1. Create a strict budget and live by it. As an entrepreneur your income may not be steady; you may have good financial periods as well as low financial periods. Creating a realistic budget and following it will prevent you from over spending and feeling regret later. It will also allow you to have a resource for the periods when your income is low.
2. Commit to a savings plan. Even if it is $5.00 per week, get into the habit of putting something on the side. The easiest way to commit to saving is to make it automatic. Having an emergency fund can help with unexpected car repairs, an emergency plane ticket, etc. There are so many unknowns that can happen; it is important to be financially prepared.
3. Set weekly financial goals. As an entrepreneur there is no cap on how much money can be made. I remind myself of this as I determine how much I would like to make for the week. I pick a realistic number and I write it on a post-it and stick it on my bathroom mirror and another on my computer. I am reminded all day of what I need to attempt to achieve. It is a great motivator and the incentive is twice as great J
4. Think about retirement. Given the fact that as an entrepreneur you may not have a 401k plan to contribute to, I suggest opening an IRA or creating some other financial plan for retirement. Although you may be a young entrepreneur now you will one day be an old entrepreneur. Plan now so that you will not be an old broke former entrepreneur!
5. Invest in Yourself. Making and investment in yourself can be the best business investment you will ever make. Abraham Lincoln once said, “Give me six hours to chop down a tree, and I will spend the first four hours sharpening the axe.” Imagine yourself as the axe. You can accomplish so much more and accomplish your goals so much quicker once you have honed your skill. Honing your skill can come from purchasing material to improve, seminars, training, etc. Take advantage of as many opportunities to improve yourself and your skills.