Money Management tips for web designers.
February 28, 2006
One of the key components of running a successful web design business (any business really,) is to manage your money effectively.
Most businesses go out of business, simply because they don’t follow some basic money management rules. The following are my ‘Killer Money Management Rules’.
Top 6 Killer Money Management Rules
1. Credit cards are for transactions only – not for carrying debt. Pay off your entire balance every month!
2. If you can’t buy something cash, don’t buy it.
3. If your bank account is not increasing every month, it’s time to go into crisis mode.
4. You should have a stash of ‘fcuk-you’ cash … one years worth. So, if you spend $2000/month to live, you should have $24 000 in the stash. The stash should be held in a no risk, immediate access account like an ING account.
5. Never touch your emergency stash unless it’s an emergency. Having this stash makes you sleep well at night. I call it ‘fcuk-you cash’ because when you know you will be fine for a year, you can tell idiot clients to … you get the idea.
6. Create a separate retirement account/investments that you pay into regularly and first – this is a ‘never touch’ account.
Lots of business owners pile all their funds in one place (as I did) and then end up broke at 55. Fortunately for me, I learned these lessons young.
