1. Budget Every Week.
Being on top of what you’re earning and what you’re spending is key. You probably have a good feel of what income is coming in throughout the month. You’re also probably aware of the fixed expenses (bills) that come out of your account throughout the month. Have you been tracking the random charges that happen? I mean, beyond throwing the receipt in the shoebox under the bed? (You know who you are!)By tracking your spending each week, you really get a feel for the flow of cash through your life and your business.
2. Keep Spending Under Control.
Obviously, you can’t be financially savvy if you have no money! 😀 By tracking what you’re spending each week, you’re going to start noticing that drive-thru Timmy’s or Starbucks adding up. You’ve probably already noticed that NOT eating out during CoVid has affected your bank balance. What about the subscriptions to software or services that you’re no longer using? If you’re working with us as your bookkeepers, we’re usually bringing these kinds of things to your attention. If we haven’t mentioned where we see savings opportunities, just ask us.
3. Be Smart About Using Credit Cards
Let’s be honest here. You can’t eliminate using credit cards. There are simply too many companies (especially in business) that require you to use a credit card for payment. However, you do NOT need to use the revolving credit or leave that expense unpaid for very long.
Many have noticed how easy it is to get into trouble with credit card debt, because it’s so very easy to swipe a card. Think about this the next time you reach for you card, if you had to crack open your wallet and see those bills leaving your hand, would you still buy?
4. Have A Game Plan For Your Debt.
Debt. The bane and boon of our existence. You may have school debt, a mortgage, car payment, and-or credit card debt. The thing about debt is that it will continue to grow and sap your spending power. As the debt sits, it’s accruing interest, so is costing you more than what the item cost in the first place! So, having a plan to decrease your debt needs to be high on your list.
5. Add Unused Money To Savings.
I like to have different kinds of savings accounts handy: one for special occasions or expenses (think birthdays & holidays), one for taxes, and one for long-term savings. Planning to save is a great strategy for actually following through. These seem like common-sense items to most of us. However, getting started can be overwhelming. If you’re ready to get control over your money, give us a buzz, and let us help you make it easier. We have the tools and experience and will serve as your accountability-buddy through the process.