Budget Planning
In the mist of Covid-19 (Corona Virus), we at JDS WebDesign are hoping everyone is safe, washing your hands frequently, sneezing and coughing in your elbow, and practicing social distancing. Over the next several weeks, we are planning on blogging about how to make your website more business friendly. We will have some tutorials on our favorite plugins and features, which will make your site more efficient.
One of the toughest conversations, to have with a fellow free lance web designer, is do you have a budget? How does your budget plan work? I was fortunate to have a mentor early in my entrepreneur live, who made me do two exercises. The exercises made me realize how much do I really need, and the importance of saving.
Let’s spend a few minutes discussing how much do you need and how to save. Are you a saver or spender? Both have pros and cons…if your excess about either then you will need to re-think about what you need and how you save.
How much do I really need?
One of the first exercise that I performed, was to look at my check book and bank statement. I wrote down my mortgage payment, electric and water bill, gas bill, cable, internet, insurance, food, personal items, and tithe cost. My mentor did not want to know my entertainment cost. Then I had to find out, how much does my wife contribute to the monthly expenses. Lastly, I added 50% to that number, for expenses and taxes. I needed to bring in that amount each month…it was lower than anticipated.
Next my mentor introduce me to my saving account. Being a spender, getting a formal introduction to my saving account was an unexpected experience. I had been saving for about twenty years, but in a little different manner. My saving was used for vacations, expense gifts, or emergencies.
My mentor advised me that there would be some lean months, and my savings could be the differences in being homeless and keeping my family in our warm and cozy house. Not having a saving account for my business account, was a critical error. Viewing my business account as a catching mechanism for when someone needed to pay me for my services, but not taking full advantage of my business account was a mistake.
Fifty two envelops
Do you want to know how to get $1,338, with an investment of $1? Go to your local Dollar Tree (or dollar store) and purchase box of envelops. Grab 52 envelops. Number them 1 – 52. Each week take an envelop and what number on the envelop, you will need to deposit that amount in your saving account. In 52 weeks or 1 year, you will have $1, 338.
Now the hard part! Once you have $1, 338…you can not spend it all. Set a limit, say $1000. Keep the other $338 in your savings and go get some envelops for the next year. You will have $1,676.00. This exercise is a true test of discipline to make payments weekly and more discipline to not spend it all.
Actually this process is used for several activities in my family life. I have had fifty two envelops for Christmas, Summer Vacation, and Spring Break Trips.
If you are looking for a web designer or brand developer, then I am available and can be reached at 678-718-5489 or info@jdswebdesign.biz.
Image Courtesy of NeonBrand.
JDS WebDesign is a Web Design and Brand Marketing Agency located in Marietta, Georgia. We create AWESOME on line presence for Start-ups and Influential People/Organizations. To learn more about us or how we can help you and your organization, you can contact us or schedule a meeting.
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