You’ve undoubtedly heard not to mix business with pleasure, but did you realize that combining business and personal finances may have the same negative consequences? According to the Federal Reserve, 62% of businesses have utilized their own money to address financial difficulties in the last year.
While dipping into your personal account may appear to be a sensible option if your company is short on cash, it can backfire in a variety of ways. In addition to making monitoring your cash flow more difficult, this technique might raise red flags with auditors, make you personally responsible if your firm gets sued, and ultimately reduce the value of your business.
Here are eight strategies to keep your business and personal bank accounts separate.
1. Obtain an Employer Identification Number (EIN) from the IRS.
Instead of using your personal social security number for commercial purposes, open a corporate account with a distinct Employer Identification Number. Your Employer Identification Number (EIN) may be used to conduct a variety of business activities including opening bank accounts, obtaining licenses, and filing taxes. Even if you only intend on employing yourself, it can serve you well.
It may also help you avoid becoming a victim of tax-related identity theft.
2. Create a company bank account.
A corporate bank account is critical for developing both your personal brand and a professional reputation. According to a Clutch poll, more than 80% of established small businesses have their own bank account.
A business bank account can help you handle your cash flow, keep track of payments, group sensible transactions together, and stay within budget. If you’re a business owner who wants to set up a business bank account, you may be eligible for a credit card that you can use to cover larger expenses rather than having to use personal funds.
3. Sign up for a business credit card
Once you’ve opened a company bank account, be sure to apply for a small business credit card. This card may be used to make commercial purchases while also enhancing your company’s credit score. It’s critical to build your credit over time because it might assist you qualify for Small Business Administration loans, bank loans, or lines of credit in the future.
If you’re just getting started and don’t know which card to choose, search for ones with a 0% introductory period so you can try out interest-free.
4. Make an effort to get paid on a regular basis.
Pay yourself an annual salary to assist establish clearer boundaries between business and personal finances. This amount should be enough to meet your basic personal costs and can also be included in your company’s operation expenses as well as your overall business plan.
A regular paycheque will assist you stay on track, improve your chances of obtaining small company financing, and show where there is still space to develop.
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5. Use crowdfunding and get creative.
Consider setting up an effective Gofundme campaign for your start-up business instead of drawing on personal resources. While the donation-based Gofundme is certainly the most well-known of the crowdfunding platforms, you may also explore alternatives.
In the marketplace, some firms give incentives in exchange for cash, peer-to-peer lending from investors, or equity crowdfunding.
6. Keep in touch with your lenders on a regular basis.
Whether you’re looking to raise your line of credit, extend your payment deadline, or decrease your interest rate, it’s critical to contact your lenders before your debts get out of control.
Check in with them often and stress the importance of keeping in touch during this difficult time. Inquire about your options and talk to them about any other ways to make your payment terms more reasonable.
7. Consolidate all of your business loans.
To consolidate all of your debts into one monthly payment, consider applying for a Small Business Administration loan. Having to pay one creditor at potentially a lower rate of interest might help you save money while maintaining your credit score.
8. Invite your partners to help you establish a clear financial plan.
The simplest approach to prevent taking more money than you can afford from either personal or company accounts is to make a clear spending plan. Your budget should take into account not just your earnings and profit levels, but also the input of your business partners and any family members who are involved. To keep solid lines between your financial accounts, be sure everyone understands and respects them.
What if relying on personal funds is the only option?
If you’ve tried everything else and want to start your own firm, dipping into your personal accounts or taking a personal loan for company expenses might be the only option. Personal cash for your business should generally be used sparingly and only as needed.
As always, contact a tax professional and/or an accountant to make sure you have everything documented and structured correctly — this will protect your money long term and make things easier when it comes time to file taxes. When dealing with personal cash, keep the following three points in mind:
Before you borrow money from your personal funds for your business, consider the following questions: “Do I need this cash for my daily expenses, retirement planning, or an emergency fund?” If the answer is yes, you may wish to reconsider your funding alternatives. Using funds that are required to meet ends meet or deal with emergencies might be too dangerous and place a lot of pressure on your company’s performance.
Don’t forget that you’ll also need a business account to apply for personal loans. Not being able to establish credit as a business is one more danger to consider. Applying for a business loan in the future is crucial for receiving a company loan. As a result, depending too much on personal funds or personal loans might put you on the path of always relying on private financing for your firm.
Structuring your investment
Personal funds can be thought of as a loan or an equity investment. To document the transaction, you’ll need official paperwork in this situation. You’ll owe the firm repayment and interest once it’s acquired. In both situations, you may receive personal income in the form of interest or dividends that you would have to report on your personal taxes.
Speak with a specialist and keep track of your cash.
It’s critical to get help and keep track of your cash. Accounting software may help you organize your documents in an efficient manner. At the same time, an accountant or tax advisor can assist you in structuring your finances correctly so that you don’t have a nasty surprise when it comes time to file taxes.
Personal savings should be handled with extreme care.
It might appear to be the ideal solution in times of economic strain, using your personal savings or credit to cover corporate costs. At the moment, it may appear like your finest option. However, combining business and personal money can have unforeseen consequences. Separating your bank accounts may provide you and your company with the greatest chances of financial stability and overall success.
The Real Deal on a Four-Day Workweek
For many people, it’s difficult to imagine a work week that doesn’t begin on Monday and end on Friday. For decades, millions of people across the world have built their week around Monday through Friday. However, as the pandemic continues to change Americans’ attitudes toward work, many are reconsidering how they may balance work and life.
After all of this research, I discovered that the concept of a five-day workweek was first proposed as early as the 1860s by many labor organizations in the United States seeking to pass legislation for an eight-hour working day. The Fair Labor Standards Act was amended in 1938 to limit the workweek to 40 hours per week, which resulted in the Monday through Friday, five-day work week that is well known today, according to Business Insider.
Despite the passage of this law, many individuals are still compelled to work more than 40 hours per week. According to a Gallup poll conducted in 2014, the typical salaried employee put in around 49 hours each week. Furthermore, according to Vox, workers are still clocking more than 40 hours per week even during the COVID-19 epidemic. Many people feel that achieving a work-life balance is difficult because they are either working from home or doing a hybrid arrangement that includes both in-office and at-home work.
A four-hour workweek might be in your future
In the previous decade, businesses and nations all over the world have started to reconsider the five-day workweek. More than 2,500 Icelandic employees were involved in a research in 2015 and 2019 that introduced them to a four-day workweek rather than the usual five-day week. The study’s findings suggested that those who took part in it reported feeling less stress and a better work-life balance, while their employers claimed that their productivity remained the same or improved. Many other countries around the world, such as New Zealand, Singapore, and Spain, subsequently looked into mandating a four-day workweek as a result of these studies. According to The Guardian, several American businesses, including Bolt Electric and Panasonic Electronics, are already adopting the four-day workweek. Microsoft, which offers a four-day workweek for its workers in Japan, states that the four-day workweek has boosted output by 40%.
Although many individuals tout the advantages of switching to a four-day week in place of a five-day one, the United States government has yet to push through any legislation establishing such a schedule in the country.But this may soon change, as more effort is put into protecting employee rights. The Great Resignation, which has seen millions of Americans leave their jobs in the past year, and the current movement for worker rights that has necessitated wage increases in many states have the potential to push forward further workplace reform in the near future, according to Vox.
The Best Valentine’s Day Gifts for Every Stage of Your Relationship, According to a Matchmaker
Rori Sassoon, a celebrity matchmaker and relationship expert, reveals the ideal Valentine’s Day presents for every stage of your love affair.
Valentine’s Day might be a significant event, especially if you’re new to each other. If you’re stumped as to what to get your lover this year, we’ve got you covered. Rori Sassoon, a celebrity matchmaker, offered us her top V-Day present ideas and you’ll want to check them out.
“When shopping for a Valentine’s Day gift, keep in mind that the gift is as big of a deal as your partner places on gift giving,” Rori shared. “Maybe they’re a fan of quality time over a luxury gift. Take that gesture of love and perhaps put it toward a shared experience. Most importantly, while you might strive to be the ultimate gift giver, stay within your means. If you have anxiety about being able to afford something over budget, rethink how you can find a similar item at a price point you’re comfortable with.”
Choosing the ideal present for your spouse on Valentine’s Day may be a difficult task, depending on where you are in your relationship. After all, if you’re just getting acquainted with someone, the presents you give won’t be at the same level as they’d be after a year.
Rori offered some advice on the finest types of presents to get your partner for each stage of your relationship, and we compiled a list of pointers to assist you get started.
It is good to note to learn your partners love language to help know what is the best gift to give to your partner.
Just Started Dating
When you’re starting to date someone around Valentine’s Day, you want to make a point of demonstrating that you care without being too cheesy (if that’s the case). Give them a card and a trifle. You’re indicating that you’d like to continue seeing them without unintentionally making them feel overwhelmed. Have a wonderful Valentine’s Day. However, keep in mind that there’s no need to be excessive—you’re just getting to know this individual.
We’re Not Really Strangers Card Game – 100% Realism Expansion Pack
This 50-card expansion pack for the wildly popular We’re Not Really Strangers Card Game was created for first dates to the “What are we?” phase of the relationship. It comes with all kinds of questions you’ve been dying to ask like “When’s the last time you ghosted someone and why?” and “What was the first thing you you noticed about me when we met in person?” It’s a great way to get to know your new love interest.
You Be My Valentine Pop-Up Card from YouBeBeloved is a lovely expression of love.
Lovepop has a variety of fun pop-up Valentine’s Day cards that are perfect for newly dating couples like this “Whale you be my Valentine?” card. All the options are really fun and colorful. You’ll definitely put a smile on their face.
We’ll See Where This Goes – Casually Dating
If you’re in a relationship or anything more casual, avoid wrapping gifts. Instead, create the ambiance for a raunchy night — lingerie, candles, romantic music, and maybe a sex toy or two. On this lovey-dovey day, capitalize on your physical attraction to each other. There’s no need to spend a lot of money on someone you don’t know if there’s going to be a long-term connection with. Have fun!
Tease Or Tumble Tower Game
The Tease Or Tumble Tower Game, which is simply a more grown-up version of the same thing, may be played by adults. Each brick has a hot question or activity such as “Remove an article of clothing” or “Massage your spouse for one minute.”
Box Of Dares
This box of challenges was created for couples at all stages and is especially enjoyable for individuals in a “where do we go from here” scenario. It includes 100 cards with dares that range from flirty to erotic, along with a box of 100 stickers.
Dating for at Least Six Months
When you’ve been dating someone for six months, it’s rather obvious that you care about each other. You want to give a gift that demonstrates the kind of giver you are. Gift-giving is one of love languages, and you should attempt to combine equal measures of sexy, fun, and thoughtful into your present. Regardless of the item, keep quality first! Consider a private spa trip or a concert at six months. Shared events will just bring you closer together.
Amorous Arcana: Valentine’s Tarot Lesson & Reading
What’s in store for your relationship in the future? Let the cards be your guide. This Valentine’s Day tarot lesson and reading will stay with you and your spouse forever. You’ll have the opportunity to do a tarot reading while Holly, the instructor and reader, assists you in interpreting the cards. If you already have a tarot deck, the procedure alone costs $25. If you don’t have one, a package including a deck and guidebook can be purchased for $50.
Tickets to a Concert or Event
If you want to give them something they’ll like, get them a ticket to a game, concert, or other event. It will be a shared experience that both of you can enjoy.
Committed for at Least One Year
If you’ve been with someone for a year, there’s always that lovely bright ring to it. You’re likely in love, and you see a hopeful future together. Purchase an outfit together for Valentine’s Day on a shopping trip. If you have a partner who is clueless about fashion, assist them in finding some trendy shoes or a designer belt.
Custom Couple’s Sweatshirts with Embroidered Roman Numeral Date and Initials
If you’re looking for a fun Valentine’s Day present for your significant other, consider getting them a pair of matching sweatshirts from Etsy. You may personalize it to include your initials, a date, and a heart. The New Bedtime Storybook by Leachco has a selection of colors ranging from black to white, light pink, navy, and gold. It’s a must-have for couples that have been together for at least one year.
Vertical and Horizontal Spotify Code Couples Necklace
What’s the song that holds a special meaning for you and your significant other? This personalized Spotify code necklace will always keep it close to your heart. The two necklaces are made of copper, and they’re ideal for keeping your favorite song on repeat. They’ll contain the Spotify code to your song so you can quickly scan and play whenever you want. You have the option of receiving them in rose, gold, or silver.
When you’re in a long-term relationship, you’ve celebrated many Valentine’s Day occasions. You know what your partner wants at this point. If your partner likes jewelry, add something to their collection. If your partner can’t say no to a watch, give it to them. Regardless of the price tag on the present, make sure to include a thoughtful note. Words of encouragement might be the most appealing turn-on. Your fire never has to go out!
Personalized Dinner Spinner Date Night Idea Board
Have you ever found yourself in a situation where it takes hours to figure out what to eat because one spouse is unable to make up his or her mind while the other is great with “whatever”? The Etsy-made personalized dinner spinner board can assist you with this. It’s completely alterable, and you can pick your own names and favorite restaurants. You’ll be wondering why you didn’t get it sooner once you have this!
Personalized Ticket To Love Box
If you enjoy the concept of love coupons, this outstanding personalized ticket box takes it to a new level. You may pick from 40 ticket themes ranging from “Free Back Rub” to “clothing-optional adventures,” and the box can be personalized with your partner’s name. It’s both amusing and distinctive.
The ideas are endless, but really the key is the more thoughtful the gift the better. As well as a gift that makes your partner feel like you really know them. Getting them a gift that is simple that you know is something related to what they like can be the meaningful.
Solana Slides 17% to Leading Losses as the Crypto Market Plunges
The cryptocurrency market fell on Monday, following a decline in the stock indices in the United States.
On Monday, the crypto market dropped significantly as U.S. stock index futures plunged by nearly 17%, according to CoinMarketCap. Bitcoin, the world’s largest cryptocurrency by market capitalization, fell to about $33,700 at the time of publication after rising more than $4,000 in Asian morning sessions.
The price of Solana’s SOL asset was down 17%, trading at $84.17, according to data from analytics platform CoinGecko. SOL was one of the year’s top performers, increasing from $3 in January to over $259 in November. The price of Bitcoin has dropped by more than 66% from its all-time high and almost 42% from last Monday’s.
Ethereum and the Cardano, Polkadot, and Binance Coin tokens all suffered losses of nearly 10% in the last 24 hours. DOGE, the currency of Dogecoin, fell 7% in the same period among the top ten cryptocurrencies by market capitalization.
Over $240 million in liquidations occurred since Asian morning hours, according to data from analytics tool Coinglass. Liquidations occur when exchanges are unable to meet margin demands because of a margin shortage. Following a few swings in the green, we witnessed several false breakouts and retests.
Bitcoin futures markets have liquidated over $63 million in assets since their inception, according to figures published by Cboe. Ether futures surpassed this, with more than $64 million in liquidation losses. BTC futures experienced significantly fewer losses, with SOL and XRP futures both losing around $5 million in liquidations.
The ratio of bitcoin traders who were long or betting on higher prices reached nearly 81 percent, according to several technical indicators, as bitcoin was seen as being oversold and a price rise was anticipated.
Meanwhile, others predicted that the market may fall further.
“Alarmingly, the sharp reversal on Friday was not followed by any meaningful bounce,” said Alex Kuptsikevich, senior financial analyst at FxPro, in an email to CoinDesk. “Some observers point out that this is a worrying signal, suggesting further market declines, as we have not seen a final capitulation. Without capitulation, the markets will remain with an overhang of sellers.”
“Events are developing in a bearish scenario, so far broadly repeating what we saw in 2018 in terms of overall sentiment,” Kuptsikevich said.