Run The Money
Follow Run The Money

Useful Financial Tips for the Self-Employed

  • August 10, 2021

If you're reading this, I'm earning money in some way. I was compensated with money and/or product. Thanks for helping to feed my family. I also may have a financial interest in companies named. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not an accountant, lawyer, doctor, fitness expert, or nutrition specialist. So, talk to a professional before acting on anything you read, watch, or listen to below. Get your own advice and do your own research. Email me at [email protected] with questions.

If you’re self-employed, you have to do all of the work of paying yourself, looking after your finances and doing your own taxes. It’s not easy, but it’s also not something that you can afford to neglect. Be sure to take the time to read the guide below if you’re looking for some financial tips that’ll serve you well as a self-employed person going forward. Each of the tips we’re about to discuss will be of use to you sooner or later.

Track Your Expenses with Precision

Tracking your expenses is something that you’ll definitely want to do as a self-employed person. You don’t want to let your spending escape your control because that’s when the problems can really start to mount up and that’s definitely not what you want to happen. Try to make better decisions and only spend on the things that will really help your career and business.

Pay Yourself

Paying yourself adequately might sound like an obvious thing to do, but it often gets overlooked by self-employed people who are trying to grow their businesses. But it really does pay off to put that money aside as a way of paying yourself for the hours you do. It’s a healthy way to regulate your working life and to ensure you keep things moving in the right direction.

Don’t Ignore Retirement Planning and Investments

Retirement planning and investing are two things that you should definitely try to stay on top of if you’re serious about being self-employed over the long-term. There’s no one to take care of this for you when you work for yourself. So you should try to put some money aside regularly and invest in stocks and other assets that’ll pay off for you in the future.

Make Taxes a Priority

It’s vital to ensure you’re going things by the book with your taxes. Being self-employed is not an excuse for making costly errors that anger the tax authorities. The last thing you want is to be sitting in the dock with your criminal tax attorney defending you just because you took a few shortcuts. So make sure you do your taxes properly and get assistance with it if you need it.

Get an Accountant

If you’re not sure about your financial future and you want to make sure that you make the right decisions as a self-employed person, you’ll need to make sure that you get an accountant sooner rather than later. Having an account to oversee your books and make sure everything is in check from a financial point of view will take a burden off your shoulders and give you one less thing to worry about.

Working as a self-employed person certainly isn’t easy, but with the help of the tips and ideas outlined above, you’ll be able to make sure you don’t make any financial faux pas. It pays off to plan ahead when it comes to your finances as a self-employed person, so don’t underestimate this task.