How to avoid luxury purchases with business money

[cherry123]

When going on luxury purchasing with your business money you might just be ruinng your business as the money meant for the business products purchases is expended on frivolities.. So how do you avoid this.

Focus on only using the business money for business

if you need to buy luxuries then have some savings for it.

Have a budget for your luxurious purchases. Work with such budget and stick with it, without such affecting the financial state of the business

Add yours

 

[Sophie]

I also feel like another reason for buying ostentatious goods and luxury products is also caused by greed. When one isn't discipline enough, they spend on the wrong things with negative outcome

 

[eldavis]

Self discipline plays a major role here, cause the truth of the matter is that no matter what method you use, if you cannot discipline yourself on how you spend, it will surly affect your business.

 

[Suba]

Correct money management requires separating personal money and business money, as a business owner you also work and you also have the right to get paid or a salary. Meanwhile, to purchase luxury goods such as cars, you can buy either for the company or for yourself. As business owners, of course we also need the prestige of not bringing a damaged car, but a luxury car (not a sports car) for work, and the car belongs to the company, not personally. .

 

[nomad]

A lot of people, especially those who have sole owner business, mixes up with business money and personal money. If you wan t to en sure that your business runs for a long time, you need to keep your personal finance and business finance separate

 

[Springtime]

Using business money to buy luxury items is totally unacceptable. As a business owner, you should have separate account for your business and yourself. Your company should have a budget for business spending. If you want to buy luxury items, use money in your personal account.

 

[King Belieal]

As much as possible, when business money comes in, use it to buy business inputs. Don't delay because the longer the funds stay in your hands, the more likely you might use it for something else.

 

[Suba]

That's also a good way, if you directly spend business money on inventory, another way is you can also deposit business money directly into your business account.