You are a separate entity from your business. You need to separate yourself from your business. And 2 reasons why this is important:

 1. That way you’re not putting your eggs in one basket, you’re reducing the risk, diversifying your portfolio and you have your own personal asset separated from your business

2. If one of your goal is to have business investors, you need to run your business as a proper business with its own financial reports and bank statements. So they can trust your numbers

 

So create a separate bank account for your business, decide what your salary will be as you need to pay yourself. 

 

What are your financial goals? You have to clearly articulate it. We have 3 types of financial goals –

1. The short term goal (less than a year) this could be less ambitious and more practical

2. Medium term goal – 2-5 years, you can be a bit more aggressive with what you want to achieve after 3 or 4 years in your business

3. Long term, 5-10 years goal. It often seems like this is far off but then goals are flexible, you can always edit or rewrite it 

 

Write your financial goals. The minute you start putting it on paper, your mind starts going into the thought process on how to make it work, how you’re going to achieve it , you start connecting the dots but you have to write it down. 

 

Personal finance is 80% mindset and 20% knowledge so it’s imperative to have the right mindset to be able to take care of our wealth. A good example is a lot of people win the lottery and still end up in poverty and the reason why this happens is because they don’t have the right mindset. 

 

Investigate before you invest. You’re better off putting your money in a low yield investment than putting it in something you do not understand. Also, there is never a rush investment are like buses, there’s always another one coming along. So never be in a rush.

 

Get an insurance plan, protect your assets. No one likes to spend money on insurance but it is probably one of the smartest things you can possibly do on your road to financial independence.