How to manage your money!

Every entrepreneur should follow these tips!

KEEP TRACK OF YOUR SPENDING

You want to keep a record of all the money you spend on your business. This will help you see how much money you’re really spending. It’ll also help you if/when you have to file taxes. (Anyone who makes at least $400 from self-employment has to file taxes in the United States.)

SET A BUDGET

It’s smart to set both monthly and yearly budgets. When you’re first starting out, we recommend keeping your costs low and adjusting as you get a feel for how much money you’ll be bringing in. Spend your money on the things you really need, not just what you want.

SPEND LESS THAN YOU SAVE

You want to be bringing in more money than you’re spending, right? That should always be the goal! Keep in mind that even when you’re having a good money month, that expenses will rise when your income does since you’ll need more supplies. So, don’t go crazy with the spending in celebration!

HAVE AN EMERGENCY FUND

This is money you set aside just in case something unexpected happens. For instance, say your sewing machine breaks and you need it for your custom T-shirt business, you can use the money in your emergency fund to fix it. Every business has surprise hiccups like this!

ASK FOR ADVICE

If you’re feeling lost when it comes to financial lingo or if your business isn’t earning as much money as you know it can, reach out to an adult for advice. You probably have a parent, aunt, uncle, cousin or family friend who’s a small business owner — they should have some insight for you.