Well-known financial expert, Dave Ramsey famously said, “You must gain control over your money or the lack of it will forever control you.”
Money control is more than a numbers game. To have a sense of financial well-being as a direct seller or first-time entrepreneur needs a certain mind-set towards money and wealth. The right mind-set not only ensures business longevity but also makes sure you realise your professional aspirations.
Catch these takeaways from successful entrepreneurs for your own journey.
For those beginning this journey into wise money management, here are some tips mixed with some inspiration from past and present masters in the field.
Tip #1 – Plan Your Financial Goalposts
Pen down your aspirational goalposts around the wealth assets you want to build through earnings, investments, and more. Define them in three dimensions – immediate, medium term, and for the long run. Keeping a record of these goals in a handy journal or a calendar will help you check back on your performance once in a while and keep you on track of how to make money work for you.
Tip #2 – Proactively Build Your Income Avenues
As an entrepreneur or direct seller, the value of an extensive network is immense. Actively seek out ways and fresh ideas to expand your direct selling business or entrepreneurial venture. In the age of social media, you have a terrific opportunity to discover new leads and alternative income avenues by tapping into different offline and online channels.
You can also regularly update and refresh your content to offer attractive packages, affiliate marketing collateral, or online learning material that can generate passive income.
Tip #3 – Save for the Rainy Day
Financial losses can hit us personally and professionally. Still, their cyclical nature means we can have a contingency plan that lets us recover our losses when market conditions improve. Set aside a certain amount as savings – you can look at schemes that offer the best interests or even get expert help to understand your options. Maintain ready cash flows so that as and when your business opportunities pick up, you can rely on your own, hard-earned reserves.
Note that your investments and savings should be separate from a fund dedicated to unexpected events such as a health scare or sudden income depletion. Keep the fund accessible and sufficient to support your basic household and unavoidable expenses and for a reasonable duration (say 6-12 months).
Tip #4 – Follow the Market to Help Grow Your Money
Investments are an exciting avenue to expand your wealth quickly, in a way that your stable savings account cannot. But do it smartly – as the leader, you need to keep your eyes and ears tuned into market conditions and movements so that your financial investment strategy is sound and up to date. Back your choices with solid research, tools, or financial advice from experts to get more bang for your buck and so that it is well protected from risks.
Tip #5 – Plan to Be Debt-Less and Liability-Free
We spoke about a journal to track your financial milestones. You also need to keep a clear record of your checks and balances – earnings, business expenses, and tax deductions. Maintain invoices, receipts, business travel records, marketing spends, etc. so that they can be readily referred during tax filing. Understand taxation law changes and possible implications for you/your business, using a tax expert or tool if required, so that you stay compliant, fulfil tax obligations, and avoid penalties.
Remember to stay on top of EMIs and repayments of any loans you have undertaken for your business. Being debt-free not only reduces the stress in your work but also improves your trustworthiness among your network and colleagues.
Read More: QNET Pro: Building a sustainable business with trust and compliance
Tip #6 – Keep a Piggy Bank Just for Your Sunset Years
Many experts talk about the wisdom of financial foresight even if it’s a long time into the future. It’s also important to factor in some personal ambitions that could be a way to celebrate your professional successes.
For example, one of your long-term goals could be a month-long holiday in an exotic location, post-retirement. To do that, you need to set aside some funds just for that period of your life so that you can actually take that holiday, guilt-free and debt-free.
As Benjamin Franklin said, “An investment in knowledge pays the best interest.” This is an ongoing activity to make sure you’re directing your money into the right investment buckets. It also helps you build your own, unique financial management roadmap that balances career goals with personal ambitions. Your financial health mind-set could even set you apart as inspiration for others.
