Self-employment: How to save your finances and ensure your financial future

Self-employment: How to save your finances and ensure your financial future

Self-employment was once the reserve of the elite. Only those with the highest university educations had any chance of going it alone. Recently, though, we’ve been taking back control. Rather than a precious few making their own path, vast amounts of us are now breaking the employment mode. And, whether you get into the world of blogging or selling online, you could do the same. Don’t get us wrong; this lifestyle requires a lot of work. But, it could afford you freedom from a boss, and a better work and life balance. What’s not to love about that?

 

You might want to read: How to save money fast in 4 easy steps

Well, apart from the implications this could have on your financial situation. Self-employment is the dream. But, it does pose problems for your financial standing, especially when it comes to things like loans and mortgages. While it doesn’t impact your credit rating as such, self-employment makes you an unknown financial entity. And, that can be just as damaging as a credit rating in the red. But, that doesn’t mean a mortgage has to be off your cards forever. All you need to do is take the following steps to ensure your financial future.

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Clear your debts fast

If you’re in debt and self-employed, you don’t stand a chance. Not only will you be an unknown entity, but you’ll be an unknown entity with a bad past. What bank in their right mind would give money to someone like that? What’s worse, you can’t start to build yourself back up until you’re well clear of that debt. Which is why it’s worth doing your research into debt consolidation loans for poor credit which can help clear your name fast. No one wants debt, after all, but a self-employed person should want it even less.

Put effort into boosting your credit score

So, you’re debt free and ready to go. Now is the time you need to focus on your credit score. We hear about these all the time, and they’re important in any walk of life. But, when you work for yourself, an excellent credit rating takes on a whole new meaning. In fact, it’s the only real way to recommend yourself. So, work on building the best rating you can. That means paying the full amount on every credit card bill and buying things on credit. Avoid getting into debt by making clear notes about how and when you need to pay. Before long, your credit rating will be green, and banks will smile upon you once again.

Get yourself an accountant

The last but most crucial step is to get yourself an accountant.  You may think this is a waste of money and time, but it can make a huge difference when it comes to acceptance for big loans. If you do your accounts, you can only recommend yourself. And, why would a bank take your word? By comparison, bankers respect accountants. They’re professionals and have no reason to lie. And, their word alone could be enough to gain your approval.

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