Financial Tips on Saving Money When Going Self-Employed
Feel frustrated with normal employment, and wanting to strike out on your own. Well here are a few financial tips on saving money when going self-employed.
Hello, I’m Anna Nuttall. I’m a blogger and also a digital marketing manager, based in London. I spend my days in a sea of SEO and knee deeps in web designs coding. However, it wasn’t always like this. As in a previous life, I spent 10 years working in retails, before one day I had enough and left on my accord.
At the time, I was at the lowest point in my life. After a series of health issue, I came to the realization that traditional employment just wasn’t for me. I desperately wanted to be free and to work out who I was as a person.
During that period, I had another job where I worked as a part-time social media manager for a company. It was from there I gained a second client and this gave me the push to hand in my notice.
To say I wasn’t nervous is an understatement of the century. I was terrified, But determined. As people said to me at the time, while one door closed – another one opened.
When I left my traditional employment, I was lucky in term of having a backup financial support. The retail company I worked for had an annual bonus system, that helped me out when times were tough the first few months. I was also given a massive tax refund by HMRC, which was unexpected.
I know for anyone who is wanting to jump the gun and to go self-employed; not everyone was as lucky as me. The bonus money and my tax refund became my saviour when times were tough.
Going self-employed, the realization of needing a constant stream of income does set in very quickly; Especially when bills come through.
Here are a few financial tips on saving money when going self-employed. These are what I have learnt throughout my early days as a newly self-employed girl.
Cut excess spending.
I know this is going to sound so boring, but make a list of what you spend on excess activities every month. How much do you spend on various streaming entertainment, such a Netflix or on the PlayStation store? Also, work out how much you spend when dining out or doing a food shop. After making a list, think to yourself; do you really need it? Can you make do without it? Are you able to find a cheaper version of activities you like doing? Ask yourself these questions and write that list, before handing in your notice.
Cut Up Credit-Cards.
Before I went self-employed, I just bought a place so I was able to secure a mortgage. In the process of securing one, we (my husband and I) were advised to clear any outstanding credit cards debt. The same advice applied here. Before you finish your traditional employment, try to clear any credit cards balance and then cut it up. It never a good idea to relies on credit cards for bills payment when times get tough.
Focus on the money you will save.
This is always a big plus for anyone who hates commuting or spend a fortune on petrol every week. The biggest change for me, I no longer had to run like a headless chicken to catch that train – my working environment was now my home office. I worked out that in my first month self-employed, I saved £400 just from not needing to travel anywhere. This might not sound much, but for me, it was a big saving.
Don’t rush off to get an accountant.
This was something I advise a recent client on, as having an accountant is a big financial commitment. I’m sure you are wondering, how to keep on top of your finance? Read up on self-assessment on various government websites, also read up on everything to do with various tax codes. There a wealth of information out there to help you. Also, you can always book a meeting with your bank business manager for any advice.
Be Wary of Sharks.
The cold calling sharks who will offer an army of amazing services for a hefty price. I was surprised in my early days how many cold calling sharks I received from so-called top agencies claiming I would need their services for top fees. Well as you can imagine I had a few explicit words on my own.
Those were my financial tips on saving money when going self-employed. I hope it has helped you. I would also like to say, life is too short to do a job you hate; the best thing to do is to take control of your own life.