When thinking about what to talk about on “strategy for money” the two words that came to me were ACCURATE and REALISTIC.
Some tips on how to manage your money better.
- GET RID OF YOUR DEBT
- Forward forecast your expenditure to budget wisely. Prepare for purchases that need to be made to ensure money is available.
- Set a goal, put steps into place, and stick to them. Unless you’ve got systems in place for saving money it is not going to work. A goal is just a goal and it’s not going to amount to anything unless you take action. You should set financial goals weekly. A lot of people work monthly and work annually but if you use weekly you can break it down far easier and set more manageable actions to make your goal a reality.
- Strengthen your money mindset muscle as well as your beliefs around money. Simply identify your attitude around money and alter it so that you start to see saving as pleasure and not pain. Reward yourself when you reach your goals too!
- Know your numbers and your spending habits. It’s about going in and simply tracking everything that you spend. Accurately and realistically. Then review it monthly and set goals on what you are paying for that you actually need or don’t need, awareness is really important. There are many ways you can reduce your spending and better your spending habits: Sell things that you’re not using, plan meals for the week in advance and do online weekly shopping to avoid impulse buying, check your subscriptions in case you’re still paying for something you don’t need or use any longer, pay your accounts and bills first. If you pay by a certain date you get it cheaper, make sure that you’re not just buying things but you are investigating them beforehand to make sure that you have the right thing and that when you have the purchase that you are using them properly if you don’t need it to get rid of it.
- Don’t under quote in pricing. Make sure your price matches the cost of your labour and equipment etc. and allows profit.
- Analyse your client’s spending habits so if you know that financial year-end or Christmas is quieter you have to put money aside for those times of the year. It’s important that your income and your client’s spending habits are in alignment there.
- The next one I’ve got is cash flow. You’ve got to make sure you’ve got good cash flow. You want to have an offer where people can pay upfront, subscription offers, bundle offers, all of these will help generate weekly cash flow.
- Get expert help. If you struggle with money and help reach out for assistance. If you need an accountability partner then find someone reliable to help you hold yourself accountable and keep you motivated.
Craig Budgen from Exceedia Accounting’s tips on why businesses fail:
- A lack of profit and often this was because their pricing wasn’t right so
- The poor cash flow you need to have all those multiple income streams and different payment options
- Irresponsible spending
- Overspending according to your lifestyle
- Undercapitalization is basically using your tax as a bank account, so you are hanging on to the money that you owe for tax and accumulating it because it’s going to increase the amount that you have to pay long term.
- Structuring your business correctly, so make sure that you have multiple income streams and you’ve got those funnels in place, your pricing is really good and you have a business plan.
- Act sooner rather than later meaning that if you have debt get rid of it
- Get help
- Take action
- Budget but more importantly forward plan, looking at what is coming up next week