What are your thoughts on budgeting? Is it necessary? Is it helpful? Harmful? Does it make us focus on the wrong things? Is it irresponsible not to budget? We asked folks we admired to share their thoughts with us.
Aaron Rose | Audio Creator, Podcast Producer, Editor, Audio Mixer for Films & Composer
Over time I have separated our personal family budget and the business budget. This is to help keep business decisions more focused on what is best for growth, not what is best for the short term family needs. I try to think about making investments not just purchasing. Does the purchase make back money and how quickly? When I create I am an artist, when I spend I am an investor. I must take off one hat to put on the other. Read more>>
Brooke Lively | Speaker, CFO, Strategic Coach, World Traveler & Founder
First, I can’t stand the word budget and I think most entrepreneurs agree with me. As a group, we are more about possibility that prohibition and budgets are all about what you CAN’T do. They are limiting and we want something that tells what we can do to expand our business. For that reason we use Profit Plans. In Profit First, Mike Micalowicz turned the P&L formula on it’s head. He said Revenue – Profit = Expenses. He is right, we should be planning for profit. It was at that moment that we changed our verbiage and redesigned template we used with our clients. As the owner of a fractional CFO company, I have to walk our talk. I do the same exact exercises we ask our clients to complete. To determine how much money I want/need at home, I fill out what we call our Life Without Compromise where I write down my current needs and then what I would spend if I had no limits on money. Read more>>
Jide Kola | Photographer
While in corporate employment, I never really appreciated the value of personal. budgeting because I always had payday rescue me from whatever tight corner I was at. Starting off running my business, I was quick to realise in less than a couple of months that people’s (my staff) livelihood depends on my financial acumen. I. needed to put a structure to the cashflow – Not just budgeting, financial forecasting, depreciation, cost of poor quality and continuous improvement in my processes to ensure maximum returns on investment and consistent cash flow. This was quick to impact my personal life… I started keeping spreadsheets for everything, impulsive purchases ceased, no more “just because”, everything had to be properly thought out before being acquired. Looking back, this discipline has helped a great deal, Aha… lest I forget; Its OKAY to budget to HAVE FUN & TURN UP!!!!!!!!! Just plan for it and stick to it. Read more>>