saving while self-employed

November 7th, 2011   |   Business AdviceLife

One of the intentions I have which has been hard to implement has been saving for retirement… or just about anything else. As I’ve grown Jess LC, I find that the larger investments into marketing, product development, and inventory can drain cash quickly. So the idea of saving while I still have no real idea as to what I’ll make each month, leaves me confused and full of excuses.

Though I have managed to save chunks of money in the past, I do want to have a more regular saving strategy. And I finally think I’ve found the method that will work for me.

I now intend to automatically deposit $25 a week into my savings from my personal checking account.

In the past I had wanted to put $100/month into savings, but thought that there was a chance I would need the money for bills, and so I never took the step.

But here’s the thing. By putting $25/week, I will deposit a total of $1300 each year, which is $100 more than the original $100/month goal (which would only result in $1200/year).

The main thing I needed to recognize clearly in order to take this step is that I will still be able to withdraw money from my savings account, if needed. But at least my actions and habits reflect my goal to keep the money in savings.

Over time, I hope to increase the weekly deposit to lead to more significant savings. But until then, at least I’m starting where I am and continuing to move forward.

 

 

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  • http://www.khristianahowell.com Khristian A. Howell

    Thanks for sharing this Jess! I am also working to take small steps on this front. We are in acting the “pay us first” rule in our household, and it is working out. Funny how things still get taken care of even when we meet our savings goals first.

  • http://goodlifeforless.blogspot.com Jill

    My husband and I have found saving SO hard even on a salaried budget. It’s hard in general… it always seems like something comes up with the house or the kids and the money never makes it to the savings account like we planned. Until recently. I made putting money in the savings account the same priority as paying a bill. I list it on my “bills” list that I make for each pay period and then when I go to pay the bills, I transfer the money. I’m never ever late on a bill (and I don’t even know those people) – and so I now consider putting money into savings as “paying ourselves”. And some pay periods we have to take the money back out of savings for unexpected needs, but for the most part it stays there because it’s addicting to watch it grow!

  • http://www.alittleginger.com Maddie

    I’d be interested to hear more about how this goes, Jess. Saving can be hard on a regular paycheck, but being self-employed throws another wrench into the process. Best of luck with your goal!

  • http://www.fiscallychic.com Cathy

    This is excellent advice! Start small and then you can add a little more once you increase sales, have a goal in mind, get comfortable with the saving routine, etc.

    Another option for someone who is self-employed is to save a set percentage or dollar amount of each sale.

  • http://anniceephotographie.com anni

    Thank you for sharing this! I’m not at a point yet where I can take anything out of my business (honestly, I don’t even pay myself yet) but I like how simple the $25/week system is. Definitely something to keep in mind.

  • http://www.lifeuncluttered.org Lauren L.

    Thanks for this post! Since I am not working full time while I am in graduate school it seems like saving has taken a back seat.. although it is slowly being depleted. I need to try to save at least something even if it’s just 5 or 10 dollars to week to get me started until I start working full time again!