Controlling money when you are a self-employee

Scrutiny of the finances

"Take advantage of your strengths: it wont be possible to achieve superiority in a weak area," Leonard states. Utilising your strengths to your advantage and managing your weaknesses are part of a robust existance." A helpful method to manage capital as a outworker is usually to record your earnings, regular payments and unforeseen expenses. This is how:
- Detail all of your basic living expenses like food, rent, electricity and insurance.
- Maintain a written record of your income - in time you will be able to estimate months where you make more money and months where you earn less.
- Dont forget the tax man and payments that are due to him.
- For months when you may be short of cash, a credit card will be most useful but be careful with it so that you dont get into debt you will find tough to settle.

Spend less than you make and invest some

According to Leonard, one way to spend less is to simplify your life. "Remember that every possession you buy or contract you sign (monthly subscription, club membership or cell phone contract), brings with it a burden of cost and responsibility. The dilemma with development is finding ourselves caught in a swirl of acquiring more at quicker speed, so that any increase in income is easily consumed by an insatiable (and ever-growing) list of wants. Until we determine how much is enough and make provisions to save, we will neither save nor earn enough.

A highly effective means of saving is to set up an automatic payment from your cheque account into an investment which you then forget about. You only have to make a decision once (as opposed to every month or year) and a portion of your future income is committed to investments. This is how you get caught into cell phone or holiday point contracts - you decide once and commit your future income to these organisations."

Get a greater yield from your investments

"Putting R1000 away every month for 40 years will give you a return of R3.4 million ," Leonard claims. "Increasing the return to 10% will see you maturing at R6.3 million. The best long term results are derived from buying into companies. You can do this by using a stock broker to buy shares for you or you can buy unit trusts - which is a similar more indirect method.

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Tax is able to be a tricky matter while you are a outworker. To circumvent the hazards of tax and submitting your tax returns, consider the employment of a tax consultant. Always consult with acquaintances and family in a related circumstances. Find out who does their taxes. It is constantly hard to beat individual experience, and you can be guaranteed a truthful view. Generally notable, once looking for a tax consultant, you need someone who you can trust with your finances. Consequently here are a few useful suggestions in looking for a trustworthy tax consultant.

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