Your business needs a budget, yes, but do you have one for you? Having a personal financial plan is just as important as having a business financial plan. This is for a few reasons. One is if you, as the business owner, is having financial troubles it will show through in your business. It will add stress to the workplace environment. It will cloud business decisions and lead to making bad business decisions.
Steps to help create a budget for you personally:
- Take a look at each area of your spending. Use your current spending patterns as an initial budget. I say this within reason. If your spending $3k a month on recreational activities you may want to take a look up front and see if you should cut back.
- Know your debt and come up with a plan to reduce and eliminate. Try starting with your smallest debt and get that one paid off first. Sometimes a victory is just the motivation you need to get pumped to get rid of excess debt!
- Build and maintain an emergency fund. Having at least 3 months living expenses in a savings account reduces anxiety should a major expense come your way.
- Open or start contributing to an IRA. Whether or not it’s a Roth IRA or a traditional IRA.
- If you have a child start contributing to a Section 529 plan to help prepare for future educational costs.
- Have a set of funds that you can invest. Make sure you keep track of the ROI on this. If you have a low ROI or a negative ROI readjust.
Take the time to look at not only your businesses financial plan but your personal one too.
And, as always if you have any questions do not hesitate to ask. www.eagleeyebookkeepingservicesllc.com