As an entrepreneur, you will be accustomed to dealing with finance, accounts, taxes, and investments on a daily basis. While you may have all your books in order at work, what condition are your personal finances in? It’s all too easy to be so focused on your business that personal finances get neglected, and considerations like savings, life insurance, and pensions get pushed to the back of your mind, where you promise yourself you’ll deal with them another day. The problem is that time passes resolutely on, and before you know it that “another day” has arrived and you find yourself unprepared.
Savings and investments
Getting into the routine of making regular deposits into a savings account is a good habit to get in to. Having a savings fund will give you a financial buffer if any unforeseen expenses arise, and are a much better way to afford large expenses like vacations, new cars, or home extensions than using credit. You may want to divide your savings into two separate accounts, one to cover contingencies and another to use as a fund for large outlays. This way you won’t be tempted to use your rainy-day money to fund your trip to Seychelles! If you have sufficient funds to consider investments, think very carefully about where you place your money, and don’t put in more than you can afford to lose should the investment crash. Talk to an investment broker about the options that are available, and the risks involved, and use an expert analyst to advise you on current stock ratings buy sell hold recommendations.
Life insurance and making a will
No-one likes to ponder the prospects of their own disability or mortality, and it can be hard to find the motivation to make decisions about such a potentially gloomy concept. If this is how you are looking at these subjects, you need to rethink your attitudes. Making a will and taking out decent life insurance coverage is more about giving yourself peace of mind. It ensures that in case anything happens to you, you and your family won’t have the burden of trying to sort out what happens and how you would have liked your affairs to be settled. There won’t be issues with care or funeral costs, your family will be secure, and knowing that, you can store your documents safely away and quit worrying about the subject.
Growing older is one of those things that is inevitable. When you’re a young business person, it can be difficult to imagine yourself getting to retirement age. You know that logically you will age, but it’s so far off it seems somewhat unreal, and there’s always that hope that perhaps the whole aging process will give you a miss! It’s only by committing to investing into a pension now while you are young that you will build up sufficient funds to lead a comfortable life in retirement.
Take care of your personal finances with the same attention and foresight as you would with your business, and you should find you have a rosy future ahead.
About: Dan Cormac knows how to make his money go further. A freelance financial journalist, Dan is passionate about personal finance. Whether you hope to escape the chains of debt, to save for a house, or to retire within a decade, Dan explores the most effective ways you can achieve your financial goals.