I have read a book, The Millionaire Next Door, the talk about the attitude of the rich people who are frugal and the financially fit. They are compared to those who are physically fit and exercise regularly. Isn’t it clear about who have the bulges to get excercise to burn those calories? It is ironic that those people who need to get exercise are the one who were not doing it. Even people who were affluent, I mean those people who became rich through hard work are very careful with their spending. They live below their means. And this is not include Hollywood superstar, who was very rich or the people  who won the lottery that becoming instant millionaires.

People in rich countries like the U.S. and Japan, despite all their wealth, would still keep every penny and yen they receive. In the U.S., it is unusual for a man to have a coin purse, so they would be able to pay the exact amount most of the time. The Americans and Japanese, despite their affluance. wouls not pay one penny or or yen more than the actual price of any goods and also hope that will receive no less than its exact change.

Why do you think many Americans spend time on the paper clip discount coupons? For them, discounts, even though only 10 cents again means less to pay for an item. If all discounts are added up, that can mean that savings are quite significant. They wouls go to supermarket with the coupons they clipped and use them when paying for their purchases.

Sad to say, that this is not happen in my country. Nobody goes to the supermarket with a bag full of coupons. I myself do not bother to go to the store with the coupons. We even have a calendar of popular pharmacy with discount coupons. Perhaps because the value of our currency is too weak to pay attention, or amor prio? (Pride?) Culture? Whatever! No wonder we are still a Third World. A discount is a reduction, even a penny, two cents, 3 and so on. And how much more if it’s a freebie? Free stuff or corporate give away. This does not mean that people who patronized them can’t afford these items. It only shows that they value their money. Getting free samples so if they do not like the product, no one will blamed for not buying a better one.

Build a business budget is very similar to creating a personal budget. However, there are some differences. If you own a business, taxes are not taken directly from your income, which makes your income and any quarterly tax payments extra important to track. Having an accurate and realistic budget will help you make accurate spending decisions and make it easier to predict profits. This means that the more often you track costs, the better. Here are the recommended steps to create your company’s budget:

Step 1: Determine the frequency you want to track your expenses and income. It is generally advisable to choose every week or every month. At first, it may seem like a time-consuming task to track and enter your expenses every week, but it will be worth in the long run and as you become accustomed to it, you will realize that it really only takes a few minutes each week.

Step 2: Determine the costs. This means that operating costs such as telephone and web-hosting payment, the cost of your taxes, the cost of outsourcing and the cost of marketing, advertising and so on. Make a list of all categories that are expected to cost and the all areas where you already know the costs.

Step 3: Now the fun part! You will predict your income. The best approach is to predict on the conservative side. So if you have a bad month, your budget is not blown, however when you have a good month, you’ll have a lot of good months, you will have extra money to work with.

Step 4: Track your expenses and income, and often revise their budget. Your budget is not set in stone. It is life, that will changes as your business will change. If you see you’re spending more in a category make an adjustments to your budget. A business budget is not a diet or a strict rule, it is a spending plan.

Step 5: realize at beginning, it is likely that you will have more expenses than income. It is normal for most start-up business. Follow the difference between what you spend in each category and what they have planned on spending. This will help you predict the future and keep your budget realistic and accurate. Budgeting for your small business is good business. Without a budget, you can not make accurate predictions and to keep your business profitable and going strong. If you want to be a successful entrepreneur, you can not do without a business budget. The good news is that it is not too difficult. A simple spreadsheet and a bit of time can make a difference.