Budgeting is simply balancing your expenses with your income, budgeting gives direction to your money.

Many people are spending their money based on emotions rather than decisions, when there is no definite plan for the use of your money, it’s easy for one to have impulse buying.

Literally one of the ways to reduce impulse buying is either through a budget, or allocating the funds in your hands or account appropriately to their designated locked account.

Below are the ways to create a business budget.

1. Determine your reason for the budget, when the purpose of a thing is not known, abuse is inevitable.

What do you want to save for? What do you hope to achieve from this savings.

Do you want to buy an asset, are you saving for staff salary?, Are you saving to invest in a particular stock or part of the business?

It is when the goal is well defined that it can be easy to bear the pain of not spending impulsively, a wise man once said that it is better to endure the pain of purpose than experience the pain of regret.

2. Track your expenses

Learn how to record every expense made and if possible keep an evidence, it is mostly great to keep receipts for this purpose, or make transfers with your devices so that an account statement from the bank can be acquired to track where every penny went

But this works better when you always give a narration for every money spent. An accounting software can also help with this (you can reach me on go to set up one)

C. Create a detailed list of your revenue and income.

Make a list of every available stream of income, and how often money comes in, you should also create a worst scenario, in other words state the minimum amount that you’re so sure that will come in from that stream of income.

That way you can assess if this plan or project you’re saving for is possible to achieve with the money generated by your business or the streams of income.

4. Reduce your spending habits.

Most times, our income can suffice to pay for the project but there are little foxes that destroy the vines, our spending habits.

What irrelevant things do you always spend on, like beverages, movies, excessive accessories, what are those things that you’re buying that are not needs (needs are different from wants)

5. Get an allocation that would help you achieve your budget, you could give an allocation for every money earned which is 50:30:20 (50 percent goes to needs, 20 percent for business investment, 30 for savings)

But this is just one of the many allocations that are available, get an allocation that helps you achieve yours swiftly.

6. Get an accountability system.

This is where the fun happens, it could be a person who would help monitor how you spend, so many people prefer that someone holds their money and gives them the money allocation to avoid tempting themselves to over spend.

This accountability system could also the amount of expenses that one can make from a certain account daily, most business owners place a benchmark on their account to avoid spending more than a range.

Another accountability is having two or more signatories to an account, that way the reason for every expense is vetted strictly before all signatures are signed.

Lastly, have periodic reviews so as to checkmate that all plans are going accordingly and allocations are appropriately managed.

These could be done by a group of experts or or persons won’t be biased or partial mostly professionals or people who aren’t affiliated with the company or the individual that can give their criticism and it won’t be taken lightly.

Hope you found value

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