The New Year is a great opportunity to start with a clean slate, but for some people who still have debts to pay, it can be just another cycle of making money and making repayments. This doesn’t mean, however, that you can’t do better than last year. You should work hard to protect your finances in any way possible to become debt-free at some point in the year 2015.
Keep personal and business finance separate
If you’ve already done this, good for you. Otherwise, start separating personal and business finance, so you don’t end up with nothing. Better yet, set up a corporation or limited liability company, instead of just sole proprietorship. This way, your personal funds don’t get dragged down when business problems arise, such as litigations, and vice versa. It is also important that you stay on top of record-keeping.
Get proper insurance
Whether you run a business or not, you should have yourself covered for any eventualities. Get health and life insurance to protect your personal finance. Get a basic liability business insurance policy, if you still can’t afford a comprehensive coverage. What is important is that you get proper insurance. However, experts warn against being over-insured. You could end up paying for different levels of coverage, some of which may be useless. So make sure to check how appropriately covered you are.
Make sure to offload
Even if personal and business finance is separate, there is still a possibility that some of your assets are up for seizure in the event of a bankruptcy or debt settlement. To minimize such risks, you should transfer ownership stakes of large assets, such as vehicles and company equipment, to limited partnerships or trusts. If the business only owns fewer assets, you can preserve all other assets and protect it from seizure. By following these resolutions in 2015, you can protect both your personal and business interest.
