Being an entrepreneur means you have both business and personal finances to worry about. Not only can it sometimes be a struggle to keep them separate, but it can also be tough to be strict about your habits.
If you struggle with your personal finances and can’t seem to keep them as organized as your business accounts, check out the personal finance tips below. They can help you get back on track.
- Pay Yourself First
One of the best money tips for entrepreneurs is to pay yourself first. Just as you would with your business, you have to make sure you budget money to savings first. Then buy the groceries, and then pay the bills.
Doing things in this order means that you’ll be able to build up a savings account for emergencies. Some suggest $1000, while another method is to choose a percentage of your income as a goal to shoot for. However large your emergency fund, having one is the most important step.
Use the order above to make a habit out of paying yourself first.
- Personal Finance Tips: Debt
You’ve likely heard of the debt snowball. If you’re not sure what it means, picture a cartoon character rolling down the hill. They gather snow and debris as they roll, making the snowball bigger and bigger.
Use the same method to pay off your debt. Pay off one account first. Then use the dollar amount you were paying and apply it to another account, combined with the minimum payment you were already paying on the second account.
This way your payments increase and grow and your debt goes away faster.
- Learn About the Stock Market
If you’ve never invested in the stock market, it’s the right time to learn about stocks for beginners. Even if you have dabbled, there’s always more to learn. Read about the stock market for beginners, listen to podcasts, and ask your financial consultants or investment bankers for help.
When you can invest your money wisely, it will grow a lot faster than a savings account or CD ever will.
- Be Frugal
Finding financial success means living below your means. Just because you can afford to buy something, doesn’t mean you should.
Here are some one-month challenges to teach yourself restraint in spending:
- Stop shopping online for a month
- Limit your restaurant budget to a certain dollar amount for a whole month
- Give away the money you’d spend on your daily coffee once a week for an entire month, or save it (or invest it)
Challenge yourself to a new goal every month to help teach yourself frugality. You can come up with your own ideas, based on the areas you struggle the most. It’s all about self-control.
Deciding how to spend your money and keeping track of expenses can be a huge headache. Yet if you get control of your money, you’ll be able to harness freedom you never knew was there. Use the personal finance tips above to get started toward financial success today!
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