This is one question many self-employed ask themselves over and over again. Managing your funds as a self-employed person is so vital especially in the current times we are in. It is so important to stay on top of your money when you work for yourself. I have been self-employed for a couple years now and I had to learn very quickly how to manage my self-employment money.
Here are some tips to help you manage your money as a self-employed person:
Have a monthly budget
Regardless of how much income you get as a self-employed person, it is important to have and stick to a monthly budget. That way you can manage your finances effectively and have money to cover your bills in the quiet months. I always ensure I stick to my budget these days. The last thing anyone would want is to not have enough money to cover your bills when during the quiet months. Having a budget sorts that all out as you can plan your bills in advance and spend within your budget.
You can also pay yourself a fixed salary every month and save everything else which leads links into the next tip below.
Grow your savings
Everyone should have some savings especially business owners and those who are self-employed. It makes sense to save an amount of money every month, no matter how small. That would help you to continue to grow your savings on a monthly basis which come in handy on rainy days.
Stay on top of your tax
Ensure you sort out your tax and national insurance contributions as soon as you can. It is usually possible to set up a repayment plan that allows you spread your payments over a set number of months or you can just do it the way I do which is to pay the tax bill over a certain of months before the due date. That usually takes the pressure off massively.
This can be a tricky tip for the shopping lovers but spending less usually means you have your money for longer. The older I am, the less I spend, and this habit has helped me live a more peaceful life. It is so simple; if you can cut back on your spending, you will have more money.
Check what you are paying for
It is important to an audit check of your direct debit plans as often as you can so you don’t keep paying for products and services you no longer need.
Are you self-employed? Do you have a business? How do you manage your money?