Managing money means controlling how you earn, spend, save, and invest your money so you don’t run out and can grow your wealth.

1. Separate Personal and Business Money

Very important!

✔ Open a separate business account
✔ Do not mix personal spending with business money

This helps you:

• Know real profit

• Avoid confusion

• Stay organized

 2. Keep Records of Everything

Write down:

• Sales (money coming in)

• Expenses (money going out)

You can use:

• A notebook

• Excel

• Accounting software like QuickBooks

If you don’t track money, you don’t control money.

 3. Make a Budget

A budget is a plan for your money.

Example:

• Rent – 20,000

• Stock – 30,000

• Salaries – 15,000

• Savings – 10,000

Always plan before spending.

💵 4. Pay Yourself a Salary

Don’t just take money anytime.

✔ Decide a fixed amount monthly
✔ Treat yourself like an employee

This keeps business stable.

📦 5. Control Expenses

Ask yourself:

• Is this necessary?

• Will this increase profit?

Reduce:

• Unnecessary subscriptions

• Too much stock

• Wastage

📈 6. Save for Emergencies

Keep emergency money (at least 3 months expenses).

Business can have:

• Low sales month

• Unexpected repairs

• Economic problems

Savings protect you.

💳 7. Avoid Too Much Debt

Loans can help grow business, but:

❌ Don’t borrow without a plan
❌ Don’t borrow for luxury

Borrow only if it increases income.

📊 8. Check Profit Regularly

Every month ask:

• Did I make profit?

• Where did I lose money?

• What can I improve?

Profit = Sales – Expenses

🔥 Simple Rule

Revenue is vanity.a
Profit is sanity.
Cash flow is reality.

If you manage cash flow well, your business will survive.