TL;DR
Entrepreneurs need to manage their personal money as carefully as their business. Four skills do it: a budget you track every month, credit cards used without carrying debt, monthly saving toward a retirement number, and investments matched to your risk tolerance and goals.
As an entrepreneur, you likely have a lot on your plate. You’re responsible for making your business succeed, and that can take up a lot of time and energy.
But it’s important to remember to also focus on your personal finances. Just like you need to manage your time and resources wisely in order to be successful in business, you also need to do the same with your money.
What are the four skills for managing money wisely?
Here are four essential skills to help you manage your money wisely.
Create a budget and stick to it
This may seem like common sense, but it’s something that many people struggle with. Having a budget allows you to track where your money is going each month and see where you can make adjustments to save more.
Be savvy about credit cards
Credit card debt is one of the biggest financial problems people face today. Don’t let yourself become one of these statistics – learn how to use credit cards wisely so that you can reap the rewards without getting into debt.
Save for retirement
It’s never too early or too late to start saving for retirement. Figure out how much you’ll need saved by the time you retire and start putting away money each month towards that goal.
Invest
Another key component of financial success is investing your money in assets that will grow over time. Learn about different types of investments and find ones that fit with your risk tolerance and investment goals. By mastering these four skills, you’ll be well on your way to managing your money wisely!
The Financial Organizing Masterclass will show you how to save (or make) $200-$1000 each month by stopping the money leaking out of your life.
Related: Why Clutter Costs You Cash shows where the leaks hide, and Organizing Business Finances covers the business side. If the business itself is what is draining your time, book a Business Logjam Session.
Keep reading
- Why Clutter Costs You CashDuplicates, late fees and lost gift cards: where the money leaks.
- Organizing Business FinancesKathi’s system for the money side of a small business.
- Organizing FinancesA simple way to keep household finances in order.
Frequently asked questions
Why should an entrepreneur focus on personal finances?
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Running a business takes a lot of time and energy, but personal finances need the same care. Just as you manage time and resources wisely to succeed in business, you need to do the same with your money, or the business success never turns into personal financial security.
What is the first money skill to master?
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Create a budget and stick to it. It may seem like common sense, but many people struggle with it. A budget lets you track where your money goes each month and see where you can make adjustments to save more, which is the foundation for every other money decision.
How should I handle credit cards?
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Be savvy about them. Credit card debt is one of the biggest financial problems people face today, so learn how to use credit cards wisely and reap the rewards without getting into debt. If a balance is carrying over each month, that is the leak to plug first.
When should I start saving for retirement?
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It is never too early or too late to start saving for retirement. Figure out how much you will need saved by the time you retire and start putting money away each month toward that goal, so the number stops being a vague worry and becomes a monthly habit.
How should I start investing?
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Investing your money in assets that grow over time is a key component of financial success. Learn about the different types of investments and find the ones that fit your risk tolerance and your investment goals. Mastering budgeting, credit, saving and investing together puts you well on the way to managing money wisely.
Originally published on Organized and Energized on September 1, 2022. Moved to addSpace and updated 2026-11-07.
