Good Financial Habits for Entrepreneurs

Properly managing our finances is important no matter what profession we are in. But if you are an entrepreneur or in sales, it is even more important.

You will often hear people in sales or with irregular income say that they can’t really budget because their income is so inconsistent. While it is true that it can be more involved, it can still be done. In fact, if your income varies it is even more important that you learn how to do It!

One of the challenges with sales people is that they tend to be pretty optimistic.  It is a great trait but when it comes to managing personal finances we need to keep it conservative.

I got news for you… If you just had a personal best and made $20,000 last month that doesn’t mean you are making $240,000 a year! If you made $20,000, there is no question that you can and maybe you will do it every month! But let it become the norm before you adjust your lifestyle.

Delayed gratification is an important part of creating wealth. Give yourself some time and create a solid track record before you go spend it all.

Instead, go save that extra money in case you make $4,000 next month! I know that may sound like a negative thinker! But too many sales people are guilty of creating their lifestyle based on their record month! It is wise to base your lifestyle on your average (or below) months…. and if you keep improving that average income will go up over time.

Bottom line….  pay off debt and save, save, save. I know it sounds like advice your great grandmother would have given you, but maybe she was right!

To your success,

Rich

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