2. You need to take a look at your personal budget before you can explore the various options available to finance your business. Knowing what your personal budget is will give you an idea of how much cash you need to continue on with your current lifestyle. To get an idea of how much money that is, let’s list all of our monthly expenses and see what the total is. The following list are some expenses you may incur each month. Keep in mind that everyone is different, so use this list only as a starting point: Personal Budget
3. Rent/Mortgage Property Taxes Utilities Phone/Cell Phone Internet House Insurance Health Insurance Car Insurance Groceries Household Supplies Eating Out Hobbies/Activities Movies, Theater, Etc. Gas Clothing Gifts Pet Care Newspaper/Magazine Subscriptions Other Expenses Monthly Expenses
4. After totaling all of your monthly expenses, you know have an idea of what your current budget is. Now you want to adjust that budget to reflect how your spending habits will change after you’ve started your business. Are there any expenses that can be reduced to help you save money? Will you be driving as far you currently are? Some expenses may actually increase after you start your business. Will you retain your health insurance? Will you need to start paying for childcare if your employer currently provides it? Make a list to reflect all the possible changes to your budget. Current Budget
