Money just doesn’t grow on trees does it? It baffles me to talk to people who want to buy a house or car and they don’t even know their credit score.
Don’t get me wrong, it’s a pain in the butt to play the game with credit cards and showing payments. You’re rewarded to take credit, but to not have to use credit.
In Germany, your credit is great if you aren’t using it. You get rewarded when you don’t have a credit card and you pay your bills. In the states, you have to get credit cards, use them, and pay them off to show that you’re capable of dealing with credit.
Ignoring your finances isn’t going to help you, but I think we all know that…
How do you start paying attention to your finances when all you want to do is ignore them?
You want to make sure that what goes out, came in. You need to start a savings account and get credit. How do you pay attention to that when you’re already running a business? Having time for your finances is difficult when you’re working with clients and marketing your services on top of everything else.
Start with writing down your budget.
What are those every day and every month things you’re spending money on? How much do you spend on groceries? What’s your average utility cost? Your rent? Gas? What do you pay for your car? What’s your insurance? Are you putting anything into savings?
Have your monthly expenses in a list. This will also help you keep track of what’s coming out so you don’t get double charged or charged for fraudulent purchases.
The next thing that helped me is looking at that budget and setting goals.
Say you need $2,000 a month to pay all your bills like your car, house, etc. That’s the minimum you have to make to survive. This is where you’re comfortable, but what if you made twice that much? Then you set your dream goal. Double it up again.
Now is where you start tracking your income goals.
In the ProtoPreneur Planner, there is a monthly spread where you calculate your daily savings and income goal to track how close you’re getting to your income goals. You’ll find out if you’re reaching your daily income goal or if you need to make changes.
Why is that important?
If you’re just a little bit like me and you get all excited about passion projects, your head may be in the computer for days and then you forget to do anything else.
Your business may have evolved from the projects you’ve been working on, but you didn’t get a minute for client projects so you can pay the bills.
Tracking your income and project planning on a daily basis will help you with that.
Another thing I do is track the money that comes in each month.
I track the paid work I do in my planner on a daily basis. I also have a whiteboard for each month with my income goal and thousand dollar boxes that I fill in the moment money hits the account. When an invoice gets paid and the money is in my account, I color in my box to see how close I am to my monthly income goal.
That is how I track money coming in and the ProtoPreneur Planner tracks projects and doing the work for future income. That helps me reach those goals. It’s a question of manifestation. It’s being just a few hundred bucks from an income goal and making it happen.
To get started on that, I have a special freebie that helps you start paying attention to your finances.
I also offer the actual spreadsheet that I use on a monthly basis to budget what’s going in and what’s coming out from residual income to credit cards. Plus, it calculates it all for you!
I hope these tools will help you stay on top of your finances while building your empire.