Minimum Wage Budgeting To Help With The Cost Of Living
Are You Good With Money?
Trying to keep control of your budget on what your spending, can be a challenge.
You work hard — earned some good money.
But never had any spare — never had any savings for a rainy day.
It took me a little while — but I found out why.
So I’m here today to help you do the same with an option to make those savings grow a lot quicker.
Few years ago my main source of income was an electrician, I ran my own electrical business and it was going pretty well.
It had to really I had been in the trade for over 20 years, starting up on your own was a natural thing for a lot of tradesmen to do.
The reason I did was because I wanted more of the pie.
- Completing jobs
All for other people who too the lions share of the profits seemed a waste of time after a while.
Of course there was also the money. I wanted to make more money to have a nicer car and a bigger house.
That Was The Plan Anyway.
It didn’t work out like that and its not until I look back years later I actually figured out why.
When employed or self-employed working for a company you are paid a wage.
Near enough the same wage every week.
That’s pretty easy to budget around.
It’s a set amount every week — pay your bills and the rest is yours to spend.
But there something more appealing to being your own boss.
- Make a lot more money
- Take time off when you like
- Work whenever you like
That’s the idea we have in your head from the beginning, and dam its exciting.
After completing a few jobs things are going well.
Keeping An Eye On the Budget
How long does it take before your budgeting goes out the window?
There a fancy new bit of kit at the wholesales — that will make your life so much easier on site.
It’s a grand, that’s in your back pocket from the last job…
So you treat yourself.
There £100 in your pocket left over — may as well have a few beers with the other lads from site.
This quickly becomes a lifestyle.
The only problem is all outgoing like
- Wholesale invoices
- Credit card
They all come out monthly.
When you have been living weekly.
It can go on for a while until the work dries up a little and that back pocket feels a little lighter then it normally is.
There only a few options left at the stage.
- Fold the business — go bankrupt
- Get a job as employed again
- Pretend everything’s going to be ok and barrow money from your mates.
Where The Hell Did The Budget All Go Wrong!
The end or year finances that your account does, says you doubled your income.
So why is there noting left?
Money management! Not only did you not keep an eye on what you were spending.
The things you were spending them on were far beyond what you could afford.
It was inevitable going to come crashing down.
Of course we don’t want to make the same mistake twice!
Learn the skill of money management.
Its hard when you get paid 5k one week and noting for the next 2 weeks.
Its easy to get carried away and spend way beyond your means, then look back and wonder how it happened when it catches up with you.
A lesson that has always stuck with me is Fail to plan — plan to fail.
That’s so true in business.
Even if it’s a 12 month plan, its better then no plan at all.
The first thing you want to do is give yourself a day to do this.
When a task is rushed, its never don’t properly.
So book yourself a day off to get things in order.
Open up a spread sheet and detail all your outgoings.
The best way is to check your bank statements from the last month.
Then it depends how far you can go back also list the money coming in to your business.
This way you can see where all the money is going and what you need to cut back on.
When I first started doing this, I realized I wasn’t charging near enough for a call out.
I may have been pocketing an extra £50 but with the time and cost of materials I was making the same money as I was working in the day.
When you write it all down on a spreadsheet you can see how mush your spending socializing after works too.
And to be honest.
The time spend in the pub and the money spent drinking could have covered a week snowboarding in France.
Knowing how much spare money you have is going to help you budget for the future.
Weather you invest in advertising or just have a good pot of savings for a rainy day.
The options will be there for you to do what you want and make good use of your time.
I talk about this in the previous episode on the podcast here — The Time Is Now To Value Your Time While Alive
You should check it out.
So get your money management in order and you will find that being your own boss is a good move for your future.