Being self-employed is amazing. It is one of the best things I have ever done. I really can’t imagine working for anyone ever again. It feels liberating to be able to dictate the pace in which I work. And being able to work from home whilst care for my growing kids is a blessing. I am super thankful everyday for this amazing life I have been blessed with.
Having said that, managing the finances can be a little tricky when you are self-employed. Especially when you are dealing with clients that never pay your invoices on time. I have had to put on my accountant hat to keep my business thriving. For those who do not know, I have a degree in Accounting (graduated university in 2006) but only practised for 1 year. The story surrounding that is a whole new blog post for another day.
Here are some finance tips I have picked up in my self-employment journey.
Be Careful with Credit
As a self-employed person, you need to be very careful with credit, especially credit cards. You may find it super easy to shop on your credit cards, especially when you are dealing with late payments and need to survive. If you must get some kind of credit to survive, make sure you understand the payment terms and don’t get carried away with spending money that isn’t yours.
If you have to deal with unforeseen circumstances and need quick money, a company like Cash Lady could come in handy. This company helps customers to find short-term finance solutions. So they are good for when your boiler or car break down, or when you need money quickly for urgent home improvements.
Keep Records
I am always on top of my records. Leaving it all until the end of the tax year will stress the life out of me. So I make a note of money coming in and going out.
Sending invoices is a great way to keep track of your money. I always send out an invoice for every project I work on. Even if the client does not request one. I need it for my books, so I get invoices sent out for my records.
Claim the Expenses
When filing my tax return, I make sure I claim every expense. This advice also links back to the keeping records tip. I always keep track of every expense, all year round. This makes it easier for me to claim the right amount of expenses. If you are not sure what you could claim as an expense, here is a detailed list of all expenses the self-employed are allowed to claim.
I hope you find these finance tips useful. If you have any finance tips for the self-employed, please share in the comments section below.
*Collaborative post.
Oh Credits! They can blow away your life, I have been so specific with credits all through my life. Keeping record of the financial things is of utmost importance.
I agree. Best to be cautious with credit.
Yes you control your work and your earnings as well
Yes you can.
A great post for those who are self employed. I hope to start my business in the future and it will be useful for me to keep these things in mind.
Glad you like the post.
Very helpful tips for self-employed! Since it is impossible to predict the circumstances we should carefully control our finances.
I agree. Thanks for reading.
This is really important for freelancers. It’s good to have records of everything especially of conversations and more.
Yes it is Alison. Thank you.
Great post, thanks for sharing!
Thanks for reading.
Nice post…happy to reading
Thanks.
Great advice. Thanks for sharing! Creating a rigorous plan for your finances is important, but it’s even more important to stick to it.
Yes it is. Thanks for reading.
nice post. thanx for your post.
Thanks for reading.
Thanks for Great tips
Thanks for reading.
A great and amazing post for the self employed people … And all the tips are amazing
Thank you.
nice article
Thanks.
Well, I like your first sentence when u said, “Being Self Employed is amazing” and you have covered these three points very beautifully. Thanks a lot for the share.. Keep sharing.
Glad you like the post. Thanks for reading.
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Nice post and page!
Thanks.
Very well written post. It will be useful to anybody who usess it, as well as myself. Keep doing what you are doing – looking forward to more posts.
Thank you.
Nice Post . I love it. I am also a blogger and have written many blogs , but i love your
#blogging style#
Glad you do Mona.
nice article, please write ore about this.
Thanks.
Nice post keep it up!!
Thanks.
Nice tips….
Thanks Harry.
thanks for sharing.
Thanks for reading.