A new year is an opportunity to make significant life changes. As a self-employed individual, you don’t have to make unattainable New Year’s resolutions to improve your work life. Simple changes, especially those related to your finances, can help better manage your work-related finances, which can be beneficial in the short term and help you save for long-term goals. If you wish to improve your finances in 2025, consider these money management tips which can help you get things in order in the new year.
Plan for future expenses
Some expenses come up without warning. But for those that are anticipated, it’s helpful to start planning ahead to ensure you have the funds needed to afford large work-related expenses. You may need to upgrade equipment, hire a new employee, or make some other significant business-related change. Knowing how much these changes will cost, and knowing where the funds will come from, can prevent financial hardship.
Prepare for changes
Think ahead to anticipate any work-related changes you may need to make. Do you need to update your systems or upgrade your computers or other devices? Perhaps you need additional help to keep your business going. Many self-employed individuals find that as their business grows, they need more help in running it. These changes can be costly, but they often pay off, especially if you have the money already saved to pay for the necessities needed to keep your business running.
Make changes to your investment strategy
There is no one-size-fits-all investment strategy that works for every individual. Depending on your risk aversion, and the amount of money you have to invest, you may need to adjust your portfolio in the new year. Working with a financial adviser can help you make changes to how you invest your money, which can increase your returns on investments, allowing you to put more funds into running your business.
When you’re self-employed, the big decisions fall on you. As you start a new year, you may wish to make changes that will improve your business’s financial situation. Planning for future expenses, anticipating changes that need to be made, and updating your investment strategy are all ways you can make your business more financially successful in 2025.
