Business Savings: Some Thoughts for 2018
My husband, as many of your already know, is an accountant. And like many in his profession, he is security and numbers driven. Full transparency, I consider a small miracle we made it through our first year with relatively few disagreements over finances.
Not household finances (we had a successful system there to prevent any arguments from day one: essentially we had allowances in personal accounts that we could spend however we wanted without any opinions from the other person), but, rather, business finances.
For years I operated my business from invoice to invoice, essentially. My husband would encourage me to bank some of our revenue for a rainy day, but I would always find something new to invest in or some unexpected expense would come up.
But after a couple of years I finally gave in and started saving. It was painful at first, as our business savings sometimes just grew by $500 or $1,000 per month, but eventually we had enough saved that we were always ahead one month in our business checking and we had one month of expenses in our savings account. That took us about 18 months to accrue, but I have to admit that getting that built up felt PHENOMENAL and was a huge sigh of relief that I didn’t even know was in me! Of course, once you get that initial cushion the next goal is 4 months and then 6.
Which leads me to this for you. The traditional recommendation is to save 3-6 months of operating expenses in your business savings account. How much do you currently have saved? If you are ready to commit, write down your goal get going. Need some accountability? Respond here and I’ll send a few additional words of encouragement. But no matter what you do, get to saving. I promise the feeling will be so liberating!
p.s. And Dear, if you happen to read this one…although I’ve told you so many times, let me declare it publicly: you were right. 😉
p.p.s. Have you read The Journey to $100K yet? It’s chock full of great business advice for achieving your first (or next!) big financial milestones.