Since the moment I started my adventure as an entrepreneur two years ago, I have faced several challenges. One of the most difficult ones has been getting my finances in order, after coming from a very comfortable place of being a full-time employee. I used to receive my check at the end of the month, with the taxes already deducted. I made enough money not to worry about expenses and that allowed me to save. And during tax season, it was just a matter of submitting a W-2, which of course, would get me back more money.
This year, I have dedicated myself to organizing all aspects of my life, and my finances are my priority. That’s why I turned to an expert, to ask for some financial advice that would be really useful for our community of Latina entrepreneurs.
Alexandra Ramírez is a digital entrepreneur, financial expert and CEO of Financiallyfitlatina. This year as part of her movement, she has launched the financial agenda “FINANCIALLYFITLATINA”, a planner that will help you keep your accounts separate and organized with your money. With this agenda, you can also follow your monthly budget, keep track of your expenses and save your bills and receipts in pockets every month.
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By Alexandra Ramírez,
Financial expert at Univisión and CEO FINANCIALLYFITLATINA® /Financiallyfitlatina
Studies reveal that most entrepreneurs are not prepared to meet long-term financial goals. Women have a high impact on the economy and the global market and we are creating successful businesses.
When the entrepreneur woman doesn’t have her finances in order, her financial stability can drop up to 75%.
If you are a digital entrepreneur, I recommend you follow these five financial strategies that will help you achieve success in your business and personal life. Remember that a successful woman is one who knows how to manage her money, is organized with her finances and is committed to the growth and development of her personal and professional life:
Set High Impact Financial Goals
“If I had $ 55,000 now, what would I do with that money? Would you invest in a business? Would you buy a new house? “
Many entrepreneurs focus only on their current financial situation, but do not plan for the future. That is why you must create financial goals in the short, medium and long-term that are realistic, specific and tangible. Put a date on any financial goal, and make sure that it’s a realistic goal that you can achieve by working. Set goals with your family and your partner so you can work as a team and achieve them more easily. It is also important that you have them in writing. To do this, I recommend the financial super agenda: “FINANCIALLYFITLATINA”, the only financial agenda designed for the entrepreneur woman. I created an agenda that will help you organize your finances, meet your financial goals and generate income. You can find it at www.financiallyfitlatina.com. In the agenda, you can set high impact goals and an action plan to achieve them. You’ll love it.
Separate Personal Finance from your Business
“It’s more convenient for me to manage a single account. I pay all my expenses from there.” Serious mistake.
Every entrepreneur should be disciplined and organized with their money. Knowing the numbers of your business and knowing how to handle your company’s financial data well is vital, not only at the business level but also when you want to get a loan or an investor. Do not associate your personal bank account with your business account. You must set up a separate bank account for your business. This is one of the major steps to reconcile money and also reduce the expenses of your company. This will help you to identify the source of the money, organize your taxes, make loans and thus you will not use personal funds to solve expenses. Get organized; document the difference between expenses and profitability. Also file invoices and papers separately.
Design your Financial GPS (Budget) – Review your Bills Each Month
“I’m always financially unbalanced, I don’t know where my money goes!”
Many entrepreneurs invest and start making impromptu purchases. They do not have control of expenses or purchases. Live smartly and start a plan towards your financial success and your business. But to do this, you must first make a budget to know what your income is, your expenses and how much money you have left at the end of the month. A financial plan is the basis of a successful entrepreneurship and a better quality of life. You must establish a personal and family budget and one for your business. Remember, a budget is your FINANCIAL GPS and will help you to know what is your spending cap. It is key to check your daily schedule or budget and know your expenses.
Diversify and Invest. Create Different Sources of Income
“I’m creating different sources of income.” Wonderful.
It is important to diversify your income stream. Diversifying means expanding your income options so your money runs the least possible risk. Offer several services, create products, seek investments, start a digital business. As a digital entrepreneur, you may already have discovered the wonderful and lucrative digital world and all the wonders it offers. If you have a blog, you can create income in so many ways: you can sell ad space on your blog, sponsored posts on your networks, selling your own products, ebooks, online courses or sell affiliate products. But I want you to go beyond that, invest in real estate or other businesses: savings funds, retirement, stock market, shares. Buy properties and generate a monthly rent. Remember, you want to diversify to run little risk as possible and not rely on a single source. The profits of some, can compensate the losses of others.
Automate your Finances – Use Digital Tools
“I love technology. I handle everything on my cell phone”. Good option.
Automate everything you can. Take advantage of technology. One of the biggest advantages of automating your finances is convenience. When your payments are made electronically, you do not have to worry about payment dates or think about checks or shipments. Also, you don’t have to buy stamps to send your payments by mail. By making all your payments through your bank account, you can go on vacation without worrying that you will forget a payment or that you will have to pay fines or penalties. Most of my payments are automatic, with the exception of those that don’t offer it or don’t have it available. From paying bills to scheduling transfers to my savings account, most of my finances work on automatic pilot. These are some tools that allow you to automate your finances, organize yourself, be more productive and save time and money:
Mint.com >Keep budget and accounts
Freshbooks > Make payments, report expenses
Hootsuite >Management of Social Networks
Canva > Graphic design
Fiverr >Everything for your business from $5
Evernote >Office on your cell phone. Organize everything!
Financial Agenda “FINANCIALLYFITLATINA” will help you keep your accounts separate and organized with your money. You can also take your monthly budget, keep track of your expenses and save your bills and receipts in pockets for each month.
Good luck! For more information, visit www.financiallyfitlatina.com or get in touch with Alexandra at info@financiallyfitlatina.com
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