If there’s one thing I learned from launching my own startups in my 20s, it’s this: money can be either your biggest leverage point or your toughest stumbling block.
There were times when I was flush with cash and times when I was barely scraping by, running on instant noodles and the faint hope that my next pitch would seal the deal.
Over time, though, I noticed that those who consistently succeed with their ventures follow certain unspoken rules about handling their finances.
Below are six of those rules that, once understood and practiced, can transform not just your business but also your entire approach to life and wealth.
1. They pay themselves first
Paying yourself first is one of the most fundamental money habits you can develop.
The logic is straightforward: before you take care of any other expenses, set aside a percentage of your income for yourself. This could be for savings, investments, or personal development.
Self-made entrepreneurs understand that they need to invest in their own future before spending on anything else.
One friend of mine—who sold a tech startup for a tidy sum—told me he automated his savings right from the beginning. Whether he was doing well or going through a slow month, that money was never touched.
Over the years, it grew into a solid financial cushion and provided him with the security to take calculated risks.
As for the amount, it can be a little more complex to determine than if you were an employee. But the folks at Forbes say that 10-15% of your income is generally a good rule of thumb.
2. They keep personal and business finances separate
When I launched my second startup, a mentor gave me the best piece of advice: “Get separate accounts for your personal and business finances—yesterday.”
That turned out to be a game-changer. It seems obvious, but it’s amazing how easy it is to mix the two when you’re in the early hustle of building something from scratch.
Self-made entrepreneurs treat their business like a business, not an extension of their personal wallet. They take a salary or set up distributions, but they don’t dip into company funds whenever they want a new gadget.
By separating finances, you gain clarity on how your enterprise is truly performing. It also keeps your personal life afloat if your business hits a rough patch.
Plus, it saves you a ton of stress when tax season rolls around. I learned the hard way that messing around with blurred lines can lead to confusion and potential legal headaches down the road.
3. They manage debt carefully
Debt can be both a tool and a trap. When I started my first venture, I maxed out a credit card just to buy equipment. It was terrifying, but I believed in my idea.
Luckily, it paid off—but I knew that had things gone sideways, that debt could have crushed me.
That’s why self-made entrepreneurs don’t fear debt, but they do respect it immensely.
As noted by Dave Ramsey, “Debt is not a tool for building wealth.”
High-interest consumer debt is something self-made entrepreneurs avoid like the plague. They’d rather bootstrap or seek out better financing options than get buried under 20% APR.
If they do take on a loan, it’s usually structured in a way that aligns with their business model, ensuring they can pay it off within predictable terms.
Debt management is all about strategy—knowing the difference between good debt (investments that generate a return) and bad debt (unnecessary spending that drags you down).
4. They invest in learning and personal growth
Self-made entrepreneurs recognize that knowledge is currency. That’s one reason why I devoured every Tim Ferriss and Greg McKeown book I could get my hands on when I was starting out.
I saw firsthand that the more I improved my skills—everything from negotiation tactics to productivity hacks—the better my ventures performed.
The best entrepreneurs set aside a part of their budget (and time) for self-education. They pay for courses, mentorships, and conferences that keep them up to speed. They invest in employees’ training, too.
It’s an ongoing process of leveling up that pays dividends in the form of smarter decisions and more innovative ideas.
The return on these investments isn’t always immediate or straightforward to quantify, but it shows up in the quality of partnerships you form and the resilience of your business in competitive markets.
5. They safeguard their capital for tough times
I’ve mentioned this before in a separate post, but it’s worth repeating: self-made entrepreneurs always plan for rainy days.
Life and business are unpredictable, and if the past few years have taught us anything, it’s that we can’t rely on things always staying the same.
This is backed by experts at Entrepreneur, who have noted that having an emergency fund is non-negotiable for entrepreneurs. Whether they call it an “opportunity fund” or “rainy-day reserves,” the idea is to protect themselves from unexpected downturns or prime themselves to jump on opportunities when they arise.
If you can’t keep the lights on during lean months, your business may never reach those booming months in the future. So stash away that buffer, and you’ll thank yourself later.
6. They automate and track every dollar
Ever wonder how high-earning self-starters find time to do everything—network, run day-to-day operations, explore new ventures, and still have a social life?
The key is automation.
They set up automatic transfers to savings, digital tools for budgeting, and recurring payments for essential bills. This approach keeps them from falling behind or forgetting crucial financial obligations.
But it’s not just about automation; it’s also about consistently tracking money flow.
I used to be guilty of just glancing at my accounts every now and then, but once I started reviewing my finances weekly, I saw patterns—like where I was overspending or where I had more wiggle room than I thought.
By turning financial oversight into a routine habit, you can spot inefficiencies and pivot before they become major issues. Self-made entrepreneurs never leave their financial future to guesswork. They have the data, and they act on it.
Wrapping up
One slip might not kill your momentum, but a pattern of bad money habits can put you out of business fast.
The good news is, none of these principles are exclusive to “special” people. They’re all about discipline, education, and a willingness to learn from your mistakes.
Whether you’re in tech, retail, or the service industry, the fundamentals remain the same: pay yourself first, separate business from personal finances, handle debt with care, invest in your growth, keep a safety net, and track your money religiously.
My hope is that you find at least one of these takeaways useful enough to start implementing today. The sooner you treat your finances as a priority, the sooner you’ll see your efforts bear fruit—both personally and professionally.
Until next time, friends.
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