Yesterday I was working with a new client looking at Cash Flow in her business. As we were working through the Numbers, Sarah (not her real name) realised that she doesn’t know how much it costs to run her business on a daily or weekly basis.
One of Sarah’s other issues is that she doesn’t know how much her personal life costs.
What do I mean by this? She knows that she has an income of $xxx and that she spends almost all of it every week. She tries to save some but there isn’t much left at the end of the month. As we discussed her personal expenses and cash flow it became apparent that she doesn’t know how she spends all her money. What are her daily expenses? weekly expenses? and her annual expenses?
I work a lot with people who aspire to create their own business or who are getting started in business and it is common for them to have little or no real grip on their personal financial situation.
A key tip: getting a grip on your personal expenses and cash flow is a great preparation for being in your own business. Try out our Healthy Numbers Expense Tracker
A few years ago I was working with a client who kept a track of her spending for a month and as we looked at the results she said to me “It’s not my designer shoes that cost so much money, it’s all the little things that add up to a lot of money”
Having a way to track your expenses and your spending allows you to see where your money goes every day, every week.
You can use a piece of paper, download one of the many Apps that are available or you can try out our easy to use Healthy Numbers Expense Tracker.
Whatever you do, start today to track your personal expenses so that you can get a grip on your cash flow