Smart Money Moves: Balancing Business and Personal Savings as an Entrepreneur

The Journey from Creative to Smart Saver

After spending 10 years in Hong Kong, Jessie Drew Hawkins returned to Jacksonville two years ago to launch her social media strategy and marketing business. As many creative entrepreneurs can relate, she recognized the need for better financial management to keep her business growing.

Separating Business and Personal Finances

One of the first points of emphasis from VyStar Commercial Banker Tillery Durban was the importance of properly structuring her business accounts. This involves establishing dedicated business accounts separate from personal finances, which allows entrepreneurs to track business growth while maintaining personal financial health.

Smart vs. Risky Financial Decisions

During the coaching session, several crucial financial practices were identified as either smart or risky:

Smart Financial Moves:

• Automating 10% of income to savings

• Comparing vendors before making business purchases

• Reinvesting profits into the business

• Networking with other entrepreneurs

• Tracking tax-deductible expenses

• Setting monthly budgets

Risky Financial Behaviors:

• Hiring staff before achieving profitability

• Ignoring credit card interest rates

• Neglecting to set aside money for business taxes

The Power of Automation and Structure

One of the most impactful strategies discussed was the automation of savings. By automatically directing 10% of all incoming payments — whether through invoices, ACH or credit cards—into a dedicated savings account, entrepreneurs can build their financial cushion without the temptation to spend. This "out of sight, out of mind" approach, as Jessie noted, makes it easier to accumulate savings for both rainy days and future business growth.

Credit Management and Cost Comparison

The discussion highlighted the importance of being vigilant about credit card interest rates. As Tillery pointed out, credit unions like VyStar offer rates at 18% or lower, while other institutions might charge up to 27%. This significant difference demonstrates how careful attention to financial details can lead to substantial savings over time.

The VyStar Savings Challenge aims to help participants save $1,000 for emergencies, but the lessons shared go beyond just meeting this goal. The challenge emphasizes:

• Regular monitoring of business expenses

• Strategic budget setting

• Smart vendor selection

• Proper tax planning

• Building professional networks

Looking Forward

For entrepreneurs like Jessie Drew Hawkins, implementing these financial strategies represents more than just good business practice — it's about creating a sustainable foundation for both business and personal growth. VyStar's approach demonstrates that with proper guidance and structure, creative professionals can master the financial aspects of their business while maintaining focus on their core expertise.

Making informed financial decisions is possible with the right support system and tools in place. As Tillery Durban emphasized, VyStar is there to help people and businesses grow, contributing to a better future for entrepreneurs and their families.

Update:

See how Jessie Drew has fared after participating in the VyStar Savings Challenge.