How to manage your personal finance.
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The document provides advice on managing personal finances for entrepreneurs and startups. It discusses two clients - one who splurges money and cannot save, and another who cannot track her spending. It states that in order to properly manage business finances, good personal finance habits must be developed first. It then lists suggestions for improving personal finance management, such as tracking expenses, paying yourself a percentage of business revenues, separating business and personal accounts, and speaking to a financial professional about challenges. Developing strong personal finance skills is important for also managing business finances well.
How to manage your personal finance.
- 1. HOW TO MANAGE YOUR PERSONAL FINANCE AN EXPERT'S ADVICE TO STARTUPS AND ENTREPRENEURS.
- 2. IM MAKING MONEY IN MY BUSINESS, BUT I TEND TO SPLURGE, I CANT HELP IT, MOANED DEBBIE A NEW CLIENT. ANOTHER CLIENTS STORY WAS HER INABILITY TO TRACK HER SPENDING. I DONT SPEND TOO MUCH OO, SHE SAID. I TAKE N2,000 TODAY, N5,000 THE NEXT DAY, JUST LIKE THAT, NOTHING TOO MUCH. TO PROPERLY MANAGE YOUR BUSINESS FINANCES, YOU MUST HAVE GOOD PERSONAL FINANCE HABITS. WHY? ITS SIMPLE THE HABITS YOU DEVELOP WITH YOUR PERSONAL FINANCE IS THE SAME YOU WILL DISPLAY WHEN HANDLING YOUR BUSINESS FINANCES. IF YOU ARE STRUGGLING WITH MANAGING YOUR PERSONAL FINANCE, HERE ARE SOME SUGGESTIONS.
- 3. 1. HAVE A SYSTEM THAT TRACKS YOUR EXPENSES EXPLORE THESE OPTIONS TO FIND OUT WHAT WORKS FOR YOU. -USE A NOTEBOOK TO RECORD YOUR DAILY EXPENSES. -USE A DEBIT/CREDIT CARD FOR PURCHASES & CARRY OUT A BANK RECONCILIATION WEEKLY. -TAKE PICTURES OF YOUR PURCHASES FOR RECORD PURPOSES. -USE A FREE OR PAID PERSONAL BUDGET SOFTWARE, FOR EXAMPLE GOODBUDGET.
- 4. 2. PAY YOURSELF MAKE A DECISION TO PAY YOURSELF NO MATTER HOW LITTLE, AS SOON AS YOU BEGIN TO MAKE MONEY FROM YOUR BUSINESS. FOR EXAMPLE, 10% -15% OF YOUR REVENUE. IF NOT, YOU WILL START DIPPING HANDS INTO YOUR BUSINESS FUNDS.
- 5. 3. SEPARATE YOUR BUSINESS MONIES FROM PERSONAL MONIES OPEN A SEPARATE BANK ACCOUNT FOR YOUR BUSINESS EVEN IF YOUR BUSINESS IS NOT REGISTERED. OPEN AN ACCOUNT IN YOUR NAME AND CALL IT YOUR BUSINESS ACCOUNT FOR A START.
- 6. 4. SPEAK TO A PROFESSIONAL ABOUT YOUR FINANCIAL CHALLENGES BECOMING FRIENDS WITH AN ACCOUNTANT CAN BE A COST SAVING STRATEGY. MAKE THE RIGHT CHANGES WITH YOUR PERSONAL FINANCE, AND ENJOY THE BENEFITS AS YOU BEGIN TO MANAGE YOUR BUSINESS FINANCES.