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How to Fund Your Next Startup Out of Pocket

by Olufisayo
How to Fund Your Next Startup Out of Pocket

Funding your startup doesn’t have to be about seeking investors or hosting fundraisers. In fact, many startups today spend less than $5,000 to get off the ground, meaning you can self-fund out of pocket.

However, out of pocket may mean something different to the long-term employee or someone who has recently finished college. Explore the following savings tips that can help you self-fund your next startup.

Track Your Money 

Keeping track of your expenses helps you spend less and save more. However, many people don’t record what they purchase.

How to Fund Your Next Startup Out of Pocket

Imagine two people who earn the same amount of money and who both decide to save for a startup. One puts money into savings when the individual feels like it, while the other records expenses and consistently invests. You can guess who saves more.

       

Take note of what you’re buying and what can be saved instead. Once you know how much you can put aside, schedule an automatic payment into a startup account. Research shows that making saving money a routine usually leads to more money saved.

Find Hidden Cash in Your Home

You’ve cut costs and considered a startup account. Before you do anything else, search your house for old toys and trinkets you no longer use.

Magazines, toys, and anything more than a few years old may fetch you money from collectors. While most of these items may look like old junk, think of them as cash hidden around your home. If you wouldn’t leave money lying around, don’t let sales opportunities go to waste.

Sell Services Aligned With Your Startup 

When you’re ready to make some side money, freelancing can be a perfect choice. Freelancing lets you earn money while forming meaningful relationships with customers in your niche.

Many freelance websites take no more than a few minutes to join. Once you’ve provided some basic details, you can browse the job boards and offer services to prospective clients. If you’d rather be matched up with clients, some services do this task for you. Keep in mind, though, that the list of websites waiting to pay you for your skills and expertise is a long one.

       

Manage Your Debt (Refinance)

Sometimes, no matter how skilled you are, past loans make investing feel like an uphill battle. Whether its credit card, personal, or student loan debt, the interest rates attached to these payments add up.

For example, refinancing allows you to merge your federal and private student loans into a single loan with a lower interest rate. Lenders will buy your loans from your providers, giving you the ability to make one payment each month. Having a single loan with a lower interest rate will significantly reduce your monthly payments.

Many lending websites can do a brief assessment to let you know how much you’ll save. In many cases, the savings can be a few hundred dollars or more.

The money that you were giving away can now be used for your startup. Making the goal to fund your business out of pocket can become closer to reality. Refinancing coupled with several strategies can make saving money feel effortless so that you can spend more time focused on your business.

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