Can You Balance Your Budget with Your Social Life?
One of the challenges of being a small business owner can be the often times solitary nature of your work. The desire to connect with people can easily turn into regular restaurant lunches and meeting friends for dinner or drinks. Never mind the fact that, with a couple of $10 drinks, a $15 plate of food and a 20% tip, that social hour ends up costing you over $40. Doing this just a couple of times per week adds up to an extra $320 each month that you could really do with avoiding. BUT…everyone else is doing it, and you don’t want to be the one to admit that finances are tight, and be a downer on the evening. So you go along and have a good time, but all the while you feel just slightly anxious because you know that most of this is going to end up on a credit card at the end of the month, and those bills are getting high enough as it is…
So the question is: how do we balance the need for a social life with the realities of a tight budget?
Here are three suggestions:
- Don’t try to keep up with the Joneses. The need to “look good” is almost beaten into us from an early age, so avoiding falling into this trap can be hard. Explore discount stores instead of name-brand shops. Suggest coffee with friends instead of drinks (a $1.50 coffee is much easier on the wallet than a $12 cocktail). You’ll often find, especially when it comes to socializing, that people are really glad not to be spending money, as they face many of the same financial challenges that you do.
- Forecast your fun. Forecasting is the process of projecting what your spending will be in any area of your life. Visit http://www.abundanceboundsystem.com and register for our next free financial seminar. We’ll teach you how to calculate exactly what you’re spending, on average, across the financial board. You can then determine exactly where you’re overspending, and also, where you can spend a bit more if necessary. The key to success in this process is avoiding denial. In other words, it’s rarely advisable to try completely eliminating a category where you’ve been spending up until this point. (i.e. “I’m not buying any new clothes for the next 6 months…”) There’s nothing like “forbidden fruit” for enticing you back. So instead of going into a month saying “I’m not going to go out at all” – simply allocate a certain amount for “Eating Out,” or “Drinks,” or whatever other category you want. Then, when the end of the month comes around and you’re near the end of your allocated funds, suggest the local diner instead of the local bar for that next get together.
- Work together to save money. Given that most people are in the same boat when it comes to their finances, be the first one to broach the subject of a budget with your friends. There is such a taboo in this country about discussing money that most people go through life never saying more than the obligatory “I’m fine…” (usually a lie) or “I’m broke…” (but with no real attempt to solve the issues causing that situation). Break with tradition and work with others on ways to both save and make more money. You’ll be amazed at the ideas that come out of brainstorming these things with like minded individuals, so give it a go! At the very least, it will take the pressure off the next time you say “Make mine a water…”
Hopefully these pointers give you some ideas about how to have fun but still make sound financial decisions at the same time – a key to your financial stability and success as a small business owner. Again, it’s never about saying “I won‘t go out until I’ve made $X.” That may work for some people, but I have yet to meet them. Instead, map out your spending, and put your money towards things that you’ll enjoy. Talk to your friends and work things out together. Visit http://www.AbundanceBoundSystem.com for the guidance and support that will help you stick to your plan. Your bank account and stress levels will thank you for it.
