First Steps First: Get Your Private Finances in Order

Before you even begin to think about making your own business, there is one thing you need to do first......... and that is to get an overview of your monthly expenses. 

In my experience lots of people do not have an overview of their private finances and how much they have to pay each month. It kind of goes lala and since the monthly revenue from the workplace comes in every month, it always adds up - of if not, then the credit card will cover it. 

That is a no go, when you have your own business. In essence, you do not really know what the next month will bring of income, and thus you need to know your minimum income every month to make your household run. And then not use more than that. Stop doing the credit card thing and overdraw. Learn to only use what you can pay for. If that means changes in your life; you will make these changes.

And Why is That?
Lack of money, unpaid debt and not being in control of your monthly expenses, is a weakness. It is that simple. It shows in all of its ways, that you are not taking care of your finances -  and in many ways your well being. Because, although you might not want to admit it - and you might even block it out - there is a subconscious nagging going on. You are being - again subconsciously; yes be honest about it - stressed by the fact that one of the most important things about being an adult is not in check. You are not responsible with your money.

And...... your finances are a symbolic representation of your energy, and how you are in the world. Are you a person in check of your household and personal life? Or, are you the messy one, not having the simplest thing, your finances, in order? Of course, if you need inspiration to personal growth, you go to my Higher Awareness Lifestyle section, and find more inspiration there http://toveje.dk/

In the HAL Business Course (in the making - will be on the new website when ready), I will work with the 5 Statements of Flow and how to work with energy, to support the way we do Higher Awareness Business - HAL Business. We are entering uncharted waters and creating a new way of living. And it is a step-ladder building process; like everything else in life. But, we are making a new business model for a better world, and that also implies paying our bills and having our finances in order - as well as having everything else in order. From doing the correct amount of exercise, to healthy food (plant-frutarian of course), to sustainable living, and becoming harmless - energetically speaking - all in all going zero on the negative impact on our planet. Its a full package inside and out - no slack here.

If you are new to the HAL way of thinking, you can get inspired in these blog posts. And remember, HAL Business is so much more than just creating products and earning money, its a philosophy for a new way of being human too.

Getting Started with a Better Personal Economy
Therefore, to get the overview of how much you spend every month, the first step is to calculate the average monthly payment that needs to be set aside, so you have your bills covered. 

And then, make a realistic overview of what you need of money for food and private expenses. Here, you will do the exercise of learning to cut to the bone and how to live on a smaller budget than what you have been used to. Because, the Higher Awareness Lifestyle is based upon sustainable living, minimized consumption and a simple life. So much of what has been put into our heads, making us believe we need this or that, is not necessary at all. I advocate for a lifestyle that covers the basics, and then once in a while the luxury.

No over-consumption here, thank you. The worlds manufacturers are overproducing, and we need to learn to balance our use of natural resources. Not using more than what we need. That begins with us, the private households. If we stop buying, there is a chance the market will stop producing - not likely since the common supply-and demand is not working, right? We see that already. But let us assume it does. At least we know, we are doing the balanced way of living, and taking care of the planets resources. We walk the talk.

So, How to Get the Overview?
I use Excel to make my calculations, incl. my accounting. If you prefer another program, doing the same thing, naturally you do that. Here is a link to a free Monthly Budget Template.

What you need to do is to get the monthly overview. Each month has its own payments. Insurance falls quarterly or annually, so that is to be written into the months, where these falls. Some expenses fall every month such as rent, phone, etc. So, that needs to be written in the budget all months. 

Here a simple version - click on the image to get a bigger version to look at:


You copy-paste for 12 columns and then you sum up the monthly payments. Here from the Excel tour on how to sum up:


and then calculate the average for the 12 months - or use a calculator:


The total sum of the 12 months payments, divided with 12, is the monthly payment you are to transfer to a budget account in your bank. Every month, you pay that average amount to the account (if you can; begin with a little buffer putting in some extra).

And yes, even if the payment is lower in some months, you still pay the average amount in these months, because in other months - due to the quarterly or annual payments - the payments will be higher. You save up money over the year to pay these bulks of expenses. In that way your bills will always get paid, and you always have money for it. And NO, a big NO, you do not use the money you save up here for anything else. Hands off......

Therefore, if you have not already, create a budget account in your online bank aside from the main account. And then set the net monthly amount to be withdrawn automatically, on the 1st every month, from the main account and into the budget account.

As your business grows bigger, you will need a business account for the income and expenses related to your business, and then you will have a private account, the budget account and a business account - of course all depending on the laws of your country.

The last thing, you need to do, is to calculate what you need for food etc every month. Dont set it too low, or too high but be realistic. You can gather the slips from the supermarket over one month, and then calculate how much you actually use on food etc. That will also be a good way to see how much you are overusing and if you buy stuff, you do not need. Only buy what you need to produce your meals etc.

And one last thing, do the shopping once a week. Not all the small visits - they always lead to more buy than what you need, right?