3 steps to protect your personal money when starting a new business

Dubai, United Arab Emirates (CNN)– Millions of people around the world have left or lost their jobs during the Corona pandemic, with many deciding to go into business for themselves. But, despite the great benefits of being a private business, there are also many financial obstacles that come along with it. Here are some steps you can take to protect your money:

  • Prepare for the financial sacrifice at the beginning

Most businesses don’t make any money in the startup period, so you should start by building up your personal savings before you start a business, to cover your bills and living expenses during that period.

  • Get on the payroll

When you start withdrawing money from your income, put some of it into a retirement account, even if it’s not a large amount. The sooner you get in the habit of saving for retirement, the better.

  • Remember that your work is not your savings

Many entrepreneurs tend to think of their business as a primary source of retirement, and this involves some degree of risk.

So try to take other steps to diversify and allocate money for retirement in case of emergencies that could bring down the business, like a pandemic or war.

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