Don’t Ignore Your Personal Finances While Building a New Business

March 25, 2021

personal finance tips for business owners — Adobe. | Design: Freddy Reyes, BlogHer

Once you’ve committed to building a small business, tunnel vision kicks in. Your days are dedicated to developing a product, marketing strategy, and consumer base. Your social media accounts becomes your promo tunnels. In essence, your work becomes one of the most important aspects of your life. Unless you’re bootstrapping your way to success, it can be easy to neglect your personal finances as you focus on turning a profit. Sometimes, the circumstances leave little room for nurturing financial boundaries but knowing where you stand when you’re off-the-clock still matters.

None of these tips are rocket science but they’re easy to ignore. Consider this a gentle reminder. Ahead, Stash‘s Director of Investments, Mindy Yu, shares four beginner-friendly things you can do to protect your personal assets while building an empire.

Make Sure You Have an Emergency Fund

“As a business owner, you may have to deal with irregular income over the course of a year. Because of this, it’s especially important to have emergency savings on hand for yourself. I always recommend trying to have at least six months of savings, so you have a back-up if needed.”

Build a Budget

“Budgeting is key for both your personal and professional life to help you take stock of how much money is coming in each month, how much is going out, and how much is available for saving and investing. Build habits to regularly look at your budget to make sure you’re sticking to your plan and/or adjusting where needed.”

Keep Your Business and Personal Finances Separate

“While your work life and personal life often come together when you’re a small business owner, your finances should not. This helps separate your business’s financials from your personal and also helps immensely when it comes time to do taxes.”