Being self employed is something I never even considered when I was younger. Before I had children I knew exactly what I thought I wanted, I had my life planned out. But of course, life doesn't follow a plan and I ended up heading down a completely different route. Now I have 2 (plus 1 on the way) beautiful children and I am working for myself, which I love! I couldn't be happier my life has headed in this direction, but one thing that I do struggle with is financial planning. I'm not great with sorting out money and planning ahead of time, so I've been putting together some tips and instructions to help!
Self Control
Self Control is something that is so important when it comes to looking after your money, and it's not the easiest thing to put into practice. You need to have some willpower when it comes to what you should and shouldn't spend money on, and when you need to have the motivation to tell yourself no! If you are lucky, your parents will have brought you up with the skill of self control - but nowadays it can be so hard! It's important to physically have the money if you are spending it, as opposed to spending it on a credit card or even using loans.
Start Saving Now
Saving is definitely something that is easier said than done! You know you need to have this certain amount, but where is that money coming from? First step is you need to be sure you know exactly what's going in and out of your account, and the next job is to delegate how much you can afford to save. Then follow the mantra of paying yourself first! When it comes to pay day, the first thing you need to do is to transfer a sensible amount into savings.
Keep An Eye On Your In-goings & Outgoings
You'll need to really take a hard look at exactly what you've got coming in and going out each month. Write down every little thing on a budget calculator and you'll soon be able to see just how much you are spending, if you can decrease that - and see how much you can afford to save each month.
Plan For The Future
Planning for the future and owning your own home is something we all dream of. We don't own our own home, although it is something I would love to do in the future. Sunlife has a lot of information about this if you do own your home and you can find out how much your home may have gone up in value, due to the ever changing property prices.
Understanding Taxes
Oh the dreaded taxes. It's something that always used to put me off the idea of becoming self employed, as I just never really understood them. But it is so important to take the time and understand how income tax works and if your salary will allow you to save for the short term and long term goals.
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