Today we are happy to educate and equip you as entrepreneurs with knowledge on how to make, manage and separate your personal finances to ensure you and your business do not suffer fortuitous events financially. As entrepreneurs, we require money for different business needs as well as personal needs which are inevitable therefore its extremely important to intentionally allocate, disburse and separate our finances accordingly.
Here are a few tips on how you can do that with much ease and make your life less stressful as we all know that finances are a huge part of our day today stressors.
1) Educate yourself
One of the best ways to thrive in any field is simply earning as much knowledge on that particular topic as you simply can. Below this pointer we have been kind enough to tag some of our very informative articles extensively written by our team of expertise on different aspects of personal finance that we feel are at most important to learn on. We will however admit that this is one of those extensive topics that you cannot simply exhaust on, so reading books written by finance experts, reading educative articles like this one and accessing any media on the topic will without a doubt put you in a better position on matters finances.
2) Create a budget
We have had the privilege to do a whole article on budgeting feel free to look at it Easy steps to making a simple budget Making intentional plans as far as your finances are concerned is one of the most guaranteed ways to succeed in financial planning. A budget will assist you monitor your monthly income, expenses and any miscellaneous that are likely to occur during the month. This way planning will help monitor your monthly income and expenses and allocate monies accordingly. You can come up with a budget by the help of digital apps or going back to the old school way by using an Excel document. A budget will also ensure you are not spending more that you are earning and you don’t forget important things like savings, investments and paying off your debt.
3) Separate your Finances
This is almost a similar point as budgeting but the whole point here is to ensure money meant for business does not get mixed up with money meant for personal use. This is one of the reasons why you are supposed to pay yourself as an entrepreneur so that you can separate your business cash flow from money meant for personal use. You can simply do this by opening different bank accounts for example by simply opening a personal account and a separate business account. This will also ensure you build credit for your business in case of any need that may arise to acquire a facility from respective banks and financial institutions.
Important point to note; Different bank accounts serve different purposes in my experience, having a business account attracts more benefits like easier access of loans,overdrafts, cheque payments, asset financing, etcetera.
4) Pay-Off your debts
Make it intentional to pay off your debts as soon as you possibly can. This way you will ensure that you will pay as less interest as possible on your facilities as well as free yourself to attend to other projects.
This can simply be done by listing your debts and using different debt repayment methods as stated on this article Loan repayment strategies you should know about.
Ensure you tackle them one by one until the very last one. In my experience nothing feels better like finishing paying off a facility. So hump on honey, let’s get started on what I would rather call a debt free journey!
5) Build your credit
You must and I insist must build your credit as well as ensure that your credit history is for lack of a better word impeccable. Your credit history simply tells about you and how well you make and manage your money. Basically giving lenders information on how much risk involves lending you money and based on this they make decisions whether to lend you money or not.
Making your credit history implacable, will give you and you’re business a good image and can save you or your business in times of need.
6) Build a savings plan
One of the most recommended plans B’s on matters finances is saving. Saving could go all the way to emergency funds, insurance plans and retirement benefits. 5 steps to easily creating a saving culture
Another way to secure your future is by investing in any asset that is likely to appreciate with time. This could be government Tills and treasury bonds, investing in shares, buying a piece of land, etcetera. There are so many ways and strategies to secure your money; you just have to find the one that best suits you and your personal and business needs. How to save using the 50,30,20 Rule
The Bottom Line
Now that you know 6 effective strategies to assist improve your personal finances ours it wish you all the best and hope that you find this article at most useful & informative. Kindly subscribe below by leaving your email address to get a direct notification to similar educative and informative articles.Thank you and God bless.