Six ways for business owners to look after their finances

Author: Huw Jones
Published: 8th April 2020
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Business owners know the importance of having systems to ensure the smooth-running and stability of their organisations – but, if you are a business owner, do you care for your finances like your care for your business?

Here at Proposito Financial Planning, we are often surprised by how rarely business acumen is applied to personal wealth. Business owners have all the skills they need but sometimes leave them at the door when they get home.

So here, we look at some common business practices and show how they should be applied to help with personal finances.

Tips in looking after personal finances

  1. Create a budget. As with a business, planned spending should to be forecast and plotted.
  2. Track expenditure. Many banks now have simple apps which help customers track their spending and what their spending is going on – including the true cost of all those takeout coffees!
  3. Have a P&L account, which will detail your profit and loss (i.e. income and spending) and reveal the financial health of your household.
  4. Plan, plan, plan. Just as you do in business, create plans, for example, for one year, three years, five years…etc.
  5. Have a cash contingency, for emergency spending.
  6. Invest in yourself, as you would your business or your staff. Saving now is effectively deferring spending for when you need it.

For more help and advice from our team, based in central Cirencester email Huw.Jones@proposito.co.uk or call 01285 708444.