Here’s how I plan my personal budget as an entrepreneur!
So as an entrepreneur or a freelance worker, you might struggle with setting up a personal budget because you don’t know how much money you’ll make each month. A lot of times, the money just goes straight back into the business and you might not have any left over.
Here’s what you need to do! Pay yourself a salary! You’re an employee in that business. Whether you want to be paid weekly, fortnightly or monthly, set your salary. Because why should everyone else get paid and you just get what left? When your labour and your brains are the most important part of the business? You need to pay yourself a consistent amount every month, even if it’s small.
NEXT - separate your business account from your personal account. So you’re going to transfer your “salary” from the business account into your personal account every payday. Do NOT go back into the business account to fund your day to day life.
Now you might be wondering.. How can I set a salary if I don’t know how much I’ll make each month? Keeping detailed records can help you establish a baseline. I use Google Drive to upload my business receipts, and Quickbooks to keep track of my accounts.
Once you update your accounts regularly, the system will show you how much you’re making and spending in the business each month. Then you can decide how much you can afford to pay yourself consistently. The good months will offset the bad months.
Check out my Build Your Budget online course to get started.