Have you recently become self-employed, or are you thinking of doing so in the near future? If so, how can you get on the road to financial security?
First, establish a budget – when you’re starting out on your own, you need to keep tight control over where your money is growing.
Also, set up a retirement plan, such as a SEP-IRA or an “owner-only” 401(k). But while you’re saving for tomorrow, you can’t forget your needs for today, which is why you should gradually build an emergency fund containing a few months’ worth of living expenses.
And, as soon as possible, try to whittle down any outstanding, high-interest debts.
One more suggestion: Consider the need for the appropriate amounts of insurance. Depending on your line of work, you may or may not need business insurance, but if you have anyone depending on you, you should certainly consider the need for life insurance.
Finally, don’t forget to set aside money in a separate account to pay your quarterly taxes.
Self-employment can be quite fulfilling – and you’ll find it even more rewarding when you make the right financial moves.
This content was provided by Edward Jones for use by Daniel Pellerin, your Edward Jones financial advisor at 189 East Main Street Suite G, in Newport, (802) 334-6261.
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