So your shop is finally paying off and bringing in the quid. For you, this means budget eats are not your only choice any more when you need to dine, and you can drink your favourite coffee at your preferred coffee shop. You also start thinking of weekend party nights to celebrate the success of your business.
But you need to slow down. Remember, you’re two months behind in rent, and your landlord can use the commercial rent arrears recovery statutory procedure to take control of your goods and sell them, so he can collect your dues.
It does not mean you can’t celebrate and treat yourself either. But it will be a sound move if you follow a budget plan that will not only make sure you pay the rent on time and take care of your monthly expenses but will also allow you to gain some extra money to cover the things you want to do.
So, if you have not done it yet, construct a budget plan now, keeping in mind the following tips:
List your priorities
Separate your needs from your wants. Rank your expenses from the most to the least. These include utility bills, food, rentals, taxes, and your personal allowance. This is how you will build your budget.
Set a limit for leisure expenses
You might consider this a trivial matter you can do without. The truth is it is acceptable to give in to your cravings and to things you want to do–from time to time. Sparing a part of your pay will make you feel you’ve used your money in joyful ways.
Keep something for emergency
This refers to your spare money you absolutely keep untouched unless there’s a need for it. That need can be budget shortages, unanticipated occasions or natural calamities.
Make your budget flexible
Keep in mind that as much as you thoroughly plan your budget, there will be situations where you need to make adjustments. For example, you’ve used up your emergency fund and you are just earning again, but the air conditioner in your store broke down. You would have to make sacrifices such as cutting down your food budget or postponing a trip you have been planning. You can always set it for the next month’s budget plan, but your customers will not buy in a store that feels as hot as the inside of an oven.
Creating a budget plan and sticking to it may not be something inherent in your system, but just think of the peace of mind it will give you know you can settle bills on time. That should make it a worthwhile decision.