If you are going to be making this step any time soon, you should be very proud of yourself. It’s brave and scary, but luckily there are things you can do to prepare for such a big step.
1. Save, save, save: When you know you will be self employed in the near future, you need to start saving immediately. Hopefully you’ve already been saving a substantial amount, but even if you haven’t, now is the time to start the original source. Cut back, start making extra money, do anything at all that you can to save a bit more. Put this money in a high interest savings account to make a bit more from it.
2. Cut the Extra Expenses: Self employment can be a costly venture, at least at first. You may not be making money right away, so the last thing that you want to do is deplete your savings on expenses that aren’t necessary. That would be the short road to failing at self employment. You don’t want to run out of money before you even have a chance to start making money in your business.
3. Make a Self Employment Budget: You probably already have a family budget, but making a self employment budget is crucial as well. You need to know how much money you’ll be spending on bills so that you know how much money you need to start bringing in. You probably won’t know how much you will bring in monthly at first, and that’s okay. You can budget on a irregular salary, as well, but budgeting will help show you the overall picture of where you are at financially.
Self employment is an exciting time, and it’s even more fun when you are financially prepared.