Millennial Money: 5 financial mistakes to avoid when you are self-employed
Becoming self-employed can be an exciting journey, but it’s also possible to make expensive mistakes
When you become self-employed, you join millions of other business owners hoping to materialize their dreams. However, navigating the murky waters of self-employment can be challenging, especially during the early stages.
While there are no guarantees in business, there are some strategies that could increase your chances of success, especially financially. Here are a few mistakes to avoid as a self-employed person.
1. NOT DELEGATING OR PRIORITIZING
Self-employed people often act as their own stunt doubles in their business during the incipient stages because of budget constraints. However, trying to do it all on your own may be a mistake, says Ronne Brown, owner of Girl CEO and Herlistic in Washington, D.C.
“We have to understand that we go fast by ourselves, but we go far as a team,” she says. For people who feel they can’t afford to delegate, Brown says to keep your expenses low until you can afford to do so.
If you do decide to delegate, it’s key to spend your dollars in ways that help your business grow. To do this, people should consider focusing on the business operations and systems versus just aesthetics, Brown says. Doing this effectively often requires prioritization.
“In the beginning, people are always focused on the look. But that’s not what truly creates the income in business,” she says.
Brown suggests prioritizing bookkeepers and accountants, building automations or hiring someone to generate leads. Also, keep in mind that you can usually deduct the cost of contracted labor from your business taxes.
2. NOT SAVING FOR RETIREMENT
Saving for retirement as an entrepreneur can easily fall to the bottom of
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