How This Mompreneur Mastered Her Finances
As a busy mom running her own business, Lisa knows firsthand the challenges of managing finances as an entrepreneur. However, she has developed a strategic approach that has allowed her to grow a successful 7-figure company while also providing for her family.Separating Business and Personal Finances
One of the first things Lisa did when starting her business was to keep her business and personal finances completely separate. She opened dedicated business bank accounts and credit cards, and she uses accounting software to meticulously track all business income and expenses."It's so important to have that clear division between your business and personal finances," Lisa explains. "It makes tax time a breeze, and it also helps me stay on top of my business's financial health throughout the year."Paying Herself a Salary
As her business grew, Lisa made sure to pay herself a regular salary, just like any other employee. This helps her budget for both her business and personal expenses."A lot of entrepreneurs make the mistake of just taking money out of the business whenever they need it," she says. "But that can lead to a lot of financial chaos. By paying myself a set salary, I know exactly how much I have to work with each month."
Automating Savings and Investments
In addition to her regular salary, Lisa also has a portion of her business income automatically transferred into savings and investment accounts. This ensures that she's consistently socking away money for the future, whether it's for retirement, her kids' education, or other long-term goals."It's so easy to let the money just sit in your business account and spend it as you go," Lisa admits. "But I've found that automating my savings and investments is the best way to make sure I'm building wealth, not just generating revenue."
Seeking Professional Guidance
While Lisa is highly skilled at managing her own finances, she also recognizes the value of working with financial professionals. She has an accountant who handles her business taxes, and she regularly consults with a financial advisor to ensure her investment portfolio is on track."As a mompreneur, I wear a lot of hats - CEO, marketer, customer service rep, and more," Lisa says. "So it's important for me to have a team of experts I can rely on to handle the financial side of things. It gives me peace of mind and allows me to focus on running my business."
The Bottom Line
By separating her business and personal finances, paying herself a salary, automating savings and investments, and seeking professional guidance, Lisa has been able to achieve financial stability and security as a mompreneur. Her strategic approach has not only benefited her business, but also her family's long-term financial well-being."Managing finances as an entrepreneur can be really daunting," Lisa acknowledges. "But if you put in the time and effort to develop a solid system, it can actually be quite empowering. I'm proof that it's possible to build a thriving business while also taking care of your personal finances