4 Financial Tips From Successful Entrepreneurs That Will Guide You To Great Financial Decisions

When you think about your finances, chances are you aren’t thinking happy thoughts. Finances can be a great source of stress, cause headaches, cause turmoil between loved ones, and on and on. But they don’t have to cause those types of issues. Handled correctly and carefully, your financial woes can be a thing of the past, once and for all.

Entrepreneurs are known for acting their way to success rather than thinking about the issue over and over again, which is what many of us get caught in. By knowing how to handle your finances and how to make good, even great, financial decisions, you can act your way to financial stability and a sense of calmness, or at least to a point where you’re not ripping your hair out! Below are four tips that successful entrepreneurs use to make great financial decisions, professionally and personally.

1) When starting a new company or venture, know how much you are willing to spend! Before you launch or even start with your venture, know how much you are willing to spend, and more importantly lose! Know what the financial limit is and when to call it quits. If you don’t put that limit in place from the beginning, you may find yourself in a sticky situation, and out of more money than you’d expect.

2) Do the math. Know how much you have, what you’re spending and how much you have left over, realistically. You’d be surprised at how many people don’t track their finances. You would think that would be a personal or professional finances 101 tip, but we have been unpleasantly surprised at the number of people that don’t keep track of their household or start-up finances (we’re talking prior to garnering investment), versus how much they spend on monthly bills, etc. Knowing and rationing out your money doesn’t mean you have to be cheap, it just helps you track your money so you can rest easy knowing you have enough money for everything you need. For personal financial tracking, try Mint.com.

3) Start saving early and have a “safety net” account! It’s never too soon to start saving for your retirement. Along the same lines, it’s always necessary to have a safety net account. These two tips go hand in hand. Make sure you allot a certain amount or percentage of money to put away per month. Whether it’s for your personal retirement, a back-up account for your venture needs, emergency reasons, etc., start putting money in an account and try your best to forget about it…until you really need it of course.

4) Don’t forget about long-term assets! From a personal finance perspective, you want to diversify your investment portfolio to involve not only short term assets like cash and maybe bonds, but also stocks and other equity. This will also help secure you financially in the long-term. Mix not only the short and long term assets but their risk. Go with some riskier assets as well as less risky assets. Generally, Fidelity and other financial service providers can help counsel you on your portfolio depending on your financial status.


To learn more about how to act like an entrepreneur, as well as to find out more about how to use a new entrepreneurial formula called CreAction to work for your goals, please go to www.actiontrumpseverything.com for a free copy of the Action Trumps Everything book.

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