by Lina Martinez
Have you ever started off a month with fresh wages in the bank and had the best intentions of what you are going to do with it all? But then by a couple of weeks later you are way over budget and struggling to cover all that you need to? If this is the case in your personal life, then it can be problematic. But if this is the case in business, then it can be even more problematic. Of course, there will be some things that you need to spend more money on in business. But there are some things that really don’t need to be bought, or can be a waste of money. It can be tricky, but being able to differentiate between the two is important. Whatever the reason for your overspending, if you are looking to take control of your finances, then these tips will help you keep your budgeting and your spending right on track.
Track Your Spending
Small purchases, if you make a lot of them, can be the things that can really add up. And by the time the end of the month comes around and you’re ready to pay employees, then you might not have enough for them. So taking active steps to track your finances is a must. In business, this is going to be imperative for your taxes, so make sure that you check your statements and that you check your receipts so you know what was spent and when. Plus, once you are more aware of where your money goes, you will be in a much better position to make better spending choices and spot the areas where you need to cut back.
Buy cheap and you buy twice
The old saying of ‘buying cheap and buying twice’ isn’t something that is always true. There are many instances where buying cheap is fine and it will do the job that you need. But when you are thinking about the things that you need for your business, then you need to think of what will really last, so that you’re not spending your profit on basic things for the business. For example, if you take a look at the overmolding process for tech equipment, you can see that it is something that will make your tech more durable, meaning that it is much more likely to last longer. So look for things like that, which are designed to last for a while, and then you hopefully won’t have to be replacing them any time soon.
Give Every Dollar a Job
If you want to curb your overspending, then you need to try to zero out the accounts that you have. And that doesn’t mean spending until you have nothing. Rather, it is all about finding a home for each dollar in the account, so that you’re not going to be tempted to go over budget on things. When you allocate money into sub-categories, then it can give you the information that you need to make some positive spending choices. So start to think about what you will do once a certain invoice has been paid or when a client has renewed their order with you. Of course, things like paying your bills first is a must, and then you can move money around to other accounts, to save, rather than have ready to access. By proactively deciding what you want your money to do and where it should go, your financial awareness increases. And, having that awareness goes a long way in helping you make smarter financial choices.