It’s tough to save money, especially when your income is unpredictable. If you’re self-employed, you’ll likely have to pay for health insurance and retirement out of pocket. However, there are ways to save your money that will benefit you immensely in the long run.
Put a bit of each paycheck aside.
Whenever you receive a paycheck, whether it is $50 or $2,000, put a bit of it into a retirement account and a bit of it into your personal savings account. Your first priority should be to build a $1,000 emergency fund and six months’ worth of living expenses. You should also set up a Roth IRA and put some money into that account. Having this cash will significantly improve your peace of mind, and you will be prepared to pay your mortgage or rent for six months in the event that you experience a dry period. No one wants that, ever, but it’s a good idea to be prepared, just in case.
Keep track of your business expenses.
Keep track of anything that is even remotely related to your business, because you may be able to write it off when you pay taxes: your phone, computer, desks, travel to and from events or