It can be challenging to own your own business in any given year, but with the added stress surrounding Covid-19, many who are self-employed have found themselves in a whirlwind of anxiety.
Despite the stress of being your own boss, 70% of Americans wish they could quit their day job and become self-employed. There is a certain amount of freedom and flexibility that comes with being your own boss; don’t you wish you could find that freedom in your finances as well?
You may find you need some extra cash this year, or want to better prepare yourself for another unprecedented incident that may hit you in the wallet. Let’s explore some wealth-building ideas to spark your imagination and get you started on your journey to financial security, regardless of what the future holds.
Invest In Real Estate
If you’re looking to secure your finances, consider a lucrative investment in real estate. The easiest way to get started is to invest in a rental property such as a house or condo that you can begin to collect returns on as soon as your first tenant moves in.
When you invest in real estate, you are building equity in a home, and have the opportunity to see a big return that will gradually grow over time. This is a great investment option as it can be as hands-on as you’d like it to be.
You can handle all the day-to-day repairs and complaints yourself, or be a more hands-off investor and hire a property manager to take care of the sticky details for you. If you’re looking for financial assistance with your investment property, consider looking into helpful loan programs online like those offered by Visio Lending.
Invest in Stocks or DRPs
If you are interested in business reports and analytics, you should consider investing in the stock market to grow your wealth. When you invest in stocks, you are essentially investing in a small amount of a given corporation. If you’re willing to closely follow the business trends, this can be a fun and lucrative way to channel your passion for business into a passive income.
A DRP (dividend reinvestment plan) is a great way to get started in the stock market as you don’t need a broker. You start with a small amount of money (let’s say $25) that you invest on a monthly basis, and rather than collecting the dividends, you reinvest them and purchase more shares. The cycle continues; you reinvest the dividends to purchase more shares, which, in turn, create higher dividend payments. It’s a pretty low-risk way to invest small amounts of money and see a nice payoff.
Start A Retirement Account
Just because you aren’t employed by a big corporation doesn’t mean you should be denied a comfortable retirement! Secure your future by planning for your retirement so you can feel less anxious about your finances in the present.
With an IRA or Individual Retirement Account, you can put a sum of money into savings and see tax-free growth until you’re required to begin your withdrawal at 72. Or, consider a Roth IRA that will allow you to leave money in your account for as long as you’d like.
There are pros and cons to all options, so be sure to consult with a professional to decide what kind of retirement account is right for you!
Create A Budget
A foolproof way to secure your financial future is to make a budget. It cannot be stressed enough the importance of budgeting your finances, especially if you are self-employed or running a small business.
Taking charge of your cash flow will help you have a better handle on where your money is going and get control of your life. You never know, after you make a budget you may find you’re making more money than you think!
Take Advantage Of PPP Loans
If you’re truly struggling, there are loans available that can help your business in these unprecedented times. If you have fallen into hard times because of the pandemic, you can’t begin to grow your wealth until you give your small business a helping hand. If you are self-employed or a gig worker, you are eligible for loans and grants through the Paycheck Protection Program.
These unprecedented times have us thinking about what is truly important in life, and challenges in business may have us ruminating on our financial security. Take the time today to create a budget and consider what is best for your financial future so you can continue to thrive as a self-employed worker for years to come.