86% of Australians don’t know their monthly expenses !!

As a business owner, I think one of the BEST things that ever happened to me was being BROKE. Because I had to account for every single expense I had. I had to know my numbers so well and had to know exactly how much money I needed to stay afloat. It was this diligence that afforded me buying a house last year.

As we start the new financial year, not only do I reflect on income and expenses, and review what worked and what didn’t, but I plan and forecast for the new year.

It is imperative that business owners are fully aware and focused on both their personal and business finances, and NOW is the perfect time to DO THIS.

This blog on end of Financial year planning, budgeting, and goal setting will guide you through the process of budgeting and forecasting and I have included a Template to easily complete. From there, you will be able to work out where you could be cutting costs, and where you need to improve your income. Then you can set some goals and targets.

In my previous business, I always found this ‘funny’ when people said it was too expensive to pay $40/week to go to a gym when they posted on social media every weekend while drinking cocktails.

Did you know, 3 x $20 cocktails every Friday night is $3120 per year. OMG!

Now no-one is saying DON’T DO THAT, however BUDGET for it. Give yourself an allowance on when, how much and how often. You’ll find you now appreciate cocktail night (and less Saturday headaches) and will have the $$$ to spend on more valuable things (like development in your marketing and client generation – I couldn’t help myself lol)

Here’s another example…

If you stopped buying a $5 coffee every day, you save $1760/yr. You could buy an Aldi coffee machine for $90 (if you have a home office you can even write it off) BOOM.

PS. I buy my biodegradable coffee pods for my Aldi machine from URBAN BREW.

All successful and profitable business owners KNOW THEIR NUMBERS, so if you want to be one too, then READ ON on How to End of Financial year plan, budget, and goal set.

Did you know the living cost in Australia per person is $2835/m which is $654.23/w and $34 000 per year. Rent / dwelling is $445/w, food is $215/w, recreation is $211/w and insurance & financial services is $176/w.

Think for a minute, how do you factor into that equation? Without a budget, things can spiral out of control. Knowledge is power.

I remember when I first did this exercise, I saved about $500/month in unnecessary spending and although the first few weeks where tough, I enjoyed all the ‘fruits’ that come from all my savings eg. House, car, twins’ car….

Do this exercise for both your personal and business finances.

(Please note this is in my opinion, not professional advice and you should also consult your bookkeeper and accountant)

1. Get a handle on your expenses:

Did you know there are 4 types:

• Variable expenses- Expenses that vary from month to month (electricity, gas, groceries, clothing).
• Fixed expenses – Expenses that remain the same from month to month(rent, cable bill, car payment)
• Intermittent expenses – Expenses that occur at various times throughout the year and tend to be in large amounts(tuition payment, car repairs)
• Discretionary (non-essential) expenses – Expenses for things we don’t need (eating out, gifts, snacks)

If you don’t use something like xero, download your bank statements and summarize into categories your expenses. I used Microsoft Excel spreadsheet.

This will surprise you and I’m sure you’ll find things to cut back on

• Accounting
• Bookkeeping
• Bank fees
• Travel
• Education
• Office Equipment
• Client expenses/gifts
• Networking

• Expos
• Stripe Fees
• Ezidebit fees
• Rent
• Insurance/financial services
• Motor vehicle
• Office printing postage
• Software subscriptions
• Cleaning
• Telephone
• Internet
• Vas
• Groceries
• Recreation
• Superannuation
• GST
• Tax
• Medical
• Pets
• Childcare
• Loans
• Debt

2. Track your Income:

• One on One
• Group programs
• Specific Products
• Bundles
• Management services
• Workshops
• Expos
• Networking
• Online Programs
• Grant subsidies
• Rent
• Welfare
• Investments

To help with your end of financial year planning, budgeting, and goal setting, now look for ‘hidden’ savings.

Where can you renegotiate the price? How can you reduce costs? Perhaps price search before buying? What can you do without eg. Spotify, Netflix etc. I am not being ridiculous. It all adds up. And if you not earning, you can’t avoid it right now.

Too often we spend above our means and put unnecessary stress on ourselves, which contributes to underperformance, overwhelm and anxiety.

To help with your end of financial year planning, budgeting, and goal setting, now look at where you got previous income from. How can you replicate or improve what has previously worked? Then look at untapped sources you can work on. And if you need to get a part time job to ease the stress, then do so.

It can help reduce stress as it supports you through working on your business.

How to start saving and improve your end of financial year planning, budgeting, and goal setting?

“WHAT? SAVE? When I’m struggling right now?”

? I put aside 30% of of my income every month for tax, gst and unforeseen expenses.
? Explore various savings account and be sure to maximize them by suing them as they are meant to be used.

To help with your end of financial year planning, budgeting, and goal setting, now
look for ‘hidden’ income.

Money is everywhere

Examples:

• Coffee cards: Buy 10 and get one free
• Coupons: Online and on receipts
• Rewards cards: Save on fuel
• Pay your credit card on time and save
• ING: 5 transactions and $1000 deposited and you get higher interest
• Annual car rego and insurance
• Sell unwanted clothing and furniture

3. Forecasting Your Finances

Now that you know your income and expenses, and have cut back on expense, then it is time to GOAL set for you the next financial year. If you work week to week, do weeks.

? If monthly, work it out monthly etc.

? Set weekly SMART goals. Specific, Measurable, Attainable, Realistic and Timebased goals.

? Vision board it.

? Get excited about it. Look at it every day and read it out as an I AM statement.

? Money is energy. Check your attitude towards money.

? Your thoughts backed with feelings will create your reality.

Many business owners can often feel a little down regarding their finances, their
business and the ‘recession’. My question is “what are you going to do about it?

Are you running AWAY or TOWARD progress?

If you are wanting more on marketing insights and strategies, connect with me for more free content, resources, and training.