Know What Your Numbers Are Telling You

Know What Your Numbers Are Telling You: At Peace With Money

This article is the third in a month-long series on taking care of your finances as self-care. Specifically, I’m focusing on what you can do with your money to take care of yourself and improve your business in 2019. You can read the whole series by clicking here. 


 In the last installment of this series, I talked about how important it is to separate your business and personal finances. Doing so gives you access to a lot of important information about your finances. However, it’s also important to know what to do with that information once you have it. This requires some analysis. Let’s dive in:

Know What Your Numbers Are Telling You

Look back through your financial records for the year. Figure out what products, services, or other sources brought in the most revenue. Identify which months you made your largest and smallest amounts of revenue, so you can understand the rhythm of your income.

Do the same for your expenses. Did you have surprise expenses come up that caused you problems? How can you plan for these surprises in case they happen again? For many people, taxes are a surprise expense. You can plan more effectively once you look at last year’s tax expenses, and prepare for upcoming years. 

Solopreneur Paycheck

Look at your total revenue. Did you pay yourself? Did your business pay you money? If so, move money from your business to your personal account. In the Profit First system, Owner’s Pay and Profit accounts are used to divvy up income and ensure that the owner is getting paid. This is called paying yourself first, an important practice for any business owner. Actually separating your income from the other categories, like savings for operating expenses and taxes, is key to a thriving business. 

Bringing It All Together

By analyzing your finances and gleaning all this information, you are ultimately able to tie loose ends and What Your Numbers Say About Your Business: At Peace With Moneycreate a financially streamlined business. Strategizing to prepare for surprise expenses and taxes, offer more of your most profitable products or services at the optimal time of year, and remembering to pay yourself all contribute to financial success. If you’re interested in doing this analysis work with some professional help, I’m happy to speak with you. Take a look at my service packages and schedule a curiosity call. If this has piqued your interest about Profit First, download the first 5 chapters for free here on my website! I do hope this post helps you find some financial insights into your own business!

Angela

Image Source:  Martin Sanchez

Working on Your Finances is Self Care

Working on Your Finances Is Self Care: At Peace With Money

It’s that time of year: time to make New Year’s resolutions. Many of us are focused on doing better for ourselves. We often resolve to do things like “exercise more consistently,” or “learn new things.” One habit I’m adopting this year is stretching at the end of my daily walk.

These self care habits and regimens are all well and good, but one area that gets overlooked is your finances. This is an unfortunate oversight. Our money is so connected to our quality of life, so if we really want to treat ourselves well, looking after our finances is one of the best things we can do.

If you’re here reading this blog, then you’ve already begun to take the first steps towards working toward financial organization and freedom. Congratulations! This blog is a great resource, and I suggest clicking around on some things that interest you anytime you need a little financial education. One of my favorite posts, “Money Doesn’t Need to Be Scary,” contains a lot of great resources for financial self-education. Give it a whirl!

Working on Your Finances Is Self Care: At Peace With MoneyAs we go into 2019, I’m focusing on this idea of financial organization as self-care. To kick the new year off, I’m releasing a series detailing my top three money moves for financial success this year. These insights are geared towards solopreneurs and intended to help you get on top of your business finances. [Edit: you can read the full series here.]

In the meantime, reflect on your financial state of affairs. Perhaps you’d like to check out my exercise, “Three Steps to Financial Clarity.” This will give you a good snapshot of where you are in your finances and where you’d like to go. If you’d like to talk to someone more in-depth about your business finances, don’t hesitate to schedule a curiosity call. You can also check out my services packages to see if they might help you get on the right track this year.

Angela

Image Sources: Wolfgang Hasselmann,