5 Personal-Finance Mistakes That Kill Promising Companies
Source: Entrepreneur | Repost QBScott 5/21/2020 –
For most people, personal-finance mistakes affect only themselves. For entrepreneurs, a personal-finance slip-up can have far-reaching consequences. People who get into tight financial spots while running their businesses must make difficult choices about which bills to pay, which opportunities to let go and which partners to leave.
Founders of startups are no strangers to running lean, but that’s no reason to add to the pile. Good personal-finance habits set entrepreneurs up for success by empowering them to focus their energies on the growth of their companies. Bad habits take their attention away from their businesses and hinder their ability to expand.
Don’t let your focus on your company lead you to neglect your own affairs. Watch out for these common personal-finance mistakes, and take proactive measures to keep your life (and your startup’s growth) on track.
Letting Your Credit Score Slip
No matter how far off the grid you try to run, your credit score follows you. Business loans, personal loans, credit cards and even insurance premiums all depend at least partially on your credit score. Fail to pay attention to yours, and you could quickly find yourself paying exorbitant interest rates — if you qualify for credit at all.
Take time to familiarize yourself with the different aspects that contribute to your credit score. According to Chime, there’s more than one model that can be used to determine your score, but overall, total credit usage, balances and available credit are most influential. Understand the contributors to your credit score so you can take advance measures to keep your numbers high.
Author: Scott Meister, CPA
I help small businesses, accountants, bookkeepers, office managers, and business owners with their accounting needs. I’ve used QuickBooks since 2002 and train folks on how to use it efficiently. I create high-quality video training tutorials for QuickBooks and post them on QBScott.com.
Certifications include: Certified Public Accountant (CPA) | Certified Bookkeeper (CB) | Advanced Certified ProAdvisor for QuickBooks Desktop | Advanced Certified ProAdvisor for QuickBooks Online | Certified ProAdvisor for QuickBooks Enterprise | Certified ProAdvisor for QuickBooks Point Of Sale