By Abol Kings
It's good to own house. It's also good to run a business to supplement your income, or even as a main hustle.

Many -- however -- are often left scratching their heads and wondering what should take precedence; a house or a business.

Before making a decision between building a house and starting a business, here are some tips to help you make the right decision:

Assess your current financial situation. The choice of either building a house or starting a business requires finances, and you’ll have to bear in mind the kind of house you want to build or the nature of the business you desire to kick-start.

Source of Income.

Another factor that significantly influences your choice is your current source of income to finance your home construction or business venture. It is crucial to note that maintenance of a home requires a steady income stream.

This factor leads us to the question, “can I use my business income to construct a house?” The answer to this question is yes; you can decide to start up a business and build a house later with the earnings obtained from the business, as long as you don’t suffer any form of loss.

Pressing Needs. Your short and long-term needs should also influence your decision. To avoid regrets, choose an option  that will not negatively impact your pressing needs.

Remember, it is essential to consider how your decision to prioritise one affects another. For example, provide possible answers to questions like “can I construct a house with my business functioning?” Or “will constructing a house affect my dream of starting up a business?”

These will further strengthen your resolve when you make a decision.

Think about your long-term goals. What do you want to achieve in the next 5-10 years? Are you looking for a stable income or a major life change?

Consider the risks associated with each option. Building a house could involve a lot of unexpected costs, while starting a business can be a risky investment. Weigh the risks of each option before deciding.

Look at successful examples. Do some research to find out what other people have done in a similar situation.

If you’re able to, look for examples of people who have successfully built a house or started a business and learn from their experiences.

Trust your gut. Ultimately, you need to make the decision that feels right to you. Take the time to think it through, consider the above factors, and make the decision that you feel comfortable with.

Below are the benefits of House ownership and venturing into business:

Let’s look at the benefits of house Ownership; Comfort and Privacy.Having your own home grants, you a certain level of comfort you can’t have when you’re living in a rented apartment.

You have your own space to do whatever you please whenever you want.

Security. As a homeowner, you feel secure knowing that you’re in charge of the decision-making process of the matters relating to your house, and no one can kick you out of your property.

Rising Home Value. With an overtime increase in your home’s value, you end up having an asset with a substantially higher worth over the years. These additions contribute to building equity.

Much like owning a home, choosing to start a business has its advantages. To help aid your decision-making on whether to buy a house or start a business, here are some of the benefits to consider:

You Become Your Own Boss. One of the benefits you enjoy from owning a business is independence.

Having the power to make decisions that affect your enterprise and knowing you don’t answer to anybody else but yourself.

This acquired privilege puts you in a position where you are directly accountable for the business activities and your financial decisions.

Self-Fulfillment. Besides being your own boss, you get a sense of fulfillment being the owner of a functional enterprise, whether a start-up or an already established business.

Better Financial Benefits. Owning a business puts you in a position that guarantees an increase in your income.

This factor is possible because you earn directly from your business and not from an employer who pays you a stipulated amount of salary with few added bonuses.

In conclusion, deciding to either buy a house or start your own business can be difficult, as both options are life-changing and come with their own set of pros and cons.

To determine which option is best for you, it’s essential to consider the factors that will affect your choice so you can make an informed decision.

Mr. Abol Kings is a financial coach, a teacher and a former banker