3 Tips for the Self-Employed Individual

If you have recently started working for yourself as a self-employed individual, the whole process may be daunting. Not only do you now need to manage your own time, and build up a client base, but you may also need to think about the best ways to look after your finances too. At the same time, this may seem like a lot of work, but getting yourself adequately prepared doesn’t need to be headache-inducing. Thinking about the different elements of your business and which tools to use, as early as possible can help simplify things, and even build some good working practices.

One of the first things you may want to think about is how to grow your money safely. When you work for yourself, a monthly income may not be guaranteed, so you might need to consider other avenues to make up for any losses. A method of accomplishing this can be to tax-efficiently invest in an ISA or Individual Savings Account. When you need to fulfil tax returns and pay the correct amount, it can be nice to have some savings put aside that are exempt from these figures. The sooner you start your savings account, the more time it will have to accrue both deposits and interest, allowing it to benefit you that much more.

While managing your finances is important, you may also need to manage your own time. To be able to make a good name for yourself and become a trusted provider of goods or services, you must keep your eyes on your schedule, whether this involves opening a store promptly, starting work at a client’s location when you say you will, or even attending meetings. Some people prefer to have this information written down physically on a planner or calendar, however, there is a chance that you might not always have this with you.

Instead, you could make use of a smartphone application that allows you to calendarize the important events in your working day, including when bills need to be paid, or forms need to be submitted. One that synchronises with your computer operating system may be even more effective, especially if you split your time between an office and other sites.

You might also want to consider acquiring a storage container, such as a filing cabinet. This can hold any relevant qualification or insurance documents, as well as proof of submitted documents. On top of this, you may need to keep hold of any invoices for approximately 3 years, so it can be a good idea to store these safely. You may also want to think about protecting this storage facility, with a pin or key lock, especially if some of the contents contain sensitive data. 

There are several responsibilities that you might have now that weren’t an issue when you were a standard employee. However, by completing them effectively, you can enjoy the freedom that comes with working for yourself.