How To Lower Your Financial Risk When Self-Employed

Financial Risk

When you’re self-employed, you have the benefits of working independently and doing things your preferred way. But with this independence comes risk, especially when it comes to finances. If you’re solely responsible for your income, and don’t answer to a boss or manager, you’re taking on financial risk that would be the responsibility of your employer if you worked in a traditional job. There are ways, however, to lower your financial risk as a self-employed person. 

Look at all your expenses

If you’re just starting out as a self-employed person, or you’re experienced in working for yourself but are searching for ways to reduce your risk, the first step is to consider all your business-related expenses. Look for ways to reduce your spending and put those savings away into an emergency fund. Also consider how you can reduce your personal expenses by spending less on non-essentials so you can put that money towards your emergency business fund. When you’re self-employed, you may experience fluctuations throughout the year and that emergency account can help you get through the leaner times. 

Reducing debt

Using credit cards and taking out loans is sometimes necessary when paying for business expenses. But debt can create a huge financial strain if you find yourself in a bind where you can’t pay it off. Look for ways to fund your business that don’t involve taking on more debt. This may include seeking grants or investors to provide you with the funds you need to keep your business running. If you find yourself in a time of excess, consider using that extra money to pay off your business debt.

One of the most important qualities for successful self-employment is understanding financial risk and finding a balance between risk and reward. Being self-employed comes with many risks that traditional employment does not, which is why it’s essential that you do what you can to minimize that risk. Saving for emergencies, reducing debt, and spending less on non-essentials can help you use your resources in the way that benefits your business most. 

The Value Of Good Penmanship In A Digital World


Living in a digital age means communicating in a different way. Most people carry around a phone where they can access texts, messaging apps, and emails with a few taps. Writing, especially writing with a focus on penmanship, is no longer the easiest way to keep up with information. While some people still prefer the act of taking notes, writing letters, and composing written works using a pen and paper, others prefer the convenience of using digital tools. Penmanship is no longer a focus in schools and many people no longer worry about the quality of their handwriting. There is, however, value in good penmanship, even in a mostly digital world. 

Good penmanship

Taking the time to focus on penmanship is good for children when they’re learning to write. It helps develop fine motor skills and learning to write well can increase a child’s confidence. But adults can also benefit from focusing on penmanship. It’s not uncommon to develop bad habits in your writing as an adult. This is especially true for those who write notes for work as speed is often the most important factor when writing. But taking the time to form letters properly can help you remember what you write and gives you a sense of pride. If your writing skills aren’t up to your preferred standards, take some time to practice and review penmanship rules to make some improvements. 

The benefits of writing

Writing by hand stimulates your brain in a way that typing or tapping doesn’t. When you write something out by hand, taking your time to do so, you’re much more likely to remember what you wrote. The physical activity of writing, while concentrating on what you put on the paper, can help you better understand the content you’re writing, which is especially helpful if you’re working on an important project. 

The misconception that penmanship lacks value has led many schools to drop classes that teach proper handwriting. Even adults who learned penmanship in school may lose those skills when they’re not used regularly. While typing and tapping do have their places when taking down quick information, the physical act of writing well should not be ignored as it’s good for your brain and helps you better retain information. 

Tips For Walking More When Working A Sedentary Job


Working a desk job comes with some perks, but it also means you may be sitting down for 8 or more hours a day. While in theory, it may sound nice to be able to sit while you work, it’s actually not good for your health to sit without moving around throughout the day. You may not have the option to get up from your desk as often as you would like, but by using the time you have, you can get in more steps which can improve your mental and physical wellbeing. 

Use your breaks

Walking during your work breaks is mentally stimulating and good for you physically. If you can, go outside and walk around a park or your neighborhood. If this isn’t an option, consider walking up and down your building’s stairs or hallways to get in extra steps. If you have extra time at lunch, use that time for a quick walk.

Stay active outside of work hours

If you live near your workplace, take advantage of days with nice weather, and walk to work instead of driving. While you’re likely tired after working all day, walking your dog around the neighborhood, or following your kids on their bikes is another simple way to get in more steps. Schedule weekend activities that involve lots of walking like a trip to the zoo or an amusement park. 

You don’t have to join a gym to stay active

Joining a gym works out well for many people, but it’s not a necessity. Walking regularly is great exercise and it allows you to clear your head and just enjoy being outdoors. You may wish to invest in a walking pad to use when you can’t get outside to walk. Like a treadmill, it has a moving belt that allows you to walk at various speeds. But it’s more compact and easier to store. 

Walking has many benefits to your physical and mental health. But if you work at a desk, your time to be active is limited to your breaks during your workday and the hours outside of work. Sneak in walks when you can as a way to mentally decompress and keep your body healthy. 

Remote Workers Should Be Aware Of The Home Office Tax Deduction

tax deduction

The deadline to file your income tax return is quickly approaching and April 15th will be here before you know. If you haven’t yet filed your tax return, and you’re a remote worker who has a home office, you should be aware of the home office tax deduction. This deduction can help self-employed individuals who use part of their home for business activities. 

Who’s eligible?

This deduction works for small business owners who operate out of their homes as well as freelancers and gig workers who use part of their homes for work purposes. The deduction allows you to write off many business expenses like rent, utilities, maintenance, and real estate taxes. Renters and homeowners are eligible for this deduction. When you’re filling out your income tax return, you can find this information on Form 1040 on Schedule C. W-2 employees who work from home are not eligible for the deduction. 

It’s important to know that dual-use rooms are not always deductible. If your office space doubles as a guest room or home gym, it’s generally not applicable for this deduction. The two exceptions to this rule are when the room is used to provide care to children, disabled individuals, or adults over 65, or when your other use of the space is to store business-related equipment and supplies. 

Other things to know

To take advantage of this deduction, your home workspace must be the main place where you conduct your business. You must calculate your home office tax deduction using one of the accepted methods. With the simplified method, you calculate the square footage of your workspace and multiply that by $5 per square foot to get your deduction. The other method is more complicated and requires you to calculate your business expenses and deduct those from your overall home expenses. 

If you wish to take advantage of the home office tax break, be aware of eligibility rules so that you’re in compliance. If you work with an accountant, they can help you figure out if this deduction is advantageous to your financial situation. As a freelancer or self-employed individual, it’s important that you use the benefits available to you.