It could be said that the American Dream is to run your own business, because being your own boss puts you in charge of your own destiny. If you’ve ever dreamed of setting your own hours, answering to no one but yourself, and having a taste of what it’s like to work for yourself, self-employment may be the answer. But, while there are perks to running your own shop, there are also drawbacks. In order to make the most of working for yourself, it is important to understand both. In particular, it is key to know how being your own boss will benefit you financially.
If you are considering starting up your own business, here are some things to know about how self-employment will impact your finances:
- Your tax status will likely change, which can result in significant savings come April 15th. Some ways your taxes will be impacted include claiming part of your home as a deduction if you work from your house and meet certain criteria, and the ability to write off some expenses such as a cell phone or internet access.
- The fear of not knowing when and the amount of your next paycheck will give you the motivation to market yourself, and build your business. When you have to run a business and a household, you quickly learn how to budget. This can have a positive impact on your finances and help you to keep your head above water.
- When you hold the purse strings, you are less likely to make impulse purchases or rash decisions. For those that own their own businesses, every paperclip and box of copy paper becomes an asset. Knowing your inventory helps teach the value of the dollars you earn, and can help you to develop healthy savings and budgeting methods.
Self-employment is not for everyone, but if you are brave enough to take the leap, do so after first consulting with a knowledgeable financial professional. We can help you with business formation, and guide you towards choices that work. As your business grows, we can help by reviewing your business plan and making sure you are on track.
For more information about what it takes to be your own boss, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.