< see tips to managing your cash flow part one!
Now, you have a list, you have scheduled payment dates, made your paydays.
Cash -flow – Now we look for future changes, because nothing stays the same. Surprises are stressful.
1 – Take note of the month your Annual Increase to your Insurance, security, rent etc. is in.
2 – Make a note when your Car Licence, Drivers Licence, Staff Drivers Licence is due and payable.
3 – Add a note when your Annual Service Fees are due on your credit card.
You will be able to determine what they are. Have a look at your Income Statement from the previous 12 months.
Saving for expenses
I am reading a book by “Mike Michalowicz – Profit First”, which opens my eyes to the way my mom and Gran did things in the old days. My Mom ran the financial side of the business of my Dad’s business – very well.
Instead of waiting to pay your salaries at the end of the month, and hoping there is going to be money to pay the salaries. Open a bank account (savings) and each week put away 25% of your monthly payroll or put a percentage away daily.
Your Credit Card, if you have one, it has two dates on it.
• The Statement date, interest and penalties will be charged on this day.
• The due date for when payment is to be made.
Now if you have read, Tips to Managing your cashflow – Part 1.
You will have read that you need to schedule your payments, well you can manage your credit card too.
Contact your bank – Card division and ask them to change the date your credit card statement runs on. If your statement date is the 5th (the last day to shop for the month). Your payment due date will be 25 days after, so the 30th of the month. If you want to make the payment due date the 7th, ask them to change the statement date to the 12th or 13th of the month. Ensure you pay the full amount due on this day to avoid those lovely interest and penalties.In Conclusion – spread your payments over the month – schedule them – Its’ your money-manage it. Tips to Managing your cashflow – Part 3 coming soon.