I love to look at numbers and create a flexible yet profitable budget, but it's entirely another story to follow a budget. Learning how to effectively manage money is an important skill to master as a Canadian private practice owner.  If in the past you have found it challenging to create and stick to a budget or you don't yet know where to begin in developing one, I discuss helpful tips and advice in this episode to help you get started.  In This Episode: Have an emergency fund  Make sure you have personal health insurance  Live below your means  General expenses when starting a private practice  Have an emergency fund  I recommend to anybody who is starting in private practice to either have another job to help you pay the bills while your private practice is being set up or to start an emergency fund.  Have savings that could sustain you and your Canadian practice to the value of, at minimum, three to six months of expenses.  This lends you some peace of mind, gives you the resolve to focus on your business goals and values, and helps you to place your focus on building your practice without being too worried about finances.  Make sure you have personal health insurance  Invest in yourself. Find a good health insurance plan to save yourself extra – and potentially sudden – expenses.  The sooner you purchase private health insurance, the better!  Live below your means  I love the term hedonic treadmill.  It describes the treadmill that you get stuck on when you upgrade your lifestyle as your income increases and then you find yourself constantly working to afford your daily expenses.  To curb the hedonic treadmill, I recommend you up the percentage of how much you put into your income tax account as your level of income increases.  Some general expenses when starting a private practice Expenses can fluctuate in a Canadian private practice, but below is a list of some general payments that private practice owners make when they start their business.  Monthly payments:  Website service: $50 Marketing platforms like Psychology Today: $34.50 Supervision: $150  EMR system like Jane App: $85 Phone system like Grasshopper: $50 or under  Annual fees:  License and certificates: $1000 Counseling insurance: $1000  CEC's from Mental Health Academy: $224  Business registration: $70 Accountant: $1000 Credit Card: $40 Then, you'll need to calculate how much you need in your business savings per month. Calculate your monthly and annual fees and divide them by 12, and add a little more money on top.  Your monthly savings should be around $650, following this basic outline.  Connect with me: Instagram Resources Mentioned and Useful Links:  Ep 18: Sue Cook: How to Build a Successful Canadian Private Practice  Jane App: Use the promo code FEARLESS for one month's grace period  Look at Manulife for health insurance policies  Consider marketing your private practice on Psychology Today. Want *6 FREE* months of Psychology Today that'll give me a free month too? Email me at [email protected] your name and we'll hook you up. Pursue your education through Mental Health Academy  Use Grasshopper for your virtual phone system.  Sign up for my free e-course on How to Start an Online Canadian Private Practice Rate, review, and subscribe to this podcast on Apple Podcasts, Google Podcasts, Stitcher, Spotify, Amazon, and TuneIn

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