How can I properly budget for business?
I was talking with a friend today and was having a rather jovial conversation when she most randomly asked me if I keep the receipts for all my purchases. Though I was blindsided by the tangent streak, I was quick to respond with a 'YES'. She then asked me if it helps me to not have to live from paycheque to paycheque, and again my answer was 'YES'.
There are some friends who seem to think I am always broke because I always say, "I am broke", but the reality is, I save and I plan. This is something I learned naturally through my years because of a fortunate run in business stemming from an the ripe age of 18.
I noticed that when running a business you do not ever consider buying frivolous items and no one seems to ask why. Without even thinking about it, I began to just pay my personal bills and and that was it. Every now and then I will buy myself a 'treat" or something special, but really, I have found it loses its' appeal anyway when you treat yourself daily.
When I was younger I noticed that my friends who still lived at home with their parents seemed to always use their bank card as though it had no limit. They were always surprised at how they had no money when "it was just payday!", and they could never figure out where their money was going. There was a lot of blame going on about how this waitress did not give back change, or that person stole $20.00...When it really came down to it, they were just being really loose with their bills.
It was around this time that I began keeping all of my receipts just so I could see where I was spending my money, and where it could be better spent. I then put it on a spreadsheet to see if there was a specific area where I was spending more foolishly. (There was, but thats a different story altogether!)
I urge anyone who is struggling to try it out.
You don't even need a computer! All you need to know how to do is make a grid. Down the left column write the numbers from 1 - 31 (depending on the number of days in the month). Label each vertical column however appropriate for your spending (ie. Tim Hortons receipt goes under the heading EATING OUT). At the end of the month add up your columns...Chances are, you will be surprised at what you have been spending your money on, and I bet it will make you think twice next time you go to do whatever it is that takes up most of your money.
I am aware that we have online banking and it is a real godsend for those of us who like to keep track, but this grid takes things one step further in showing you specifics.
I hope this helps you as it has helped me. Good luck and happy spending!
There are some friends who seem to think I am always broke because I always say, "I am broke", but the reality is, I save and I plan. This is something I learned naturally through my years because of a fortunate run in business stemming from an the ripe age of 18.
I noticed that when running a business you do not ever consider buying frivolous items and no one seems to ask why. Without even thinking about it, I began to just pay my personal bills and and that was it. Every now and then I will buy myself a 'treat" or something special, but really, I have found it loses its' appeal anyway when you treat yourself daily.
When I was younger I noticed that my friends who still lived at home with their parents seemed to always use their bank card as though it had no limit. They were always surprised at how they had no money when "it was just payday!", and they could never figure out where their money was going. There was a lot of blame going on about how this waitress did not give back change, or that person stole $20.00...When it really came down to it, they were just being really loose with their bills.
It was around this time that I began keeping all of my receipts just so I could see where I was spending my money, and where it could be better spent. I then put it on a spreadsheet to see if there was a specific area where I was spending more foolishly. (There was, but thats a different story altogether!)
I urge anyone who is struggling to try it out.
You don't even need a computer! All you need to know how to do is make a grid. Down the left column write the numbers from 1 - 31 (depending on the number of days in the month). Label each vertical column however appropriate for your spending (ie. Tim Hortons receipt goes under the heading EATING OUT). At the end of the month add up your columns...Chances are, you will be surprised at what you have been spending your money on, and I bet it will make you think twice next time you go to do whatever it is that takes up most of your money.
I am aware that we have online banking and it is a real godsend for those of us who like to keep track, but this grid takes things one step further in showing you specifics.
I hope this helps you as it has helped me. Good luck and happy spending!
