Financial fitness is key to the health of your small business. If you’ve let your personal finances get out of shape, you’re going to have a hard time being self-employed, especially if you’re a consultant. That’s because you may run into situation where clients fail to pay on time — or at all — and you’ll need to be able to get through both good times and bad.
If you’re striving for financial fitness, I encourage you to work at building up an emergency fund. Ideally, this should be enough to cover six to nine months of expenses — enough to see you through hard times, regardless of whether you’re self-employed or working for The Man.
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