Money challenges are all the rage in the personal finance space. They make finances fun while people work toward their goals. While many of these challenges are geared toward people with regular income, the truth is business owners could really benefit from them as well.
As we’ve mentioned before, it can be difficult for business owners to manage their personal finances – especially when you’re in the beginning stages of the business. That’s where money challenges can come in handy.
52 Week Savings Challenge
One of the money challenges I try to partake in each year is the 52 Week Savings Challenge. Dring this money challenge, you number the weeks of the year and then transfer that amount into savings each week, For instance, you would transfer $1 the first week of the year, $2 the second week of the year, and so on.
The reason this works for business owners, especially those who are just starting, is because it’s easy to feel like you simply don’t have any money to save. Between having variable income and then trying to find ways to fund your business, it’s easy to neglect personal finances. With the 52 Week Savings Challenge, you can ease into it and build your savings cushion.
No Spend Challenge
A No Spend Challenge is exactly what it sounds like – a money challenge where you don’t spend money. All you have to do is pick a set period of time where you won’t spend money on things that are unnecessary. Then, every time you stop yourself from spending unnecessary money you can move the money from your checking account into a savings account.
I did one of these earlier this year when I realized I was overspending in my personal life. I also did it for my business because I realized I have a tendency to spend unnecessary money in the name of investing in my business.
Why is this important for business owners? Once again, because we need to boost our savings. Business owners have a tendency of neglecting their personal finances and it gets to a point where we need to stop.
Second, many businesses fail because of high overhead costs. We fall into the trap of thinking that because we’re spending money on the business then it will work itself out. This is not always true, so a No Spend Challenge helps you define what you absolutely need for your business versus what you want for your business.
This was a major eye opener for me personally and it allowed me to balance the business finances in a way where I was no longer jeopardizing my personal finances.
Track your expenses challenge.
In the previous section, I mentioned how business owners sometimes let their overhead get a little out of control. That’s why it’s so important to keep track of expenses on a regular basis.
If you’re not accustomed to doing this, you may want to partake in one of my favorite money challenges where you can track everything you spend for the next 30 days. You can do this for personal expenses and business expenses.
Have you tried any money challenges that have helped you as a business owner? Which are your favorites? Let us know in the comments below.