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Saving tips for the newly self-employed

Article provided by Debt Rescue

If you’ve started your very own business, congratulations! You have taken on one of the most challenging, yet rewarding projects. While being optimistic about the success of your business is important; it’s also crucial to manage your money effectively to avoid future financial trouble.

Don’t let bad budgeting slow down the growth of your business. Here are some important saving tips to help you develop proper money management habits.

Don’t spend money as it comes in

Stick to a budget and spend money wisely, even if your business seems to be doing better than usual. When you start working for yourself, you may find that some months your business absolutely thrives and other months it doesn’t do as well. While money is coming in, you may develop a false sense of security and end up spending money you may need in the future.

Separate personal and business expenses

It’s important to keep your personal and business expenses separate from the start. Make sure you set up a business account and a personal account. This will ensure that you keep track of your spending effectively and don’t run into any problems with SARS during tax season.

Make paying off debt a priority

Self-employment comes with many challenges, such as clients not paying you on time, high taxes and managing two sets of finances. To ensure you don’t get into deep financial trouble, pay off debt as fast as possible. If you’re struggling to take control of your finances, contact Debt Rescue to help you get out of debt.

Set money aside for taxes

Make sure you set aside money for all expenses, including taxes, as this is your responsibility when you’re self-employed. Save it into a fixed account as this will provide extra security for if you have any financial problems.

Budget efficiently

Determine your monthly expenses when estimating your monthly earnings. This, however, can be very difficult, especially if you don’t receive a fixed amount every month. Try your best to estimate more or less what your monthly earnings will be and make sure you keep money above and beyond your estimated amount each month to make up for months where you don’t receive as much income. You need to make sure that you can cover all your expenses every month to avoid getting into debt.

If you are losing sleep over debt, please contact Debt Rescue. We can help you get out of debt.

Debt Rescue is a proud Partner of the NSBC.