Personal Expenses vs. Business Expenses Help
Hello BP, I am looking into purchasing my first duplex, which I will be owner occupying. I have a question about how to manage my banks accounts. I want to keep my personal income/expenses separate from my business income/expenses, however this will be tricky because the rent will not fully cover the business expenses. This means that my business checking account will go negative and be closed unless I pump personal money into it.
My tentative plan is to do the following:
Person Checking Account:
+Salary (from W-2 job)
-1/2 PITI
-personal groceries, gas, spending, etc.
Business Checking Account:
+Rent
-1/2 PITI
-Business Expenses
My rationale is that only half of the PITI is used for business and the other half is a living expense for me.
Let me know if anything is unclear or if you have suggestions on how to handle the two checking accounts.
Thank you!