Budgeting tips, tricks, and things to keep in mind when learning how to budget
When making a budget, there’s a lot to consider. It can be a daunting process. To help streamline the process, there are little things to keep in mind.
Budgets are iterative
Don’t be afraid of going back to the document over time! This also means you don’t have to make your budget perfect the first time, either. There’s a lot that can change (it’s one of the reasons budgeting software can help you out)
Always set aside money for taxes
Even if you don’t think you’ll owe any taxes, set some money aside – a good rule of thumb is about 30% of your revenue if you don’t have an accurate tax estimation yet. That way you won’t be hit with any tax surprises.
Separate personal and business expenses
Unless the expense is part of the business budget – for instance executive travel for work – no personal expenses should make their way onto business budgets. This is especially important for small business owners or solopreneurs. It’s so easy to fall into the trap of combining them, but it gets messy for tax purposes if you do this.