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Include this into your budget to prevent your company from making a loss

by , 15 September 2014
The point of a budget is to help you manage your money so you come out with a profit. But some months it's hard to do that when expenses keep popping up. How do you know when to stop and say 'enough spending'?

The truth is some months you just can't stop and you may feel you have no option but to run into a loss.

The good news is you can stop this loss from happening. All you have to do is build this one feature into your budget and it'll help you always come out in the black...

 

For financial success, include this in your budget

 
The mistake people often make, whether it's in business or private finances, is they only save whatever's left over at the end of the month. 
 
If you do this, it's too easy to just keep spending and spending on unnecessary expenses. By the end of the month, you don't have anything left and that means there's no profit.
 
Avoiding this mistake is easy though. All you have to do is have a dedicated savings amount or spending cap.
 
You can choose which ever suits you better. With a savings amount, you enter a determined amount that you can't spend to hold back as a profit.
 
With a spending cap, you set an amount that you know you want to have left at the end of the month and when you reach that cap, you stop spending for the month. 
 
Just keep this in mind when you do this.
 
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Keep this in mind when you use this budgeting trick

 
If your income for that month can only cover your expenses then that comes first. Never prioritise savings over necessary expenses.
 
You must be flexible with your savings amount/spending cap depending on your income and expenses.
 
By doing this, you can use your budget to help you always walk away with a profit.


PS. Here is an amazingly simple way to manage your financials, with the Master Budget Series
 


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