Here are five of the most common financial missteps—and how to avoid them.

1. Not Paying Themselves First

Many women business owners prioritize reinvesting in their business over paying themselves. While this shows commitment, it can lead to personal financial insecurity.

Solution: Set a regular salary or draw. This not only supports your personal financial goals but may also help you qualify for credit and build retirement savings.

2. Mixing Personal and Business Finances

Blending personal and business accounts can create confusion, tax issues, and make it harder to track profitability.

Solution: Open separate accounts for personal vs business finances and use accounting software to manage your finances. This also makes it easier to work with a bookkeeper or accountant.

3. Skipping Insurance Coverage

Many women entrepreneurs are underinsured, leaving their business and family vulnerable to unexpected events like illness or injury.

Solution: Consider critical illness, disability, and key person insurance. These policies can protect your income and ensure your business continues to operate if you’re unable to work.

4. Avoiding Strategic Debt

Fear of debt can prevent women from investing in growth opportunities. While caution is wise, avoiding all debt can limit your potential.

Solution: Understand the difference between good and bad debt. Use financing strategically to invest in equipment, staff, or marketing that will generate returns.

5. Neglecting Retirement Planning

Many entrepreneurs assume they’ll sell their business to fund retirement. But without a formal plan, this can be risky.

Solution: Work with an advisor to diversify your retirement strategy so you’re not solely dependent on your business’s future value. This may mean saving through RRSPs and TFSAs while also having a clear understanding the potential future value of your business. 

As female financial advisors working with business owner clients in Halifax, the Valley and across Nova Scotia, Cindy and Shauna of Viner & Selig Wealth Management help women entrepreneurs in Nova Scotia build strong financial foundations. Whether you’re just starting out or scaling your business, we’re here to support your goals with personalized advice and planning.

Reach out and book a conversation here. 

This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. Viner & Selig Wealth Management is solely responsible for its content. Insurance products and services distributed through I.G. Insurance Services Inc., Financial Services Firm.

For more information on this topic or any other financial matter, please contact an IG Wealth Management advisor.