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When you’re an entrepreneur it can be easy to become laser-focused on your business while ignoring your own personal wealth and stability. I can relate all too well to this. After this website started taking off earlier this year, I started devoting more and more time to grow it. And even though I didn’t ignore the state of my finances, I also wasn’t devoting too much time to them, either. If you’re a business owner and can relate to what I just said, check out these 5 small financial tips you can implement today to ensure a secure and stable tomorrow.
1. Have An Emergency Stash
No one likes to think about the potential of illness or emergencies, and we certainly hope it never happens to us. But, unfortunately, that sort of thinking just isn’t realistic.
Ask yourself how your company would function if you were to be hospitalized for a lengthy period of time. Would you be forced to go out of business? If your answer is yes, you need to make sure that you have an emergency cash stash, both for your business and your family. The last thing you want after working so hard is to lose it all in the blink of an eye. Yikes.
2. Eliminate Debt
When you reach the end of your self-employed career, you don’t want to be worrying about debt and settlements you accumulated throughout the years. In order to avoid this precarious situation, it’s important to adhere to the financial tip of creating a deadline to eliminate all business debt, just as you would for your personal debt.
When your business is operating debt free, you’ll have the flexibility to choose to keep it going or cash it out. And that option will be golden if you decide to throw in the towel and travel the world in retirement.
3. Invest In Your Education
You might not be surprised to know that if you improve your business skills, you can turn a struggling business around and turn a moderately successful business into a full-blown enterprise.
If you’re totally serious about expanding your business and increasing your reach, you might want to consider going back to college for an MBA or taking some online courses in your niche. By doing so, you’re likely to increase your chances of building significant wealth and maximizing profits.
And when you increase your profits, you increase your personal wealth. This will, without a doubt, help you achieve your personal financial goals faster than you ever dreamed possible.
4. Increase Your Portfolio Holdings
Another way of securing your business is to diversify your portfolio holdings via stocks or property in times of prosperity. But before you do this, make sure your emergency fund is capped off. You certainly don’t want to be forced to short sell any investment just to get your hands on a few bucks.
If you’re able to invest in stocks or property and reap the financial rewards of dividends and rent payments, you’ll be able to improve your business without taking out loans. In my opinion, business loans are no different than personal ones. In short, avoid them like The Plague.
Other articles you might enjoy:
- How To Conduct A Financial Intervention Without Getting Punched In The Face
- The Slow And Steady Race To A Healthy Financial Future
- 13 Easy Tips To Take Control Of Your Money
- 5 Tips For Avoiding Designer Debt
- How We Slayed The Debt Monster
- The Simple 1-4-4 Rule We Use To Grow Our Wealth to Staggering Levels
5. Private Pension
While investing your money in a taxable stock account and property are great vehicles to build wealth. They’re not your only options.
It certainly wouldn’t hurt to check out the plethora of private pensions that are available to business owners. If you’re in it to win it and want to make sure you and your family have a guaranteed income stream after retirement, without having to worry about market fluctuations and the unpredictability of property value, do your due diligence by checking out this content all about what a private pension can do for you.
An investment pension can potentially protect your savings by yielding higher returns than other investments. As always, nothing is guaranteed and you’ll have to do your own research and make your own decisions, but it’s a start.
And that wraps up 5 basic long-term financial tips entrepreneurs should start implementing today to be successful in each new year to come.