Your habits around money will dictate your relationship with money for years to come, and chances are, it might be time to clean up your money habits.
Money is a touchy subject for a lot of people, especially women. It doesn’t have to be that way.
You own a business. You don’t have to apologize for talking about money. In fact, you should be thinking about, observing and measuring money on a regular basis.
There are 7 things that you can do as a starting point to clean up your money habits.
1.) Separate your businesses finances from your personal finances
Commingling your money is a recipe for disaster. When you can’t easily track what is going in and out of the business and separate that from your personal funds, you will create a huge headache for both yourself and your accountant. You should also assign a credit card for business expenses only so that you don’t mix up those expenditure. The benefit is you’ll know at all times how MUCH your business expenses really are.
2.) Keep your receipts (and organize them)
This may sound tedious, but things go wrong – having a paper trail of what you’ve bought is really helpful when problem solving or when facing an audit. Keep in mind, just keeping your receipts won’t help, it will be a nightmare if you don’t organize them too. Whether that is by date, product, or price range, make sure you’re organizing your receipts in a way that you can easily go back and find them.
3.) Respect your money
Respecting your money is really important. What does that look like?
Let’s start with your wallet, what does it look like? Is your money sorted with heads facing the same way or is everything disorganized and messy?
Do you pay attention to the price you pay for things, and ensure you are not over spending? Or do you spend with no consideration of value?
Are your bills being paid on time? Do you spend frivolously on things that don’t matter or do you invest wisely? How aware are you of exactly how much money comes in and out of your bank account?
Knowing and doing the right thing is how you start the process of respecting your money.
4.) Don’t spend more than you make
That’s common sense, right? Not at all. Unfortunately spending less than you make is an uncommon thing now that we’re living in the world of credit cards and loans. Stop spending more money than you’re making and create a buffer in your business. Prioritize what you need to be spending. Anything above and beyond that should depend on how much you’re bringing in.
If you need an 84 month bank loan to afford the car of your dreams, chances are you’re spending outside of your price range.
5.) Pay attention to what you’re investing in, and what that return on investment looks like
Everyone tells you that you need to “invest” in yourself and your business if you want to grow. While this may be true, you also need to invest at a level that doesn’t put you on the verge of bankruptcy. When you track your investments and the ROI (return on investment), you can see patterns and make better decisions about what you should be doing in the future.
When I started my business back in 2008, I spent $2,000 on an online program to teach me the business of running an online business. That course was pivotal in helping me to know what to do. Over the years, the ROI has been in excess of 2M in sales. Had I not taken that program, I may not have generated the results in my business as quickly as I did. One thing to note – this was not self help. It did not sit on the shelf never to be used. I did the training and was fanatical about implementing my learning.
6.) If you don’t understand numbers, learn or hire someone
The numbers in your business shouldn’t be tucked away and avoided. Eventually, it will come back and bite you in a way that is not pleasant. You can catapult your business to the next level when you truly understand how the money flows in and out of your business. Measuring What Matters is a chapter in my book, Pilot to Profit. If you don’t get numbers, I suggest you at least start by reading my book. If you can’t see and track your money, you need to double down and learn, and/or hire someone to teach you.
7.) Be AWARE of your money
You should be tracking your money weekly and logging into your bank account daily. Be aware of what is in your bank account at all times. Understanding where your money is going is crucial to cleaning up your money habits. You don’t know, what you don’t know until you know.
Don’t let surprises such as taxes owed, overdue payments, or running out of money happen without your prior knowledge.
#Money shouldn't be a touchy subject, and it may be for you. Let's change that. Click To TweetWould you like to change how you feel about and treat money in your business?
The annual Money, Mindset and Marketing Event is being held in Ottawa. It’s a full day event for business owners focused on the things that will help you change the trajectory of your business.
If you feel intimidated by the money and numbers in your business, if you really want to clean up your money habits, then I want to meet you at this event. This year’s focus is to apply what you learn which means you’re going to roll up your sleeves and start taking action in your business right away.
What are your tips for SOLID money habits? Leave a comment below and share one thing you’ve done to change your relationship with money.
