It’s that time of year when millions of Americans start anticipating their government tax refund. As a small business owner, I am just praying I don’t owe Uncle Sam a penny. Last year I got back $21 and I was so excited. Previous years I was zeroed out or I owed less than $500. So, that gave me little joy.
So many people just jump head first into starting a small business with their only thought being about making money. They don’t put any time into how they will manage the money once it starts rolling in, especially not when it comes to managing how they pay themselves. Clients always ask how do I manage my income. Here’s my answer.
If you are like most individuals accumulating wealth is important to you. Not because you want to be on the Forbes list or something of that nature. More so to have security for you, your family, and for generations to come. However, we all know that most people are spenders not savers. Earlier this year, I decided to join the savers. Last year, I did a plethora of work to get my finances on track but this year I really took it up a notch.
If you are person who grow up in home where money was not talked about and you were lost when you became adult here are some things I learned this year that has helped my personal and business life so much.
We are all unique and different when it comes to so many aspects of our lives. In recent years, I have learned that financial education truly does differ. Not just simply based on race, but so many other factors play into how people treat money in their personal and business lives. In order for your business to thrive you need to understand how to manage your money in a way that works for you. What works for one might not always work for others.
Being financially responsible is not just important for your personal life but it is extremely important for your business to stay out of the red. One of the things I repeat constantly over and over to clients at ICB Consults is all the money you make is not profit for you to spend on a new Michael Kors bag. Business does not work like that. Trust, I wish I could keep every penny I made, but that’s not the case.
In the middle of the month or even towards the end do you feel like you are scraping by to make ends meet? Are you living paycheck to paycheck? You are not alone in this matter, millions of American’s are living just like you. However, you can change that by doing a couple of things. It is really simple to create and live on a budget but we make it hard on ourselves.
Our 5 Steps To Quit Your Job To Purse Your Dreams was a huge hit. In addition to that, it seems the 12-18 months of savings was a conversation starter for many of you. This is one of the most important parts of pursuing your dreams. Having this safety net is what is going to help you when tough times hit your business. Here are some simple ways to automate your personal savings so you can ensure you are creating an emergency fund for your leap to the entrepreneurial realm.
As of recently, more and more Indie Go Go, Kickstarter, Kiva and Go Fund Me campaigns have been popping up for people wanting to fund their ideas. Crowdsourcing is something we have discussed before and how there is good and bad it just depends on the person who is doing it. Right now my friend Lauren of Stretch Recipes is trying to raise $25,000 for technology for her company through campaigns. A really great company needing help, with limited resources.
There is something about walking into the bank and being greeted by my first name. There was a point in time I only received a Hello. No eye contact or anything just the standard hello welcome to bank of america. I never really thought nothing of this until I launched my business. When I first launched my business I was using Citibank to handle business and personal. They are amazing and truly taught me what it means for a banker to care. However since moving I switched banks because there are no Citi’s in my town.
For some reason when people start out in business they shell out mounds of cash without realizing. As business owners we must be smart about how we spend our money, but more importantly, we have to learn how to save and grow our finances. In one of my previous articles, 3 Every Day Money Management Tools, I discussed how using certain software and websites have helped me take control of my personal finances. There is a plethora of ways to save money in business that can help you advance your business plus create emergency fund for it.