Sometimes in the world of business budgets can be tight, as they should be. As I was reading around the World Wide Web I recently came across some really interesting ideas of some amazing ways to stick to your budget.
From all the reading I have done, it inspired an idea and what I think is a valuable idea. I thought I would share my thoughts and as always curious what you guys think?
Unfortunately I do not remember the source to some of my inspiration, but I will share my thoughts and twist!
Basically I am writing about a great way to not only track money, but to make sure your budgets can not be broken.
Now a big note here... Make sure to understand the type of budgeting we are talking about. This would fall under the category of something that is not fixed or constant i.e. your rent, electric bill, etc. But more for maybe a... project that you are budgeting for or an event or even an advertising budget.
All of these types of budgeting purposes are something that comes and goes. In other words, you have a preset limit that should not be adjusted or changed. Not only does this benefit your current project or event, but it will make a huge difference in your budget of the big picture at the end of the year. The bottom line is if your giving for this your taking for that!
So what is this idea anyways? Well it's about controlling the HOLE in your pocket.
Basically setting preset limits to which you are allowing the business to use. A great way to do this is by use of Pre Paid Debit Cards. Make sure to check out My Green Dot for all your Pre Paid Debit Card needs. Basically the way it works is you set your limit to the card and by doing so you are controlling the amount you are allowing the business to spend. When the money is used up.... it's used up.
Now at first thinking about this, my thoughts were why not just use an alternate savings account? But realistically your money needs to be accessible at any moment, especially in the planning of an event or a project. Not to mention, this account will not be tied to your businesses checking account in any way, so there is no transferring non budgetary capital.
On top of all the budgetary reasons it allows you to keep track of where you are financially and to be able to anticipate any challenges with your budget.
If you decide to go this route, the government has an issued statement and ideas of Pre Paid Cards on their made easy site... check it out.