Some people choose to be self-employed for the long haul,
often because they love the freedom a self-employed life provides. For others,
though, self-employment is just something that they do temporarily, often in
order to make ends meet during a rough patch or when they’re in between jobs.
These people have a whole different set of rules and information they need to
know than the permanently self-employed. If “temporarily self-employed” best
describes your situation or soon-to-be situation, there are a few things you
should know.
Tip #1: Have a Backup
Plan
One important thing to realize as you start your journey of
being self-employed is that, unlike with a steady job with a regular paycheck,
being self-employed can have its ups and downs. You may have times where you’re
making lots of money, followed by times where you’re struggling. Thus, it’s
important never to get too reliant on any one client or type of work. Be
diverse and find lots of jobs you can do to keep the money rolling in, no
matter what.
Tip #2: Build Your
Savings
As mentioned, there can be lots of fluctuations and “dry
spots” when you’re self-employed, especially in the initial stages. Thus,
consistently work toward having a sizeable savings account you can fall back on
just in case. Ideally, you’d already have your savings account well-established
before you strike out on your own.
Tip #3: Pay Taxes
Quarterly
Finally, since self-employment taxes can be quite high, it’s
often best to pay your taxes quarterly, instead of yearly, so you’re not hit
with a huge amount owed all at once.
It’s also smart to consider working with an accountant during your
self-employment period since figuring out these taxes and the special laws that
apply to self-employment can be a challenge.
If you can follow these simple tips and seek out the help
you need, you should have no problem enjoying your self-employment phase….who
knows, you might even decide to make it permanent!
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