Budgeting

Do you know how to budget? Do you know what a budget is?

Do you have a budget?

Who knew that owning a beauty business would entail math? You know, the subject that most hated in school? The reason beauty was so appealing... it's all about the creativity! (I was the weird one that loved math, all the other subjects not so much lol)

Have you ever wondered, what is the purpose of a budget?

A budget is the only thing that can help you improve your financial health. It can either bring you to a place of being financially healthy, or it can help give you a starting point when you are ready to open your own beauty business.

A budget is a roadmap for where your money will go so you can make your income work for you! It helps you keep track of your money so that you know where to cut down on expenses and prioritize building your savings.

What is the purpose of a budget?

When you start keeping track of your money, you pay attention to the money that is coming in and what is going out. In turn, it helps you cut down on extra/excess spending and find more ways to save. You will be surprised to find many wasteful expenses that can be avoided.

It helps you take control of your finances and gives you the power to direct and decide how you want to spend it, helping you grow a savings and pay yourself! Which is the end goal in my opinion. Instead of mindlessly spending. If you are looking for a roadmap on how to get started with budgeting check out my Making $en$e of Making Dollar$ E-Book.

By budgeting you will be building a savings that will help prepare you for life changes and events. Whether it is having a baby or a medical condition that requires some down time and/or bed rest for a bit. Life happens, and having a cushion creates less financial stress during those times. Trust me, I've had my fair share! Not to mention 2020... How can any of us forget! Having a savings to fall back on definitely helped lessen the stress!

Creating a budget helps achieve certain financial goals. It helps you determine how much money you can save each month to figure out how long it will take to get to your specific goal. Think of a class or coaching you would love to purchase, but are not in the position to do so at the time.. this is where the budgeting comes into play. Figure out the cost, divide the cost by the number of months you would like to complete it in, and voila.. you have your monthly savings goal, and you can adjust your expenses as needed to accomplish this goal.

Ultimately...

Your finances can make or break your business. It all may seem overwhelming at first, but once you get your finances under control, it can help you get rid of the financial stress. Set aside time to work ON your business and not just IN your business. The first couple of times, it may take an hour or two, but once you get it down, you can narrow it down to 30 min a week/bi-weekly, depending on your preference.

Good Luck!

If you have any questions.. give me a follow @beautyfinancialfriend on Instagram and DM me!