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Being the person who turns that side hustle into a straight-up full-time income is exciting! You’ve put in the work alongside your full-time job, you’ve sacrificed your spare time to concentrate on your side hustle and you’ve taken every possible course to get you to that achievement. Running your own small business or going self-employed is a huge step, and you’ve achieved it – congratulations.
Now you’re here, you’ve let go of your steady income in favor of the shark-filled waters of self-employment. It’s not all fun and games, living your side hustle life. You’ve given up the company benefits, spent your cash on new software by DesignDocs and you’ve got a big expanse of time in front of you where that grafting will never stop. That financial security that you let go of cannot be the thing that draws you back to that life where you are working for someone else and making them the money that you should be making. Planning ahead, understanding your business obligations when it comes to finances and managing what you owe and to whom is how you keep a handle on your cash when you decide to get let go of that secure job. So, if you want to meet your money goals, check out our tips below:
Savings. You should be working hard to save at least six months’ worth of cash at all times. You’re freelancing, which means your income is going to have peaks and troughs that you are going to have to manage and manage them well, so you don’t fall behind in your bills. You hopefully will have made sure that you had the six months of cash behind you before you let go of your stable income and headed out alone!
Debts. When you earn via a company, you are able to assess how much of your income to set aside for taxes. Now? Now you need to hire in an accountant to work for you and get your taxes in line so that you don’t miss the mark. Make sure that you don’t fall into that trap of owing the government, let alone anyone else.
Investment. Investing some of the profit that you are making is important. Pour your money into the college plans you may have for children one day, or even for yourself! You are continuing to grow and learn, and a college fund can help you to do that.
Get Advice. Wherever you are in your journey to self-employment, you need to get advice. Speak to the bank, your parents, a trusted mentor: wherever you can get it, take the advice you are given about how to manage your business finances.
Your side hustle turning into your main hustle is how you can make your income and your hobbies work for you for the rest of your life. Be smart about your cash and you can spend the rest of your working life in that security that you always craved.