If you’re like me, you HATE budgeting!
I openly admit to really struggling with budgeting, however as a business owner, it’s irresponsible not to.
Only last week I sat in a seminar, where I assessed my process behind financial analytics and let me tell you, it was less than impressive and a very humbling experience.
By no means am I qualified to talk on this matter, so I’ve asked our friends at All Trades Cover to help contribute because it is a highly important issue and I want everyone to have access to experts that I never did when I was on the tools many years ago.
Budgeting seems to be one of those things that we all know we should be doing but tend to avoid. For tradies, it’s important to have a budget in place so you’re keeping up with your expenses and can keep track of where all your money is going. To get you started, there are a few simple steps you can take to put a simple budget in place.
Hassle free budgeting
- Write down where your money goes – The best way to start is to write down all of your expenses. This includes things such as rent or mortgage, bills and utilities and credit card repayments as well as day to day things like entertainment and food. This will help you clearly see where your money goes.
- Make small goals – Don’t be unrealistic about your budgeting goals and go too hard too soon. Cutting out your entire entertainment budget may seem like good idea but you won’t be able to keep this up. Small goals such as making your lunch for work instead of buying it is realistic and you won’t feel like you’re missing out.
- Use automatic transfers – Set up automatic transfers on your online banking account so expenses like mortgage and credit card repayments are taken out as soon as you get paid. Eventually, you won’t notice because the money is gone so quickly.
- Set some savings goals – Try to save at least a small amount each time you get paid and put it into an account which doesn’t have card access. Aim for saving 5% of your pay and increase this over time.
- Consider cash – It’s so easy to whip out our bank cards to pay for things and it can be hard to keep track of what you’re spending. If you’re one of the people who find it harder to part with cold, hard cash, keep your card at home and have some money in your wallet instead.
- Do your research – If you’ve been with the same companies for your phone, utilities and insurance forever, it might be time to do some research. Have a look around at different deal that are available and you might be surprised at how much money you can save.
A few simple changes
Making a few simple changes can make all the difference when it comes to your budget and you’ll hopefully no longer feel the panic of being down to your last few dollars in the days leading up to your next pay.
If you want to make sure that your insurance package suits your budget and your needs, have a chat to your insurance broker and they can help you out. At All Trades Cover, they specialise in offering insurance to tradies so they understand the specific needs of your business.
To discuss your insurance options or for any other questions, contact our friends at All Trades Cover through www.alltradescover.com.au and they would be happy to assist. To make things easy, they also have an easy online form so you can request a quote.