It’s estimated there about 30 million small businesses in the US, and of those businesses 75% are self-funded. For most business owners it is totally worth the risk. For the satisfaction of building and running your own small business, and for the independence it gives you.
However, when you are working flat-out on your business it is easy to overlook what is going on closer to home. And if you have already invested your own money into your business, it’s possible your personal finances need a bit of attention.
Read on for some personal finance tips for the business owner that will help you maintain financial security at home.
1. Keep Business and Personal Finance Separate
So you may have already invested some of your own money into the business. But are you still dipping in and out of your own funds to help the business? It may be hard to separate your business from your personal accounts because they both belong to you. But your personal accounts should not bear the burden of your business costs. It will also create a massive headache when you are doing your tax return to separate your personal and business expenses. And no one needs to make their tax returns more complicated!
2. Start Saving
A lot of small business owners assume they will be able to rely on their business when it comes to their retirement. That may not be a sensible strategy. Nobody wants to think their business will fail, but these are uncertain times. Starting a savings account or a pension savings plan is a sensible way to protect yourself in the future that does not rely on your business. Making sure you are smart with your everyday spending and saving can also have a really positive impact on your personal finances.
3. Seek Professional Advice
You may be used to talking to advisors and accountants for your business, but do you ever do that for your personal finances? Your personal accounts are just as important as your small business financial planning, so it is worth taking some professional advice. As well as talking to accountants, you can also read advice from financial experts. Read Robert Kiyosaki books for more financial tips.
4. Monitor Your Credit Score
If you have ever had a credit card, loan or any kind of financing you will have a credit score. But how many people actually know what theirs is? Keeping an eye on your credit score will save you from any nasty surprises in the future when applying for credit.Your personal credit score can also be taken into account by potential lenders for your business too. So keeping your credit score healthy is really important.
5. Make Sure You’re Fully Insured
As well as saving for your future and retirement, it is also important, as a small business owner, that you are fully insured. Obviously, health insurance and any insurance to do with your home must be up-to-date, but also consider protecting your income. As a small business owner, your income may not always be secure or predictable. Taking out personal protection against gaps in your income could offer you some more security.
Get More Personal Finance Tips
These have been just a few important personal finance tips to help the small business owner. Check out some more business tips to help you become a successful and secure business owner.