Finance Tips for the Self Employed
Being self employed comes with so much financial responsibility. If you have in the past ever worked for someone and then become self employed you get a whole new chore list. You quickly realize all of the behind the scenes work that an employer does so that you do not have to. They maintain the books, manage taxes, health insurance and the list just goes on and on.
Learning the ins and outs of self employment such as financial tips will help you to be successful with your new business venture.
Many people do not realize how much money has to be set aside and how well you have to manage money to be self employed. With each regular paycheck money should be put in a special account or set aside for taxes. Many people think that being self employed means you pay yourself first, but that is a long standing falsehood. Uncle Sam comes first, always.
Often people find it hard to get a loan when they are self employed, but there are companies who offer self employed loans. These are often a necessary evil in the world of finance to be able to expand and grow to in return make even more money.
Another type of loan is a hard money loan which means that a borrower receives money based on the equity of real estate. These are great loans for people who bad credit or no credit history at all. Building credit while being self employed is often hard to do, but it is not impossible.
I am thankful that I grew up in a household where my Dad was self employed through a lot of my teenage years. I helped my parents with billing, managing money and other tasks associated with being self employed which taught me how much self control and patience it really takes. I knew very early on that I did not want to ever punch a clock in my life and as soon as I got an opportunity to make money on my own I jumped at it.
Many people who think of blogging do not consider it a form of self employment but it is. I have overhead costs (web hosting, keeping my computer in tip top shape, maintaining a pretty strict schedule) and I also on occasion have to pay someone else to help out with the actual blog or with childcare when things get really hectic here.
Are you self employed? What are some of the best perks? For me it is not having to dress up every day and leave my children in a daycare environment.