Money Management for the Self-Employed -

Money Management for the Self-Employed

Money Management for the Self-Employed

If you are currently a corporate employee seriously considering taking the leap to be a full time entrepreneur, you know that it can probably be the scariest thing you will ever do. If your business fails, you could end up in a lot of debt with no stable income. But with a lot of careful planning, it does not have to be that dangerous.

Income as an entrepreneur is not limited to what employers will give you, but it is not a fixed amount that is as predictable as your paycheck. Include the following tips in your plans to guide your business and financial goals.

  1. Avoid borrowing money from family and friends.
  2. If the business is doing well, don’t get tempted to overspend.
  3. Keep business and personal money separate.
  4. Delegate with care.
  5. Don’t keep too much inventory.
  6. Plan for the short and long term.
  7. Save a fund for the rainy days when business is in lean season.
  8. Don’t rent an office unless you absolutely need to.
  9. Expand your horizons.
  10. Get personal insurance.
  11. Watch your personal finances, too!

To learn more about managing your finances as a self-employed entrepreneur, click here.