Three most important things related to personal finance that a new entrepreneur needs to do. Here are three personal finance tips for new entrepreneurs.
Edited highlights 1:02 As a start up entrepreneur, you will need to keep paying attention to your personal finance and family finances
1:23 You need to have a adequate sized emergency fund
1:29 Emergency fund is an easily accessible pool of money in a mix of bank savings account, short term fixed deposit and liquid funds
1:55 As a new entrepreneur, your family's regular requirement will need to be met by the emergency fund
2:20 Emergency funds take care of your regular expenses like groceries, quarterly expenses like children's school fees, loan EMIs and insurance premiums
2:43 For new entrepreneurs, emergency fund worth 9-12 months of expenses need to be there
3:11 Secure yourself and your family with insurance
3:21 When you start a business, you are financially vulnerable since you have made large investments in your business
3:28 In case of emergency, you may not have enough financial wherewithal to address the financial needs
4:00 It is important for you to have life insurance cover and total health insurance coverage
4:26 New entrepreneurs often default on paying premiums for life insurance. Avoid it at all cost
5:09 Continue investing for your important financial goals such as children's higher education and your retirement
5:23 Try investing small amounts even in the early stages of your small business
5:39 Increase your regular investments when the income from your business increases
5:54 Remember, there shouldn't be any disruption in investments. They need time to grow
6:13 Invest regularly in growth investments like equity funds
6:30 You can invest small amounts in equity funds. Continue with your investments in Public Provident Fund or PPF
7:03 In case of irregular income from business, use your emergency fund to make these investments and replenish the fund
7:13 You can also pool money for investments through recurring deposits or RD
