Can you believe we are already in the month of April, Lionesses? April is known for its day of foolery, showers that bring May flowers, and diamond birthstones that shine bright. But did you know April is also recognized as the official National Financial Literacy Month? Financial literacy is understanding how your (to make it personal) money works, understanding how you manage it. ‘Manage it’ means to make it, spend it, invest it, and/or donate it, in order to produce an end result of financial freedom.
It can be argued that every month should be financial literacy month. With that being said, here are 4 Fierce Financial Tips that can be implemented, anytime, in business or even personal endeavors, to help achieve the ultimate desire of financial well-being.
- You have to be about your dollars…and coins!
In order to meet any type of business financial goal, you must be serious, focused, and unapologetic. A great first step is to open a business savings account. This account can be used for operating emergencies, short-term entrepreneurial goals or perhaps simply to build up your cash assets. Ensure the account has extremely low or non- existent fees. With a business checking & savings account, you can now physically see the separation of spending funds from savings/investing funds. This clear vision of division will help you watch your every dollar and coin grow.
- Time to shop!
It’s time to shop business owners; but not how you may think. It is time to shop around for lower insurance policy premiums: auto, liability, homeowners (if you office out of your home), etc. By reducing your insurance premiums (monthly, semi-annual, annual payments) you can save the decrease in payment amount without feeling a change in your current operating budget. Those cost savings can then be deposited into your new business savings account.
- Pick up the phone!
Credit card companies often have promotions or offers for lower interest rates on daily purchases. Sometimes, you may even qualify for just a reduction in your interest rate, not based on a timed promotion. Call your credit card company today and inquire about a lower annual percentage rate (APR) for your business credit cards or personal credit cards used for your enterprise. You might be surprised as to how quickly they are able to make those changes for you. A decrease in your daily purchase interest rate can save you tons!
- Track your expenses, Ms. Entrepreneur!
It is important to know where you are spending your money. There are great apps such as Expensify, QuickBooks Online, or even your bank’s mobile app that can facilitate the process of tracking and maintaining your daily operating expenses. Try closely managing your expenditures for a month. When you can clearly see where your hard earned revenue is going, I guarantee it will be easy to determine where you can cut back. Those cutbacks equal instant savings contributions.
Lioness, the first quarter of 2016 is already over. There is no time to waste. Don’t hesitate or procrastinate when it comes to your business financial well-being. All 4 Fierce Financial Literacy tips can be started right now. Be patient with yourself as you get into your savings groove; you will have an adjustment period of perhaps a month or two before you no longer feel the impact of the changes. Be consistent. Don’t be afraid to contact an accountant or CPA to help you better understand how your money is working.
Hope your business blings in the year 2016!