Turning Your Money Goals into Reality
Most of the entrepreneurs I talk to have set big money goals for 2018. Have you made any Money Goals for 2019? What are they? I bet you set some goals that are a big stretch and will take initiative and hard work to achieve.
So, how can you set yourself up for success in achieving those goals? Do you have a plan to make that happen?
By setting up a budget, writing it down, and constantly monitor it during the year!
I know, the word budget is kind of boring and somewhat academic. How about another word for it, Money Plan. Let’s set up a Money Plan for your business and let’s plan to track your money and create a roadmap for financial success.
Do you know you actually make more money when you have a Money Plan - you manage your expenses so you spend less and you are motivated to aspire toward your income goals.
How to make your money goals a REALITY ---
Here are some easy steps you can follow to set up and work your Money Plan. It just takes some work at the beginning to get your goals into a concrete plan with actual numbers. And a commitment to set aside time to be consistent about tracking and follow up.
Decide how you want to track your money and your budget. Are you going to use paper, a spreadsheet like Excel or Google Doc, or will you use some money tracking software?
Take your income goal for the year and divide by 12. This is what you track on your budget for your projected monthly income.
It also is motivating to see how much income you need to earn weekly and even daily to achieve your 2018 goal. Take your income goal for the year and divide by 52 - this is how much you need to make per week. Take that number and divide by 5 or 7 (depending on how many days you work) - this is your Daily Goal. Use these numbers to inspire you and help you brainstorm how you are going to achieve your income goal.
List all the expenses you have each month that are fixed that you need pay in order to run your business. It helps to look back over the past several months to see where you constantly spent money and how much. Next, add anything you desire to spend money on. These can be things you hope to add to your business, like a new team member or a course you want to take. Look at your journal and the other goals you’ve set for yourself to see what you want to spend money on during the year. Add these expenses to your budget in the months that you desire to add these things to your business.
Think about how much money you are paying yourself, how much you are saving for taxes, and how much you are putting into savings (your profit). Put these numbers into your budget.
You should have 12 months of your Money Plan now set out in an easy to read layout. You can see how much income you have set for your goal, and how much money it will take to achieve that goal, along with how much money you will spend on yourself, your taxes, and your profit. Look at the difference between the income and expenses. If there is a negative number there, you need to fine-tune your goals or know you will be having to take on debt to run your business.
You’ve got the hard part done! But, as in any plan, it doesn’t work unless you work it. You need to be accountable to follow up and track your money each month, and then compare what actually happened to your Money Plan.
I suggest you set some Money Dates with yourself each month. I like to do one before the month even starts to plan and then another the first week after the month for review. Book these times on your calendar, so there is no excuse!
Look at your next month’s Money Plan every month before the month even starts. Review your projected expenses and plan your spending. Does anything need to be adjusted? Do you have a plan to bring in your projected income? What needs to happen in your business to have your Money Plan work for the next month?
At the end of the month, review your money that came in and your spending on expenses and compare it to your Money Plan. How close were you? What surprises came up during the month that got you off track. How can you make adjustments for the next month? How can you make any new shifts in your business to achieve your goals?
Each month record what actually happened in your Money Plan document or software. Over time, be doing this it will be very enlightening to watch how your plan progresses over the year.
By the end of the year, you will be ready to celebrate accomplishing your goals you have achieved. And you will be ready for the next year with a tremendous resource of insight into your business finances. By working your Money Plan, I guarantee you will have more money in your business!
Interested in having a Money Plan spreadsheet all ready for you to fill in? I have a Money Maven Money Plan spreadsheet that you to take and use in your business!! Save the time and hassle of starting from scratch. Get your Money Maven Money Plan Here.
To your Success,
Jenn
xoxo