What Role Does Financial Planning Play in Managing Entrepreneurial Income?
Financial planning is crucial for managing entrepreneurial income. It involves: - Budgeting: Creating a budget to manage income and expenses helps in maintaining financial stability. - Savings and Investments: Setting aside savings and making wise investments can provide a buffer during lean periods. - Tax Planning: Effective tax planning can help in minimizing tax liabilities and maximizing after-tax income. - Cash Flow Management: Ensuring a steady cash flow is vital for meeting operational expenses and sustaining the business.