April is Financial Literacy Month. At NBIC, we believe financial literacy is one of the biggest obstacles that prevent clients from achieving business success.
To celebrate Financial Literacy Month, we’re going to share a series of posts with key ideas about financial literacy that we’ll go over for the rest of the month. The four topics we want to share are:
- Myths about financial literacy
- Budgeting for yourself and your business
- Saving for big goals
- And getting ready for retirement (yes, right now!)
This post will focus on budgeting and why it matters for your business.
How can budgets boost your business?
Stress over personal finances can create greater stress in the workplace. You’re worried about making ends meet for next month, whether your car could break down at any moment, or you’re panicking about how you can possibly retire at a reasonable age. One of the keys to budgeting with personal finances is making the most of what you have. Greater income is great, but habits matter much more. Even with a six or seven-figure income, poor spending habits are a common cause of rich people going broke.
We aren’t saying that more income won’t help. After all, a major goal of the team at NBIC is to grow the income for your business. That means you can create more jobs and invest back into the community. But without the right habits in place, you could be setting yourself and your business up for trouble down the road.
Budgeting is a conscious conversation, whether it’s with yourself, your spouse, or business partners. You need to think about what expenses matter the most, why they matter, and how to pay for them.
As a business owner, the actions you personally take, or don’t take, will have an impact on your business. There’s no better way to develop the skills to budget and spend mindfully for your business than to use those same skills on personal finance.