Sponsored by Osome
We all know that navigating your personal finances as a self-employed person can be more complicated than when you’re receiving a regular salary. As journalist Anna Codrea-Rado recently pointed out to me, as self-employed people, we earn money from our output, rather than our input, and this can create a fraught relationship between our business and personal finances, as well as eating into our free time and affecting our general wellbeing, too. Her are a few tips for protecting your financial wellbeing as a self-employed person:
Ring-fence some time that’s not “for sale”
As a self-employed person, your main currencies are your skill and/or product, and your time. It can feel tempting, especially if you’re working towards a particular financial goal, to leverage the maximum amount of your time in exchange for cash, but this can lead to burnout and leave you worse off, both in terms of your time and also, eventually, your money. In taking some time off the table, and using it to look after yourself and catch up on life admin, you’re putting in valuable boundaries and protecting your financial wellbeing.
Keep a budget
Keeping a personal budget can feel futile when you have an irregular income, but using a flexible budget planner like ours (downloadable here), will enable you to keep tabs on your income and outgoings and help everything to feel less chaotic. As your business grows and develops, you might like to speak to your accountant about how you can smooth your income and essentially pay yourself a regular salary, which could help with monthly expenses and keeping things in check – the ebb and flow of money can be difficult in terms of your financial wellbeing, and if there’s a way to avoid patchy income then that could be a good option.
Streamline your business accounting
Having a stressful or chaotic flow of money in your business can easily leak out into your personal finances, so you may find that the best way to tackle your anxieties around money as a self-employed person is to go to the root and make sure that all of your business accounting is as streamlined as possible. Making sure that your accounts are reconciled frequently, that invoices are properly issued and tracked and that you have instant access to your accountant if you have any queries can keep your mind at rest and allow you to develop a more peaceful relationship with money overall. Our partner, Osome, provides all of these services on an easy-to-use dashboard, giving you peace of mind.
Get help to grow your revenue
Another major factor in financial wellbeing is actually earning enough money to cover all of your costs as a self-employed person, including paid holiday, sick days and maternity leave, as well as more immediate business costs like software, services and materials. Osome’s tools can help you to grow your e-commerce business, freeing up more cash for you to re-invest, or even pay yourself a little more!
Thanks to our sponsor, Osome, we’re able to provide a monthly session where you can ask a chartered accountant about anything that’s on your mind. Join us on Friday 29th October at 12pm, Live on the @myfrugalyear Instagram page, or send you questions to clare@thefwforum for us to ask in your place. Check out Osome here, and enter their £500 giveaway when you sign up as a client.