Is creating a business or personal budget something you keep putting off? Many people don’t like the idea because they’re afraid they won’t stick to it. Or that it’ll restrict their spending and force them to cut all their expenses.
Maybe you’re not doing it right.
Creating a Business or Personal Budget Gives You Peace of Mind
Recently, when talking to my Steadfast Crew, someone said that they don’t like to look at a budget. It stresses them out.
But in all actuality, budgeting allows you to understand where you are in your income and expenses. And it helps you to make better decisions. Giving you more confidence.
So where does the stress come from? It’s from the part of your brain that thinks budgeting is putting limits on you.
But we know that’s not true…numbers on a page don’t limit you. It’s just what you think about those numbers.
So, I want to share 5 tips that will help you build a budget that works for you and is easy to manage. It’ll also help quiet those limited belief thoughts.
#1 Always Plan to Save More Than You Spend
- You never want to budget for a loss.
- Budget to spend less than what you’re making. So you can save more than you’re spending.
- Guaranteeing that you will never have a net loss budget.
#2 Your Business and Personal Budget Should Include Every Penny
When creating your budget, account for all of it until you have $0 left. List all your income. Then every penny of that income needs to be part of the budget and put into a category.
After you’ve listed all your expenses, there should be a surplus (because you are saving more than you’re spending). This surplus is part of the budget too. But you will want that to go into the savings category.
You’re business and personal budget accounts for savings too!
#3 If You Can’t Afford It, Don’t Buy It.
Using credit cards can be so easy to buy items that you actually can’t afford.
They have their upside – you can earn points and free money. But if you can’t manage them correctly, they will wreak havoc on your business and personal budget.
So stick to the rule – if you can’t afford it, don’t buy it.
#4 Plan for Miscellaneous Expenses in Your Business and Personal Budget
Each month plan on an extra $100-$200+ that can be used for miscellaneous expenses. There will always be times when unexpected expenses come up. Doing this simple trick allows you to handle them without blowing up your budget.
#5 Plan Ahead for Big Expenses
If you know a big expense is coming up, find ways to first cut variable expenses beforehand.
Variable expenses are the ones that don’t have a fixed amount every month. They could be things you spend money on randomly like eating out, shopping, personal care, or the coffee shop. Or they could be things where the rates vary based on usage, like your electric, gas, or water bills. Your weekly groceries could be variable expenses.
You can also try to negotiate down your fixed expenses. These are the recurring bills that are the same month over month with very little change unless you do something.
- Look for cheaper insurance
- Negotiate your cell phone or cable bill
- Downgrade plans
- Cancel memberships
If you can reduce these expenses it will help you offset the cost of that big expense you have coming up.
Learn More in Our Community Group
If you’re a business owner looking to stop living from sale to sale. And you want to create recurring revenue and ultimately create lifelong wealth, then you need to join The Steadfast Crew.
Each week I provide free live training, plus it’s filled with other business owners just like you who are all looking to achieve financial success. Click Here to join the group today!