I'm starting a series about money for at-home entrepreneurs today. I hope you'll find the information to be valauble enough that you'll forward it to other at-home workers. More importantly, I hope you'll make some changes in your business so that you can keep more of what you make.
I have two simple ideas for you to consider today. One is so basic that I'm almost embarassed to mention it. But I'm surprised by how many people don't do this. Are you ready? Here's tip number one: keep a separate checking account for your business. This prevents you from comingling personal and business money, makes it easier to handle the bookkeeping for your business, and, if you're ever audited, makes it easier to convince the IRS you're handling your business finances professionally. If you don't have a separate account for your business, make this a priority. Many banks offer free small-business checking so shop around if your bank wants to charge you for opening an account with them.
The second idea is also simple. But it requires self-discipline and therefore it isn't always easy. Pay yourself first. Decide what portion of your income you'll set aside in savings and then do so every time you deposit income. You can use this money to open an IRA, to create a rainy day fund for your business, or to invest in equipment and supplies. We'll discuss this more in my next post, but right now I want you to start thinking about what percentage you'd like to begin saving.
Financially Yours,
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