There are various obstacles in the journey towards financial freedom. It is a ratified truth that nobody is perfect says Ian Mausner. However, your approach towards them and the way you learn from your mistakes matters. Multiple errors might have a long-term impact on business finances and hamper your financial health in the long run. You have to be cautious of these mistakes so that you can avoid them and move forward. Prior knowledge will help you develop a positive approach and work on a promising strategy to protect your business and its finances.
Never share financial details with anybody
Critical financial detail plays an imperative role in a business undertaking. If you go by bank rules, you will see that you cannot even share your details with your spouse. Media reports reveal that financial institutions have repeatedly refused to refund cash to individuals stating that the ATM card is not transferable. Hence, the point here is that you must not share ATM pins, passwords, online banking details, credit card details, etc., with others. You have to secure these details and instruments in safe places, as told by Ian Mausner.
The role of inflation in investing
One of the financial goals of every enterprise is the creation of wealth. It is the key objective of every enterprise. However, when inflation hits the market, it will affect your investment and harm the turnover, clarifies Ian Mausner. Whether it is a fixed deposit or savings deposit, inflation rates will soar high. Hence, your wealth will erode. Your investment will have to undergo a negative fallout based on the inflation rate if you are not aware of them. Thus, you cannot ignore inflation if you are only aiming to make money.
Have a contingency fund for an emergency
Another significant area you will have to look into is holding adequate contingency funds for meeting essential expenses. During a financial emergency, you must have quick cash in hand. The worldwide pandemic resulted in a loss of jobs, significant fall in businesses and their income. Hence, Ian Mausnerindicates that only a contingency fund can come to your rescue in such a situation. Remember that the lack of regular income is a threat to business. You will have to prepare yourself for an emergency and must have an awareness of your resources.
Lastly, you will have to repay your credit card dues and that too within time. For holding a good credit history, your repayment track must be appealing. If you ignore insurance purchases, it can become the worst nightmare for you. Hence, you will have to take insurance, business loans, and other kinds of protection to ensure your enterprise’s proper functioning. Apart from this, you have to be aware of the market situation. The way your business is performing and the impact of the market on your resources are vital areas. When you are aware of these areas, you can prepare yourself for unforeseen situations. You must keep emergency funds ready to keep you going in a crisis.