5 Smart Financial Decisions New Business Owners Should Make In Their Personal Lives

September 15, 2022
Photo by Gilly on Unsplash

When launching a new business, it is critical to be secure in your personal finances. This will ensure that you’re protected for the future and able to take on the risks of a new business. You should take care in every area that could impact your personal finances, from housing to retirement. Make provisions that will protect you and your personal assets should things not go as planned with your business venture.

Life Insurance

Life insurance is a must for anyone going through a life-changing milestone. This includes getting married, starting a business or buying a new home. Life insurance will protect those left behind should you pass away, ensuring that they won’t endure financial hardships without you. You may need to invest in both personal and business life insurance to protect your family and business when you’re gone.

Business life insurance helps your business manage the company’s finances if you’re unable to do so and can include a pay-out to help the business cover costs like business loans. Personal life insurance covers personal debts like credit cards or mortgages, ensuring your loved ones will not struggle to keep up with repayments if you’re gone.

Emergency Fund

An emergency fund is critical for anyone and should be a fund that is ringed off from the rest of your finances. It can be used for handling unexpected expenses like home or car repairs. It is also invaluable if you suddenly lose your income, allowing you to live comfortably while you get back on your feet. Ideally, you should have enough saved to cover all household expenses for six months, giving you a comfortable cushion.

Home Warranty

Depending on the type of home you own, you may be able to get a warranty when you buy. These are particularly beneficial for new build homes, which can encounter various issues in the first years after construction. A 10-year new build warranty can be ideal for covering yourself should something go wrong with your new build property. Always choose a reputable and experienced provider like Buildsafe for any warranty you take out on your home.

Retirement Savings

No matter your age, you should keep one eye on the future and make plans for your retirement. The earlier you do this, the better, but it can be done at any time. You will have to keep in mind that the later in life you start saving for retirement, the more you will need to invest. Retirement savings can help ensure you can retire comfortably, giving you a good life once you pass your business on to your successor.

Investments

Investing can be an excellent way to bolster your finances and benefit both your personal and business lives. There are many ways to invest, and it can be challenging to know where to start. Hiring a financial advisor can be an excellent way to get started with investments without having to learn the ins and outs of the stock markets or other investing opportunities. Look for someone with a proven track record and a history of working with people in similar financial circumstances to you.

Leave your vote

Leave a Reply

Your email address will not be published.

FREE: PROMOTE YOUR UK STARTUP

UK Startup Founders: We want to interview you.

If you are a founder, we want to interview you. Getting interviewed is a simple (and free) process.
PROMOTE MY STARTUP 
close-link

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.

Don't Miss

🏴󠁧󠁢󠁥󠁮󠁧󠁿 10 Top Derbyshire Based Commercial Startups & Firms

This article showcases our top picks for the best Derbyshire

London’s 25 Most Impressive & Successful CEO’s in the Trading Platform Space

At Best Startup UK we track over 130,000 UK startups