The numbers of self-employed continue to increase throughout the time. They can either be a freelancer or an entrepreneur. Many people switch from being employed by an employer to self-employed. Why? because they wanted to have freedom and flexibility at their work. Being self-employed might be good in terms of work schedule. However, managing your finances might be challenging if you’re self-employed. Since you don’t have a stable source of income if you’re self-employed. So if you wanted to know saving tips for self-employed, this might help you.
What are the Saving Tips for Self-Employed?
Stick to your budget
If you’re self-employed, it is very important that you plan your budget. You must know your source of income and how much money you need to survive for the whole month. You should be strict in money management or spending since you don’t have a stable source of income. Make sure to take note of all the bills and necessities you need to pay. Always remember to stick to your budget and buy things that are needed. It is not bad to buy what you want, but you must consider first if really have the money to buy that thing you want because if not, you should wait and save up for that until you can definitely afford it without affecting your monthly budget.
Know Your Taxes
If you’re self-employed especially an entrepreneur there are taxes that you need to pay, you must be aware of that. So it is important that you are aware of the tax you need to pay, so you can allot money for that. Not being aware of it might affect your budget. If you don’t know what kind of taxes you need to pay, you may try conducting research or better yet, ask a financial advisor.
Set your rate accordingly
If you are self-employed, it is important that you identify your rate accordingly depending on your skills and experience because you’re the only one who knows that. Don’t ask for too much if you know you’re not very good at the job you applied for, be fair. In addition, once you identify your rate it is much better to ask for installment payment rather than a lump sum. If you receive an installment payment, it will be much easier for you to budget it unlike if you receive the whole amount. Receiving the whole amount might lead to impulsive buying.
Set an Emergency Fund
If there’s a good side about being self-employed of course there’s also a downside, which is having no stable source of income, especially for freelancers. So it is very important for every freelancer to set an emergency fund. So if the time comes that you need money for an emergency, you know that you have a backup.
Appreciate even small amounts
Many of us are not appreciating coins. Some would say that it can’t buy anything rather than candies. But, if you gather up all the coins you have, you will be able to save a bigger amount of money. So if you have coins, make sure to keep them.
Many of us are already tired of being an employee, some would say it’s because of the workload and some would say it’s because of the toxic environment which affects our mental and physical health. Whichever reason it is, you should be aware that looking for a job these days is kind of hard. So you must appreciate your job. But if there’s a bigger reason that lies behind why you wanted to quit your job, you can go for it since being a freelancer is also an option for you.