Although we may be nearing the end of January, it’s never too late to make some good financial resolutions that are easy to stick to*.
Commit to taking your Small Business to the next level with our 5 top financial resolutions for 2024.
1. Save more
It’s no surprise that most people’s finance resolution every single year is the save more money but sticking to this particular resolution can be difficult if you haven’t set yourself up for success from the start. Whether this is a personal goal or a business goal, there are several things you can start doing to save more money and ensure you’ve set yourself up for emergency funds when you need it!
a. Savings account
b. Discount sites
c. Comparison sites
Another great way to make sure you’re getting bang for your buck is to use comparison sites. These types of sites do all the hard work for you and give you the summary of what the product or services features, benefits and sometimes even associated costs, including discounts are. One of our all-time favourites include Make it Cheaper; where you can find savings on your energy providers by doing real bill comparisons, Finder which allows you to compare anything and everything from internet providers, finance providers, energy providers, as well as insurance providers and BizRate which allows customers to find the best prices, set price alerts and search through countless deals on their price comparison search engine, giving them a peace of mind.
2. Budget/Forecast
No one particularly likes setting a budget for themselves in their personal lives, but budgets for your business can be a complete life saver. It allows you to project what you can afford to spend and help you identify areas where you could cut back.
Creating a budget doesn’t need to be a tedious, scary task. You can start by simply writing down all your fixed expenses, such as rent/mortgage, business phone, staff, marketing, etc. Then you can see how much money you have leftover for flexible expenses, such as investing back into the business, upgrading equipment or machinery and so forth.
Having a proper budget also allows you to make better financial decisions and manage your cash flow better.
3. Pay off credit card debt
According to recent research, 75% of adults carry a credit card balance month to month. Among credit card carriers, the average balance held was $5,315 in Q3. It’s crucial to review your credit card statement monthly for the due date and make sure you pay on time. This will save you money on interest and late penalties, as well as help you maintain a good credit score.
Make it a priority to pay off your credit card debt if you have one. You can choose a variety of ways, but two popular ones are paying off your largest debt first (the debt avalanche method) and paying off your smallest debt first (the debt snowball method)
Consider credit counseling, taking a loan, a low-interest balance transfer, or debt settlement if you have trouble paying payments.
4. Invest in growth
Finally, one of the most important things to add to your list of resolutions is investing in growth for your business.
Trying out new tools, technology, marketing/advertising, hiring specialists all add value to your business and can help you scale considerably.
But all investments require additional funds and having working capital to be able to invest in your business can be tricky.
With alternative lenders like Capify, who offer great rates, terms and approval rates, you can solve the lack of cash flow quickly and start getting a return on your investments in no time!
5. Improve Credit Score
Whether you’re a business owner or not, having a good credit score should be one of your top resolutions, especially during the surge of Omicron, where your cash flow is tided up with decisions made by government and lockdown policies.
Finding your credit score isn’t as difficult as you may think. You can get a copy of your credit file from multiple credit agencies, such as:
Whilst there are certain terms & conditions, along with eligibility criteria’s and in some instances fees, having a comprehensive view of your credit file will allow you to see what areas you need to address to improve your score.
Whether it’s paying debts on time, creating a good relationship with credit providers to making sure your credit file is accurate and you’re not making multiple finance applications, there are several things you can do to improve your credit score.
*Please note this is general advice. We are not licenced to provide financial advice. Please ensure you speak to your financial advisor before making any financial decisions.
