When you hear the word “passion,” what comes to mind? If you’re like any people in America with a strong entrepreneurial spirit, you probably have a passion that you’d like to turn into a full-time reality- for example, opening your own bakery or running your own periodical publication. However, for most of us, the thing getting in the way of our dreams is our finances- when we have a family to support, taking a job that we are less than passionate about that will pay the bills is usually a necessity. Now is the time to break away from the monotony of your standard 9-5 and begin taking the first steps to turning your passion into a reality- and Consolidation Plus is here to help. Consolidation Plus has collected some of the best expert tips for turning your dreams into a reality- from the ones who have done it themselves.
Keep an eye on your credit score
Do you know your credit score? If not, you may be putting yourself at a disadvantage when it comes to securing funding to bring your passion into the world. Most new ventures require some form of capital to get started, and unless you’re independently wealthy or have saved up for a number of years, this usually means taking out a loan. Consolidation Plus has found that those with higher credit scores can save money by opening themselves to lower-interest options, while those with lower scores may only be able to find financing through high-interest loans.
Credit score a little lower than you’d like? Beginning your journey to bringing your passion into the world can start with working for a few months to raise that number. Make sure you’re paying off your credit card bills in their entirety every month, as this is the best way to raise your score- if you can’t keep track of when bills are due, ask your bank about automatic bill pay.
Create a long-term financial plan
Starting a new business venture isn’t as easy as having a goal in mind- you also need to plan for specific financial milestones, as well as think about how you will be able to fund your business in the beginning stages of getting up and running. Consolidation Plus recommends that anyone who is looking to invest in a new business venture consult with a financial adviser before making any major decisions regarding their finances. A financial adviser can help you define your goals, and assess your tolerance for risk- which may be lower than you think when considering that your lifestyle may need to change drastically in the first few years of business.
Create an emergency fund to keep yourself afloat
Business runs in cycles- even the most established businesses have dry seasons in which they are barely making enough to keep the doors open and the lights on. When you’re beginning a new business venture, it’s especially important to us the time you have left with a salaried position or other steady income to build a cushion of cash that will help you deal with any emergency expenses that may arise. Regardless of how your new business venture pans out, you will also still need to think about retirement and long-term costs, such as housing and healthcare.
Bringing your passion into the world isn’t easy, but it’s a labor of love that makes our life a little brighter and our communities a little better in the long-term. By working with a financial planning service and taking tips from the experts at Consolidation Plus, you can set yourself up for the best chance of success when it comes to embracing your inner entrepreneurial spirit and living your passion.