As an entrepreneur, you have to be able to balance your personal and business budget. To maintain and grow a financially stable business, you have to develop a daily budgeting routine. Here is a list of the first steps in your journey to becoming financially secure and scaling your business into a powerhouse.
Step One: Be IntentionalWhenever you are planning to make a major change in your lifestyle, you need to know the 'WHY' behind your goals. Write down the primary motivation for achieving each of your goals and use this as a daily affirmation. Why do you want to save X amount of money? Why do you want to invest x amount of money into your business?
Step Two: Evaluate Income/ ExpensesAnalyze your income and spending over a typical 1-2 month period. Write down how much you are bringing in from all sources of revenue. Then list your fixed expenses such as rent, utilities, car payment, and insurance. Next, make a note of your expenses that fluctuant, like food, entertainment, and shopping. You may be surprised by what you find.
Step Three: Define Your BudgetLook at everything you wrote down from step 2, do you feel like you've been spending money wisely? If not, you need to make a few changes.
For example, if your goal is to have a savings of $10,000 in the next six months, you need to save roughly 1,700 dollars a month. Subtract $1,700 from your monthly income. Do you have enough money to cover your fixed expenses and other essentials such as food? If no, then you should re-evaluate your ability to reach your goal and adjust it.
Step Four: Stay Connected and Be ConsistentUtilize your bank's mobile apps to set up balance reminders, take advantage of investment opportunities and savings programs. They will also give you immediate access to your bank account information in case of an emergency. Use these apps to remind yourself of your goals and to make adjustments when necessary.
Financial literacy is an important skill to have when running a business. Our Bougie Business Bunch Membership program gives you access to weekly group coaching from business and finance experts. They will provide you with tips to grow your company successfully.