Ever gotten that gut wrenching fear in the pit of your belly when you thought of working out a budget? Then chances are you've never cracked a dictionary and learned all about the correct definition, and thought about how you can use that to your financial advantage.

Want some really good News? Running your business on a budget does not mean reducing the quality of the things you buy or not purchasing something your business needs to operate. What it does mean, is that you have to work out how to make enough income to be able to afford the things your company has to have and to keep your expenditures within the limits of your income.

There's more good news! The most valuable asset you have is you and your staff, and your income producing potential. If you want a bigger spending budget, then work out how you and your employees can be more productive to bring in more income.

Another definition you need know is this: a BUDGET is the amount of income it takes for the company to function, and to attain its goals.

Let's consider the first part of the definition; how much is needed for you and your company to run. Look at your Profit & Loss Statement to find out how much you spent and add the amount you are carrying on credit cards plus interest. Divide the total by 52 weeks, and multiply it by 1.036. The result is your weekly budget. That is the total of money your company has to generate just to function plus barely keep up with increases in the cost of doing business. That doesn't include paying compund interest on credit card debt.

More than likely, you have financial goals you also want your company to attain; That's the second part of the definition. Reaching those goals must become part of your budget as well.

Here is an example: a company owner wants to purchase new office furniture 6 months from now that costs $2,000. They divide the cost of the furniture by the 26 weeks they have before the target purchase date and learn they have to set aside $76.92 every week to have the cash for the furniture. This gets added to the budget, meaning the additional amount of income they have to put into the bank every week.

Most importantly, if you, the company owner, want to attain the goal of financial independence - not working because you HAVE to, but because you WANT to -- then the most important part of the budget needs to be the wealth building cash you put away in an investment plan and never spend.

Figure out how much money you would have to have in savings to live without working. Divide that dollar amount by the number of weeks until the time you would like to be financially free. Figure out how to make that much more money each week, and your budget is on the correct path to gaining financial independence.

Do you absolutely want to be a millionaire in 20 years? Figure out a way to increase the company's income enough to stash away $961.54 a week in savings for the next 1,040 weeks and you have made it to being a millionaire! The additional interest earnings on top of that will be a a nice add on perk that more than keeps up with the rise in the cost of living every year.

In this day and age of computers proper budgeting is accomplished much more efficiently than ever before by using Money Management Software, such as shown in this video.. This software can work as a companion to your accounting software for very efficient use with minimum manual effort.

Sandra Simmons, President of Money Management Solutions has years of experience helping business owners and individuals manage their income to achieve financial independence. To learn more, watch the FREE 5-minute demo video on her website www.MoneyMgmtSolutions.com