One Friday a month we look at financial tips and advice for freelancers. (They’re slanted toward the US, so if you’d like to see or share insights from another perspective, just reply to this email!)
You probably get this personal finance advice all the time, but it applies to businesses too.
First, yes, you should have a business savings account. You can expand beyond that later, but at the very least, have one at the same institution where you have your checking account so that automation is easy (and you’re taking advantage of any fee waivers.)
Next, automate a small amount. Even if it's only a $10 transfer a month, the habit is worth it. As your revenue grows, you can push that number higher. Eventually, you can automate savings into retirement accounts for yourself.
The important part is that you start a best practice of automated savings. You really underestimate how good it feels to look after a year or two and see
what’s been going on. It’ll probably even motivate you to drop extra cash in there when you’ve got extra cash flowing.
P.S. If you’ve got any questions on a financial topic, just reply to this email and I’ll see if I can’t help you out.