Being on top of finance, sigh. I dislike getting organized when it comes to personal finance, let alone deal with taxes, administration and finance for FashionContainer. But hey, that’s life! Today we share our best tips to stay on top of your finances like a pro!
1. Set a particular day
This one counts for all the jobs you dislike: whether that’s sorting out your receipts, collecting bank statements or finance in general. Dedicate one particular day to it, habit is your friend especially when it comes to completing sh*tty jobs. For example: the 1st Monday of the month or/and the 3rd Monday of the month.
2. Estimate money coming in
Especially in the early days of FashionContainer’s transition from hobby to business, we had no overview whatsoever on what went out and what came in. Unless you’re a multi-millionaire, making an overview on the money that will come in as must. To be on the safe side, make 2 versions of scenario’s: a worst case (if clients pay late or a project falls through) and one that is realistic. What is realistic, is something you often only learn on the way. At least that’s my experience.
3. Plan your spending
Aside from knowing how much money comes IN, you also have to have a plan for how much money you want to let OUT. In other words: how much you allow yourself to spend. Because we travel lots, there are a lot of unforeseen expenses at all times, but nevertheless it’s absolute KEY to set a budget for every trip. Why? Because if you don’t, you’ll find yourself letting the money flow WAY too easy. We’d spent 500 dollars with ease on taxi’s alone during a couple of days in New York. I guess that principle goes with most things in life, no? No boundaries > excessive behavior.
4. Keep track of progress
Make up spreadsheets monthly and quarterly to monitor progress. You’ll be surprised by the discoveries! For example, some months we didn’t ‘feel’ like we made progress, but when we took a closer look it actually turnt out we spend a lot more than previous months which is why we felt like we weren’t making more money. Bottom line: If you don’t keep track, you won’t see what you’re doing wrong or right.
5. Save, save, save
I don’t care what you do or how much you make: SAVE. Commit to a particular amount EACH month and stick to it. There’s nothing more satisfying than taking full responsibility for your future.