In both my personal and business budgets, I keep a line item called, "Stuff I forgot to budget for." When I first started budgeting, a lot of things fell into that category. The more I practice, though, the more expenses I'm able to identify, categorize, and budget for.
If you're working on your business budget, be sure to add these five often-forgotten line items!
Add These Things to Your Business Budget Today
1. An emergency fund.
Yep, your business needs its own emergency fund! You never know when something might go wrong - you miscalculated your taxes, your computer breaks, your production costs increase - and you'll need a little extra cushion to get you through it. And while business insurance can protect you from a lot, it doesn't cover everything. If you have an emergency fund, you can get through a minor setback without taking out a business loan or racking up credit card charges.
2. Tech and equipment upgrades.
You know that new Mac you've been eyeing? That should be a line item in your budget! Create a category for tech and equipment upgrades well in advance of when you'll need them. That way, you can save for them over time and be ready when that new computer or camera drops.
3. Regular branding updates.
When was the last time you had brand photos taken? Or your website updated? These are things you can save for! I like scheduling brand photos at least once a year, so I set aside a little money every month to save up. By the time my brand needs a refresh, I already have some money set aside to hire a photographer, graphic designer, or web developer.
Whether you're just starting or you've been in business for a while, outsourcing is a great way to maximize your income without sacrificing all of your free time. Start saving up to outsource before you need the extra help. Trust me, it will be much easier to pull the trigger on hiring a subcontractor when you already have a few months of their pay saved up.
5. Client gifts.
Client gifts are a simple way to add a personal touch to your business. Plus, they increase your changes of getting repeat clients and referrals! Add a gift category to your business budget, give yourself a monthly limit, and treat your clients to something nice!
Bonus tip: You can deduct up to $25 in gifts per client on your taxes. Score!
Working on your business budget?
There's no better way to get in the habit of spending and saving intentionally. Check out my blog for more business finance and money mindset tips.
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