Own your financial future | What your small business could be missing

We’re aiming high and carving out new paths to financial prosperity. This could mean finding another way to make money because working a day job still leaves us worrying about our debt. Our “side hustle” might be a catering business, lifestyle coaching services or web development.

In fact, the 2024 Northwestern Mutual Planning & Progress Study found that a striking 40% of African Americans plan to tackle an extra job/side hustle this year. If that’s you, it probably feels great to be your own boss. Then again, it can be intimidating when all the decisions are in your hands.

If you already own a small business or are ready to take your side gig to the next level, we’ve got actionable advice and insights for you.

1. Protect yourself financially. As your business gains momentum, you’ve probably got cash flow on your mind 24×7. But find time to take advantage of financial tools that can help protect you and your business. That way, you can rise above today’s money challenges and build a monetary legacy.

Thinking about everything you own for your business and in your personal life, one thing really stands out. It’s your ability to earn a living, which ranks highest when it comes to the long term. That’s because you need your income to cover all of your expenses and put money toward the future. And the bills keep coming, even if you’re unable to work due to injury or illness. A financial tool called disability income insurance can provide a critical safety net, helping you cover your expenses, maintain your lifestyle and continue building your wealth.

2. Protect your family and loved ones. When you feel young and healthy, that’s a great time to get disability insurance and permanent life insurance, too. Set things up so that your family will get a death benefit to help them keep going without you. The death benefit should go beyond burial costs and provide money so they can stay in their house and live out their dreams—like college—if you pass away earlier than expected. A life insurance payout can also be set up to help a spouse or business partner continue your side business without you.

3. Invest for your family’s future. It’s smart to save for your retirement when time is on your side, even if you have credit card loans and college debt. That’s because your money can work hard for you as the years go by.

Talk with a financial planner and consider a Simplified Employee Pension (SEP), which is a type of Individual Retirement Account (IRA). It’s easy to set up and has low administrative fees, so it’s inexpensive to maintain. Your business will not pay any taxes on the investment earnings. Contributions you make for yourself (and employees, if you have them) are tax deductible. Other choices include a Savings Incentive Match Plan for Employees (SIMPLE) IRA, a solo 401(k) or a Roth IRA—a financial planner can help figure out which type is best for you.

4. Let experts help. As your business gets more sophisticated, keep yourself open to advice. For example, a financial advisor is a great person to have as an accountability partner. They can help provide guidance while you’re young—no need to wait until you’ve “made it” to get their advice.

A Northwestern Mutual financial professional can help you feel more confident about your financial position so that you can focus on what you know best, your business. They can also help you balance your business costs and sales with your personal money.

Learn more about talking with a Northwestern Mutual expert.

Northwestern Mutual Helps Entrepreneurs
Northwestern Mutual is taking action to improve financial access and help reduce the wealth gap. 

• Our Northwestern Mutual Black Founder Accelerator® invests in high-growth startups founded by entrepreneurs who have been historically underserved in accessing capital. We aim to reduce barriers to financial equity and expand financial access, providing up to 10 entrepreneurs each year with a $100,000 investment, 12-week accelerator program, a one-on-one mentor and more.

• In addition, our Northwestern Mutual Future Ventures has a goal of investing $20 million each in women and Black entrepreneurs. We look to engage startups whose technologies have the potential to disrupt the industry and transform the way people experience financial security.

This article is part of a paid program.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM) (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries in Milwaukee, WI. This article is not intended as legal or tax advice. Consult with a tax professional for tax advice that is specific to your situation.