The feelings of running your own business can be empowering, but it can also be stressful. You have both personal and business finances you must contend with and you must find a way to make ends meet with uneven cash flow. However, using effective ways to budget yourself when you have your own business can keep you off the roller coaster ride of managing your finances when you are the boss.
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Consider the following ways to budget yourself:
- Gain Knowledge About Accounts Receivable
If you send out invoices to clients, consider charging a deposit, change the terms of your invoice to NET 15 rather than NET 30, consider timely payment incentives, and start charging late fees. All of this would allow a more even cash flow.
- Give Yourself a Paycheck
Giving yourself a paycheck based on your average income of the last 12 months is an ideal way to budget uneven cash flow.
- Expand Your Products/Services
Options for expanding your product/service are endless and can include digital products or service, seasonal packages, or consult for projects related to your industry.
- Organize Personal Finances
Your business and personal finances go hand and hand, which is why personal finances should be as organized as your business. However, of course, this can be challenging if you don’t know where to start. Leveraging technology, finance apps, and loan calculators can be an excellent way to start keeping an eye on your wallet. While this might seem a simple implementation at first, it can revolutionize your life! Indeed, a website that you can access at all times from your phone allows you always to know how much you are spending, earning, lending, and borrowing!
- Track Your Money
Tracking your budget, monthly spending, and debt repayment in one location allows you to get a better sense of your financial assets and net worth.
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it is very hard to stay on budget and be disciplined when you are your own boss, this post have some great tips!
Thank you so much for sharing! Money in a business is so important and crucial to keep organized! Thank you for sharing!
Organizing your personal finances is really important when you are your own boss. It is not always easy to do that when it comes to personal finances and business finances.
Very sound advice. I try practice smart spending everytime. My parents always taught me to be wise with my finances. My sisters call me “Gal Frugal” but hey, if I can’t afford it, then I don’t need it.
yes giving yourself a paycheck is absolutely key! I have been doing this for a long time!
These are really great tips! A lot of people don’t really take time to organize their finances it seems these days, I’ve begun to teach the kids about it know so they can be on top of it as adults !
I like that idea of giving myself a paycheck. That way I don’t feel guilty spending on something for myself. Being self employed requires a good deal of financial management skills.
Great tips! I made the mistake of NOT staying on a budget last year with my blog, and we sure paid at tax time. So this is really important!
I find it easier when the money you spend comes right out of your bottom line. Much easier to spend someone else’s money!
Those are great tips for self-employed people. I would never have thought of giving myself a paycheck!
It is such a brilliant way to budget, for sure! Working for yourself is hard – finances can get messy.