What Is Financial Burn-Out and How to Avoid It
What is financial burn-out?
We’ve all heard of burn out when it comes to our mental well-being or energy levels, but what does financial burn-out look like?
Financial burn-out is simply when keeping on top of your personal or business finances gets too much. You might be budgeting and creating endless spreadsheets, directing every penny or constantly scrimping, saving and just ‘getting-by’. Burn-out occurs when you just can’t take any more.
What can I do about financial burn-out?
First things first, go back to basics.
Take a look at your financial goals for your business – when did you decide these goals? Are they relevant for where your business is now? If not, the constant strain of trying to reach impossible goals is one of the probably causes of your burn-out.
Scrap the budget.
If you’re struggling every month to put money where you want it within your business, then you’re probably budgeting badly. If an expenditure is usually £600 and you’re trying to keep it to a budget of £200, you’re only going to cause yourself strain. Re-evaluate the areas that require instant cashflow and prioritise them over more ‘luxury’ expenditures like catering, office maintenance or program subscriptions you don’t use much.
Sort out your debt.
If one of the things causing you financial pain is the amount of debt you’re in, then you need to tackle it head on. Consolidating debts with one-single loan is a popular way of keeping track. Instead of chasing monthly payment after monthly payment, a consolidated loan frees up admin time and helps you budget more effectively. This amount will also be withdrawn from your account on the same date every month – instead of wielding several direct debits at once.
Ask for help.
At one time or another, most businesses face some financial hardship. That’s why services such as accountants, loans and practice support companies exist. We’re here to help.
Sometimes just talking about the problem can help you feel more in control and put a cap on your burn-out.
Whatever you do, be sure to recognise the issue and start taking steps to realign yourself with your business.