How to manage your money right from your phone
I love the end of the month because it gives me a clear picture on how my business did and what my budget looks like going forward. And I manage all of that from the convenience of my mobile banking app. As a business owner I've been able to pay off debt, max out my Roth IRA, start saving for a rainy day, and so much more. I believe in creating systems that will make it easy to stay consistent. And that consistency is what will get you to your goals. Here's my 5 tips to make your month end easy, peasy!
1. Set specific goals: It's hard to know how well you are doing if you don't know what "success" means. For me, I always have a personal and a business financial goal. I sync my banking apps with an app called, Mint, that way I know what my progress is any given day.
2. Get real with your spending: Sorry this isn't a more creative one, it's just so important! Do an audit on your business spending. How much is going towards rent, utilities, phone, marketing, website, courses, etc. Do you need each item? Is there anything you can cut? Same goes for your personal life. Cut the stuff that is no longer serving you. And make it a goal that you don't buy until you can pay in full.
3. Save for taxes each month: Stop dreading tax day and instead set aside a percentage each month. I would aim for 15% of the revenue you bring in. Create a savings account then at the end of each month, move 15% of your revenue over. Boom, when tax day comes you won't even think twice about it!
4. Save for a rainy day: Again, this can live right in your normal bank or if you're too tempted to spend, set it up with a different bank. Either way, now more than ever this is absolutely crucial. Calculate the bare minimum of how much you would need to operate your business and pay your bills for one month. Start with that goal then build up to 3 and then 6 months!
5. Prioritize your money: If you aren't saving for your future, start now. Here's how I decide what to put where. My first step was to pay off debt and max out my Roth IRA (to make this a habit). Now here's what it looks like each month: max out Roth IRA (retirement account), max out HSA (health savings account), pay minimum to rainy day fund, pay minimum to Simple IRA (future house down payment), any extra goes towards the rainy day or simple accounts.
We go much deeper into this with my coaching program (VIP Coaching) and how to apply it to your life! I'd love to help you build this type of structure into your business and personal finances. Checkout my coaching program if you'd like to find out more: kelseymarieknutson.com/vip-coaching. As for now...
Happy Hustling,
Kelsey