Commingle Personal and Business Finances? Never!

Today’s post comes from Mary Hunt of Debt Proof Living, and author of 7 Money Rules for Life

Dear Mary, I am reading your book, “Debt-Proof Living,” and have begun tracking my expenses. I have a home-based business. Should I include business expenses or just personal expenses in the tracking? Lucy, Vermont

Dear Lucy,You should keep your personal and business finances completely separate. As a business owner, you have to think of yourself as two people: 1) Employer and 2) Employee. You the Employer should be tracking all of your business expenses and income separately, in a business-like manner. And You the Employee should be doing the same with your personal finances. You’ll thank me one day when you get audited (you will, sooner or later) that you’ve been diligent to keep your business completely separate from your personal finances.