As entrepreneurs, even though our end game is to make money, we can get into some pretty bad money habits while we’re trying to run the money-making parts of our business but not paying enough attention to them.
But it’s almost a new year, and that means its time to set some new goals. So if you’re looking for some money habits to include on your goals lists, this is what I’d recommend.
Create a Business Budget
Raise your hands, who honestly doesn’t have a business budget? And if you do have a business budget, do you regularly refer to it or do you create it in January and forget about it until next January?
I’m guessing many of us fall into one of the two categories, which makes this habit really important to get into. Much like your personal finances, your business needs a budget! Budgets are great money habits because they help you stay on track, hold yourself accountable and, most importantly, ensure you have money to spend on the right things when you need it.
Not only do you need a business budget, but you need to follow it. Your business budget needs to be a document you regularly review and measure yourself against. A budget that you don’t use is simply a bunch of random numbers written down.
Reviewing Your Books Weekly
It is really easy for your finances to get out of hand. And I’m not necessarily talking about spending-wise, though that is relevant too, but organization wise. Once things are disorganized, they tend to stay that way, making the end of the year to be a terrible time spent sorting through filed emails and improperly named invoices.
But if you review your finances weekly, you’re much more likely to have better books. And if you do it on a weekly basis, it won’t be so bad. A mere 15 minutes a week can save you hours of headaches at the end of the year!
Make sure to account for every single purchase. It’s really easy to forget the small things, especially if you’ve purchased them on your personal card. Your business expenses are genuinely worth something when it comes to tax time so make sure that you’ve accounted for everything in your weekly review.
Grow Your Financial Knowledge
Successful entrepreneurs know that learning never stops. If you want to grow your business, you need to grow your knowledge. Likewise, if you want to improve your finances, you need to put some effort into growing your knowledge.
Something small like taking 20 to 30 minutes a week to learn about finances will go a long way in the long run. I know its hard to give up potential business building time to read a book or take a class, but consider it part of your professional development.
Some great business-related books on my personal reading list include “Start With Why” by Simon Sinek, “Get Clients Now” by CJ Hayden and “The Millionaire Fastlane” by MJ DeMarco. And you can find great free courses all over the internet, but edX and Coursera have some great ones.
Separate Personal and Business
I genuinely hope that you’ve already separated your personal and business expenses, but if you have not now is the time. Separating your funds will help provide clarity on your money and make your taxes so much easier. Plus, in my experience, it’s relatively inexpensive to do!
Do you have other great money habits? Share them with me in the comments below!
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Tae started out as a journalist before following the money into the corporate world. But it turns out that the grass isn’t always greener and now you can find her spending most of her time writing about all the things she loves. Namely, money, travel and business with a hefty dose of self-deprecating humor. She is a podcast fanatic, blogging aficionado and loves to find new ways to turn passions into cold hard cash!