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Being self-employed comes with tons of perks. It often means that your job is flexible, allowing for a better quality of life and you are free to set your own working hours. No matter what you do for a living, you have total control.

It also means you are solely in charge of your finances. As someone who is self-employed you need to be meticulous with your money. Here are some ways to ensure you stay on top of your finances while running your business.

Make Regular Budgets

Although your job offers flexibility, it could also mean that your wage is irregular. You may not get paid the same week from week or month from month. With this in mind, it’s critical that you learn to manage your money well so you can cover all of your needs.

Have a clear picture of the money coming in and the money coming out. Know exactly how much your bills cost and make these a priority. Once you’ve covered living costs, like food and other essentials, you can work out if there’s anything left.

Check For Benefits

As someone who is self-employed, you may be entitled to certain benefits. If your income is low, the government may give you a helping hand in topping your wage up. If your wage isn’t covering what you need to pay, these benefits can ensure you have the money you need.

You may also be entitled to claim help for your business. Many small businesses are eligible for grants that can help to boost business. In turn this stops you from having to invest your own money in the business and drives sales so your profit becomes higher.

Check Your Tax

When you manage your own wage, it’s essential that you manage your business and tax accounts well. This can be challenging if you have no experience of accountancy, even if what you earn is minimal. Many people choose to work with an experienced account to manage accounts and file a self assessment tax return.

If you get these areas of your business wrong, you could end up in financial difficulties. For some businesses, this is enough to close the doors for good.

Save For Retirement

Unfortunately, there isn’t much provision for retirement for those who are self-employed. If you want a retirement pot that you can survive on without worry, it’s up to you to save it. You can start a retirement fund as soon as you start earning enough from your business.

How much you add to the fund is entirely up to you but regular contributions are recommended. There are many ways you can invest in your retirement, from regular savings accounts to stocks and bonds. The more you put aside, the more peace of mind you can have during retirement.

It’s important to make wise decisions when you’re self-employed. If you’ve found this article useful, take a look at the others.