As a start up entrepreneur, you will need to keep paying attention to your personal finance and family finances
You need to have a adequate sized emergency fund
Emergency fund is an easily accessible pool of money in a mix of bank savings account, short term fixed deposit and liquid funds
As a new entrepreneur, your family's regular requirement will need to be met by the emergency fund
Emergency funds take care of your regular expenses like groceries, quarterly expenses like children's school fees, loan EMIs and insurance premiums
For new entrepreneurs, emergency fund worth 9-12 months of expenses need to be there
Secure yourself and your family with insurance
When you start a business, you are financially vulnerable since you have made large investments in your business
In case of emergency, you may not have enough financial wherewithal to address the financial expenses
It is important for you to have life insurance cover and total health insurance coverage
New entrepreneurs often default on paying premiums for life insurance. Avoid it at all cost
Continue investing for your important financial goals such as children's higher education and your retirement
Try investing small amounts even in the early stages of your small business
Regular investments like systematic investment plans (SIPs) of mutual funds don't require you to invest large amounts
Increase your regular investments when the income from your business increases
Remember, there shouldn't be any disruption in investments. They need time to grow
Invest regularly in growth investments like equity funds
You can invest small amounts in equity funds. Continue with your investments in Public Provident Fund or PPF
In case of irregular income from business, use your emergency fund to make these investments and replenish the fund
You can also pool money for investments through recurring deposits or RD