How to Stop Personal Financial Stress from Putting the Clamp on Your Startup
A whopping 80 percent of employees are experiencing some type of financial stress. For many, poor financial health stems from increased debt like student loans, or insufficient solid financial habits and basic financial know-how. Especially for startups, these financial troubles can cast a shadow that takes its toll on the business.
Because of bootstrapping economics, it isn’t uncommon for many startup employees to go years without a salary, only receiving compensation in stock for future payout. The culture is electric and exciting which helps motivate employees through those marathon days, but can contribute to poor decision-making when it comes to personal finances.
The startup life, at least in the beginning, is not glamorous and it is rarely profitable. Therefore, you can expect that personal debt and stress will compound during those first years.
Before diving into the start-up life, keep these tips in mind:
· Get a full-time job earning as much as you can.
· Save as much as you can and work on building a good credit score.
· Acquire credit cards —but don’t use them. They will be your emergency fund.
· Do life lean. Eliminate all your unnecessary expenses. Consider a co-living arrangement.
· In the beginning, work your start-up business around your main job.
· Remember that for a startup to succeed cash flow reigns supreme, so focus on finding sources like investors and grants.
· Secure health insurance.
· Assess your personal finances and make sure your mortgage rates are locked in for as long as possible.
A sound mind and body are essential for every aspect of your business. You will have to be focused and healthy to maintain the drive and stamina to make your business a success. The good news is that increased health and fitness is the perfect way to relieve the mental and physical symptoms of stress.
Michael Halper from Young Entrepreneur explains how fitting in a workout is worth the time and effort. He suggests that working out has many positive impacts on your health in the long-term, but also getting in the short-term, exercise releases endorphins that directly affect your ability to cope with and decrease stress.
Having a Positive MindsetIt’s amazing what mindfulness and positive thinking can do. While nothing can stop the flood of demands and expenses that pour into your office, managing your response to it will make all the difference. With renewed perspective, a healthy body and a clear vision of the future, stress can actually become a tool that motivates you instead of your foremost challenge.
Photo credit: informedmag.com