A tried-and-true business principal is to never merge your personal and professional finances. Read any post on how to start a business and one of the first pieces of advice will be to open a separate checking account. Entrepreneurs are encouraged to see business as a separate entity from themselves because this prevents financial ruin in the event of disaster. Whether it’s a massive plunge in the economy or not enough customers, small businesses can quickly run out of revenue and leave you wondering how to make ends meet. While you should still strive to keep your income separate from your company, there are ways for you to contribute small amounts of your own money into your business’s capital.
Sell Your Term Life Insurance
If you have life insurance, it may be more valuable to you now than you think. When you sell your term life insurance, the buyer pays the remaining premiums and you receive a cash amount. Upon your death, the death benefit goes to the buyer. You can review a guide on how much your life insurance is worth now to see if this is a possible option for you.
Take on a Side Gig
Using the skills you already have by running your own business, consider posting services on Upwork. This can help you find new clients by pitching directly to them when they post an ad for help wanted. You can work a few extra hours a week and take the proceeds from your freelancing to support your business. This can also be a good way to promote your company, especially if it’s in a popular field like writing and editing, marketing or graphic design.
Take Out a Personal Loan
Personal loans can be lifesavers if your company’s capital is quickly depleting. Sometimes, you just need a boost to carry you over until clients pay their invoices or you pay off a certain expense. You may choose to apply for a personal loan over a small business loan if your business doesn’t have a strong credit history. It can also be better when you already have outstanding balances for your company or you don’t want to use collateral.
Withdrawal Funds from Your Retirement Account
This shouldn’t be done lightly as it comes with a penalty fee, but you can take money from your retirement account when you really need financial assistance. Anyone under 59 1/2 will have to pay a 10 percent penalty for withdrawing early, but you can continue to contribute and make up what you’ve lost. Retirement funds should only be borrowed when you are low on options. It’s always best to prioritize your long-term well-being and avoid compromising it for short-term problems.
Use Cashback Rewards on Your Credit Card
Cashback cards are great for saving money, which leaves more available for you to spend on necessary costs. Many cards offer a certain cashback percentage on all purchases, which can generate a decent sum of money for you if you use your card often. You should also check in with your lender to see if you have any rewards perks you could claim.