5 Steps to Manage Your Money as a Self-Employed Person

💼When you become self-employed, you lose the benefits that come with being an employee, such as healthcare, retirement match, and a predictable paycheck.

📊Accept and embrace the fact that your income as a self-employed person will be variable, but also recognize the unlimited earning potential.

💰Make your spending predictable to bring certainty into your life and better manage your money. Track your monthly expenses and set a budget.

💵Live the same regardless of how much money you make. Avoid the temptation to increase your spending as your income fluctuates.

🚀Pay yourself last to maximize your savings rate and be prepared for low earning months. Average out your income over time and create a safety net.

What benefits do you lose when you become self-employed?

—As a self-employed person, you lose benefits such as healthcare, retirement match, sick days, and a predictable paycheck.

How can you make your spending predictable?

—Track your monthly expenses and create a budget to make your spending consistent regardless of your income fluctuations.

Should I increase my spending as my income fluctuates?

—No, it is important to live consistently regardless of how much money you make. Avoid creating an expensive lifestyle that may become unsustainable.

Why should I pay myself last?

—Paying yourself last allows you to maximize your savings rate and be prepared for low earning months. It evens out your income over time and creates stability.

How can I overcome the scarcity mindset?

—As you start to do better financially, give yourself permission to walk with more confidence and view money as an opportunity rather than a scarce resource.

00:00Introduction to the challenges of managing money as a self-employed person

03:02Accepting and embracing the variable nature of self-employment income

05:06Making your spending consistent and predictable

07:09Living the same regardless of income fluctuations

09:34Paying yourself last to maximize savings and create stability