Making the decision to be self employed can bring a lot of unexpected challenges and we can overlook the need to reconsider our living expenses and readjust to life of running your own business.
Budgeting and understanding your needs/wants will help you live within your means and reduce the emotional weight that might hit you when things get a little tight. It also helps you to remain disciplined enough to re-inject your profits back into the business to help it grow and be sustainable long term.
Learn more on episode 3 of the Self Starter podcast about how Stevino Vinetti of Italian Guild in Milton created discipline with the lifestyle his family had while earnings were put back into the business to allow it to grow and be sustainable.
So what are some easy steps that you can take?
Create a simple budget
The numbers side is headache? Don’t fret. There are heaps of really simple budget templates that you can find online such as THIS ONE. Start small and simple to get a framework of what you and your family might need on a weekly, monthly and yearly basis. You can change this at any time, so don’t worry if you’re not 100% strict to the plan.
Identifying your needs versus wants
You’ll see this creep into your budget where a number of ‘everyday expenses’ begin to be seen as more ‘nice to haves’ rather than necessities. There is nothing wrong with enjoying certain creature comforts along the way, but being able to put more into your needs and staggering out the wants will help you stay on financial track.
Talk with others and trade
The old barter system! The more you build relationships with others, the more opportunities will open up where you can possibly trade goods and services and save a few dollars here and there. Your business might be able to supply someone with something in exchange for an item or service that is highly valuable for you. Don’t always focus on a dollar transaction. There are plenty of ways to get ahead and ensure that your lifestyle remains at a modest but comfortable level.
Have you got any tricks or approaches that you have found which keeps you in financial check? Leave a comment below!