As we move into 2021 try not to lose sight of your professional and financial goals. Here are some financial tips to help you stay focused.
Whether you’re a first-time mom or parent to many children, you know the responsibility, time, and energy you must maintain each day in order to keep your family happy and healthy. Oftentimes you might feel as though you are expected to do it all, without complaining or getting overwhelmed—which is simply not reality. It’s important to realize that you are taking on a lot as a parent trying to raise your children while being a full or part-time business owner during this challenging economic time.
With that being said, it’s important that you continue to do things you love that bring you happiness while pursuing a career, creating a sound business structure, and maintaining financial stability. Taking a few of these financial considerations into account this new year may help you feel more organized, be productive, set yourself up for success, and evolve personally as well as professionally.
1. Create separate banks accounts
As an entrepreneur yourself, it’s likely that you understand the importance of keeping your finances organized and separated for multiple purposes. Mixing or drawing from your personal finances to fund a business endeavor might not seem like a huge deal, especially early on in your business journey. Unfortunately, getting in this habit can have negative repercussions down the road. During these unprecedented times, should your business get into financial turmoil you want to have your own money to support yourself and your family. If you have been using personal savings to support your business, you can get yourself into dangerous amounts of debt. In addition, if you are utilizing your own money, there’s a good chance it will not be accounted for in your business bills or taxes, which is not a great practice. Physically and mentally make efforts to separate your business experiences from your personal finances to encourage accuracy and optimal security.
2. Stay on top of bills and invoices
Once you have separate bank accounts, you can more easily keep track of your payments and invoices ensuring that you are up to date. Being late on your business payments is never a good thing and will not instill trust in those supporting your business growth. It’s critical that you pay vendors, suppliers, or third-party businesses the appropriate amount by the due date in order to gain their trust and receive the best service. Remember to record payment confirmation numbers and keep your receipts until transactions have been fully processed. With that being said, make sure you are double-checking the bills you are receiving and not just paying the balance without confirming it is correct. Should you be over or under billed, you will want to know this information and make adequate adjustments.
3. Combat uncertainty by planning ahead
It’s likely that this year has given you a second thought when it comes to preparing for the future in terms of your health and wealth. In order to best protect your family and loved ones and support the life you are trying to create, it’s helpful to have a plan in place should anything unexpected happen. By taking time in your early years as a parent and mompreneur to review options for life insurance policies, you can have more peace of mind knowing your loved ones will be safe no matter the circumstances. Especially as a business owner, you want to ensure that your legacy lives on in the way you intend. Check out some of the best companies for life insurance to determine which might fit your needs and meet your expectations. There is always room to adjust your policy as needed but securing a policy earlier on when you are in good health can allow for more affordable coverage.
4. Contribute to retirement
If you are still in the early stages of your business and career all while being a mom, retirement savings might not be at the top of your priority list. It’s common for individuals and parents to really start focusing on planning for retirement later on in their lives. From a financial standpoint, the earlier you begin saving the better. Taking a small amount of money from your paycheck and starting to invest and save can have huge positive effects on the way you are able to live in retirement. By neglecting to start contributing to retirement until your later adult years, you miss out on having an opportunity for major compound saving benefits. Whether you want to start tomorrow or next week, saving for retirement now can allow you to enjoy your future life stress-free as it should be.
5. Meet regularly with a tax advisor/accountant
If you feel confident in your ability to manage your business finances, all the power to you. Since it’s such a critical part of your business success, it makes sense that you’d want to take matters into your own hands. While you might be doing all the right things, it’s still recommended that you have a meeting with a tax advisor or accountant to confirm you are meeting legal requirements and obligations, minimizing your tax payments, and getting any necessary tax deductions along with other specifics. Since you are in the day-to-day of your own business duties it’s easy to overlook minute details that an accountant or financial professional might be able to provide some insight for. Having a second set of eyes review the current state of your finances is always a good idea, especially during these tough economic times when money is so critical.
6. Utilize technology for convenient and free tracking
In this day and age, it’s likely that your business relies on technology to operate and be fully functional. Especially during the pandemic, individuals have been forced to resort to online tools, software, and social platforms for communication. Although it will be nice to have in-person communication in the future, it’s a good idea to adopt some of this technology to improve and streamline your business now and in the years to come. Depending on the type of business you run, you can check out some free inventory management tools and spreadsheets that can help you stay on top of your daily product fluctuations. If you are in a more service-based industry you can also find ways to engage and connect with your customers using social media and other applications to stay in touch and on track.
This year has been a time of change and growth for moms, parents, entrepreneurs, small business owners alike. With your own unique set of circumstances and challenges, you have gotten through this time and managed to keep your business moving forward amidst setbacks. Try not to lose sight of your professional and financial goals as you move into this year. Instead, focus on maintaining a positive mindset and creating the future you and your children will be proud of.
