So You Want to Work for Yourself

"I see my role if needed as a financial mentor but one who can show warmth, practicality and empathy."
-Katherine Hann
November 21, 2017

So You Want to Work for Yourself

By Katherine Hann

So You Want to Work for Yourself

Become a freelancer, be your own boss, and do what you enjoy. Many people choose to go down this path either on the side of a regular job or dive straight

But many of us don’t really know where to start or are worried about failure. Here are 4 tips from ASIC (the Australian Securities and Investments Commission):

1. Manage your Cash Flow

Many businesses have peaks and troughs – you may be paid more at certain times of year only to be in a ‘drought’ at others, yet those expenses are still
coming in. Remember to pay yourself a wage and plan ahead for holidays .

2. Set aside money for Tax

If you wait until tax time you could be hit with a nasty bill or a hefty penalty from the ATO. Remember, when you earn an income you have to report it
and pay tax where it is due: just like everyone else. Take into account GST and keep records.

3. Consider your Retirement Savings

This is a big one: you don’t have an employer who pays your Super Guarantee; you pay your own super. If you leave it, you may find you don’t have enough
to live on in retirement. You can save on tax by contributing some of those earnings into super and
claiming a tax deduction for them. Be careful: there are limits to the amount you can contribute and you need to get the timing right.

4. Protect your Income

You don’t have sick leave or annual leave. If you get sick or injured then the income from your business may stop (with expenses still coming in!).
Income protection (IP) insurance pays up to
75% of your income, and the premiums can be tax deductible.