My Biz Finances - How I manage my money

Part 2 - The envelope system and how to spend less

Alright, so in my last post, I shared what came in, and what went out. Now it’s time to share what I’ve done with that information (and money) to keep my business ticking over. I want you to remember that even on a modest revenue, you can actually pay yourself a decent amount, as long as you’re not pissing money away on unnecessary expenses. If you’ve looked at what you’ve brought in and what went out, and felt dismayed, understand that you’re not alone.

Unfortunately most of us are simply not taught about how to work with money, let alone how to do it in terms of our business. I’m nooooo expert, but I’ve learned the hard way, and got the badge to earn it. I’ve felt genuine fear about how to pay my tax or accountant fee, or any big expense. I’ve bought things I technically couldn’t afford, all because I hadn’t been taught how to do money.

I don’t want you to have to do that!

As of 2023, I implemented the envelope system into my business finances, which essentially means I allocate a certain percentage of everything that comes in for different things. I use the Profit First system for this, but the envelope system is much older than that. What PF is great for, is giving you a guide as to how much to allocate, where. In less than a year, I’ve been able to stop stressing about whether my business can pay its bills etc, or what happens if I have zero coaching months like July and August when I closed my calendar due to giving birth.

Here’s how.