Financial management: 3 common mistakes that you make

Financial management: 3 common mistakes that you make

Are you determined to do a smarter financial management of your money, or of your company’s projects, but you don’t know what’s the first step? Start by not making the same mistakes that most people do. This is already a great step. Check out which ones:

1. Not making a cash reserve

Saving forcely is better than not saving at all. So, every month, transfer $100 or $200 from your checking account to savings. In the case of your company, the amount may be higher. Make this transfer before you start spending the money received. And think that the reserve will be not only for emergencies, but also for the most amazing opportunities, like making a trip and buying a car or a house.

2. Spending more than you need

From the moment you know how much you are spending and where your money is going to, think about ways to reduce some of those expenses. Believe me, you can absolutely live with less. There are people who save up to 75% of their income when they are about to retire. Gym, phone, cable tv, gifts, restaurants… Do you always need to have the most expensive version? Deceptively basic expenses harm your pocket and can be cut off. Cut, for instance, breakfasts on the street, in your case, and paper + electricity + water waste in the case of your company. Moreover, sign contracts with suppliers and partners, as post and courier – it helps save money and time too.

3. Having a vague idea of your money destination

The sensation when you see that your balance is much thinner than you expected is not pleasant at all. Organize your expenses into categories not to have that headache, and use the help of technology for this. To control your personal expenses, we suggest the app Mint (free, Android and iOS), and to know how much the projects of your company are actually costing, try Runrun.it (coming soon to Android and iOS), and get also automatic reports with a few clicks. Gone is the Excel time…

With Runrun.it, managers can even know in real-time the task each employee is working on, the estimated delivery and their availability to accept new demands. E-mails and follow-up meetings? Unnecessary. Try Runrun.it for free: http://runrun.it

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