3 Financial steps to becoming your own boss!

 

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Ok, you can see it in your dreams, the money you will make, becoming your own boss and more importantly, creating your future dynasty.  Your new business is finally closer to reality… and you can finally obtain the financial future you so desperately desire.

But wait, hold up!  Are you really financially ready to venture out on your own?

Starting your own business requires a financial commitment. It also requires an additional commitment to get your personal financial house in order.  Whether you are starting a “gig” on the side or stepping out on faith, here are few tips to ensure a smooth financial transition.

#1 Get Your Personal Finances Right

Begin by creating a solid financial system for your personal finances. Whether it is a notebook, spreadsheet app, or using Kemberley.com’s BADGE system, you must put a financial system in place. Keep it as simple as possible, remember, it doesn’t have to be fancy, but just useful.  Take time to keep a record of current bills, due dates, and bank balances.  Establishing a personal financial system for yourself will in turn help you establish a financial system for your business.

#2 Your Personal Credit is Key to Your Business

When you start a business venture, most often creditors will determine whether you, yourself, are creditworthy prior to extending credit to your start-up.  Terry Jackson, a loan officer, has provided credit to new businesses for several years.  “I often find many start-ups do not realize the importance of their own personal credit.  A good credit score would not only benefit an entrepreneur personally, but can provide an entrepreneur funds required in order to finance his or her company’s operations,” says Jackson. 


#3 Kiss Your Debt Goodbye

Remember, the golden rule – do unto others, as you would have them do unto you!  If you owe someone from your past, now is a good time to make it good.  It is unfair to expect others to pay for your services or goods and you still have outstanding debt lingering from your past.  Take a moment, pick up the phone and make payment arrangements to satisfy outstanding debt you may owe a friend, creditor, or company.  This, in turn, would provide you a peace of mind as you move forward with your business.

Remember, Your Choice, Your Future!

Kemberley Washington is a certified public accountant and a business professor at Dillard University. Follow her on Twitter or subscribe to her blog at kemberley.com.

Cheat on your main gig – get a “side hustle!”

Kem

These days, simply earning money from your main gig may not be enough. Simply put – you may need to have additional income outside of your 9 to 5! Nothing teaches us this lesson better than the recent government furlough. For so long, we thought of government jobs as the safest employment opportunity, however in a blank of an eye, many government workers found themselves seeking financial assistance to make ends meet.

 

Here are a few tips to increase your income outside of your 9 to 5!

 

Turn your passion into cash

I know it may seem impossible, but you can turn your passion into cash.  Whatever it is you love to do, whether it is consulting, social media, photography, or writing, do research to determine how you can market your services. And hey, you don’t have to give up your main gig in order to be successful. Consider working your passion before going to work, after work or on the weekends to develop an additional income stream.

 

Consider rental income

Rental property is a great way to supplement your income. And if you do it right, it can be one of those “money makers” you earn while you are sleep.  Before purchasing a rental property, make certain you have prepared yourself financially.  Consider saving money in case there is a need for repairs and maintenance or other unexpected expenses.  Also, make certain you have an idea of the projected income and expenses of the property before signing your name on the line.

 

Get out of debt

Ok, I know this may sound like a “no-brainer” or for others an “aha moment” but many people do not consider reducing their debt to increase income streams. Paying off unnecessary expenses can help create additional revenue otherwise obligated to an expense.  Not only are you freeing up a line item in your budget, but you are also eliminating interest expenses, which can have an adverse impact on your bottom line.  For example, if you are paying monthly interest of $50, reducing your debt can also help save money.

 

Remember: your choice, your future!

Kemberley Washington is a CPA and teaches at Dillard University. Visit her blog at Kemberley.com. Follow her on Facebook or connect with her on Twitter. Like, love, tweet or share this post!

Run your personal finances like a small business!

Business man and woman

Few of us think of our personal finances as a small enterprise. But just like any business or government agency, we must watch our bottom dollar.

How do you run your personal financial house? Do you raise the debt ceiling to meet needs? Or do you operate on a budget and save for rainy days?

Whatever method you use to operate your personal finances, you must run things like a small business. [Read more…]

Tell Your Boss to Kiss Your Future! Three Financial Steps to Becoming Your Own Boss

Ok, you can see it in your dreams, the money you will make, becoming your own boss and more importantly, creating your future dynasty.  Your new business is finally closer to reality… and you can finally tell your boss to kiss your future!

But wait, hold up!  Are you really financially ready to venture out on your own?

Starting your own business requires a financial commitment. It also requires an additional commitment to get your personal financial house in order.  So, before hanging your shingles, consider these tips to ensure a smooth financial transition. [Read more…]