What Should You Do With Your Salary?

Building wealth shouldn’t be your primary motivation for starting a business, but if you get things right, then that’s what’ll happen. While you’ll have to go through the teething periods of running a company, when money can be hard to come, in time, you’ll (hopefully) find that you’re beginning to generate revenue. At that time, you’ll need to figure out what you’re going to do with the salary that you’ll draw from your business. Below, we take a look at some useful tips for what you should do with the money. 

First: Set the Right Amount 

To begin with, you’ll need to set your salary correctly. This is actually one of the trickier parts of running a business. The golden piece of advice is that you should pay yourself first, even from the beginning. You’ll need to earn enough to pay all of your expenses. Things become a little trickier to determine once you’re generating serious money. From there, the best approach is to pay yourself what you’re worth. You can look at the salaries of other people in your position to figure this out, though the salaries of others should only be used as a guide. Your personal situation will be the biggest factor. 

Invest In Yourself

You will have started your business from a place of confidence. You’ll have known that you have the skillset to build something with yourself at the helm. But it’s not as if you’ll have known everything. Indeed, as time goes on, you might find that there are some skills in which you lack. Though you may have left formal education many years ago, it’s worthwhile looking at educational courses and training weekends you can attend. This will make you a better leader, and ultimately improve your chances of success moving forward.

Invest Elsewhere

Your main focus will be on doing what’s right for your business, but your company won’t be your only source of income. Or at least, it doesn’t have to be. Rather than simply keeping your salary in the bank, take a look at investing. A lot of people shy away from trading because they think that it requires a lot of time and expertise, but it doesn’t have to. Make the use of services such as Myfxbook Autotrade, and you’ll be able to copy trading techniques that produce results. It’s always important to diversify your income, and that’s as true for business owners as it is for regular employees. 

Give Yourself a Cushion

You never know what’s going to happen when you’re running a business. While things may be going well right now, there are no guarantees that things will be the same in the future. So make sure you give yourself a cushion, which can be used to keep things ticking over if you hit a rough patch and have to reduce your salary. You’ll find that you’re less concerned about dips in income if you have six months in savings to help you get through the lean periods. 

Featured Image: Pexels – CC0 Licence

This is a contributed post

How To Use Investments To Fund A New Business

How To Use Investments To Fund A New Business

**Contributed Post

Finding money is one of the biggest challenges that many new business owner face. If you’re lucky, you’ll have saved up enough money on your own, however most of us don’t have that luxury. Your next option is going to be finding investors or going to a bank to borrow the money. Those are both good options but some people don’t like the idea of bringing in outside investors because they worry about losing some creative control over the business. You could always consider crowdfunding but you might not find success because there is a lot of competition online. If you do want to or can’t fund it yourself and you can’t save enough money, you should consider investing. People are often cautious about investing because they don’t want to lose all of their savings but if you do it sensibly, you can see a big return and make the money you need to fund your business.

The world of investing can be quite complicated which is why people worry that they’ll lose their money. But you don’t need to be a financial expert to invest successfully, you just need to take the time to learn a bit about different investments and how to play the markets safely. If you’re inexperienced and you want to invest some money to fund your new company, read this step by step guide to get you started.

Look Over Your Finances

You can’t just jump in the deep end and start investing money without first having a good idea where you stand. Before you do anything, you need to look over your finances and work out exactly how much you’ve got saved up. You should also consider your income and expenses and decide whether you’re in a stable financial position. There is always the chance that you can lose money and you need to be financially stable enough to take that hit. Your financial health is also one of the things you need to consider before starting a business of your own so it’s vital that you don’t skip this step.

Learn The Basics

Now that you’re sure you’re ready to start investing, you need to learn the basics. The best way to do this is to read online tutorials about investing and learn about all of the different types of investments and the terminology involved. These useful trading examples from CMC markets give you an idea of your investment options, the process of actually investing, and what the possible outcomes are. Understanding the process itself is essential when it comes time to start investing for real.

Find An Advisor

Even if you take the time to learn the basics of investing, you still need some expert advice if you’re going to avoid making any bad decisions. Get yourself a financial advisor before you start investing any money. They’ll be able to help you work out what your investing goals are and give you guidance on which investment options are best for you.

Now you’re ready to start investing for real and hopefully, make a big enough return to fund your new business.