There are many reasons why becoming self-employed is an appealing prospect. Not only does it give you the freedom to pursue your own interests, but it gives you the chance to choose your own hours and be your own boss. But when you work for yourself, you take on a lot more responsibility for your finances and your future - which can take some getting used to.
While it’s important to build an income for yourself and get some steady clients, you also need to prioritize your future and make some plans to ensure you’ll have an income waiting for you when you retire.
Here are some of the steps you can take to protect your future when you’re self-employed.
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Get savvy with money
When you start working for yourself, you need to get savvy about your finances, and quickly. You’ll need to establish a budget, and luckily there are some great tips for budgeting on a fluctuating income to help you out. You’ll need to set aside money for taxes, and put money aside for savings. It can take some time to get used to changes in your income, and if you think you need extra help, then hire an accountant.
Work towards an emergency fund
Things can be unpredictable when you work for yourself. Work can come and go, and there could be periods where your earnings are less than you’re expecting or used to. By working towards an emergency fund, you can feel more secure knowing you’ll be able to ride out the quieter months. You should aim to have six months to a year’s worth of expenses covered to give you some time to either pull it back, or consider some alternative ways of earning money.
Invest for your future
Making investments now can help you provide for your future, ensuring you’ve got assets or an income to allow you to retire comfortably. There are a lot of different investments you can make, with many people choosing to invest in real estate to help create a solid investment portfolio.
Investing in commercial real estate can also be an option for you to give your assets a boost. With the help of a commercial property management specialist, you can get the help you need to manage your portfolio, allowing you to concentrate on your work instead. This can help you get the most out of your investment and confidence in the decisions being taken.
Have a plan B
Being self-employed can be a fantastic move for your career, but over time, you might decide that it’s no longer for you, or you need to source another form of income. Having a plan B to fall back on, or a career path you can undertake will help give you that extra peace of mind that there are other options for you. You might never need to fall back on your plan B, but at least the option will be there if needed.
Being self-employed will come with many benefits, but it’s important to think about your future, not just your current situation. With a solid plan for how you’re going to fund your future, you can throw yourself into making your self-employment a success.