Many people have once been rich but something happened along the way and becoming broke becomes inevitable. It’s quite important to pay attention to where things went wrong and know how to fix it. More importantly, it is better to learn from other people’s mistakes so as to avoid making such yourself. Here are few ways to avoid going broke as a business man or entrepreneur.

SEPARATE BUSINESS AND PERSONAL FINANCE: the easiest way to go broke is to solve personal finances with business asset. Mixing business with pleasure is detrimental to success. Keep separate accounts for different ventures, avoid borrowing from one for another and maintain good discipline when it comes to financial situations.

STAY FRUGAL: learn to stay in check and don’t live beyond your budget if you don’t want to go broke. Set financial limits for yourself and don’t exceed them unnecessarily. This will help you maintain a healthy finance.

HAVE A TEAM IN PLACE: it’s important to have someone or people you talk to, people that can help you through financial situations and help you make the tough choices. They are your financial advisers and backbones and they must be able to give you good advice to prevent you from making mistakes or putting your money in the wrong places.

IDENTIFY YOUR WEAKNESS: it is crucial to identify your weakness and know what drags your savings down all the time. We all have it in us, for some people, its unhealthy junks, for some others, its clothing items they can live without. You need to stay in check, you cannot always trust your instinct when it comes to spending rightly. Staying disciplined is important if you are trying to avoid always being broke.

Many people have had financial issues in the past, some have been able to learn and rebuild their businesses and all they lost, some others couldn’t. Whichever way it is, lessons have been learnt. Making good or maybe better choices is the only option left.