Balancing motherhood with running your own business can take a toll on your pocket if finances are not managed effectively. How do you clearly set the difference between domestic finances and finances for your business and stay on top of your financial game? Here are a few tips that could come in handy…
- Set goals and have priorities
The first step in any financial journey is to sit down and reflect on your financial activities or spending habits and the progress you would like to make financially. Having this in mind will help you to set goals that are realistic, time-bound and measurable, such as saving x amount of money by within the next two years. This helps you to stay focused and organized in working towards your financial goals and keeps you from making the same financial mistakes.
- Have a budget
Keeping track of your finances will seem less cluttered if you have a financial plan or budget. This will help you identify which areas take up most of your finances and to clearly determine what amount goes into which activity. Having a budget also sets a limit which guides you in knowing when to spend and when to let it go. As a result, your costs are minimized, and expenses are better managed.
Little drops of water really do make a mighty ocean. Putting aside some money to save after expenses can be quite difficult but proves to be worth it in the long run. Although saving some money in the bank is one of the best financial ways to go, it also helps to have your money “working for you” by having an investment account or investing in shares and treasury bills. It’s advisable to pay attention to the interest rates as well as the reputation of these shares or investment banks before investing in order to reduce risk as much as possible. Every little bit helps in investing as it yields some financial returns in the long run. Who knows, that could even be the capital you need to start your next business. Start as early as you can, as it’s never too early!
- Have an emergency fund
Now this is different from investing and is more focused on having something to fall back on in case your business for example runs into some unforeseen circumstances. This is especially handy for small businesses as sometimes profit may be far less than expenses in the beginning. The emergency fund could be a percentage, no matter how small, of the money you make from each business transaction, to help ensure that your money does not run out before you know it; and to prevent you from being in a tight spot should any emergency arise.
- Make use of financial tools
The good news is you never have to face all the figures alone. Thankfully there are several financial tools and apps like QuickBooks, that make financial activities such as bookkeeping easier and more effective. If you need to issue an invoice or receipt for a transaction, there are also simple templates in Microsoft Word that makes the task simpler. We are also in the age of online banking, where you can easily check your account balances and make transfers without making the trip to the bank.
Keeping track of all these financial numbers can be quite overwhelming, but remember, there is a whole community of mompreneurs out there making a difference, just like you! Here are a some more practical financial tips from some mompreneurs who share a bit of their financial journey…