Collaborative post

The parallel is not an idle one. In both cases, you need to get into the right routine from the outset to avoid stress and sleepless nights, and with the best will in the world, it is easy to set out with great intentions of being the best business owner or parent in the world, and still to find yourself slipping into bad habits and struggling to devote the time you should to other aspects of your life.

For the business owner, it is often your personal life that suffers. That doesn’t just mean not devoting enough attention to loved ones or taking time to relax on a weekend – although these are certainly common. But it also means neglecting your personal finances because you are so focused on those of the business. It is the most common mistake in the world.

Be ready for the volatility

Even if the business gets off to a flyer, there is certain to be volatility along the line, with some months being better than others. That is a difficult enough thing to manage from a business perspective, and the last thing you need is the additional stress that there might not be money to pay the mortgage or pay for the kids’ school trips.

Paying yourself a salary that you can afford will help. It probably won’t be as much as you could be earning as a manager in a big company, but you were never really in this for the money, right? In all seriousness, though, having a salary makes it easy to budget and that means less likelihood of domestic dramas.

Keep those lines of separation

Be pragmatic. A new business is a fragile thing, and plenty of them fail in the first couple of years. Hoping for the best but preparing for the worst is never a bad idea, and keeping a degree of separation between home and business is a good way to do that. Having every pound you have tied up in the business is a sure fire route to disaster on both a personal and professional level.

Visit a site like Wealthify to explore the most tax-efficient personal investment options to ensure you have some assets tied up safely and securely, but in a place you can access them quickly if you really have to.

It might not seem like it when you are just starting out, but this is also the time you need to be seriously thinking about your retirement strategy. Living from hand to mouth in the early days of a business is one thing, but chances are, it will not seem such a clever idea when you are in your 70s. The sooner you have the ball rolling on a retirement fund, the more easily you will be able to sleep at night and the better the chances of being able to enjoy a long, happy and wealthy retirement