Count Those Pennies! Preparing For Dry Financial Periods In Your Self-Employment

by | Jan 18, 2019 | Business

As your freelance or self-employed career increases its scope, the temptation can be to relax a little and rest on your laurels, but the life of the self-employed person includes numerous instances of extreme highs and lows. Money is one of those things that is the root cause of these lows. But, when it comes to coping with these sort of anxieties, reducing your stress is only one piece of the puzzle. When you have financial dry periods, what can you do to prepare for these and cope at the same time?

 

Understanding What Additional Expenses You May Incur

To begin with, when we are first making your journey through self-employment, it can be a minefield of things to negotiate with. But we soon catch on, after we’ve done our tax return or got stung by additional fees, that we need to know what additional costs there can be in our self-employed life. When we run a business, there are additional costs and fees we may not have considered, but it’s better to research these things first, especially if you are going down a specific career path, like a tradesperson, where legal expenses can get the better of you. Sites like https://www.rhinotradeinsurance.com/legal-expenses-insurance can give you some important information to take on board. Unfortunately, it’s not as simple as having money come in and go out; there are many subtleties that we need to drill into our skull.

 

Get Savvy With Your Saving

Preparing for dry periods comes with the territory, but it can be a shock to the system when you’ve been earning a regular wage and then discover you don’t have enough money to get to the end of the month. This is where saving money way in advance comes in handy. But when we are struggling to see if we can make any savings at all in the here and now, there are apps that can do this for us. On the website https://withplum.com, this app can save money for you by analysing your bank account and squirrelling away a very tiny fraction. These apps are designed to ensure that you never go over your overdraft limit so you can be pleasantly surprised as to how much you are able to save.

 

Trimming The Fat In Your Lifestyle

And, if we are to fully embrace the self-employed lifestyle, sometimes this means cutting back on certain luxuries. This always sounds more difficult than it is, but the way to embrace this is to turn it into a habit. Trying something new, especially when you have to downgrade certain food items, can seem demoralising. Once you get into the habit, you won’t notice. Preparing for dry financial spells is never easy, but it is achievable. And once we make these changes, and they become habit, we are able to cope with everything better. Being self-employed can give you so much freedom in a personal sense, but with the personal freedom comes a lot of financial difficulties from time to time. This is why we have to prepare for these fallow periods.

 

 

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