never mix business and personal expenses

Why You Should Never Mix Business with Pleasure (Financially Speaking)

Mixing business and personal expenses is like trying to blend oil and water; they just won’t come together properly. You may think, oh, well this isn’t going to impact me much, but you’d be wrong, especially when the tax season hits.

Here’s why keeping them separate is crucial.

Reason 1: Tax Troubles

The Audit Nightmare

First up, the tax man doesn’t play. Picture this: You’re chilling, thinking your finances are tight, but then tax season hits and it’s a mess because your business and personal expenses are all tangled up. When you claim deductions, the IRS expects you to be precise. If your personal trips to the grocery store are jumbled up with your business expenses, you’re asking for trouble. It’s like trying to find a needle in a haystack during an audit. Pure chaos.

Reason 2: Financial Fog

Losing Sight of Your Financial Health

Next, let’s talk clarity—or the lack thereof. When your personal and business expenses are all in one pot, trying to figure out your company’s financial health is like trying to read a book in the dark. Impossible, right? You might think your business is balling because your bank account looks healthy, but in reality, that might just be because your personal savings are padding the look of things. This mess can lead you to make bad business decisions because you’re not seeing the real picture.

Reason 3: Credit Confusion

Building a Business Credit Score

Lastly, the credit mix-up. Building business credit is crucial for future loans, credit lines, you name it. But if you’re paying for business stuff with your personal card, you’re missing out on building your business’s credit score. Imagine your business is a college student. It needs to build its own credit history to flex in the future. Mixing it with personal expenses is like the student piggybacking on their parents’ credit forever. Not a good look.


To wrap it up, keep your business and personal expenses as separate as LeBron and Steph on the court. It keeps the tax peeps happy, gives you a clear picture of where your business stands financially, and helps build a solid credit score for your business. No cap, it’s a game changer.

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