How to manage your money? Be it business or your personal life. This question haunts you on daily basis. As a businessperson, you want to make sure that your money can go further. Not only does this include finances directly related to your company, but also those that belong to you personally. Considering some smarter means of storing and using your assets can certainly go a long way, especially if you have a slow month or season.
It can be a good idea to think about this now, rather than when a problem hits, as you will be in a better position to make an informed decision, and more able to plan for negative circumstances. Having a stable back-up is always necessary, when you plan to stay in the business for long run.
Here are 3 tips to manage your money:
1. Use an ISA
When it comes to your personal money, you might want to find ways to try and increase it. While some savings accounts can be helpful, some might come with fees, or limits to how often you can access the pot, which may not necessarily suit your needs. To save and invest efficiently, you might want to think about the ISA options available to you.
Some may allow for continuous growth month by month, while others are optimized for more long-term savings. The tax-free allowance is subject to change each year, so you may need to make sure the amount in that account is lower, and that you move money into a savings account if needed, to ensure you remain below this threshold.
2. Keep Money Separate
While it can be tempting to store all of the money you have in a single bank account, this can make it difficult to figure out what belongs to you, and what should be a part of your business. Having separate accounts for your individual money and your business banking can help to make it clear which assets belong to which area.
In addition to this, it may make filing your taxes a little easier, as well as help to prevent discrepancies from money that has been spent that should not have been allocated as such. In cases of bank fraud, this may also help to prevent the entirety of your money from being taken.
Segregation and proper coordination can help you to manage your finances. For emergency situation, you can easily allocate funds quickly without hampering your ongoing business and financial plans.
3. Purchase a Safe
If you work out of a set premises, or have an office, and need to keep tools, stock, or even money on the premises, these may not be held securely behind a simple locked door. To help protect your assets that much more, you may want to invest in a safe, which can then be bolted to the floor or wall of your choosing.
Doing a bit of research regarding the type of lock on the safe, as well as your budget for procuring one, can help you to make a decision regarding which will best suit your business needs. You may also want to consider a smaller safe for your home for any personal cash, jewelry, or other valuable items.
Advanced technology has changed the basics of ‘a safe’. Features like fingerprint locks, wireless connectivity as well as distant access has increased security layers of the safe. These security options are easily available in the market with minimum investment.
Summing Up- 3 Steps to Manage Your Money
Looking after and learning how to manage your money involves making smart decisions regarding its use and storage. Whether the money belongs to your business, or yourself directly, you may want to think about the best ways to look after it. After all, saving and investing is another form of generating your finances.