If your personal finances are not in good order, it’s going to be difficult to build a successful business, and if your business plan is not in good order, it’s going to be difficult to realize the success you seek, not to mention you could be putting your family at risk…for a number of reasons.
First, if you are burden to debt, don’t have savings to help supplement a lower income in the early years, or don’t have an idea of what you need monthly to live (aka you’ve been living without a budget) you will be more likely to feel stress about your personal situation, which will inevitably lead to making questionable decisions you would not make if you felt more secure about your finances–compromising your business decisions because you feel strapped financially is a recipe for disaster.
Secondly, if you are not tracking and monitoring your personal finances, you probably will not track your business expenses. Your behaviors in your personal life will carry over into your business, which makes it important to have a handle of your personal finances.
The flow of connection doesn’t just flow from your personal plan to your business; thirdly, and final for this post–the list could go on, a lack of preparation in your business plan could have a huge impact on your family. A lack of insurance, either life or disability, puts your family at risk should you experience a long term disability that prevents you from running the business, or God-forbid you die without life insurance or a buy-sell agreement (if this is a new term, stay tuned for a future post on what this is).
Don’t let the excitement of chasing your dream, starting your business, or growing your business distract you from making sure both your personal and business financial plans are in order.
To learn more about how RLS Wealth Management might be able to help with your planning click here.
This blog is purely informational and designed to get you to think; in no ways should this information be mistaken for financial advice. Please consult your financial advisor to discuss how this could impact your personal situation.