278. Financial Advice Every Solopreneur Needs to Hear

Most solopreneurs start their business for freedom, but many end up overwhelmed by the financial side of running a company. Taxes, retirement planning, business structure, and investment decisions can feel intimidating, which often leads to what today’s guest calls the “Paralysis Penalty.”

In this episode of The Aspiring Solopreneur, Carly Ries and Joe Rando sit down with financial strategist Mike Milligan to unpack practical financial strategies every solopreneur should understand. Mike shares how delaying financial decisions can quietly cost entrepreneurs thousands, and explains simple systems that can help solopreneurs keep more of what they earn.

You’ll also hear about tax strategies many entrepreneurs overlook, how to structure your finances when your business starts generating income, and why solopreneurs should seek financial advice from someone who understands the realities of entrepreneurship.

Plus, Mike shares a powerful personal story about learning sales and business fundamentals while helping his grandmother sell homemade collard sandwiches, a lesson in entrepreneurship that shaped his entire career.

If you’ve ever felt uncertain about the financial side of running your solo business, this episode will help you start building a smarter foundation.

In This Episode, We Discuss:

• The “Paralysis Penalty” and how it prevents entrepreneurs from making smart financial decisions
• Why solopreneurs should get financial advice from other entrepreneurs
• Simple tax strategies many solopreneurs forget (or never knew existed)
• The importance of separating business and personal finances
• How a Solo 401(k) can dramatically increase retirement savings for solopreneurs
• The Augusta Rule and how some business owners legally reduce taxes
• Why a Subchapter S election can reduce self-employment taxes
• The three financial roles every solopreneur should eventually have: education, tax planner, and banker
• A simple framework for managing income: one-third for taxes, one-third for growth, one-third for living
• The entrepreneurial lessons Mike learned from helping his grandmother build a sandwich business from scratch

Memorable Quote from This Episode

“By changing nothing, nothing changes.” – Tony Robbins

Subscribe & Review

If you enjoyed this episode of The Aspiring Solopreneur, please leave a five-star review and share it with another solopreneur. Your support helps more people build businesses that support their lives instead of consuming them.

FAQs
What is the “Paralysis Penalty” for solopreneurs?

The “Paralysis Penalty” happens when entrepreneurs delay financial decisions because they feel overwhelmed or unsure who to trust. Instead of taking action on taxes, investments, or business structure, they do nothing, which can cost them thousands in missed tax strategies, retirement savings opportunities, and financial planning advantages.

What tax strategies should solopreneurs know about?

Some commonly overlooked tax strategies for solopreneurs include home office deductions, separating personal and business finances, using a Solo 401(k) to save for retirement, electing Subchapter S status to reduce self-employment tax, and leveraging rules like the Augusta Rule that allow business owners to rent their home to their business for tax advantages.

How should solopreneurs manage their income and finances?

A simple framework many entrepreneurs use is the one-third rule: allocate one-third of income for taxes, one-third for business growth, and one-third for personal income. Creating separate accounts for taxes and expenses, working with a tax planner, and tracking expenses consistently can help solopreneurs avoid financial stress and build long-term wealth.

🌟 Featured Resource: LifeStarr Intro for Solopreneurs

Are you building a business on your own and feeling like you’re going it alone? That stops today. LifeStarr Intro is a free, forever membership built especially for solopreneurs who want real support, real resources, and real community.

When you join LifeStarr Intro, you unlock:

• A vibrant community of like-minded solopreneurs for feedback, encouragement, and connection
• The LifeStarr productivity app (coming soon), built to support your workflow using GTD principles (that’s Tasks, Projects, Inbox that works)
• Live problem-solving meetups, expert sessions and strategies...and you don’t pay a thing

Total value: $65/month. Your cost? Zero.

👉 Ready to stop struggling solo and build a business that works for you?

Join LifeStarr Intro for Free