Are you weighed down by your child care center’s finances? Are you looking to shave off a few expenses, or simply wondering how to stay in financial shape? No matter your situation, there are a few simple steps that will help you reach your financial fitness goals.
Before you start a diet, you have to step on the scale and evaluate how much you want to lose. The same goes for finances - before you can start to improve, you need to know where you stand today. Take a complete inventory of your earnings and expenses, and determine which areas you'd like to work on.
Once you obtain a vision of how you want your finances to be, set goals, both short-term and long-term. Without tangible goals, your vision of financial fitness is just a wish. For example, if you want to cut food expenses in your child care center, set a goal to make a monthly meal plan. Once you know what food you need to buy for the month, you can set a goal to search for the best deals on the groceries you need.
Regardless of the size of your center's debt, get rid of it. The Accelerated Debt Reduction plan is a great tool to use to help you pay off your debts as quickly as possible. Pay the minimum monthly payment on all your debts, but put an extra 1% of your earnings towards the debt with the largest interest rate; once that debt is paid, roll that monthly payment over to your next debt. Repeat the process until all your debts are paid.
We all want to get in shape, physically and financially. The principles are the same for both: determine what state you're in now, set small, achievable goals to help you reach your ultimate goal of fitness, and cut out whatever is keeping you from becoming fit - whether that be debt or too many trips to McDonald's. No matter what state your child care center’s finances are in today, following these steps will help you slim down and get in shape.