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Handling Personal Expenses While Running a Startup
Most importantly, identify your business and yourself as separate entities.
As a startup entrepreneur, one of the challenges you might face is separating your business expenses from your personal expenses. This can be crippling some times. However, smartly handling personal expenses while running a startup business is crucial. For most people, they send money into the same account, whether it’s business or personal. Also, both business and personal expenses leave from that account.
Running your business like this can spell doom. You must first learn to separate your business from yourself as individual entities. Simply put, you should consider yourself as an employee to your business. But more like a more dedicated employee than every other employee.
Some of the best approaches to handling personal expenses while running a startup are described below. I strongly suggest that you take the state of your finance and your business finance personally because it is the lifeblood of both entities.
Manage your cash flow
Both you and your business have separate cash flows. What I mean here is that, just as your business is receiving and spending money, so are you. Putting both flows inside the same book…
