Ad Verve Blog

  • Home
  • About
  • Business
  • DIY
  • Family
  • Finance
  • Home & Garden
  • Lifestyle
  • Marketing
  • Vacation
  • Contact

4 Financial Challenges Self-Employed Individuals Face (And How to Overcome Them)

June 8, 2022

Self-employed individuals are getting higher off the ground and taking charge of their finances. It’s easier said than done. Self-employed people endure to their own devices in a matter of taxes, healthcare, and retirement.

That said, it’s a challenge but not an impossible task. If you’re thinking of going into independent work, these financial challenges for self-employed individuals need to be considered and addressed.

Regardless of your financial situation, we can steer you on track with expert advice from our team. Keep reading to learn how to tackle these financial challenges.

1. Difficulty Securing Funding

Banks and other financial institutions often view self-employed individuals as higher-risk borrowers. As a result, it can be hard to qualify for a loan or line of credit. One way to overcome this challenge is to work with a specialty lender that focuses on loans for small business owners.

Another option is to develop a strong business plan and financial projections that will convince potential lenders of the viability of your business.

2. Managing Their Cash Flow

Without a regular paycheck, it can be hard to predict how much money will be coming in and when. It is hard to budget and save money.

There are a few ways to overcome this challenge. One is to create a monthly budget and track your expenses carefully. It will help you see where your money is going and make adjustments accordingly.

Another way to improve your cash flow is to invoice clients promptly and follow up on payments. It can be a challenge if you are busy running your business, but it is foremost to stay on top of it.

3. Paying Their Own Tax Liability

Paying their tax liability is one of the challenges of being self-employed. They must withhold and pay their income tax and social security, which can be a significant financial burden.

There are a few ways to overcome this challenge: Stay organized and plan. Self-employed individuals should track their income and expenses to know exactly how much they need to withhold for taxes. They should also set aside money each month to ensure they have enough to cover their liability.

4. Set Up Savings to Overcome Financial Challenges

One of the biggest financial challenges that self-employed individuals face is saving for retirement. It can be hard to set aside money for retirement when you don’t have a regular paycheck coming in. One way to overcome this challenge is to set up a retirement savings account and make regular contributions.

Another financial challenge of self-employment is paying for health insurance. It can be a significant expense, but there are a few ways to offset the cost. One way is to join a health insurance buying group.

There are financial tools available online to assist self-employed in how they can cope with the challenges.

The Final Challenge

To overcome the financial challenges self-employed individuals face, you need to be proactive and organized with your finances. By being mindful of your personal finances, you can overcome the challenges of being self-employed.

To read more on topics like this, check out the Finance category

Leave a Comment · Finance

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

About Us

Surfing is life and life is surfing. Ad Verve Blog is the worlds biggest surf competition. And although we don't actually run this competition - we use the name to talk about all things beach-lifestyle. I'm admin. We work as a rad team! :)

Subscribe

The Pros and Cons of Shared Software

March 17, 2023 By admin Leave a Comment

Shared software and file-sharing platforms are apparently the way of the future of all work and are heralded as the solution to many business and work-related issues or challenges. It wasn’t always . . .

Read the Post

3 Things to Do On Your Next Beach Vacation

March 1, 2023 By admin Leave a Comment

  Millions of Americans will take a vacation this year. And countless will leave their home state to make it happen. But where is everyone going? Most people are in search of a beach. Being . . .

Read the Post

How to Choose the Right Pet for Your Family

February 21, 2023 By admin Leave a Comment

Deciding to get a pet is a big decision. Once you've decided that you're ready to take on the responsibility of pet ownership, you then have to decide which pet is right for you and your family. With . . .

Read the Post

Tips To Successfully Secure Your Funding Round

February 21, 2023 By admin Leave a Comment

Tips To Successfully Secure Your Funding Round Although it’s often said that all you need to succeed in the world of business is a great idea, the truth is a bit more complicated. Yes, having a . . .

Read the Post

Food for Thought: Making Mealtimes Part of Your Self-Care Routine

February 21, 2023 By admin Leave a Comment

Self-care can be described in many different ways. It can also take many different forms. One way to think about self-care is as the art of putting yourself and your own needs first, giving your body . . .

Read the Post

  • Facebook
  • Instagram
  • Twitter

Facebook

Ad Verve Blog

About Us

Surfing is life and life is surfing. Ad Verve Blog is the worlds biggest surf competition. And although we don't actually run this competition - we use the name to talk about all things beach-lifestyle. I'm admin. We work as a rad team! :) Read More…

Latest Post

  • The Pros and Cons of Shared Software
  • 3 Things to Do On Your Next Beach Vacation
  • How to Choose the Right Pet for Your Family
  • Tips To Successfully Secure Your Funding Round
  • Food for Thought: Making Mealtimes Part of Your Self-Care Routine

Let’s Connect

  • Facebook
  • Instagram
  • Twitter

Copyright © 2023 · Simply Pro by Ad Verve Blog.