Personal finance encompasses various aspects of financial management, including investing, saving, spending, and protecting. It also includes multiple insurances, mortgages, budgeting, tax planning, and other aspects that are a part of your present and future monetary planning. You must be capable of managing your personal finance if you want to be successful financially in the long run. However, if you’re going to invest in something, you require some financial resources beforehand, especially as a startup. But what are the best personal finance resources that are safe and reliable and provide you with the finance you want? It is essential to recognize and utilize only those financial resources that deliver results within a specific time since one of the main aims of your startup business would be to attract visibility and add value to your business. What are some things you must know about this topic?

Why do startups require personal finance?

Parties involved in the Think Finance settlement

An entrepreneur creates a startup with a specific vision, purpose, and long-term goals. But before they can make their presence felt in the market, increase their visibility, or enjoy some market share, they need some investment to fructify those ideas. The financial resources can either come from investors or personal finance. Of the two, most entrepreneurs prefer the self-financing option, at least in the initial stages, because of the absence of risks.

Some benefits of self-financing your business

Compared to external sources of investment, personal financing of your startup or company has plenty of advantages. For example, you would be aware of the money in your hands and make your investment decisions accordingly. Self-funding also provides you greater control and confidence than external funding sources since that always carries the risk of investors withdrawing their support if they have doubts regarding your company’s future. It also reflects your strong commitment and faith in your business since you wouldn’t be investing your money if you weren’t confident about its success. Self-funding is also the best option to prove your company’s viability and equity ownership (total value of the owner’s assets).

What are the best personal finance resources?

As seen above, self-financing your startup as an entrepreneur carries several advantages compared to external sources of funding, for instance, taking loans or appealing to investors to invest in your company. Here are some of the best personal finance resources that you can use to fund your company.

Savings and personal funds

High Yield Savings Account

Most entrepreneurs prefer to utilize their savings to invest in their new business venture, which is safe and provides greater control over the day-to-day operations. It is also a pretty straightforward process and takes less time than loans that involve various steps, from approvals to extensive documentation. However, before you transfer your money from your bank account to the company’s account, ensure the accounting records show it is an equity investment or loan. You might also have some assets, which you could convert into cash, even though most would have taxes.

Credit cards

Credit cards are also a popular way to fund a startup among entrepreneurs. While searching for startup-based business credit cards, it is advisable to go with those with the lowest annual fees and APR (annual percentage rate) and the highest rewards possibilities. You must also choose credit cards that consider your trustworthiness or payment capacity rather than your company’s current position. But how does the process work? With your credit cards, you pay for all the company-related expenses, from infrastructure to operating costs. Every month or a specific number of days, the company sends you a credit card statement. You must pay the amount during the interest-free period (which usually begins on the first day of the billing cycle).


When you pay off the existing mortgage and take a new or second one, it refers to remortgaging. After remortgaging your property, you can invest all the money into your startup company. Even though it is an easy source of personal finance, it does carry some risk, mainly because it concerns your property.



Some entrepreneurs also prefer raising money through crowdfunding, a process of pre-selling. It is usually of two types: backers and pre-sales. Backers are people who provide you financial assistance in return for a specific service that showcases or highlights their brand to your customers. You offer pre-released products to a limited number of customers at lower rates or bonuses in a pre-sales campaign. That way, you earn some money while building a customer base simultaneously.

Borrowing from friends and family

Borrowing from friends and family is perhaps one of the most common self-financing sources for startup owners. It is quicker, cheaper, and provides more flexibility. If you have a poor credit score, cannot organize a crowdfunding campaign for some reason, and have not yet paid off your first mortgage, borrowing from your family members is the best option available.

These are some of the best personal finance resources you could use to fund your startup. They are the safest options for self-financing and ensure you have complete control over your company and decision-making process.

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