All businesses, big or small, on the side or full-time, come with expenses. They could just be startup costs, or you might need to account for ongoing or reoccurring expenses. Either way, the money you need to spend to keep your side business running has to come from somewhere.
Hopefully, your gross profits are enough to help you handle the costs of keeping your work on the side going — so you can keep bringing in the extra cash.
But even if you’re pretty thrifty and savvy with your personal finances (after all, you probably started a business on the side to earn some extra money to further your financial goals, right?), it can be too easy to mindlessly spend on anything you can write off as a work expense.
Saying, “it’s for my work” or “it’s for my side business” can evolve into an excuse that allows you to buy or spend more than you really need. After all, your side business provides extra profits for you — so it’s not like Right?
Well, maybe. But consider changing your mindset. Ask yourself, how much more cash in your pocket would you have if you made an effort to start bootstrapping your side business? [Read more…]