How to Manage Your Finances When Starting a Business

Last week on Maker’s Row Live, I had the pleasure of interviewing  one of our long-time contributing bloggers, Pamela Capalad. Pamela is a financial planner who started Brunch & Budget with the goal of helping the average person with their finances.

After an hour long chat, it was hard to narrow down the best tips. There was so much great advice that I definitely recommend checking out the full interview here: https://youtu.be/b3x3X1yLmgU.  But to get you started here are 3 top tips she gave on planning and managing your finances.

Managing Your Finances

What You Will Learn in This Video

  • “You Need a Separation” – Separate your business expenses from your personal finances. This can be as simple as opening another checking account and spending all your business expenses out of there. You don’t need to an have entity or business structure.
  • “It’s OK to be Where You’re At” – Don’t spend where you don’t absolutely need to spend but you want to do it because you want to feel like you’re bigger than you are. Grounding yourself in what you’re making and what’s coming out, will really make a big difference in what you’re able to justify paying for.
  • “Credit is a Tool” – If you feel like you need money to get through the year and to get started, consider taking out a 0% interest credit card if you have good credit. We are taught credit is bad, but credit is a tool. You are paying for a service. You are paying for someone to borrow you money. So if you are deliberate about how you are borrowing that money, then taking advantage of a 0% interest credit card is actually great for your business. Find a card that give you the amount of runway you need to finance whatever you need to finance and have a plan to pay it off – that’s the critical part.
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