You and other entrepreneurs share a common goal; to make money through a viable business. However, the work can invade your personal life, putting you at risk of living vicariously through your business operations. For those heavily mixed in with the chaos, a business’ wealth can be mistaken as their own.
There is a clear line in the sand between the business’ finance and the entrepreneurs. Moreover, while some entrepreneurs become mega-rich before even meeting the 40 year-old bench mark, most don’t experience that kind of luck. Consequently, it’s important to know what pocket of money how to save the pocket of money that belongs only to you. Here are some ways to save money in your personal life as an entrepreneur.
Many entrepreneurs would love to live out that image of the thriving tycoon. A top-of-the-range supercar is symbolic of success and tearing through town with a roaring engine will at least let everyone know that you’re successful. It’s tempting to pose before the masses as an entrepreneur who knows what they’re doing, but it’s also needlessly expensive.
Put simply, it pays to live modestly. By placing your bets on car finance, you can reduce your personal costs and even feed more money directly into your business as a result. Popular companies such as AA can offer you a personalised quote for car finance, using an online calculator for you to input your desired borrowing amount and subsequent repayments. Plan and spend smartly in your personal life, and your business can be better off for it.
VAT on Business Purchases
You could be overspending on purchases that you make for business only means. For example, if you’re running a taxi firm, you may buy the cars you use at full price, despite not driving any of them for personal use. Consequently, this is when your company assets can start impacting your personal bank account, needlessly setting you back a long way overtime.
It’s important to know how to reclaim VAT. The specifications for reclaiming VAT are wide and varied, but you can do so on parts of your property and assets that are used for business only purposes. Running your business and maintenance costs can also be included, so it’s important to research what you can reclaim to not waste money. Generally, it’s helpful to do some research before any purchases or investments.
No doubt you didn’t spend all your money when you had very little, and the rules shouldn’t change just because your bank account may have grown. Making practical, wise and grounded decisions are key to saving your money across the board. If you don’t have the experience, then it’s time to engage with others.
If you’re not well experienced enough to save money, call in some backup. Being an entrepreneur is one big learning curve, so seeking out advice from professionals such as tax advisors and other trusted parties will help you manage your finances better. Additionally, you can work another job to make ends meet. In the end, it will take some trial and error to find a money saving method that works best for you.