How to Handle the Financial Challenges of Entrepreneurship

Making money on the internet has never been as easy as it is today. Thousands of blogs, books, and classes teach 9-5 office workers how they can quit their day job, get location independence, and make more money than they ever dreamed of. Unfortunately, there is a process to everything and nothing worthwhile in life comes easy.

Even though entrepreneurship can seem exciting and sexy, from a financial perspective it can be quite difficult. Within the context of a job, it is easy to estimate your income and plan out your expenses accordingly. With entrepreneurship your paycheck might be unknown and it is a turbulent ride.

While entrepreneurship is rewarding, sometimes doing freelance work and making ends meet through odd-jobs can be stressful. In this article, we will dive into the mental habits you can use to handle the financial challenges of entrepreneurship without feeling fearful.

Surviving the Volatility of Entrepreneurship

Entrepreneurship rarely offers a fixed income, but instead comes with tons of volatility. When Nootropedia was founded, its founder was living with his girlfriend in a 230 square foot apartment in order to save money. Sometimes the business venture would make no money and other months it would make tens of thousands of dollars.

There are a few perspectives that can allow you to survive the volatility of entrepreneurship:

  1. Enjoy the process – the process of becoming an entrepreneur and creating the life of your dreams is hard work, but it can also be enjoyable. If you are always focused on the end goal of making X amount of money each month, you’ll slowly become tired and demoralized when it doesn’t go your way. Now that you are on your own, enjoy the process of learning skills and becoming a more capable person.
  2. Save during the good times – there are good times and bad times during early stages of entrepreneurship. If you make a habit of saving money during the good times, it can help you when times are lean. This is even more important than usual because you never know when a client may leave, sales dip, or expenses increase.
  3. Start a meditation practice – even though it might sound woo-woo, meditation isn’t just a spiritual or religious practice. It is also a practice that can physically change your brain. By starting a meditation practice, you can be more calm and relaxed in the face of challenges that will undoubtedly occur during your journey.

With these three perspectives, anyone who is on the path towards entrepreneurship and a financially free lifestyle can prepare for difficult times and overcome obstacles in their way.