1. TREAT YOUR BUSINESS LIKE A BUSINESS

Create a formal relationship between your business finances, and your personal finances. You play two separate roles: one as the business owner, and the other as an employee. Think about making decisions in the context of each role.

Separate personal and business bank accounts. This will help track your business expenses, understand your profits, and pay your employees (including yourself) on a regular basis.

2. CREATE A WRITTEN BUSINESS PLAN

What inspires you to work in this business? What do you plan to accomplish and how do you plan to do it? Write out the daily/weekly/monthly tasks you need to complete to reach your goals and track them!
Review your plan throughout the year and revise as needed.

Have others review your plan and give you feedback.

3. CREATE A PERSONAL FINANCIAL PLAN

What are your personal financial goals and how do you plan to accomplish them? What are your contingency plans?

Remember, your business should work in concert with your other strategies to help you realize your personal financial plan.

Those that have a written plan tend to save three times more than those who don’t!

4. FOLLOW A BUDGET

You should know your monthly base expenses for yourself and your business. Track those numbers to keep your spending in line.

5. SAVE FOR EMERGENCIES & LEAN TIMES

Emergencies can happen and can be expensive. By having your own liquid savings, you can weather an income downturn or pay for an unforeseen expense while avoiding high interest debt.

6. FIGURE OUT A SAVINGS STRATEGY & STICK TO IT

Ongoing, consistent savings is the key to financial success. Create a systematic savings strategy that fits your income whether it be dollar amount per transaction, set percentage gross revenue, or monthly contribution.

Save into separate vehicles for emergencies and long-term savings. Retirement accounts can be great for tax benefits, but come with hefty penalties if accessed before retirement.

7. KNOW THE TAX CODE & USE IT

Self-employed individuals are taxed at higher rates, so why not take advantage of it?

Know what business items you can write off your taxes and track them.

Take advantage of the various tax-deductible retirement accounts offered to self-employed individuals (SEP, 401k or Defined Benefit Plan) for long-term savings.

8. SAVE MONEY TO PAY TAXES ON-TIME

When taxes are not automatically deducted from your pay check, it is common to fall behind, so create a consistent plan to pay your taxes.

Consider using a payroll service to have monthly taxes withheld, or save a fixed percentage of every paycheck into a tax-specific savings account to quarterly taxes.

IRS penalties and interest are hefty, so save on your tax bill by paying the IRS on-time.

9. PROTECT YOURSELF & YOUR ASSETS

Building extensive wealth is not an easy task, so make sure your hard-earned savings will be protected. Create a risk management strategy with a mix of emergency reserves and insurance to protect vital assets such as your house, your investments, your family, your income, and most importantly, yourself!

Those that properly plan for the possibility of financial hardships are better prepared in the event unforeseen tragedy occurs.

10. SEEK ASSISTANCE FROM OTHER PROFESSIONALS

Identify your greatest strengths and use your time applying them to your business. Hire those other professionals to fill in the gaps in areas of weakness and thrive using others’ expertise alongside your own.

Hire a professional that understands your business, your goals, and motivates you to achieve them.