Everyone wants a better business budget however, not everyone knows exactly how to do that. If you are one of many who are looking for some simple steps that make all the difference you have come to the right place. Here are some simple steps to a better business budget that anyone can apply.
Often the simplest advice goes a long way. To start use a sheet of paper and write down the exact money you have coming in versus the money you have going out. This will help you visualize what needs priority and what does not.
Step One: Adding Up Income
It’s very important to add up your after taxable income. For some of us this is no easy task because our income varies from month to month. In this case you can add up your income over a couple of months to give yourself a general idea of the money you have coming in. Do not however add any kind of bonuses you “may” receive. A better business budget starts with being very smart about your finances and adding bonuses that you may receive cannot be applied because you cannot be certain you will be getting them.
Step Two: How Much Are You Spending?
For this you will want to make a list of all your re-occurring monthly spending. Draw up a list that includes; rent, mortgage, childcare expenses, utilities, car note payment, gas, groceries, etc. You want to add everything that you pay out even entertainment costs. This can also include, credit card payments, past due medical bills, and vehicle upkeep. Remember, A better business budget starts with you being honest with yourself about your finances.
Step Three: Everything Adds Up
Remember that everything adds up and often it is hard to think of all the things you may be spending money on. These kinds of “smaller expenses” can include, money you withdraw from the ATM on a daily basis. Everyone has from time to time taken “a few bucks” from the ATM. These smaller expenses cost money. If you do not use a bank machine you are being charged a withdrawal fee. If you drive to work and are required to pay a toll this is an expense that needs to be calculated. Some of us opt to take public transit to work and though this is a small fee, it is still important to add this to your smaller expense list because everyday these fees add up. Include in your better business budget even parking, drink stops, basically everything you are spending. This will show you exactly where the money is going and let you know if you have more going out than is coming in.
Step Four: Unforeseen Expenses
Unforeseen expenses can be the downfall of a better business budget. Birthdays, Holidays, a new pet, pet expenses, even a death in the family can certainly cause a hardship when trying to boost your budget. These are things that often can not be avoided so, it is important to give yourself a little extra when creating your budget and your out of pocket year end expenses.
Step Five: What To Cut Back On
We all have extras in our budget that we could and can cut back on. This could include buying different cloths that cost less. Buying a different cut of meat that you can save a few bucks on. If you have high entertainment costs like, movies, golf, go carts, etc. You can cut these out or not go out for these types of entertainment as often. You would be amazed how these cuts can affect a better business budget and get you on track to making more money and spending less.
Step Six: Look For A Free Virtual Financial Assistant
Sometimes the mere thought of a better business budget can scare many of us into thinking we can not possibly do this ourselves however, that is not true. You can “hire” yourself a virtual assistant for FREE. There are many programs on the market that you can use to help keep track of your finances right down to the very cent. There are even apps for your smart phone that allow you to track your spending and even the money you have coming in. Apps such as My Money Tracker, Mint Finance, or even Webexpenses are all worth downloading to give you a one-up on your finances. You don’t have to hire out an accountant to keep your money in check.
In general, any expense you can live without is a good expense to cut completely or cut back on. Having a better business budget does not mean you have to live in an expense free bubble. What it means is you control your money and not the other way around. It means you have the freedom to make financial decisions for the better of your future and stop living from paycheck to paycheck. If you are smart about your finances and use these six steps to a better business budget in time you will find your business portfolio has a little more room for comfort.