Mastering personal financial management is essential no matter what level you’re at financially. When you’re an entrepreneur or an investor, you may have the basics figured out, but there are plenty of strategies that you can use to take your finances to the next level. Here are three personal finance strategies that you may want to try out as an entrepreneur or an investor:
1. Set a Net Worth
When you’re starting out on your financial journey, setting a savings goal may seem like the way to go. As you get further along financially, you should consider switching over to a net worth goal. If you have a specific net worth in mind, this will help you work toward your goal in all areas of your finances. Your net worth can be increased by paying off debt, increasing your income, and the increase in value of your assets.
2. Setting Up Company for Retirement Purposes
If you’ll take the time to start planning your retirement early on in life, you’ll be able to increase your odds of living comfortably later on. One way to take control of your retirement is to set up an LLC for your IRA or other retirement plan option. Then you can sell shares of your LLC to the IRA. At that point, you can engage in investment activities through your LLC and funnel the profits into your IRA.
This can be a great way to quickly grow your retirement funds legally. It also takes away some of the investment restrictions that often come with putting money into a IRA. Most brokers limit what you can put your money into, and this option eliminates those restrictions. With an LLC, you also don’t have to worry about corporate tax rates because all taxes are paid on the individual level.
3. Invest in Hard Assets
In today’s uncertain economic times, putting money into hard assets can be a great strategy to use. For example, many investors are putting money into real estate and precious metals as a way to hedge their bets. When stock prices fluctuate and bond yields are uncertain, putting money into hard assets gives you a little bit of stability.
There are a lot of different personal finance strategies that you could use. If you’ll pick out a few of the best and stick with them, your finances will start to improve over the long-term.
