10 Habits of a Highly Effective Budgeter

by | Jul 15, 2016 | Money

Jul 15, 2016

When it comes to money, budgeting, and business it can leave you feeling as if you are being pulled in many directions. And to be honest… you are! As a small business owner with a family, you are wearing many hats especially when it comes to being a financial manager.


Business expenses, personal expenses, generating revenue, making sure bills are paid, talking to accountants, and planning to grow wealth is a lot to take on. Unfortunately, you cannot bury your head and ignore your money situation. The best thing is to tackle money head on and stay one step ahead. Here are 10 things you can do right now to start turning the tide in your money game and putting you back in control:

  1. Get you head out of the sand

The reality is that you have to wake up when it comes to money. As a small business owner, and having a family, talking about money can be very complicated, frustrating and personal, but you have to take the upper hand realize that you must make money a priority. You have not given a lot of love to your finances lately, take some time and look a the big picture and create a plan to get organized.

  1. Budgeting, accounting, and bookkeeping are 3 COMPLETELY different things

A big myth that small business owners fall into, is thinking that budgeting, accounting, and bookkeeping are one in the same. They are not. They each have a very distinct role in your financial big picture. Here is a simplified overview of the three:

Budgeting = every day cash flow and spending management

Accounting = making sure you are not giving the government too much of your money when you don’t have to

Bookkeeping = financial record keeping, organization, and measuring ROI (return on investment)

  1. Pay yourself first… ALWAYS

You must pay yourself first… and it doesn’t matter if you are business owner or a 9-to-5er! Taking care of you and your family is the number on priority. Giving yourself a salary, or paying yourself first, is just a marker to let you know that you are moving in the right direction… and it also helps to keep financial “debates” few and far between!

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Photo credit: name pixabay.com

  1. You are the CFO

You have a bookkeeper and accountant, so everything is great… WRONG! Who is making the day-to-day financial decisions in your business and your home? Your accountant and bookkeeper play crucial roles in your money management, but you have to remember to take the lead as the CFO (Chief Financial Officer).

  1. Your lifestyle may be ruining your business

If you really want to get in control of your business finances… sometimes you may have to look at your lifestyle. Yep! Your lifestyle may be ruining your business! When you are looking at small business numbers and you get the feeling that money seems to be disappearing… it may be time to look at how much you are spending on clothes, food, vacations, monthly subscriptions and other personal expenses that slowly suck money away from your business.

  1. The number of zeros doesn’t matter

It’s simple. More money will not make things better. It may actually cause more problems. If you cannot manage $100 it is pretty safe to say you won’t be able to manage $1,000,000. Being good with money actually takes practice. The more effort you put into it, the better you will be.

  1. You need to exercise your money mindset

If your money mindset is messed up… so will be your money. When it comes to exercising a healthy and positive money mindset, it starts with you taking some time to recognize how you grew up with money and how money has played a role in your life. Having a “not enough” or “scarcity” mentally can all be traced back to events in your life that may be the cause of some future financial headaches.

  1. Budget means opportunities, not restriction

If you hate budgeting and you think it is the worst thing in the world… I get it, but remember it is not meant to restrict you from the things you love in life. Your budget is there to help you slow down, make great money decisions and open the door to some of the best opportunities of your life. Plus… rich people are amazing budgeters!

  1. You cannot spend your way to success

No matter what you think, in business and life, you cannot spend your way to success. Yes, there are many opportunities that will come your way, but if you are not careful, don't budget, nor know how to manage money properly, you will always feel as if you wasted money on a regular basis. Learn how to say ‘NO' when it is absolutely called for in your financial decision making.

  1. Always have fun

Remember, your job is to enjoy life as much as possible. Money can be very personal and have a lot of stress attached to it, but if you acknowledge your current financial situation and create a plan to keep improving it, you will always have fun and you will be able to enjoy the enhancements money can bring to your life!

Phylecia Jones

Phylecia Jones

Founder | CEO | Speaker | Writer | Lightweight Adventurer

My mission in life is to see the world and sprinkle some magic on it to help inspire and change it! As the CEO & Founder of Budget School, my fun day job is spent helping solo and entrepreneurs get smart with their money so they can achieve their dreams. When I am not writing, speaking, or leading workshops, I love to travel and see different parts of the world!

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