Money Management for the Self-Employed
If you are currently a corporate employee seriously considering taking the leap to be a full time entrepreneur, you know that it can probably be the scariest thing you will ever do. If your business fails, you could end up in a lot of debt with no stable income. But with a lot of careful planning, it does not have to be that dangerous.
Income as an entrepreneur is not limited to what employers will give you, but it is not a fixed amount that is as predictable as your paycheck. Include the following tips in your plans to guide your business and financial goals.
- Avoid borrowing money from family and friends.
- If the business is doing well, don’t get tempted to overspend.
- Keep business and personal money separate.
- Delegate with care.
- Don’t keep too much inventory.
- Plan for the short and long term.
- Save a fund for the rainy days when business is in lean season.
- Don’t rent an office unless you absolutely need to.
- Expand your horizons.
- Get personal insurance.
- Watch your personal finances, too!
To learn more about managing your finances as a self-employed entrepreneur, click here.