Hey there, aspiring entrepreneur! On the lookout for some great financial management strategies to guide your business towards a successful endeavor, you’ve come to read the right blog. With Walcy, a neo-bank with endless global finance possibilities, also finance is all about adhering to good financial habits. The goal is to avoid unnecessary spending, be prompt on payment and invoices, and work on your most profitable clientele. Without further adieu, let us directly dive into seven tried-and-tested strategies by Walcy’s c-suite executives that work wonders for your everyday finances:
Financial Management Tip 1: Track Every Penny/Cent/Paisa
Indeed it is a chore, but it is correct that you need to track every single one! Whether it’s a big splurge or just a tiny coffee run, It is a great idea to keep tabs or journal on your spending and is key to financial monitoring. Trust Walcy, those little leaks can aggregate fast and have a significant impact on your financial stature. Further, these habits of not tracing your finances will lead to regret, when you discover yourself in a bad financial status.
Financial Management Tip 2: Budgeting as if a Professional Would do
Budgeting might seem relevant for incumbents; however, it is quintessential for an individual too. Mapping out your income and expenses regularly, proportionating your income with expenses, and leaving some wiggle room for unexpected or larger expenses should be your utmost priority. It is because, let’s be real, such expenses always pop up when you are least ready for them, and it feels like a Tyson-like uppercut on your body.
Financial Management Tip 3: Set Clear and Smart Goals
Map where you want your financial KPIs to be in the next year, five years, if possible, and even think about a decade. Having a clear financial goal allows you something to aim at and helps you stay on-course on what aspirations you can set for your financial freedom.
Financial Management Tip 4: Clear all the Invoices on Time
Keeping up with your invoicing is a necessity. Make sure you and your team send out invoices promptly and clear up on payments. Late payments can hamper your cash flow and cause scuffles with your clientele, spoiling healthy relationships that foster good business deals.
Financial Management Tip 5: Get Rid of the Unnecessary Purchase
Take a sincere look at your expense history and actualize, “Is this purchase necessary for me? Is it an impulse purchase? Am I going to regret this later? and so on”. If the answer that you actualize is a hard no, take an about-turn. The savings of those discarded purchases could be utilised somewhere productive.
Financial Management Tip 6: Set up an Emergency fund
Building up an emergency fund, as expecting the best and preparing for the worst is a norm in financial management. At least allocate 20% of your income in savings for an emergency fund, which is a general recommendation for most businesses.
Financial Management Tip 7: Ponder on Your Investment
Strategically an entrepreneur should allocate funds in such a way that the returns are maximised and risks are minimised. It is easier said than done, however, using Pareto’s principle, the 80/20 rule, which states that 80 percent of returns or profits are generated from 20 per cent of clients. Therefore, focus on clients directly contributing to your company’s revenue generation, they should be your key focus.
In essence, tracking and monitoring your every bit of earnings, being prompt on your invoices, avoiding impulsive purchases, being proactive with an emergency fund, and strategically investing in the most revenue-generating assets should help your company steer towards financial stability. Do follow us on our social media pages to learn more about such tips, we post high-quality content targeted towards entrepreneurs and start-ups regularly, on Facebook, LinkedIn, and Twitter.
