Updated: Jul 15, 2020
We all have bad money habits. From living with a “pay now, worry later” mindset to overindulging in business expenses you don’t really need (simply because you know payday is right around the corner), many of us face to poor money habits.
Here are a couple of beginning points to help you handle those common individual cash propensities that affect you and your business:
Pay Attention To Your Financial Education
In case you are on the lucky side and have already acquired some financial knowledge, you’ve got a head start to the race. Otherwise, your knowledge about money is limited to a straightforward earning/spending pattern, then it’s about time you brushed upon it. Put trust in your bookkeeper/accountant, but remember to keep your finger on the financial pulse of your business too.
Solution: Take the time to learn bookkeeping. A handful of quality books on money-management will do for starters.
Don't Make Your Savings Too Easy to Access
Ever attempted to save money, only to tap into your savings when something unpredictable comes up? If this sounds familiar, this is probably another bad money habit you need to kick. Often, even reliably putting a bit of your pay aside doesn't really prevent you from getting the money for out for unimportant reasons.
Solution: If you’re always overspending, it’s clear that your savings account isn’t growing. To kick this money habit, track and categorize all your expenses. Every weekend, sit down with your bank activity statement to order and find where each dollar is going.
Stop Indulging in Business Expenses That You Don’t Really Need
Many small business owners often adopt not-so-good money habits when they start their businesses. When creating a website for your business—do you really need that expensive website theme or pick a more basic one instead?
Solution: Be straightforward with yourself with regards to business purchases. A good rule of thumb is to practice a cool-down period before you commit your money to a prospective investment. Once you’ve got your habits in check, you can manage your business finances
So, on the off chance that you neglect to remain over your accounts, you'll never get a legitimate handle on how much work you can or should take on. These issues have a snowball impact, and they might hurt your business and lead to a big disppointment in the future.