ISEGHE AJAYI 

Whenever there is an opportunity to acquire skills that are not related to your course of study but will be beneficial to your financial well-being, do not hesitate to be part of such a programme. 

Perhaps such skills might be your best bet for attaining financial freedom which may never come if you depend solely on your salary. 

Besides, it would help you to redefine your financial purpose especially if getting your dream job seems not to be feasible or is taking too long to materialise. 

It is quite true that all graduates desire good white-collar jobs after graduation to be financially independent which this present economy does not guarantee but if it is taking too long to get that dream job, one is left with no option but to engage in what he or she knows how best to do. 

Several people do not want to engage in entrepreneurship because they have this notion that with good take-home pay, their finances would be secured. 

The truth is that there is no security in an income that disallows you to plan for your financial future. 

Mind you, you can be relieved of that job anytime and if it occurs, where will you fall back on or start from? And who says you cannot embrace entrepreneurship even if you are a paid employee? 

With the persistent hike in the prices of commodities, surviving on a single source of income is almost impossible, hence a need to delve into alternative sources of income streams that entrepreneurship stands to offer. 

That is why it would do you no good to remain unemployed for a long time especially if your dream job is not forthcoming after graduation. 

Having a business signifies that you are now your own boss as you are not answerable to anyone. Moreover, when you have positively built your business, your finances will improve such that you can surmount financial challenges or burdens. 

Financial success often results from the ability to effectively run your business and implement a long-term, personal financial strategy. An entrepreneur’s drive to grow his/her business and develop it professionally often surpasses the diligence needed in his investing. 

However, the under-listed tips will you see the need to redefine your purpose through delve entrepreneurship: 

Begin From Strong Foundation 

Some entrepreneurs were fortunate to start in families that instilled integrity, prudence, and hard work. If that is your experience, you can be thankful. 

But, if not, then it’s still within your power to develop those qualities now. Not only, will that make the conditions for your financial success, but it will also be to the advantage of everyone around you as well. 

All through, you will need patience as the personal and financial decisions that will pay off in the long run entail sacrificing a little today. Patience helps you live with the reality that true rewards usually require some short-term discomfort. 

Draw A Line Between Personal And Business Finances 

At the initial stage of a business venture, it is difficult to draw a distinct line between your business and personal expenses. For example, meeting payroll in the early years may imply forgoing a paycheck yourself to continue building the business. 

However, understanding your current financial situation for both your business and your personal life will allow you to define clear objectives for your money. 

Financial independence is achieved by managing personal wealth with the same persistence as your business such that to achieve personal wealth, you must first spend less than you earn. 

Oftentimes, we run our businesses with effective cost controls in place, reducing the amount of needless overheads to increase profitability. 

Engage Professional Advisor 

You need to have competent and loyal professionals to help in the operations of your business, with the intent of creating an effective team since entrepreneurs are faced with many decisions to make each day. 

Engaging a financial planning professional should be no different in that, as part of your team, he or she should provide objective and comprehensive advice for your needs and objectives. 

When choosing an advisor, consider their experience, investment management approach, and compensation platform in your selection process. 

Take the time to understand the fees associated with your advisor-client relationship. 

Your financial advisor will help you build long-term diversified portfolios that will generate the rate of return you need to help you reach your individual goals. 

Diversify Your Investment Portfolio

Having a steady approach to investing requires that your portfolio is diversified into asset classes and not simply comprising just one asset class, for example, stocks. 

How much weight should be given to each asset class depends on the level of risk you are willing to take and your targeted rate of return. 

The investment mix that bumps into your objectives today may not be suitable in the future. 

Thus, it is important to evaluate your portfolio’s asset allocation each year to make sure it reflects your needs and objectives. 

A diversified portfolio positioned for your long-term financial goals works to provide growth opportunities for your future even during periods of market volatility. 

While it is important to diversify your investments, entrepreneurs also need the ability to access money from other sources. As new business opportunities arise, you will need to maintain a certain level of liquidity for investment. 

Maintain Adequate Insurance Cover

Entrepreneurs do not plan for failure because in their minds, it is not an option. For this reason alone, seeking qualified advisors for guidance on maintaining adequate insurance coverage will provide a more objective view on protecting the financial future of your business and family. 

Conduct a risk analysis of your business by working with insurance professionals who have experience with your type of business and are knowledgeable in recognising your insurance needs. 

Moreover, they can help you determine the value of your growing assets to make sure you have adequate coverage in the event of loss. 

Create A Pool Of Personal Liquidity

An entrepreneur’s distinctive passion for success, matched equally by their tolerance for risk, motivates him to work hard every day to grow a successful business. 

Many business owners look at their business as their retirement. 

Unfortunately, many companies are not prepared to prosper without the principal or owner actively managing the business. 

Therefore, planning ahead for your financial independence requires you to have an exit strategy in mind. 

Retirement is often a part of your future plans; not the present. Yet, old age is as certain as the need to financially plan for a comfortable retirement. 

A contented retirement means different things to different people. Some people envisage a leisurely retirement as a time to tour the world, visiting other countries and experiencing different cultures. 

Whatever your retirement dreams are, you will need a well-conceived financial plan to help you reach them. 

Be Open To New Ideas 

Flexibility and vision are two vital qualities of today’s entrepreneur. 

While growing your business, you strive to remain open to new ventures, redefine your products and services to the changing needs of the consumer, and maintain a pioneering vision for the future growth of your organisation. 

As an entrepreneur, you must endeavor every day to be successful. 

Success is not just attained through the generation of substantial wealth and understanding of the purpose for such wealth. Understanding also where your financial freedom is leading you enables you to work even harder toward those objectives.