Every entrepreneur worth their salt understands the importance of cash flow for their business. It’s their cash flow that keeps vendors and employees alike paid on time. It’s cash flow that keeps the lights on and the overheads covered so that they can continue to deliver the same quality that their customers expect. Yet, while all entrepreneurs take steps to ensure cash flow for their businesses, they can be less stringent when it comes to managing their own household cash flow.
Yet, while it’s easy to keep your eyes fixed firmly on what’s going on in your business, neglecting your household finances can add to your already considerable stress levels and drive you one step closer to burning out. However, unlike your salaried friends, it’s not like you can just take on a little extra overtime at work. Here are some ways in which busy entrepreneurs can ease their own personal cash flow at home.
Draw up a household budget
It may sound elementary, but perhaps it’s time to start applying the same rigorous financial management that you bring to your business to your household finances. In the same way that you use income reports and P&L spreadsheets to chart what’s coming into and going out of your business, so too should you use a household budget template to keep track of all your little expenditures. Because they soon add up. Every time you order take out because you’re too exhausted to cook, every time you stop for a double shot latte on a Monday morning and every day you stop off for a beer with the team on the way home you eat into your cash flow.
Find fun ways to make a little extra money in your downtime
Yes, we know “what downtime”. Still, a 15-minute coffee break is all it takes to start using apps to make a little extra money in your downtime. There are all kinds of apps that can help you make a little extra cash. None will make you an overnight millionaire, but they can help you to make a little extra money. From a Trading Platform that allows you to trade all kinds of commodities to an app that will literally pay you to work out after a stressful day. Even taking a few short surveys on the train can help you to make a little extra money.
Don’t be afraid to pay yourself what you’re worth
It’s something that all entrepreneurs agonize over… how much to pay themselves. While nobody wants to risk their business’ cash flow to give themselves a cushy salary, many entrepreneurs go too far the other way and pay themselves just enough to make ends meet. The trouble is that when calculating this they often underestimate their own household expenses. Find out what the directors of similarly sized companies with comparable turnovers pay themselves. You may be surprised to see just how much you’re undercutting yourself.
And if you’re not paying yourself what you’re worth it’s always going to be much harder to make ends meet at home.
