Let’s talk about financial literacy! Part of my motivation for starting my business is wanting to educate women to become economic powerhouses. Women aren’t usually given the tools they need to be financially responsible. Without those tools, women who start businesses struggle with the financial side of things. They’re immediately put at a disadvantage.
In a country where a majority of millionaires are men, things clearly need to change. That’s why I’m taking financial literacy seriously. I’m going to start you on your journey to financial freedom!
Managing your finances is an important part of building a solid foundation for your business. I’ve come up with a few finance tips to start building your financial foundation from the ground up. Firstly, when you start working from home, it’s natural that your business and personal affairs will sometimes overlap. That can be overwhelming! Here are my 3 top foundational business finance tips:
- Separate your business and personal bank accounts. This is an easy first step to getting your finances in order that will also positively affect your personal life! It will also simplify the process for tip #2.
- Check your finances regularly. Make an appointment with yourself. Set aside at least 30 minutes a week to take a look at your business account. Even if you don’t always have time to draw any conclusions from your financial data, at least you’ll know what the numbers look like in the event you get hacked.
- Stop procrastinating! Commitment to your finances is a commitment to your business so it’s worth taking baby steps towards financial wellness.
Cultivating healthy money habits is key to maintaining your financial foundation. I might sound like a broken record but the most important business finance habit you can have is just paying attention to it! There’s a reason I stress CFO time so much. If you’re struggling with your business finances, ignoring them won’t get you anywhere. Get into the habit of looking at your finances each week and you’ve made a huge step already.
Of course, you can’t stop there. Another healthy money habit I encourage women to adopt is saving. We all know to save money with our personal finances but we don’t always consider future business expenses. Set aside a certain amount for taxes, for other common expenses, and for emergencies.
Whenever we’re eager to learn about a subject, we seek out books, podcasts, and other media to educate ourselves. I also recommend furthering your financial literacy by routinely exploring the resources available to you on the subject!
Now that you know the basics, it should be easier to make sense of your finances and learn from them. You can start to create financial goals for your business with this knowledge. Check back next post where I’ll break down how to create an effective goal and achieve it!