f you’re starting a new business, one of the most crucial things to consider, is your budget. While things such as product development, customer service, and marketing all play a huge role in a new business’s success, a budget will help keep you in check. If you don’t know what kind of expenses to expect or have an idea of what your actual revenue will be, you won’t be able to keep your business afloat.
As an entrepreneur, your financial longevity and business, rest on your ability to budget appropriately. However, your personal finances shouldn’t take a back seat to your new venture, which is why you should consider practicing zero-sum budgeting.
You can use zero-sum budgeting to keep your personal expenses and income balanced. With zero-sum budgeting, you take your previous month’s income and then break it up in specific categories. Examples of categories you might want to consider are things like bills, debt, savings, food, entertainment, etc. The goal of this, is that every penny you make is placed into a category and has a purpose.
If you are using the practice of zero-sum budgeting correctly, then you will end up with a net balance of $0.00. That is because every dollar you earned the previous month was budgeted to an expense for the current month. By budgeting this way, entrepreneurs with a new business can make sure they aren’t wasting any money.
If you want to learn more about zero-sum budgeting, take the quiz below from Health IQ to test your knowledge.
