Article

Are You on Firm Financial Footing, "Personally" Speaking?

Your personal finances matter, even though you may be busily focused on your business plan. Juggling the responsibilities of your business and your personal affairs is a challenging task. However, it’s important to take some time out of your busy schedule to review your personal plan to help keep your personal finances on firm ground. Here are some suggestions that may help.

January 11, 2022

Important Disclosure: Content on our website and in our newsletters is for informational purposes only. The information provided may (or may not) directly apply to your situation. We recommend that readers work directly with a professional advisor when making decisions in the context of their specific situation.

As a busy executive or business owner, your personal financial and estate planning needs may be different from other individuals. Your current compensation package probably contains a variety of benefits, some of which may not be portable. Some benefits may also place restrictions on present enjoyment, while other benefits may become available only upon retirement or death.

Business Owners Have Personal Finances Too

Because much of your estate may be tied up in the stock of your company, you may have liquidity problems. In addition to business concerns, personal finance requires careful planning. You may need to plan for children who need or will need educating, often in private schools, long before applications are made to expensive colleges and universities. Or, you may already have a child in college or graduate school.

Juggling the responsibilities of your business and your personal affairs is a challenging task. However, it’s important to take some time out of your busy schedule to review your personal financial plan. Here are a few simple suggestions to help you keep your personal finances on firm ground:

Pay Yourself First

Each month, try to transfer a set amount from your earnings to savings. A monthly amount of $1,000 earning 4% interest will grow to approximately $145,000 in just ten years.

Reduce Your Consumer Debt

Avoid high credit card interest charges, especially now that there is no income tax deduction for this interest. Also, consider consolidating credit card debt to one card that offers competitive financing.

Profit from Tax-Deferred Savings

If you qualify, contribute to an Individual Retirement Account (IRA), or set up a qualified plan for your company (e.g., a 401(k) or profit sharing plan) and maximize contributions.

Bring Your Estate Plan Up-to-Date

Have your will and any trusts reviewed. Have a professional review your current life and disability policies. You may have a need for new insurance that you haven't considered yet.

Set Long-Term Financial Goals

Work within three time frames, setting one-, three-, and ten-year goals. Evaluate your progress each year and make the necessary adjustments to achieve long-term success.

Your Personal Future Matters

Make a commitment now to put your personal planning process in motion. Call today and make an appointment with your Financial Planner. They have the experience, resources and strategic partnerships to help you pull together all of these needs in your personal finances, freeing you up to focus on your business.

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