Personal Finance Business

How Profitable Is A Personal Finance Business? (Updated for 2024)

Pat Walls

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Updated: September 13th, 2024

How Profitable Is A Personal Finance Business? (Updated for 2024)

So you want to start a personal finance business?

And the first question that came to your mind was, “well, are personal finance businesses actually profitable?”

With a market size of $22.5T - there’s plenty of business to go around.

Especially considering:

You could start a personal finance business with as low as $180
Based on our data, personal finance businesses generate an average of $2.73M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a personal finance business.

Let’s dive in!

Is a personal finance business profitable?

Yes, a personal finance business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $2.73M per year with an estimated gross margin of 80%, you could expect to recover your investment within 2 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your personal finance business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your personal finance business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a personal finance business worth it?

If you’re wondering if a personal finance business is worth it, the answer is a big YES. With personal finance businesses, you have the potential to earn $2.73M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $22.5T, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a personal finance business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful personal finance businesses case studies.

Examples Of Profitable Personal Finance Businesses

Here are a few examples of profitable personal finance businesses, and a few more details about them:

1. Money Geek ($120K/year)

Michael, a former personal finance professional, started Money Geek after a marketing company convinced him to blog for client recruitment. Dissatisfied with their content, he took over and saw the blog skyrocket to 250k monthly page views within nine months, ultimately generating over $10k a month.

Is it profitable? Yes
How much money it makes: $120K/year
How much did it cost to start: $2.5K

How I Started A 250K Monthly Pageviews Personal Finance Blog

Your Money Geek blog grew rapidly to over 250k monthly page views in nine months, leading to the creation of a white-glove, paid mastermind program to help site owners drive traffic and revenue for their own blogs.

Read this case study

Read by 19,291 founders

2. Busy Living Better ($62.4K/year)

Noah Riggs, the founder of Busy Living Better, came up with the idea for his business after realizing the potential of making money online through blogging. With a background in SEO and a desire to help others live their best lives, Noah started offering SEO consulting services and created a website focused on providing valuable content and resources. Through hard work and dedication, Noah has been able to attract and retain clients by mastering his skills and consistently providing value.

Is it profitable? Yes
How much money it makes: $62.4K/year
How much did it cost to start: $350

How I Started A $5K/Month SEO Consulting And Blogging Business

How Noah Riggs Started a $5k/month SEO Consulting and Blogging Business, using his past experiences to fuel his drive and learning new skills to grow his business, which now generates between $5,500 to $6,500 per month.

Read this case study

Read by 7,419 founders

3. Personal Profitability ($0/year)

Leaving his finance job in 2016, he transformed his passion for blogging into Narrow Bridge Media, a content empire generating over $200,000 annually by delivering educational finance material and scaling with a dedicated team.

Is it profitable? Yes
How much money it makes: $0/year
How much did it cost to start: $1K

I Left My Job In Finance & Built A $200K/Year Blog [About Finance]

This case study is about a finance expert who left his job to start a blog, which has become a six-figure business with high margins by writing articles for banks, investment companies, fintech startups, and other businesses.

Read this case study

Read by 5,067 founders

Learn more about starting a personal finance business:

Where to start?

-> How much does it cost to start a personal finance business?
-> Pros and cons of a personal finance business

Need inspiration?

-> Other personal finance business success stories
-> Marketing ideas for a personal finance business

Other resources

How much can you make with a personal finance business?

With a personal finance business, you can make an average of $2.73M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $180. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 2 months.

How much does a personal finance business make a week?

Based on our data, average weekly revenue for a personal finance business ranges around $56.9K. As such, you could see monthly revenues of $227K.

To know if your personal finance business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your personal finance business.

How much do personal finance businesses owners make?

The income of a personal finance business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established personal finance business is about $56.9K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a personal finance business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Personal Finance Business Profit Margins

Generally speaking, a personal finance business can expect profit margin of around 80%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a personal finance business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, personal finance business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, personal finance business owners can ensure long-term sustainability and profitability for their business.

Personal finance business owner salary

The salary of a personal finance business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established personal finance business, in a prime position, might see an average weekly salary around the ballpark of $45.5K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a personal finance business may be a promising business to start - but the success of your personal finance business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable personal finance business.

Part of

Starting A Personal Finance Business: Everything You Need To Know

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