You're an entrepreneur because you want to chase your passion. And by being one, you would have to commit long-term to make it happen. Your entrepreneurial journey is going to be one big learning curve, which is why it is best to come prepared to maximize every opportunity that comes your way. You will face different challenges, and experience is going to be your best teacher as you advance through different phases of your life.
It may not be a walk in the park, but by navigating your finances smartly at every life stage, you can catapult your dream business to success. To give you an idea, we’ve gathered some of the money tips and life hacks you can use as your guide.
Education and future careers are the top priorities throughout this stage of exploration and learning. While parents or other people might be there to help and assist, it would be advantageous to learn how to budget and manage money this early. For young and aspiring entrepreneurs, this is a fantastic time to get started and determine what kind of business best fits their interests and skills. Some of the top universities in the country also provide students with programs that mentor and fund their company ideas while teaching them the skills needed to be successful entrepreneurs.
The working years are typically a time of entering the corporate world and climbing the corporate ladder while managing your business. At this stage, your main life goals are usually related to your career and growth as a young businesswoman.
If you plan to have both a corporate job and a business on the side, you have to manage your time and finances wisely. Juggling both responsibilities can be exhilarating, but with thorough planning and a winning attitude, it is possible to find success in both areas. In case your business becomes more profitable, you may consider leaving your corporate job to go full-time. In doing so, stay passionate and dedicated. Make sure to have a safety cushion to support you if ever things don’t go as planned. To ensure financial freedom, monitor your finances by listing down all your sources of income and all your expenses. Your budget should cover your essentials first, such as rent, food and utilities, before allocating it to your recreational activities. It is also a good practice to maintain separate bank accounts for your personal, corporate job and side business to track your funds better. Having a clear overview of your finances will help you understand where your money is going and identify areas where you can cut back if needed.
Having multiple sources of income is a smart strategy that provides greater financial security. It will help you reach your financial goals faster, but you have to stay committed. There are other income streams as well that you can explore, like investing in stocks and mutual funds to help grow your wealth over time.
Planning to have a family
When you reach this part of your journey, your priorities will start to shift. At this stage, your main life goals are focused on building your family, raising your kids, and securing your business lifeline.
Having your own family comes with added financial responsibilities. It's essential to create a budget for the costs associated with raising children, such as healthcare, education, housing, and other necessities. You also have to save up for an emergency fund to sustain your family's needs in case of the unexpected. Ensuring that your business will continue to run smoothly and sustainably will take up most of your time. Getting support in managing your business can be handy to help you balance your time between your work and personal life.
There are other ways as well to achieve financial security for your family while keeping your business afloat. This includes getting an educational plan for your kids and investing in different asset classes for long-term financial goals while starting your own retirement plan.
Your retirement years are known to be a time of relaxation and enjoyment. At this stage, your main life goals will usually be related to leisure activities, travel, and spending quality time with your family while keeping your business afloat.
Create a budget that will cover the cost of these goals so you can enjoy them without sacrificing the financial gains of your business.
When it comes to leisure activities, for instance, consider the cost of any hobbies or activities you may want to take part in, including the amount of equipment, frequency of classes you want to take, or fees for activities you want to join. For travel and spending time with family, consider the cost of activities or trips, including transportation, lodging, meals, tickets and other related expenses.
This is also the time to review your savings account to ensure you have enough to maintain your lifestyle while preparing to pass on your business and other assets to the next generation.
Preparing for the challenges that come with the entrepreneurial journey is essential for increasing the likelihood of turning your business into a success. Taking a proactive approach and being strategic with your money can provide financial security even to your grandkids.
If you’re ready to start your business venture while being financially protected, consider having AXA as your financial partner in life. From offering an all-around insurance and investment plans tailored to your needs, preferences and lifestyle, AXA’s MyLifeChoice is ready to help make your money work for you.
Know that you can game plan your way to be a successful entrepreneur any stage of life. Contact an AXA financial advisor today for more information.