How to Break Bad Money Habits

We know how it is. You’re busy. You meant to make that bank deposit yesterday, but there just wasn’t time. Now you’re staring at $56 in small bills and have no idea who gave it to you. You’d deposit the cash anyway, but your bank, which is on the other side of town, is closed on Saturdays.

If this scenario reflects the way you run your business, maybe it’s time to take a look at your money management process as you break your bad habits. Here’s how to get started:

Banking

• You should have a business checking account in your name that’s separate from any other personal or business accounts
• Your account should be with a bank that’s conveniently located and has opening hours that fit your needs
• Look into the services the bank offers — and use them! Most accounts can now be securely accessed online and via phone; some banks offer an online check deposit service

Cash Handling

• Keep envelopes in your bag to separate cash and checks from various sources; write identifying details on each envelope
• If you do a lot of business on a cash basis, get into the habit of making daily deposits; invest in a small safe to hold cash between deposits
• Be safe! Make cash deposits during daylight hours when possible

Check Handling

• Double check every check as it’s handed to you to be sure the date and amount are correct and make sure the numeral amount is the same as the written amount
• Make sure each check is signed
• Follow your company’s guidelines for accepting checks (ask for photo ID, stamp with “for deposit only,” etc.

Resources

• MyMoney.gov - Financial management site developed by the U.S. government for business owners and individuals
• U.S. Small Business Administration - Financial management guidance from the federal government

This information has been provided by the Direct Selling Education Foundation