3 Tips to Set Yourself Up for Success Financially as an Entrepreneur
Money trouble is all too common among folks who leave their 9–5 jobs in hopes of starting their own business and living life on their own terms.
Unfortunately, the unpredictable income that often comes with taking this route can be incredibly challenging for many, but the good news is that there are ways to control and grow your money in the long run, regardless of how much you’re currently earning.
Regardless of your income or lifestyle preferences, you’ll want to create a budget for yourself.
It honestly makes a world of difference to know where each penny is going, and taking control of your expenses can help you empower yourself to save and invest: Maybe you’ll find that you actually have a few hundred bucks you could put in the stock market if you give up your frequent visits to the local coffee shop!
2. SAVE A YEAR’S WORTH OF LIVING EXPENSES
Saving is a powerful tool when it comes to gaining control over your finances, especially if the numbers are wildly unpredictable: All you need to do is save a set amount each month: It could be as low as $10, or even $5, as long as the habit’s in place.
If you have the means to, it might be helpful to set aside at least $2000 per month: The sooner you can build your nest egg, the better!
You’ll also want to consider how much you’ll actually spend on food, as well as your rent or mortgage, as that can vary wildly depending on your lifestyle preferences and where you are located.
Investing in the stock market is an excellent idea if you have the cash to spare, as the average annual return rate is 10%.
You can also invest in dividend stocks, which are quite popular these days.
While this is an incredibly common method of investing, it can really add up over the years!
When you accumulate enough wealth, you can start purchasing real estate and have access to those sweet monthly payments dropping into your bank account as you go about your day!
As entrepreneurs, we are visionaries and artists, but we also need to learn about personal finance to set ourselves up for success.
If you haven’t already adopted the above habits — kudos to you if you have! — we highly recommend that you do: It will likely help you secure your financial future and decrease some of the stress that often comes with navigating the world of entrepreneurship.
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