I’ve always been a fervent advocate of personal financial responsibility, so to help mitigate some of the stress of dealing with your finances, here are 4 tips to keep you going…
1. Build an emergency reserve.
You’d be surprised at how many businesses owners have no emergency savings. This means that an unexpected bill like an auto expense or medical emergency could leave you in a distressed financial situation. As an entrepreneur, this is the last thing you can afford. When your personal financial situation is put at risk, your company is too, so make sure you build up your personal emergency reserves.
2. Don’t rely on credit card debt.
Credit card debt can harm both your business and your personal financial goals. The idea of continuing to roll over credit card debt to no-interest credit cards will work only for so long. If you want to build something great, save up for the entrepreneurial run before you start.
3. Don’t confuse a write-off with 'free'.
One of the biggest confusions I see with entrepreneurs is equating the idea of writing-off expenses with not having to actually pay for the particular expense. A write-off is still an expense, and it’s still something for which you must pay! Speak with us to better understand how expenses can help your tax benefit and determine a budget and ask us about our expenses guide to help.
4. Be financially organised.
It is important to get your personal financial situation, as much as your business’s, organised. Know where all of your money is and what it’s doing. That way, you can stay focussed on growing your business while removing the stress of keeping up with your personal finances.
In the end, while getting your finances in order can be an intimidating task, consider implementing these tips one at a time and using the stress-free days ahead as motivation!
We at Robertson Associates are always happy to talk finances so feel free to get in touch on 0132 430 9018 if you need a helping hand.