In the business world, financial independence when self-employed is a goal many aspire to, but often struggle to achieve.
It’s not all doom and gloom though, as there are many ways to achieve financial independence, they just require a little fortitude and planning. You also need to remember that income does not always equal wealth when self-employed. So, to find out a few useful strategies to set you on the right path to financial independence, take a look below:
Cut Your Expenses
Look at ways to cut your personal and professional expenses. Like most people, if you look at your monthly outgoings, you’ll most likely find many areas of spending you can afford to trim. That daily cappuccino, for example, or the gym membership you rarely use. The same applies to business expenses. Do you need to rent a swish office or would it be more sensible to work from home?
Look at ways you could improve your abilities and keep your skills up to date to offer your clients something bigger and better that helps ensure their returning custom. What’s more, you should ask your clients how you could serve them better.
Save, Save, Save
Make saving your middle name. Once you have set aside money to pay your tax bill and to cover everyday expenses, channel a percentage of your income into a savings account. Interest rates are low right now, so be sure to shop around to see what the banks can offer you.
Once you have a reasonable nest egg, you could start investing your extra cash, but diversify your portfolio. There are many options to choose from and if you don’t feel you have the knowledge you need to make such investments, then it is wise to seek professional advice from an expert company such as Tilney. These kinds of companies can provide you with guidance around everything from strategies, to the types of investments you can make.
Looking to the Future
Thinking a little outside the box here, it may also be a good move to start paying into a personal pension scheme as soon as you are able. Safeguarding your future financial independence is arguably just as important as the present.
Ultimately, financial independence is within reach if you are motivated enough, so make changes now and you could soon be looking forward to a comfortable future.
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