have used the funds designated for your financial future for other purchases instead. In fact, most people have a hard time with financial discipline when they can see their savings in their bank account on a daily basis. It is important to remember that a small business is a cash generating asset to take wealth out of, not just to have wealth locked up in. You work hard for your cash and your cash should work just as hard for you.

You must not settle for whatever's left over! Others get what's left over after you are properly paid, and if the leftovers aren't enough for the others, reduce staff and cut expenses. If that won't cut it, do the mercy killing now, not later, and move on. You must not con yourself into nothing now for later. If you can't take at least 1% off the top now, there won't be any later. Consider this statement strongly and review your current cash flow statement for areas that could be improved. Again, it should not be challenging to take 1% of your business's cash flow for your future retirement savings.

Let me share with you an interesting fact you may not be aware of. The personal savings rate in the United States has been approximately 4% since the late 1980s. That is half of what it was in the 1970s, and substantially less than other developed countries. The Japanese save at least three times the U.S. rate, the Germans double. At this rate, our nation's wealth will be considerably behind other nations over the next decade.

Many retirement plan options allow for deductions for either the small business owner's gross annual income or for the business. This presents a tax benefit in addition to the benefit of building personal wealth. When determining which course of action is the best for you to take, you should outline the benefits of each retirement plan, the process of establishing them and the ultimate outcome of your financial planning. Similarly, your company flexible savings account can serve as a useful tool to pay medical expenses and dependent-care expenses with your pretax dollars.

Understanding your financial benefits as well as those of your business can often be enough to compel small business owners to pay themselves first. So, discuss savings concepts with your CPA in your next meeting and work to establish a regular savings program that works for you and your business. Before you know it, you will have begun to build your future financial freedom.