This is part 1 of a two part series. Part one is about running your blog like a business with a free income tacker. Part two is what you need to know for filing taxes. Yes, blogging is taxable.
Income, expense and budget. I don’t know about you, but when I hear those words I wanna scream and run the other way. That’s ironic for a girl who started out in finance and ended up in IT. Those words seem big and scary. They scream business owner which means managing a heaping amount of work and responsibility that comes with turning a profit.
It’s not just business owners who manage income and expenses. If you think about your household, you balance your checkbook and monitor how much money’s coming in and going out every month. A really good household even has a budget to manage cash flow so that over time savings are built to meet future goals.
No matter where you are, what you do, or why you’re doing it, it’s important to measure yourself. Measure where you are right now and make goals for where you wanna be. Think about it in terms of fitness. I know many of you can relate to it if I put it in fitness terms. When you peak at your sport or workout and stop seeing progress, what do you do about it? You start measuring it! The progress stops in part because you haven’t measured your progression close enough or put goals in place to challenge yourself to get to the next level.
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These concepts hold true for blogging. Bloggers are often fueled by a passion. What if you were passionate about baking and everyday you baked muffins and no one ever came to buy them? Would you be ok putting money, blood, sweat and tears into something over and over and never getting anything back in return?
As a blogger, it’s important to measure yourself the same as you would in fitness or with a home budget. Blogging’s work and no matter how much you love it, you have to ask yourself if it’s worth your time and money. That’s not to say you’d stop blogging altogether, but if you saw what you were putting into it vs. what you were getting out maybe you’d blog 4 days a week instead of 7.
Even if you’re new to blogging and not making any income yet, I recommend starting the habit now of tracking income. I made a simple excel spreadsheet to track mine, which I’m providing you in the link to below.
The income tracker allows you to see your cash flow which you can use to make decisions about what to spend your time on. Not to mention it’ll be your savior once tax season rolls around. I didn’t start tracking my income until this year when I began my monthly blog recaps. It was a huge pain going through months of receipts and adding them up. Next week we’ll talk all about taxes. Don’t worry I won’t get all accountant on you.
More Blogging Resources
Do you run your blog like a business? What tools or things have you found helpful in making decisions about your blog?
Lots of Health, Food & Love,
Linking up today with Amanada @ Running with Spoons