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With over 80% of homeworkers reporting lower job-related stress levels, organisations hiring homeworkers see 50% less employee turnover, and 68% of young people showing more interest in a job with home working options. Statistics prove that working at home really is the future of employment. In fact, figures from the last five years show that a massive 4.2 million workers in the UK work from home, amounting to nearly 14% of employed people in the country.
If you’re one of the many homeworkers benefitting from the comfort and convenience of working from home, not everything that comes with this position is easy. This is especially true if you’re a freelancer and actively work for yourself from home. Between the novelty of working in a coffee shop, and taking lunch breaks in your garden, financially, working from home can be unpredictable. Sometimes a monthly income can be somewhat guaranteed with regular clients, but more often than not it can all be a bit of a rollercoaster.
If you’re concerned about how to manage your finances as a homeworker, consider the following questions to help your money management become a bit more stable:
Is This Kind Of Life For You?
OK, so you want that comfortable homeworker life, but you’re the kind of person who struggles when out of routine, especially with things like paying the bills. If this is you, then why not try and get an employed position with a company where you can work from home? According to statistics, 60% of the UK workforce will be remotely working within the next ten years. Companies and organisations are actively looking for remotely employed skilled people just like you to be on their payroll without having to commute to their office.
Could You Get Some Help?
It may be that financial disorganisation is your problem. Forgetting to note down paid jobs, struggling to list taxes on time, sending out invoices late – does this sound like you? If you really struggle to organise yourself with your finances, get some help. At the very least consider an app or programme to use to have all your financial information in one place. There are some good bookkeeping choices on this useful Youtube video. You should also hire an accountant to do your taxes once a year. You only have to give them all your financial information, and they can ensure you’re legally up to date with all your taxes which is important if you don’t want a tax investigation to worry about.
Could You Have A Backup Financial Source?
There is always a need to ensure you have backup finances when you work from home. If you are employed full time, then there’s no need to be any more concerned than if you worked in the office. However, if you are freelance, then there is more need for preparation. Having at least six months worth of wages saved is a good idea, in case you fall ill or work dries up. It may be that your partner can support you both until your work becomes more regular. Do have a backup source of money set up, so the stress and worry of having nothing to fall back on doesn’t cause excess anxiety?
Do You Need Room To Grow?
Working from home can restrict the growth of a company if you don’t look for growth support in different areas. Financially, you can look for help growing like any other company, with grants, invoice discounting, angel investment and other financial boosts. The only thing you need to be careful of is involving your home in any business loans or debt as repossession is a real danger if the company struggles. Physically, you might want to look elsewhere for some physical space for growth. Paperwork and stock can quickly takeover the home, which is OK for a short time but eventually your family will want their home back. Self storage is a good option because it involves easy to rent space, with flexible unit sizes, good security and flexible contracts.
Get Used To Budgeting & Forecasting As A Homeworker
It is very useful to plan ahead financially if you can. At the very least you should know how much money you need every month to keep everything ticking over. At the most, you can plan growth, savings and goals and predict monthly finances if you have a few months freelancing behind you.
Shockingly, 80% of self-employed people in the UK live in poverty. With the right financial planning and management, you do not have to be part of that statistic. Be sensible, be organised and reach out for help wherever it is available to you. Working from home can be wonderful, as long as you manage the risks and potential pitfalls effectively.