You need a budget. Yes, you do.

Here at Mural Financial Services we help our clients implement the YNAB (You Need A Budget) Method to intentionally plan how they spend the money that they earn.

This strategy works well in conjunction with the Profit First Strategy. This budgeting technique is unique because you only budget money that you have available. This is not a cash flow projection where you are estimating how much you will earn and have available to spend.

““Always plan ahead. It wasn’t raining when Noah built the ark.” ”
— Richard Cushing

Rule 1: Give every dollar a job.

Prioritize how you will use your money, and then follow your plan.

Determine the categories that you will allocate your money to and allocate a specific dollar amount to each category. Remember to assign a category to every dollar.

Rule 2: Embrace Your True Expenses

Take the large, less-frequent expenses and break them into manageable monthly bills. For example, annual membership dues of $1200. Set aside $100 per month to save for this expected future expense.

Rule 3: Roll With The Punches

Be flexible and address overspending as it happens. If you overspend in one category, simply reallocate money from another category.

Rule 4: Age Your Money

The goal is to be spending money that is at least 30 days old. When you are spending money that you earned last month you can more accurately plan how much cash is available for spending during the current month.

Determine the average total of your monthly expenses for operating your business. If you already have this amount saved and available for use, move that amount to your operating account at the end of each month to be used for the upcoming month. This will reduce the stress associated with having the funds available to pay a bill when it's due and will also put you in a better position to use automatic bill payment with your vendors.

How we can help...

  • Create a customized budgeting template for you to use

  • Work with you to determine a monthly spending plan for revenue received

Have questions? Schedule a consultation.

To learn more about the YNAB method click here.