{"id":4135,"date":"2019-01-28T13:31:06","date_gmt":"2019-01-28T11:31:06","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?p=4135"},"modified":"2021-01-07T13:33:58","modified_gmt":"2021-01-07T11:33:58","slug":"january-financial-wellness-month","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/january-financial-wellness-month\/","title":{"rendered":"Financial Wellness Month: January 2021"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"blob:https:\/\/www.become.co\/4c03d8a7-e5e9-4d34-9a1a-230f44077c58\" alt=\"\"\/><\/figure>\n\n\n\n<p><span style=\"font-weight: 400;\">Tax season is upon us folks, stretching from January 1<\/span><span style=\"font-weight: 400;\">st<\/span><span style=\"font-weight: 400;\"> to April 15<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\">. For that reason, January is also recognized as Financial Wellness Month. It&#8217;s a new year, and even more than that, it&#8217;s a new decade! Now is the time to assess your financial health and get your business finance arranged.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But what is a healthy business anyway? Well, just like your car needs a tune-up on a normal basis, your business also needs to be evaluated in order to maintain proper performance. Here, we\u2019ll give you some great useful financial wellness tips for the coming year (and decade!).<\/span><\/p>\n\n<h2><span style=\"font-weight: 400;\">What is a \u2018financially healthy\u2019 business?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To put it simply, a \u2018healthy\u2019 business is one that has its budget balanced, and has an effective plan for when unpredictable obstacles come up. This may sound easy, but if your business is like any other, chances are there are some difficulties when it comes to keeping your finances in line. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most challenges can be avoided by simply staying organized, but other challenges can arise without warning &#8211; that\u2019s why it\u2019s crucial to realize the importance of keeping your business healthy, even when the pressure isn\u2019t on. The financial decisions you make today will echo into your business\u2019s future. So get on the ball today!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Make sure not to spend more than you make. Pay your bills on time. Keep your business <\/span><i><span style=\"font-weight: 400;\">wants<\/span><\/i><span style=\"font-weight: 400;\"> separate from your business <\/span><i><span style=\"font-weight: 400;\">needs<\/span><\/i><span style=\"font-weight: 400;\">. Okay, okay. This all sounds like run-of-the-mill advice that your grandparents would\u2019ve given you, if they owned a business, that is. We\u2019ll reveal the <\/span><i><span style=\"font-weight: 400;\">real<\/span><\/i><span style=\"font-weight: 400;\"> financial wellness tips just below&#8230;<\/span><\/p>\n\n<h2><span style=\"font-weight: 400;\">How to check if your business is \u2018financially healthy\u2019<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">So Financial Wellness Month 2021 has got you in the \u2018healthy business\u2019 mindset, but you don\u2019t know where to start. Well, first thing\u2019s first &#8211; you need to know how to check if your business is healthy before you can start adjusting your business finances. There are a few easy questions you can ask yourself to help you make a financial health-assessment\u2026<\/span><\/p>\n\n<h3><span style=\"font-weight: 400;\">1. \u201cIs my business profiting?\u201d<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">While assessing profit levels isn\u2019t going to give you a lot of information about what steps to take to better your business situation, checking if you\u2019re making more money than you\u2019re spending is one simple way to tell if your business is at least heading in the right direction financially.<\/span><\/p>\n<p>\u00a0<img decoding=\"async\" class=\"aligncenter wp-image-4146\" src=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/01\/iStock-507635176-1-300x200.jpg\" alt=\"financial wellness tips\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/01\/iStock-507635176-1-300x200.jpg 300w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/01\/iStock-507635176-1-768x512.jpg 768w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/01\/iStock-507635176-1.jpg 1024w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/01\/iStock-507635176-1-405x270.jpg 405w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n\n<h3><span style=\"font-weight: 400;\">2. \u201cAm I spending more on inventory than I need to?\u201d<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There are a number of benefits to calculating how much money you spend on goods in order to keep your business running. First and foremost, you\u2019ll provide yourself with the basic information you\u2019ll need to establish the pricing structure that will work to the best advantage of your business\u2019s health. Beyond that, it will also help you maximize your profits &#8211; no complaints there!<\/span><\/p>\n\n<h3><span style=\"font-weight: 400;\">3. \u201cWhat is my business\u2019s net income?\u201d<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your net income is the amount of money your business is making, after taking the operational costs into account. In other words, net income is the money you\u2019re left with to either save or to reinvest. Generally speaking, a healthy business has a high net income but doesn\u2019t cut corners on the operational quality of its services or products. The simple <a href=\"https:\/\/www.investopedia.com\/ask\/answers\/122414\/what-difference-between-operating-income-and-gross-profit.asp\" target=\"_blank\" rel=\"noopener noreferrer\">equation<\/a> to calculate your net income is:<\/span><\/p>\n<blockquote>\n<p><b>Net Income = Gross Profits &#8211; Operational Costs<\/b><\/p>\n<\/blockquote>\n\n<h3><span style=\"font-weight: 400;\">4. \u201cHow does my debt look?\u201d<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Hopefully, this doesn\u2019t come as a huge surprise to you, but you want your business\u2019s amount of debt to be low. Now, that doesn\u2019t mean you should avoid debt at all costs (no pun intended). <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Occasionally you may want to make big renovations or upgrade a piece of <\/span><a href=\"https:\/\/www.become.co\/business-equipment-loans\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">equipment <\/span><\/a><span style=\"font-weight: 400;\">you\u2019ve avoided replacing for a while, and you may have to take out a small business loan to fund those improvements. In general, keep the debt to a minimum. You want your debt to total assets ratio to be as close to zero as possible. The equation is easy:<\/span><\/p>\n<blockquote>\n<p><b>Debt to Total Assets Ratio = Value of Debt \/ Value of Assets<\/b><\/p>\n<\/blockquote>\n\n<h3><span style=\"font-weight: 400;\">5. \u201cHave I planned for emergency situations?\u201d<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">While you might take <a href=\"https:\/\/www.become.co\/business-loans\/\" target=\"_blank\" rel=\"noopener noreferrer\">business loans<\/a> out to make improvements that you <\/span><i><span style=\"font-weight: 400;\">wanted<\/span><\/i><span style=\"font-weight: 400;\"> to make to your business, emergencies that you <\/span><i><span style=\"font-weight: 400;\">need<\/span><\/i><span style=\"font-weight: 400;\"> to handle may arise at any point. For your business to remain healthy, it is crucial to have a <a href=\"https:\/\/www.become.co\/blog\/business-disaster-recovery\/\" target=\"_blank\" rel=\"noopener noreferrer\">business disaster recovery plan<\/a> for those unavoidable financial obstacles. When a financial storm hits, make sure your foundation is strong by having approximately four-months\u2019 worth of expenses saved in advance. This will ultimately help you avoid the necessity of going into debt to make it through a rough patch.<\/span><\/p>\n<blockquote>\n<p><strong>One important note:\u00a0<\/strong>Of course, the type of business will affect the kind of\u00a0<a href=\"https:\/\/www.become.co\/loans-by-industry\/\" target=\"_blank\" rel=\"noopener noreferrer\">industry loans<\/a>\u00a0a business needs,\u00a0as well as the specific circumstances that business finds itself in. Be sure to weigh your options carefully in order to choose the right funding solution for your business.<\/p>\n<\/blockquote>\n\n<h2><span style=\"font-weight: 400;\">Business finance planning: How to make a financial plan<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We&#8217;re keeping it short and sweet this time around. We&#8217;ve got three simple steps that can make all the difference. Follow these tips to help you make the financial plan that will ensure your business health during this Financial Wellness Month.<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\"><strong>Learn more<\/strong> by reading our comprehensive <a href=\"https:\/\/www.become.co\/blog\/guide-comprehensive-guide-to-financing-a-business\/\" target=\"_blank\" rel=\"noopener noreferrer\">guide to business financing<\/a>.<\/span><\/p>\n<\/blockquote>\n\n<h3><span style=\"font-weight: 400;\">1. Track expenses<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Sounds easy enough, right? Well, as elementary as it might seem, most people who have a ton of debt are in that position because they don\u2019t follow this basic piece of advice. Setting a budget and sticking to it is a crucial step to take on the road towards financial success. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Tracking expenses becomes especially important as net profits increase; typically speaking, as businesses begin to make more money, they begin to spend more money. It\u2019s critical to regulate your spending so as not to operate your business beyond its means.<\/span><\/p>\n<blockquote>\n<p>Speaking of tracking expenses, there&#8217;s a new Shopify profit calculator available that can help you keep your Shopify store&#8217;s profit margin calculations more accurate than ever.<\/p>\n<p><a href=\"https:\/\/www.become.co\/shopify\/landing\/?utm_source=blog&amp;utm_medium=article&amp;utm_campaign=january-financial-wellness-month\">BeProfit &#8211; Profit Tracker<\/a> is the best Shopify calculator out there. Use the app today to start making data-driven decisions that help optimize your profits.<\/p>\n<\/blockquote>\n\n<h3><span style=\"font-weight: 400;\">2. Make a cash flow projection<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">So far, we\u2019ve discussed how to take action today to improve your business finance. Although it\u2019s true that there is no day like today, tomorrow has a lot to offer your business! <\/span><a href=\"https:\/\/www.become.co\/blog\/a-basic-guide-to-accurate-cash-flow-forecasting\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Forecasting your cash flow<\/span><\/a><span style=\"font-weight: 400;\"> for the next year, as opposed to just the next month, will help you get prepared for those milestones later on. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whether you anticipate having a financial boost as a result of a deal with an investor, or if you expect to take a financial hit because of a seasonal downturn, it\u2019s best to do the number-crunching in advance so you can take full advantage when you <\/span><i><span style=\"font-weight: 400;\">do<\/span><\/i><span style=\"font-weight: 400;\"> reach those achievements or challenges. Plan your spending <\/span><i><span style=\"font-weight: 400;\">and<\/span><\/i><span style=\"font-weight: 400;\"> your saving ahead of time.<\/span><\/p>\n\n<h3><span style=\"font-weight: 400;\">3. Plan for contingencies<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">We\u2019ve said it before, and we\u2019ll say it again: save up for a rainy day. As much time you may spend projecting your business\u2019s cash flow and preparing for the ups and downs, there will inevitably be an unpredictable hurdle to clear along the way.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Being surprised is one thing, but being unprepared is something different altogether. Don\u2019t get caught in a jam; plan ahead for the stormy weather by saving what you can ahead of time. If the amount you\u2019ve saved in your emergency funds doesn\u2019t cut it, or even if it <\/span><i><span style=\"font-weight: 400;\">does<\/span><\/i><span style=\"font-weight: 400;\">, applying for a <\/span><span style=\"font-weight: 400;\">business loan through an online lending platform like <a href=\"https:\/\/www.become.co\" target=\"_blank\" rel=\"noopener noreferrer\">Become<\/a><\/span><span style=\"font-weight: 400;\">\u00a0may be your best route of action.<\/span><\/p>\n\n<h2><span style=\"font-weight: 400;\">Bringing health and wealth together<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Keeping your business healthy isn\u2019t all that hard to do when you\u2019ve got the guidance. We\u2019ve done the research for you, now all that\u2019s left to do is put it to practice. Your financial success depends on your business finance planning. Don\u2019t leave it to luck or last minute. Take the advice above and start getting your business on the right track for Financial Wellness Month 2021.<\/span><\/p>\n\n<p><a href=\"https:\/\/www.become.co\/apply\/?k=blogbanner\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter wp-image-11151 size-full\" src=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2020\/01\/Frame-7-2-1.jpg\" alt=\"\" width=\"1024\" height=\"329\" srcset=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2020\/01\/Frame-7-2-1.jpg 1024w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2020\/01\/Frame-7-2-1-300x96.jpg 300w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2020\/01\/Frame-7-2-1-768x246.jpg 768w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2020\/01\/Frame-7-2-1-1200x385.jpg 1200w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2020\/01\/Frame-7-2-1-604x194.jpg 604w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tax season is upon us folks, stretching from January 1st to April 15th. For that reason, January is also recognized as Financial Wellness Month. It&#8217;s a new year, and even more than that, it&#8217;s a new decade! Now is the time to assess your financial health and get your business finance arranged. But what is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4145,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13,114,1,12],"tags":[36,41,121,433],"class_list":["post-4135","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aus-resources","category-small-business-wisdom","category-uncategorized","category-us-resources","tag-business-finance","tag-cash-flow","tag-financial-wellness","tag-smb-financial-aid"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Financial Wellness Month: January 2021 - Business Funding Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.become.co\/blog\/january-financial-wellness-month\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Financial Wellness Month: January 2021 - Business Funding Blog\" \/>\n<meta property=\"og:description\" content=\"Tax season is upon us folks, stretching from January 1st to April 15th. For that reason, January is also recognized as Financial Wellness Month. It&#8217;s a new year, and even more than that, it&#8217;s a new decade! Now is the time to assess your financial health and get your business finance arranged. But what is [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.become.co\/blog\/january-financial-wellness-month\/\" \/>\n<meta property=\"og:site_name\" content=\"Business Funding Blog\" \/>\n<meta property=\"article:published_time\" content=\"2019-01-28T11:31:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-07T11:33:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/01\/iStock-918315214-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1254\" \/>\n\t<meta property=\"og:image:height\" content=\"836\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Become\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Become\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/january-financial-wellness-month\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/january-financial-wellness-month\\\/\"},\"author\":{\"name\":\"Become\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/#\\\/schema\\\/person\\\/813104bb9784ace7d518254945f76ccf\"},\"headline\":\"Financial Wellness Month: January 2021\",\"datePublished\":\"2019-01-28T11:31:06+00:00\",\"dateModified\":\"2021-01-07T11:33:58+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/january-financial-wellness-month\\\/\"},\"wordCount\":1364,\"publisher\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/january-financial-wellness-month\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d2y0x0ts101nr7.cloudfront.net\\\/2019\\\/01\\\/iStock-918315214-1.jpg\",\"keywords\":[\"business finance\",\"cash flow\",\"financial wellness\",\"SMB Financial Aid\u200b\"],\"articleSection\":{\"0\":\"AUS Resources\",\"1\":\"Small Business Wisdom\",\"3\":\"US Resources\"},\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/january-financial-wellness-month\\\/\",\"url\":\"https:\\\/\\\/www.become.co\\\/blog\\\/january-financial-wellness-month\\\/\",\"name\":\"Financial Wellness Month: January 2021 - Business Funding Blog\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/january-financial-wellness-month\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/january-financial-wellness-month\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d2y0x0ts101nr7.cloudfront.net\\\/2019\\\/01\\\/iStock-918315214-1.jpg\",\"datePublished\":\"2019-01-28T11:31:06+00:00\",\"dateModified\":\"2021-01-07T11:33:58+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/january-financial-wellness-month\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.become.co\\\/blog\\\/january-financial-wellness-month\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/january-financial-wellness-month\\\/#primaryimage\",\"url\":\"https:\\\/\\\/d2y0x0ts101nr7.cloudfront.net\\\/2019\\\/01\\\/iStock-918315214-1.jpg\",\"contentUrl\":\"https:\\\/\\\/d2y0x0ts101nr7.cloudfront.net\\\/2019\\\/01\\\/iStock-918315214-1.jpg\",\"width\":1254,\"height\":836},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/january-financial-wellness-month\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.become.co\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial Wellness Month: January 2021\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.become.co\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.become.co\\\/blog\\\/\",\"name\":\"Become - Powering Small Business Funding\",\"description\":\"Become - Powering Small Business Growth &amp; 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