So you don’t have a million dollars, well, try rubbing two coins together and working harder and smarter and learn to become more financially savvy and a better financial manager. It’s not rocket science.
Set financial goals
Write them down and be specific. People with written goals are far more likely to accomplish their aspirations. Establishing your business goals puts you in charge of your money and your life. Your goals can be a mix of short and long-term and to be achievable.
Create a budget
Track your progress towards these goals and revise them as needed. Just because the numbers are small is no excuse. It is easy to learn while amounts are small.
Know how you are spending your money
Your money can quickly dissipate each month. Use an accounting system and record everything. Too many people ignore proper accounting when the figures are small. These are the people who are looking to receive some unpleasant surprises.
Always save some portion of your pay
Putting aside a little from each payment will soon add up. A good saving plan helps you to accumulate good assets. Don’t fritter it away.
Start an investment account
Keep a balance of your savings divided between superannuation, property, shares and cash. The best advice is always to get rich slowly.
Invest now for your retirement
Even though your funds are limited, it is incredible how a little each week mounts up with compound interest and government incentives.
Establish a cash reserve for emergencies
Emergencies can be upon you without notice, be prepared. Reserves not only allow for harmful things but also to take advantage of attractive deals or situations which require some cash to be there.
Invest in loss of profits, key-man and disability insurance
You never know when you can fall on hard times. While most small businesses are always optimistic, they also think bad things only happen to others. Think again.
Don’t take any unnecessary risks
Keep insurance premiums paid up. Fire, burglary, delinquent accounts, public liability, car insurance and so on. Engage a reliable and practical insurance broker to ensure you are correctly covered. Never leave protection to chance.
Establish a good credit rating
While borrowing money can be wrong in some situations, in others, it can accelerate profits by leveraging other people’s money. An excellent credit rating will attract a lower rate of interest.
Avoid building up debt
Particularly on credit cards. Limit the number of credit cards you have. Keep your debt level within safe limits. How easy it is to accumulate debt, how hard it is to pay back.
Avoid opening up charge accounts
Pay as you go whenever possible and practical. Charge accounts can be another form of capital if responsibly utilised. It’s always easy to do some impulse buying on credit cards.
Be aware of taxation liabilities
We all have to pay taxes. Don’t make it any worse by having to pay penalties for late lodgements. If you have a problem talk to the tax people.
Engage a financial advisor with practical knowledge and experience.
An independent financial advisor can be a great asset in helping you understand and negotiate your way through the financial industry maze.
Choose a good accountant with practical knowledge and experience.
Someone who you relate to and is practical, reliable and delivers your financial reports on time every time. Give them good instructions and manage what you expect.
Look for a lawyer who is financially savvy
It is essential to choose a lawyer who is financially savvy to give you the right measured advice. Make sure your lawyer is an investment, not a cost
Set up a good banking package
Look for a suite of useful banking products that could save you hours in administration and bank fees. As a startup having difficulty here, you can look at running your business finance using your credit cards. It might be more expensive, but its a lot less stressful.
Have two bank accounts
If one bank denies you access to an overdraft or loan, you can still operate. Despite their marketing hype, banks have their interests at heart, not yours.
Set up a merchant account with your bank or a company like PayPal
PayPal’s services for merchants make it easier for you to get paid. Online, on mobile, in person or by email, anywhere you do business. Manage all your receipts and payments with a single PayPal account. https://www.paypal.com
Keep an up-to-date Will
You never know when your number is up. Therefore a will ensures your To have your estate is distributed as you would have wished, ensure you have a current will. Without a Will, your hard earned estate could finish up anywhere.
Teach your kids to set goals and save for them
Teach them to make smart choices, not sacrifices. Let your kids hear you talk about saving, paying off the car, putting money aside to celebrate a birthday, saving for their education and paying bills on time.
“Chase the vision, not the money; the money follows proper planning. Peter Sergeant
“Most people are motivated by a desire to make easy money. However, they fail to have their business activities aligned, making it less likely for them to prosper”. Peter Sergeant