Being a freelancer and working for yourself might sound like the ideal way to make your money. After all, you get to be your own boss and can decide your own schedule and which projects to take on. However, you may find that it isn’t always as rosy as you might have thought it would be. With all of the positives of working as a freelancer come a lot of negatives and difficulties. One such difficulty that many people find tricky to cope with, especially when they initially set up as self-employed, is managing their money and taxes.
To ensure you don’t get too stuck with money as a freelancer, here are some great tips.
Get An Accountant
It’s crucial that you find yourself an accountant. As a freelancer, you will be responsible for your own taxes and this can be very complicated for those of you who don’t have too much experience with money and finances already. An accountant will be able to file your annual tax return for you as well as sorting out any other financial questions and queries that you might have.
Figure Out Your Business Expenses
Now that you are a freelancer, you will have to declare any business expenses that you have throughout the year. The more you declare, then the less tax you will need to pay as these expenses are not taxable. There are hundreds of things that can be declared, some of which aren’t quite as obvious as others. It’s a good idea to speak to your accountant so that you understand exactly what counts as a business expense.
Get The Best Insurance
If you work from home, you should insure it. That’s the case even if your home is already insured – not all home insurance policies will cover home offices. You might also want to get yourself some general liability insurance, depending on the type of work you do. Believe me, being well-insured can save you money in the long run!
— ten.info (@tendotinfo) May 21, 2018
Put Some Savings In Investments
Every freelancer needs plenty of savings behind them. This gives them a financial safety net for any periods of slow work. But rather than leaving your savings in a bank account, it’s a good idea to put some in investments like a real estate investment fund or in some stocks and shares. These can bring bigger returns and, therefore, will help your money grow.
Set Up A Pension
As you are not in full-time work, you won’t be paying into a workplace pension. So, you need to set up your own private one. It’s really important that you see to this sooner rather than later to ensure that you end up with plenty of savings ready for you when you retire.If you aren’t too sure which pension to go for, it’s always a good idea to speak to a financial advisor for their expert advice.
Once you improve your money situation, your life as a freelancer will be a lot easier to manage!
Want to learn more?
We’re here to help you to take action just like we’ve helped thousands of other entrepreneurs, business owers and creative professionals all around the globe.
Now is the time to let your passion SHINE.
Now is the time to Make Tomorrow Today!
To your success,
Vinh Van Lam & Stuart Horrex
Your Creative Coaches @ CoSydney & ArtSHINE industries