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Budgeting is NOT the Same as Counting Your Chickens Before They Hatch

Some small, home business owners are afraid of budgeting—they think that if they write down a budget, they will be trapped, stuck, or are strapping them to something that is written in stone. Other people just get nervous when it comes to sorting out financial matters and would love to focus on other parts of the business operations instead. Still others worry that by budgeting, we are actually “counting our chickens before they are hatched” and putting our business in a precarious position. None of these are true—budgeting is a way of planning for the future of our businesses—not a … Continue reading →

Budgeting Options for Variable Expenses

How do you budget for your variable bills? This includes things like electricity, gas for your house and your car, and medical expenses. You know that these bills come in every month, but they may change according to the weather, the price of the item or circumstances completely out of control. So how do you decided how much to budget each month? There are two schools of thought on this matter. The first is that you look at your records for the past year and add up the total. You divide that number by twelve. Then you budget the average … Continue reading →

Budgeting Strategies: Variable Expenses

Do you know the difference between your variable and set expenses? When it comes to budgeting it is important to identify your variable expenses, because they are the ones that you can change. Your set expenses are not going to change; they will remain the same from month to month. Your variable expenses change from month to month. Often it is best to average these expenses over a twelve-month period, and then budget that amount each month. Here are variable expenses that you may consider set expenses, because they are bills that you have to pay each month. One is … Continue reading →

Budget Strategies: Budgeting a Variable Income

If you have a variable income, it can be tricky to set up a budget. You may have difficulty knowing what you can afford each month. If you work solely on commission it can be even more difficult to plan a budget. Here are some basic tips to get you started. 1) If you receive a base salary plus commission, construct your budget entirely on your base salary. This should cover your basic necessities (mortgage/rent, utilities, and food), and then from there you can prioritize your other obligations. 2) If you have a paycheck that varies from week to week … Continue reading →

Tracking Revenue by the Day

One of the ways that a home business owner can tell if he or she is on track and sticking to budget projections is to track income or revenue by the day. While this may add a little bit of administrative time to your daily schedule, it can help you see if you are making the most of your work time. Tracking revenue by the day can serve several purposes and can work for you in a variety of ways. It helps if you have set a monthly goal so that you can break that goal down into a daily … Continue reading →

The Phone Call Balance

When I first starting dating my husband, he shocked me with what I thought was an unusual money strategy. Whenever he was about to spend money, he would just call his bank to see how much he had. That was how he knew if he had enough to buy something. What! I thought… no checkbook, no budget… who was this man? I couldn’t believe he had managed to function for years on his own with this method of money management. As the years have gone by and I have met and helped many people with their finances, I am surprised … Continue reading →

Starting A Shelter: Money Stuff

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If you’re going to run a shelter, you’re going to need money. Lots of money. Money for the land and building your animals use. Money for dog food and cat chow. Money for advertising your shelter so your resident animals can find homes. Money for veterinary services, grooming, and training. Get the picture? The best thing you can do is find a pet-loving accountant and/or bookkeeper to help you set up an accounting system. You need to document income and expenses — and in categories that make sense for when you’ll be doing this on your own. Otherwise, you’ll be … Continue reading →