Smart Financial Habits For Marketing Agencies to Adopt This Year
Actually go to the gym, cut down on empty carbs, and don’t spend as much as you did during the holidays. It’s that time of year to focus on self-improvement.
Oh, we’re not talking about individuals.
Marketing agencies, it’s time.
One of the many categories marketing agencies need to improve on, especially after another long period of holiday season, is money management. The topic of saving money may sound easier said than done, but adopt these 4 habits and you’ll be on your way to starting your company’s financial New Year resolutions.
1. Invest in your savings first
Contributing to your savings shouldn’t come last, or even second for that matter. Choose to pay yourself first whenever you receive a paycheque. This simple and obvious, yet important money saving tactic is needed for increasing your savings.
Using what’s left in your bank account at the end of the month to contribute to your savings will most likely only make you feel guilty when realizing how much you should have put away in the first place. Instead, set up an automatic transfer that will move the money from your chequing account to your savings on each pay period.
2. How much to set aside
Sometimes putting money aside can be difficult because we either put aside too much or too little. We can either feel like we don’t have enough left over for ourselves or we aren’t seeing a significant increase in our savings each time.
You should be saving 10% to 20% of your yearly net income. However, a staple rule for a savings account is to save at least $1,000 in case of emergencies or save enough to cover your living expenses for 3 to 6 months. Expenses could include, rent, groceries, or monthly car insurance.
3. Don’t be afraid to speak about money with your management
The topic of money seems to be taboo when engaging in polite conversation. What is perceived as having “too much” or “too little” money is subjective and can be socially damaging. So most times we avoid the topic, and no one feels judged.
However, money shouldn’t be taboo. The amount of money in your bank account doesn’t define your company’s worth.
Becoming more open to discussing investments, company’s finances, and that will help you learn from others, just like how we learn when we discuss relationships and careers.
Studies show that the more we talk about our finances, the more confident we are, and the more knowledge we gain about making smarter money choices. Don’t worry about others possibly judging you based on how much you have in your wallet, and start discussing your savings with your inner circle.
4. Create a budget
Your first towards healthier financials would be to just create a budget. No matter how much money you have, always create a budget. To get started, you can use a budget calculator to determine how much you should be spending on necessary expenses depending on your annual take-home pay.
If you don’t know where your money is going, then you’ll never have a healthy relationship with finance. Take time to mentally or physically write down your financial goals like buying an office or a business car, and make saving for these goals a part of your budget. Creating a budget will help you set spending limits, work more comfortably within your means, and have more money for investments that actually matter to you.
In the end, it can feel easy to beat yourself up for over-spending. But just like how eating one burger won’t ruin a diet, spending too much on one night out won’t ruin your company’s bank account. Feeling guilty about past money mistakes isn’t constructive, but learning from it and doing better tomorrow is.