Entrepreneurs: Take Your Personal Money Seriously.

I read a great article on today’s NYTimes.com about how many entrepreneurs keep a close 8 on every dollar that runs through their business, but are lax in managing their personal finances.

The author, Paul B. Brown, relays the advice he found on a few other sites, like the one written by entrepreneur Ben Yoskovitz – Instigator Blog.

According to Ben, a lot of entrepreneurs have goals of making tons of money with their businesses, but don’t plan personal financial goals for themselves. Many don’t have pension plans. Others don’t have financial plans. And some don’t even have savings plans.

How did Ben discover this? Well, as an entrepreneur himself, for years he only focused on his business and neglected everything else.

So, what can an entrepreneur do?

Well, according to the Times article, there are 4 things that can help you focus as much on your personal finances as you do your business finances.

1. Don’t be so optimistic about your investments. The optimism that helps you become a successful entrepreneur can hurt you as a personal investor.

2. Don’t be as aggressive in your personal investing and beware of investing too much in your own industry. If your industry runs into tough times, not only will your business feel it but your investments will feel it, too.

3. Be conservative with your personal money, especially if you have a risky business - which most entrepreneurs do.

4. Beware of investments that probably won’t appreciate, like time shares, jewelry and new cars.

So, if you’re an entrepreneur – or are thinking of starting your own business – check out the article. And let us know what you think.