Budgeting Keys – Get ready for 2019.
We are 21 days into 2019; have you made your 2019 budget? Budgets are critical for all households and businesses. If you don’t have a budget it’s not too late.
Here’s some important items to keep in mind:
Set realistic goals – It is almost impossible to set spending priorities without clear goals.
Do not underestimate costs – Every household and business has ancillary, incidental and emergency costs that don't always make it into the budget. A good example of this is buying a new piece of equipment or software. While you probably accounted for the cost of the equipment in your budget, you might not have remembered to budget time and money needed to train staff or for equipment maintenance. When in doubt error on the side of caution and set aside more money.
Don’t forget taxes – It amazes me the number of people who forget this, than surprise!!! Only two things are certain in life, death and taxes. Don’t forget this critical item.
Revenue does not equal cash – Have an emergency fund. You may not receive money the day you invoice it. It could take days, weeks or months to get paid.
Adjust your budget as items change – Don’t assume your budget is set in stone. Re-evaluate it frequently. Make sure to compare your budget estimates against the amount you spent each month and then adjust your budget accordingly.