Melisa Marzett Blog | Plan B: How To Separate Personal Finance And Business Finance | Talkmarkets

Melisa Marzett

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Melisa Marzett is a professional writer, who has a lot of knowledge and is able to discuss any topic. She is ready to share her thoughts and you are welcome to read her posts at and

Plan B: How To Separate Personal Finance And Business Finance

Date: Thursday, August 9, 2018 1:33 AM EDT

Oftentimes business owners do not separate personal finance and their business finance, as a result, drag-out money from the business for personal issues, and sometimes vice versa— sacrifice with personal for the sake of business. In a perfect world, one should have two plans: a personal finance plan for oneself, and a business plan for the business. Thus, you are to have two monitors for tracking of finance successiveness from different points of view.

Which plan to make in the first instance? I would recommend a personal finance plan as long as it is going to define parameters for a business plan (what profit, how soon and how often is to be driven out of business asset aim of finance plan, what risk on business if allowable, in what assets apart from business it is worth to invest a capital and so on.). How to make a personal finance plan and to define parameters for the business plan with the help of it?

A personal finance plan is kind of a business plan for a family and one person, a tool aligning existing needs (finance goals) of a person and/or his family with those finance opportunities he already has, including with the help of choosing those financial products, which fit him including business.  

There are no standards of making a personal finance plan existing but ideally, a full complex personal finance plan should include the following principle stages:

· Finance goals analysis: Yet to find what one is to achieve for a lifetime, besides the most specifically: time limits, costs, currency, and priority. For example, to build a house, to buy a real estate by the sea, to pay the children education, to provide oneself with a passive income by pension or earlier. The prices can be different but it is highly important to digitalize them according to deadline, costs, currency and priority. A goal can be here — to run a business of one`s own. Then you need to calculate capital contributions amount, terms of the investments year-wise in order to know to which period what amount of money is going to be needed, and to find a source of its financing within a finance plan.

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