Financial Planning When You Work from Home

Financial Planning

Financial Planning

Working at Home 10 rules to live by:

1) Create a Business Plan
2) Establish a job description
3) Negotiate a salary
4) Determine expenses
5) Have an actual accounting system and accountant
6) Have a real office
7) Get Dressed
8) Have Insurance
9) Talk to a financial planner
10) Determine what your responsibilities are to the home

It wasn’t that long ago that I left the confines of a career to start my own business. I was lucky because I believe I have some financial literacy. The first step to being and a business owner is to research. You will need to research the product, service, and idea that you intend to use to sustain or create your income. It is relevant to study the marketplace and come up with strategies that are important. It is okay to take a risk but a calculated risk is one that is often more successful. I think about jumping into the pool. It is better to put your foot in the water, scan the area for the depth of the water and the people or things in proximity to where you wish to jump than to simply jump.

In my life I have had to define my job function. You can do everything and do it well. I came up with a business plan, a job description, and an hourly rate for myself. It was my intent to factor in the needs I will have now and in the future in terms of planning for retirement and the future of my children. I sat down with mentors and spoke to people that were in the field of accounting and financial planning. I also spoke to a lawyer and spoke to our insurance agent prior to beginning the “job”. I set up my company to be an actual company.

I get dressed to stay at home and work. I have created an office space to be able to work in. I have created a job description for myself and I hire out work that doesn’t fit with my needs. I know that I need to make a certain amount per hour for my efforts to be in line with my business plan. If I am doing everything than the potential for lose income is great. I encourage you to think about what you are good at and what potential it is has for revenue. Then you need to factor in the costs associated with hiring others when you bid on a job or determine the final cost for a product. You need to create a budget and manage it.

The hardest thing about owning your own business is managing your time. You need to set up office hours. You need to determine what you are responsible in the home along with your job requirements. That means what happens when the kids are home on a snow day? What happens when your job requires travel? What expenses will your job add to the home and what expenses will be considered “write offs” because of your job. You have to think about your commitments and how to work around them. I suggest you use a budget calculator to determine what expense you know you have and then create a “slush” fund for unpredictable expenses. I personally use the budget calculator from Genworth Financial.

I read this great article that says that women now gains greater financial control but unfortunately our confidence lags.

Many studies in the last decade have shown that women consistently feel less confident than men in their understanding of financial products, their ability to make financial decisions and their perception of their current economic standing.

We have to change and start to be confident in handling our finances. We should take charge in planning for future, safeguarding our assets and even learn to invest. We need to keep up and increase our financial knowledge, we should not be afraid to ask help for people who knows this business.

Working out of the house can be rewarding but you need to educate yourself on what options are available for planning for your present financial health and your future. Financial planning is important and you need to invest the time to speak with someone who is an expert and then you need to weigh your options against what is a need and what is a want.

Disclosure: Information for this post is sourced from Genworth Financial in partnership with the SheHeard Influencer Network. All opinions and content of this article is mine.

Topic: Financial planning

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Comments

  1. sarah peedin says

    I love rule #7. It is too easy to do nothing (by getting distracted by everything) if you don’t get into work mode by getting out of your pjs.

  2. Tammy Dalton says

    It sounds like a lot goes into a home business and you have a lot of good advice!! If I ever decide to do that I will know a place I can go to get advice and tips. Thank you!! :0)

  3. Constance Zimmer says

    I love the idea of getting dressed to work at home… this way it really helps to transition from wife/mommy mode to business mode!!!

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