Even when they’ve got the basics of business finances down, many business owners I work with struggle with their personal finances. It’s important to keep the two separate, but equally important to apply your financial skills to both! Today, I’m sharing my top two reasons to track your personal finances. These are especially important if you’re a small business owner.
One Informs the Other
Here’s a quote from my article, “Why Your Business and Personal Finances are Definitely Interrelated”:
All of us have personal financial lives, and they dictate what we’re able to do in our business. In the same way, how our business is doing financially vastly informs what we’re doing in our personal financial lives.
As you can see, there’s a strong relationship here. When you’re keeping track of your personal finances, you have a much better idea of how much you need to make in your business in order to support your lifestyle costs. This information becomes extra valuable when it comes time to make financial decisions about things like pricing to ensure you’re getting paid a fair wage.
Reduce Your Stress
In my opinion, financial self care centers around meeting your financial needs. If your business finances are organized, but you can’t stop stressing about personal bills, this signals a need for change. Prioritizing your personal finances and integrating them into your money system creates a new level of financial confidence and clarity.
It’s important to consider why you started a business. It’s likely it wasn’t so you could stress out about your finances! Many business owners start their businesses to get closer to their creative passions, or to serve a meaningful role in other people’s lives. These are beautiful visions, and can be realized more fully by eliminating financial stress.
If you’re interested in using digital tools to track your personal finances, you might like to read “The Life Changing Magic of Money-Tracking Software”. Next month I’ll be talking more in depth about working with money tracking software in your finances.
You may also enjoy my free eBook, 9 Secrets to Financial Self Care. This eBook walks you through different ideas to sustainably care for yourself and your finances. Click below to get your copy!
