3 Budgeting Tips for the New Year

Wanna know something? I used to hate budgeting.

Yep, me. A professional bookkeeper and CFO. I had the mindset that budgets would restrict me and not let me do anything fun or go on any trips. I didn't want to set my budget and not be able to make my Target or Starbucks runs (anyone else? ) But the truth is... budgeting actually allows you to spend. It allows you to do things you want to do, without realizing you've overspent and now have to face the consequences of that.

Budgeting is looking at what's happening with your finances and prioritizing where you want your money to go. You have to tell your money where to go, not let it tell you where it went. So here are 3 tips to get you started on your budget for 2024:

1 | Review and analyze your 2023 financials

Before planning for the future, it's important to evaluate what went well and what worked in the current year. Look at your revenue, expenses, and profit margins. Did you meet your financial goals? What areas of your business were the most profitable? Are there any unnecessary expenses that can be trimmed down? Understanding your financial data will help you make informed decisions moving forward. By looking at your data you’ll be able to see what offers or services were most profitable, and the ones that were less so.

Let’s say you’re a brand design agency, and your Website in a Week offers were the most popular and profitable, but currently most of your marketing efforts are towards a different service you offer. Knowing those numbers will help you decide if you want to focus more marketing effort and $$ towards your highest-grossing offers.

2 | Set realistic goals for 2024

To set realistic goals, start by identifying your top priorities and what you want to achieve financially. Whether it's increasing your revenue, reducing expenses, or saving for a specific business expense, having clear goals will keep you focused and motivated throughout the year. To make this easier, break down your goals into smaller, actionable steps. Want to make 200k next year? That's roughly 16.5k/month. How many clients or projects (however it makes sense for your business) do you need to hit that goal? Knowing that will help inform your business plans and goals for the year (and what to market or allocate budget resources to, as mentioned in the previous step). Breaking your goals into smaller steps always makes it feel more achievable too!

So again, let’s say your goal is that 200k, roughly 16.5k/month. Going back to that brand design agency example, let’s say you charge 6k for your signature, full brand + web design package. If you sign 3 clients at that price, that’s 18k right there. So each week, how many posts or podcast episodes or whatever your marketing strategy is. What do you need to do to reach those 3 clients? Same thing if you do the website in a week. How much does that service cost, how many of those packages do you want to sign and what will you do each week to reach that goal?

3 | Set aside time to do it

Schedule monthly (and bi-monthly) money dates. With yourself, and if it applies to you, with your spouse. This is to checkin, review, and make sure you're on the same page with your goals. I do business finance checkins with myself every week. On the personal side of things, my husband and I share finances so in the middle and end of the month we sit down and review everything. Every quarter I show him what I'm doing in my business and plans for next quarter. Schedule these dates and block out the time on your calendar. I can't stress this enough. Sometimes we miss, and if you do (or if you have it later than planned), that's ok. You can still get back on track!

Listen, I’m a finance girl but I get it. It’s not always the most fun thing to do, for most people. That’s where you can MAKE it fun, whatever that looks like for you. Love coffee? Take yourself out to your favorite coffee shop, bring your laptop, and go over your budget. Incentivize yourself by taking yourself out to dinner after going over your budget. Get your favorite snacks and sit down with a cozy blanket in your office for a date-night-in with your budget (so romantic, I know 🤭). But seriously, there are ways you can make the process more enjoyable and less… “tedious” if that’s how it feels for you right now.

There you have it, my friend! Three budgeting tips to help you kickstart the new year with confidence and financial clarity. Remember, budgeting doesn't have to be a daunting task. Break it down into manageable steps, stay committed, and trust the process. You've got this! If you're still not sure where to start or want a clear direction from the get go, we do have some incredible budget resources in our Marketplace. Our Business + Personal Budget templates (created by yours truly) will give you the fundamental information you need to make informed decisions in your business. No more wondering, no more guessing. You can check them out in our Marketplace here.