Personal Finance Tips for the Millennial Seeking to Get into Entrepreneurship One can find a lot of information about how to start but here is the information on how to manage

By Monish Anand

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.


Entrepreneurship comes with its own set of wins and challenges. What transforms these challenges into wins is how we tackle them. Exercising prudent financial habits while setting up your venture is a crucial aspect of entrepreneurship that often gets overlooked. While the majority perceive the world of finance as a black box - filled with complex terms and jargons - it need not be the case for everyone. Instead of letting that clout influence your judgement or even worse - make you run away from it, let's try to dig deep and simplify your take on personal finance to make life easy and turn your financial understanding into strength for the business that you intend to build.

Experience Matters

This point is not directly related to finance, it, however, is worth considering since it teaches you the basic rule of what to value and what not. One can find a lot of information regarding how to start, how to work on the business idea or model but there's little mentioned about how the experience at a workplace can provide you with the much-needed perspective on a). The value you as an individual can create for an organization. b). Earning or generating income for yourself. These two points are directly related because the higher value you create, the better you will be remunerated. Your job is a reflection of how you will run your life as an entrepreneur.

Practice Frugality

Start thinking and planning for your startup at least 2 years prior. It gives you enough time to dwell on your idea and save money to float around at the time of launching your startup. To some of us, frugality doesn't come easy. If you fall into this category, then, spend some time on understanding the importance of prioritising your expenses, budgeting and planning since it will go a long way in helping you build your business.

Raise Money from Family and Friends

Raising money from investors and VC funds might be the norm today, however, many of the well-known industrialists today including Mr. Narayan Murthy have stories about raising money from their family and friends. It requires a lot more gumption and preparedness to pitch your product to people who have known you for long and understand your motivation to build a business. This exercise not only prepares you to pitch to investors but also gives you a runway for couple of months before you raise money from external sources. It validates your idea, boosts your confidence and brings your idea to fruition before bringing investors onward.

Evaluate Fallback Options

When the going gets tough, the tough get going. One of the foundation stones of entrepreneurship is the ability to plan fallback options. Drawing out only enough to float around will contribute in extending the runway for a couple of months only, however, financial capital is needed for the organization's long-term growth. Apart from directly raising money from VC funds and angel investors, one can explore options of participating in b-plan competitions, startup fundraising competitions, applying for business loans etc.

Minimize Dependency on Credit Card

While credit gives you the power to spend in absence of cash, it can also contribute to creating an illusion of abundance. Use debit to give you the feeling of actual cash outflow which further reinforces the saying - put money where your mouth is.

Make Technology your Friend

Maintain income and outflow, for your personal use, even when you're working and not actively pursuing entrepreneurship. By adopting some of the user-friendly mobile apps, one can easily get a detailed analysis of and insight into the categories of personal expenses. Leverage technology to help you in maintaining history, financial records and in analyzing your spending patterns.

These practical steps will help in shaping your approach to entrepreneurship whenever you feel ready. By proactively developing an understanding of personal finances you can prepare yourself to undertake the exercise of building the financial health of your startup. The last thing you'd want is finance becoming a hiccup in the roller coaster journey of entrepreneurship.

Monish Anand

Founder and CEO, Shubh Loans

Related Topics


International Security Firm Welcomes Female India Native to an Essential Leadership Position

Yasmin Brar has been appointed as the Operations Strategy Director, a role that underscores the company's commitment to innovation, expansion, and strategic management

News and Trends

SIDBI, Bihar Start-up Fund Trust Ink Pact For Enhancing Startup Ecosystem in Bihar

The fund shall not invest directly into start- up companies, instead it shall contribute to the corpus of SEBI registered Alternative Investment Funds, which in turn shall invest in startups.

Business Ideas

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Science & Technology

These Are the Top 6 AI Threats to Your Business Right Now

The modern workforce is forever changed by artificial intelligence. If you fail to understand that we will all need to learn AI to some degree, you haven't been paying attention.

Growing a Business

How to Bridge the Gap Between Aspirations and Reality in Business

Bringing a vision to life requires a good dose of self-honesty and a multi-year plan for incremental progress.

Business News

Here Are 3 Strategies Startup Founders Can Use to Approach High-Impact Disputes

The $7 billion "buy now, pay later" startup Klarna recently faced a public board spat. Here are three strategies to approach conflict within a business.