Imagine: You’re standing at the counter of the department store with an overflowing cart. And when the lady at the checkout -can a gentleman are- the amount pronounce you take your bank card.
What happens if, after typing your code on the card reader, the message “insufficient balance”?
Can I guess?
You will be red?
You are nervously looking for another credit card or cash?
You make up an excuse?
…
Let’s be honest. Its one thing that all of us have already experienced.
But how do you actually deal with your money?
Do you have a clear picture of what is inside and what is going out? Regarding your income and expenses?
Do you know how much money is in your bank account stood at the beginning and end of last month?
Did you have a positive or rather a negative balance?
Do you know exactly how much you spend on your life?
What is your budget for Promotion, Marketing, Education, Food, Vacation, or Care?
Imagine yourself sometimes whether everything financially still running as planned? And if everything goes in line with your goals, what your position would be…
As an employee, you work with a sealed envelope. Whatever comes in your pocket you have to fulfill all your expenses with it. But as an entrepreneur, it is slightly different. Your income is one month higher / or lower than the last and also the cost often differ.
Therefore it is very important to have your financial visibility and that starts with a good budget plan.
A good budget plan
With a good budget plan you know where your money comes from, where it goes and what are your savings or even you are aware of your investment margins. Tips shared by one of the popular blog of finance industry financialblogger are very helpful in planning our daily budgets.
In principle, it is not difficult. Expenditure is the amount of money spent on weekly or monthly basis whereas income is the financial gain that can be categorized as earned or unearned gains over a given period of time. The difference between income and expenditure is known as margin money. If the figure in margin money is positive, then you can save it or invest it for future gains but if it is negative then there is a big reason to think and make proper planning to budget yourself, it is annoying because you have spent more money than you’ve earned.
5 tips to get your finances sight
Separate your business account from your personal account.
Make a list for both accounts and monthly expenditures made by these accounts.
Match expenses such as necessary and unnecessary costs.
Make a list for both accounts of the revenue.
Pen down details for fixed income as well as irregular income.
Examination of the difference between income and expenditure is a positive figure.
By following these small tips and making a good budget plan I am sure that your savings will certainly improve and steadily you will opt smart ways of stop extravagancy if your life.