Here are three techniques you can use for simplifying your finances, which will help you avoid unexpected pitfalls and keep your money doing exactly what you need it to be doing when it needs to be doing it.
1. Time is money
No two days will be the same, but as a small business or sole trader, it’s easy to lose track of what are your professional hours and your personal hours. One way to simplify here is to ask the question, how much is my time worth? If you’re spending hours on something that could be more efficiently outsourced then you can effectively justify that in your time budget.
2. In a 'Money Minute'
It’s one of those ‘little and often’ kind of ideas. LearnVest CEO Alexa von Tobel reviews her finances every morning, and in just one minute she can make sure she’s on track to reaching her goals, saving hundreds of dollars in the process.
Instead of ignoring your finances until you need to make a big purchase or tax time, be proactive in keeping a finger on the pulse, and you’ll avoid any nasty surprises.
3. Consolidate your documentation
Is there anything worse than searching for that document at tax time? Organise your financial documents and this daunting task becomes much more manageable. You’ll save money in the long run (not only because you’re saving your time) because you’ll be able to claim back on everything rather than losing that receipt.
Constantly finding yourself in a receipt filing nightmare? Try taking a picture of your receipts with your phone. Then email it to yourself (or weekly email to yourself, but do send it to yourself for safe keeping).
There you have it: financial stress reduced because you are in control. If you choose to spend the time saved on your business or at the beach, that’s up to you.