Isn't It Fun to Depend on Other People for Money? How Much $$ Should A Small Business Owner Have in Savings?
If you are a small business owner in the wedding industry you know the following game far too well: you probably take some sort of retainer or deposit to 'hold the date' ... then 30 days or so before the wedding or event day you take either the remaining balance or another payment towards the balance ... then final payment the day-of the wedding or event. With me so far?? This is a SCARY way to live!! It's not like you are working for a large company who can send you a paycheck each week that you depend on: YOU DEPEND ON OTHER PEOPLE TO PAY YOU. Holy sh*t, someone get me a bag!!
I do not like this part of being a small business owner ... it's terrifying. While I was running Style Unveiled my husband was making pretty awesome money and so we didn't 'need' the Style Unveiled money to get by ... it was basically 'fun money' ... but now things have changed. The Editor's Touch absolutely is necessary to keep us moving along ... and so for the first time in the history of my life I have a 'for a scary f*cking day' savings account. Having that there is an amazing feeling, I gotta say.
>> Do You Have A Savings Account? <<
I am learning now that having a small business means YOU HAVE A SAVINGS ACCOUNT ... no question. Not one that is 'locked' ... but one that is there if you can't make your mortgage or you can't pay the car bill ... etc. If your small business pays for your life in more ways than 'fun' you've gotta get one of these. I can't believe I never had one before!! Eek!!!
We decided that we wanted to have 3 FULL MONTHS of living expenses saved away ... so if The Editor's Touch tanks big time or people start hating my work or if people never pay the invoices they asked me to send: we will be sorta ok for a bit.
I am curious what other people do!! Shall we start a comment convo?? I know I just totally set myself up for ZERO comments on this post ... LOL ... but I thought I could try it anyway ;)
XO~ Heather