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Being an entrepreneur is a lot more demanding — both physically and mentally — than most people think. The majority of entrepreneurs work far more than 40 hours a week, and most don’t make nearly as much money as they would if they were working a corporate job in a comparable field.
Entrepreneurs are also responsible for all of their financial obligations outside of the business, including insurance, savings and retirement. While it can be easy to remain laser-focused on your business, it’s important to look to the future and plan accordingly.
Eventually, retirement will face you head-on, and if you aren’t prepared, it could be a rude awakening. There are also surprises that you could face while running your business that you need to be prepared for. Being prepared for the worst-case scenario is always the best approach.
The entrepreneurial path can be rewarding, and it can also be extremely stressful and full of challenges. Here are some personal finance tips that’ll help you navigate through the entrepreneurial journey and prepare you for the future, as well as protect you along the way.
1. Create a personal monthly budget
It’s important to be disciplined when it comes to your finances, especially when you are starting a business. The leaner you can run both your business and your personal life, the more money you can continue to roll back into the business and fuel its growth.
Many entrepreneurs focus on looking successful rather than becoming successful. Avoid large homes, fancy cars, expensive dining and other unnecessary expenses.
Create a budget containing the bare necessities along with a little extra for entertainment (you have to get out and enjoy yourself on occasion!) When you have a set plan and stick to it, you set yourself and your business up for success.
Related: This $40 Personal Finance Master Class Should Be Required Learning for Entrepreneurs
2. Invest in quality insurance products
When you are your own boss, that leaves all outside responsibilities on your shoulders, and one of the most important is insurance. Don’t try to take shortcuts when it comes to protecting yourself and your business.
Get a strong health insurance policy that covers you and your family, and be sure to have life and disability insurance in place. It is always better to prepare for the worst possible situations rather than try to save a few dollars.
One thing many entrepreneurs overlook is business insurance. It doesn’t matter if you have a global business with thousands of employees and you are selling millions of physical products a month, or you …….