Amid the ongoing uncertain times globally on the economic front, business owners are wary of their financial futures. The recent collapse of US-based lender SVB adversely affected startups, thus further making business owners conscious of risks. Experts say business owners need to make personal finance strategies in order to secure their financial future.
Managing your personal money in addition to your corporate funds is crucial. Ashwin Chawwla, founder and MD of Escrowpay, suggests five techniques that can help business owners achieve financial security:
Set A Spending Limit and Adhere To It: Make a list of your monthly costs and rank them according to your financial objectives.
Make The Most of Your Retirement Funds: To benefit from tax breaks and compound interest, contribute as much as you can to your retirement account each year.
Establish A Reserve Money: To be ready for unforeseen circumstances, save aside enough money in a savings or escrow account to cover at least six months’ worth of living expenses.
Pay Off Debts: Prioritise paying off high-interest debts first, and think about loan consolidation to make repayment easier.
Invest In Yourself: Maintain your learning and skill development so you can boost your earning potential and reach your long-term financial objectives.
He said business owners may take charge of their financial future and safeguard personal and business finances by putting these tactics into practice and periodically monitoring these financial conditions. “A second layer of security for money can be added by opening an escrow account, particularly in high-value transactions or when working with unidentified parties.”
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