If you work from home, benefits are probably available to you that most traditional employees don’t get. For example, perhaps you can get stuff done while wearing pajamas, choose your hours, or let your friendly dog provide much-needed companionship during your workday.
On the other hand, working from home doesn’t always mean getting a set paycheck from week to week as many people do when they participate in typical forms of employment. With that in mind, it’s a good idea to figure out how you’ll deal with financial emergencies both before and when they arrive.
Set Aside a Small Amount Each Month
Sticking to a budget is an extremely helpful plan when you work from home. Then, if it becomes evident that you regularly spend more than you make, you can adjust by looking for other forms of work to supplement your current ways of making income. When you’re making a budget, try to save a modest amount every month that you’d use for emergencies.
No matter if the amount is $25 or $100, you’ll be glad you chose not to spend it if something unexpected arises. As you decide how much to save, be careful to do so in a way that won’t create too much financial stress.
Understand How and When to Write Off Business Expenses
If you work from home and are also an independent contractor, you have the benefit of being able to write off some of your work-related expenses when tax time arrives. As a start, your office supplies may qualify. Plus, if you use a dedicated room in your home to work, there is a special deduction to use in that situation.
Filing your taxes correctly and deducting business expenses when applicable is another practical way to help you anticipate future financial emergencies. That’s because writing off business expenses that you didn’t claim in the past because you didn’t know the process might mean that you get a larger-than-expected tax refund that you can put into savings.
Don’t Be Afraid to Ask for Help
Finding your way out of a financial hardship also means understanding that you may have to temporarily sacrifice some of your financial independence if the situation warrants it. In short, don’t overlook the possibility of asking people to help. It may feel awkward to do that at first, but remember that everyone goes through tough times at least occasionally.
If someone shows a willingness to help, put a plan in place, such as that you will pay back a certain amount of the loan every month until your debt is gone. Knowing how to handle your financial obligation to the other person from the start will prevent you from getting into a tight spot and making the loaner feel frustrated with you.
Look for External Resources
Your situation may also make it necessary to seek assistance outside of those you know. And, that’s okay. As the President and Chief Executive Officer of CURO Financial Technologies Corporation, Don Gayhardt runs a company that’s one of the leading providers of short-term loans. He understands that things can happen when people least expect them, and financial difficulties can result.
If you decide to get a loan from a short-term provider, it’s a good idea to see what the application process requires, then spend all the time you need to gather those documents. Taking those preliminary steps could increase your chances of success in receiving the money you need to get back on your feet.
In closing, don’t be ashamed if you encounter financial troubles. They are inevitable for many people, but the important thing is to prepare for them as much as possible. If you proactively do things to save money for the future, plus stay aware of resources you can use during times of financial difficulties, you’ll be well on your way to recovering.
David Allred is the author and creator of CFW. David has been teaching entrepreneur minded people how to earn a full time income working from the comfort of home for nearly a decade.
Think about it. Never miss your kids’ events, set your own schedule, choose your own income and enjoy a lifestyle and income which most people only drool over!
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