Taxes, income, savings and retirement: a guide for the self-employed worker
Here’s some advice from our experts to help you better understand the peculiarities surrounding self-employed status and better manage your personal finances.
Whether you are self-employed or are planning to be, you are surely aware that being your own boss takes a lot of self-discipline. In addition to maintaining a constant focus on the daily task of developing your business, you need to understand and be able to plan for your professional situation, a reality that’s worlds apart from that of a salaried worker. And with good reason, since your income will likely be highly variable, your time-off and statutory holidays won’t be paid, and you won’t have an employer contributing to your retirement plan. Despite all that, there will be plenty of advantages to your status, like the freedom to establish your own schedule, or being able to choose the kind of projects you want to work on.
Even if it seems difficult to plan for retirement when you are already working on keeping your working life and your family life in balance, as a self-employed worker, it’s pretty important to take a hard look at your personal financial responsibilities. The goal is to adopt solid saving habits as early as possible to help you absorb periods with no income and enjoy your retirement, as it should be enjoyed. Where do you start? How do you pay yourself a salary while contributing to your retirement savings, without neglecting the needs of your business? Where does insurance fit in all that? And how do you pay your fair share of taxes and not a penny more?
The idea of being your own boss has never before tempted so many people. Maintaining a certain consistency so you can fully enjoy yourself and your flourishing career has got to be worth the effort, right? Here’s some advice on how to manage your personal finances, whether you’re self-employed or you’re looking to make the big leap.