Running a business often means your personal finances are the last thing you prioritise.

In our recent Personal Financial Planning Seminar Paul and Robin from Gower Financial Services shared practical ways to bring the same discipline you use in your business into your personal life. 

Why Financial Planning Matters

Many SME owners experience stress and anxiety due to cash flow pressures. Studies cited in the seminar showed:

  • 48% of SME owners feel stress or anxiety due to cash flow concerns
  • 71% have used personal finances to fund business growth
  • 33% have lost sleep over business finances

When your personal and business finances are blurred, it becomes harder to make clear decisions. Good personal financial planning is less about numbers and more about control, confidence, and well-being – so you can focus on running your business.

Five Good Money Habits

  1. Create a budget. Know what’s coming in, what’s going out, and – crucially – what’s left at the end of the month.
  2. Manage and repay debt.  Debt (mortgages, loans, credit cards, overdrafts) is common, but it needs a plan. The goal is not no debt eve” but manageable, intentional debt with a clear repayment strategy.
  3. Build an emergency fund. This is “page one” of financial planning. Aim for 3–6 months’ income in easily accessible cash. If that feels out of reach, start small – even a few hundred pounds is a foundation you can build on.
  4. Save for medium-term goals. This is your “saving up for something” pot – a home deposit, equipment,  a car, etc. Typically, these are 5+ year goals and may be held in cash or investments depending on timescale
  5. Invest for the long term/retirement. Longer-term savings, especially for retirement, should usually be invested rather than left in cash to keep pace with inflation over 10–40 years.

Together, these habits form a three-pot structure:

  • Short term: emergency fund (cash)
  • Medium term: specific goals (cash and/or investments)
  • Long term: retirement (investments)

Bringing It to Life with Financial Forecasting

Robin introduced financial forecasting as a way to turn theory into a clear, visual roadmap. A forecast:

  • Maps your income, spending, assets, and goals over time
  • Shows whether your plans are realistic and sustainable
  • Highlights potential shortfalls so you can adjust early
  • Can be stress tested for events like higher inflation, lower investment returns, drop in income, etc

You can build a forecast using a spreadsheet, a budgeting or cash-flow app, or by working with a financial planner who uses dedicated forecasting tools.

Self-Check Questions

Attendees were encouraged to reflect on three key questions:

  1. If my finances felt more in control, how would that affect my work, family, and well-being?
  2. If my business or role stopped tomorrow, would I still be financially secure?
  3. Could my organisation survive a sudden drop in income or loss of a team member?
  4. Do I know how much I need to retire? Am I on track to get there?

If any of these prompt uncertainty, the next step is to take one concrete action in the next 90 days – whether that’s starting an emergency fund, building a simple budget, or seeking professional financial advice.

For support with your business or personal finances, contact Gower Financial Services