Your Business Budget Is Stupid

By April 20, 2017Blog, Profit First

We need to talk about your Business Budget

I don’t mean what you think I mean.

What I mean is that your budget is stupid…

Ok, so maybe I do mean that.  Just don’t take it personal.

The way most people budget is so dumb. Have you ever tried to budget?  Did you find yourself hunting for your bank statements and credit card statements?  Trying to figure out how to categorize your expenses?  What the heck is even a “category”?  How much did I spend each month on these things? Can I take a nap? What was I doing again?  Does my excel file even make sense?  Did I put Walmart purchases under clothing or supplies or household goods?

It could be a never ending stream of confusing thought after confusing thought.  So you struggle through the process and come up with what you spent last year.  Now what do you do with these numbers?  How do you come up with a budget?  Most people figure out their monthly average for each category and now they have their budget.

And that is why budgets are stupid.

They are based on historical numbers.  Why would you do that? Especially if your previous spending got you in a position where you felt you need a budget to stop the madness.

Budgets are great.  They make you spend your money on paper first.  It helps you see if there are areas you are going to be short.  It may (hopefully) even help you identify areas you need to stop spending.  Budgets are great because when done properly they allow you to create your life and not be prisoner to your past spending habits.

I don’t have the answer to the perfect solution for your budget so I don’t even want to try.  A simple google search will result in thousands of pages of the best way to budget and reveal hundreds of budgeting software’s.

My only advice is to keep it simple,  don’t use your past spending to determine your future budget, and make sure you pay yourself first.

If you are looking for the perfect business budget solution, I do have a solution for you on that:

Profit First.

How would it feel to never worry about paying bills again?

To always have cash available and to take home more profits. It’s a simple system which will produce massive impact on your take home pay.

Learn more about it now and start living a more stress free life!

Click here to watch a short video on how Profit First can help your cashflow.