New Delhi, Sept. 30 -- You have a job, and you often toy with the idea of forming a startup. Well, starting a business starts with questions about ideas, customers and company registration. But another question deserves attention first: Can you afford a startup?

Rajshree Jhawar, QPFP(R)️ of ArthaSarathi, advises founders to prepare their finances first. Your business needs money, but your family needs financial security, too. Mixing these needs can bring business worries into your home. Before starting, divide your money into three separate parts.

First, create a family safety fund. Add up expenses, including EMIs, school fees, insurance, medicines and daily needs. Keep a larger reserve if you plan to leave your job. Business inc...