How To Live Within Your Budget

Posted by on May 11, 2012 in Blog

Living within your budget isn’t all that hard either; once you remove the negative beliefs about it from your mind and view it as a positive business tool. How can you live within your budget? Easy.

BUDGET AS A GOAL
Treat your budget like any other goal you set for your business. Rather than seeing it as placing restrictions on you, or killing your fun, treat it as a challenge or target to be met.

PLANNING
Just like you would with other areas of your business, ensure your budget is realistic, achievable and time based. Implement an annual budget and work back monthly, then weekly if that helps you.

Factor in all your regular expenses and other possible expenses throughout the year. Make sure your budget is realistic. It is not what you would like it to be, it is what it is. Work with that.

THE BEST LAID PLANS
Like any of your business goals, allow for flexibility. Often unforseen circumstances arise in all parts of our life and can throw everything into chaos. Leaving some padding in your budget makes living within it much easier!

FLEXIBILITY
Aside from chaos throwing itself at you, rules change, minds change and sometimes your budget needs to adapt with it. It may be simply that you don’t meet your income budget for a particular month or a supplier changes their payment conditions. Allow for this change rather than being determined to stick to it relentlessly.

NURTURE IT
Of course your budget is heavily influenced by your income. Make it part of your monthly business review and work it into your other goals for the business. Budgets work best when working with your other business objectives, not sitting out there on its own.

Check in on it regularly, adjust where necessary and give it some room to breath. See it as a partner in your business, rather than a constraint for it.

Budgeting is important for the longevity and the health of your business. Aim for the long term and see your budget grow naturally along with your profit margin.

TAGS: budget , business budgets , budgeting , business administration