Photo of Eric R. Ebbert, CFP®, MBA, CEO Eric R. Ebbert, CFP®, MBA, CEO Apr 21, 2021

Working for yourself can be rewarding in many ways. You do not have to answer to anyone else, you decide how you want your business to be run, and you decide how to use your budget. However, as you know if you are already self-employed, these same factors that are rewarding also present some unique challenges. 

Being the person in charge of your own business is a big responsibility. Managing finances is challenging, but you can break it down into some basic categories to make it easier to make a strategy.

Three self-employed planning tips

  1. Set up a retirement plan — Running a self-employed business can be expensive, but you should not forget about the other important things, like your retirement. As a self-employed individual, you have different options for saving for retirement similar to the options you would have from a company offering a 401(k), including:
    1. Individual 401(k)
    2. Simple IRA
    3. SEP IRA
  2. Get all the correct insurance coverage — Make sure that you are covered for everything that could become a major expense should disaster strike. For example, you may need a plan that covers the cost of equipment should a natural disaster or accident ruin something vital to your work.

    You also need to make sure you are paying for personal insurance needs, such as health insurance and long-term care.
  3. Work with a financial professional — Many large businesses have a chief financial officer who is responsible for financial affairs. As someone who is self-employed, you do not have that luxury. However, you can work with a Personal Financial Officer™ (PFO™) from ProVise to help manage your personal finances so you can focus on the business of running your business.

Talk to a ProVise CFP® professional about self-employed financial planning

At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about financial planning if you are self-employed? Contact ProVise today to schedule a complimentary consultation.