Tax & admin 30 August 2017

Six useful money saving tips for independent professionals

Close up of a young woman sitting in kitchen and going through her financials
Britain’s community of self-employed workers hasreached a record number of 4.5m
Writing for Business Advice, Angela James, an associate director at financial advisor Contractor Wealth, outlines six practical money saving tips for self-employed workers to consider.

The number of people choosing to work for themselves is on the rise as record numbers of workers are turning their backs on traditional employment to go it alone.

There are now over 4.5m self-employed workers, and it’s not only young people who are ditching full-time employment, with many people in their 50s, 60s and even 70s setting up on their own.

However, there are hidden drawbacks to becoming your own boss as you have to manage your own finances. Here are six money saving tips to consider if you are self-employed.

  1. Emergency cash fund

Always try to hold an emergency fund in cash aiming for six months essential expenditure in case of hard times. No emergency pot is too small and it doesnt matter how long it takes to build up, always strive to achieve what you can as something is better than nothing.

  1. Keep a close eye on expenditure

Always review your expenditure it’s important to check all your service providers and lenders to make sure initial deals havent expired or that you can get a better rate or price by moving. You could pay more interest or fees than you need to if you don’t look regularly.

  1. Review your savings annually

Review your cash savings rates every year, banks and building societies will offer bonuses on savings accounts for a period of time only and it can be easy to miss the notification when this finishes. If you don’t review your accounts you won’t be making the returns that you could.

  1. Buying a house

Before moving house or buying your first house try to work out your costs and, whatever the additional expenditure is, try and put that to one side for three to six months to make sure you can comfortably afford it.

This helps for peace of mind and will also give you a savings boost that you can spend on lovely things for your new home or those unplanned pesky costs.

  1. Keep retirement in mind


 
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