I want to talk about something small business owners face a lot—using their business money for personal stuff. It’s super easy to borrow from your company to pay for hobbies, a new house, or fun trips. But that can hurt your small business budget, business profits, and long-term growth.
Why You Need a Personal Budget
I’ve seen it time and again. People don’t have a clear personal budget, so they pull too much from their business. Suddenly, the money’s gone. And when that happens, there’s nothing left to hire help, invest, or save for tough times.
Having a budget spreadsheet, using apps like Every Dollar, Mint or YNAB (You Need A Budget), can change everything. These tools show exactly where your money goes each month—so you only take what you really need.
Your Business Is Not Your Piggy Bank
Your business exists to:
- Serve customers
- Grow and hire people
- Provide value—profit included
If you drain every dollar for a fancy lifestyle, your business won’t be worth much later. You’ll miss hiring good people. You’ll miss chances to grow. And worst of all, you could go broke if business slows down.
What You Should Do Instead
- Set up a personal budget using an app or spreadsheet.
- Track business withdrawals so you know how much you really need.
- Stick to that number—no excuses.
- Consider help from a personal money manager. The Personal Money Manager Association can connect you with someone who helps you live within your means. The expense of getting help will far outweigh the positive long-term results.
Why This Matters
- Protect your business profits and save for growth
- Keep your stress low by controlling spending
- Stay ready for slow months or unexpected bills
- Build a strong foundation—hire, grow, and expand with confidence
Final Thought
If you want a strong business and a happy life, it all starts with a budget. Don’t use your business as a wallet—use it as an engine for growth. Stay smart, stay focused, and let your business thrive.
