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5 Financial Tips For Freelancers

Take a look at these five financial tips for Freelancers before you start your freelancing career and be prepared for anything.

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5 Financial Tips for Freelancers

Making a career change and moving into the freelancing sector is an exciting prospect. Let’s face it: who doesn’t like the sound of being one’s boss? Yet, with great power comes great responsibility; especially so in the financial department.

Take a look at these five financial tips before you start your freelancing career and be prepared for anything.

1. Learn How to Budget

Just because your income is erratic doesn’t mean your expenses should follow suit. In fact, as a freelancer, keeping your expenses in check is the only thing you can do (most of the time). Speaking of erratic income there is a handy tool which helps you calculate your monthly income.

Start by determining your break-even number — the number you need to shoot for to stay in the green each month. List all the essentials you need including food, utility bills, transportation fees, etc. and add them all up to get a total that you need to save up to (and surpass) every month.

5 Financial Tips for Freelancers

Preparing for tax season is yet another thing freelancers should do more of. Too often people get fooled by the amount of money they make only to find out that almost a third of that doesn’t even belong to them.

Separate your personal and business expenses (accounts) to get a better idea of what you’re up for and audit your taxes regularly. It pays to be prepared; quite literally.

2. Make Use of Contracts

The Internet — you will never find a more wretched hive of scum and villainy; except for Mos Eisley, perhaps. By now, probably everyone and their grandmothers were scammed at least once over the Internet; freelancers face this issue almost daily.

The solution: draft a contract for every new job you do to protect yourself from being ripped off by unscrupulous clients. Of course, this does not means you should make potential clients sign contracts for every small gig you do online; use common sense.

Overall, making use of contracts is not only good for your financial well-being but also for your reputation. By insisting on signing contracts before certain jobs, you’ll give off a sense of professionalism and clients will take you more seriously as a result; understand them, they too have been victims of scams in the past.

Protip: for some larger jobs, always include a deposit. That way you won’t have to live primarily off of air until the project’s end; 20% to 50% is the industry standard in most niches.

Make Use of Contracts

3. Know Your Limits

When you’re a freelancer, it’s easy to get carried away by present successes. Yet, the sporadic nature of the job can often leave you in great debt without any real source of income.

What’s more, missing any outstanding payments can impact your credit history beyond repair. The moral of the story — known your limits!

To get a good idea of where you stand, be sure to check your credit score, regularly; especially so when you’re thinking of applying for a loan.

Keeping an eye on this will make it easier for you to apply for mortgage and car loans later in your life, so do try to stay on the safe side.

4. Set up an Emergency Stash

Flexibility means having the freedom to organize yourself, not being free to do whatever and whenever you want (all of the time); that’s called anarchy.

Usually, the best way of protecting oneself (financially) is by setting some money aside in the form of an emergency fund. When you’re a freelancer, you learn the true meaning of a dry season on your skin (too many a time).

Apart from the obvious financial benefits, another thing a stashed cache does for you is — it provides you with an ease of mind. With some funds safely tucked away, you won’t feel as pressured as you would otherwise during these few dry months.

So, start chipping off some funds from each paycheck from now on and put them into a savings account, just to be on the safe side; use an automatic billing system if necessary to keep the payments flowing.

5. Save up for Retirement

The story of the ant and the grasshopper — my favorite. You might be enjoying your high-life now, but, in a few years, you’ll regret not putting away more money for your retirement fund. Of course, by that time it will already be too late… start today!

Since you’re self-employed, you need to sponsor your retirement plan. Depending on your country, there are a few options at your disposal, including:

  • SEP IRA — lower taxes than a traditional IRA.
  • Solo 401(k) — a simplified version of the regular 401(k) plan; made for the self-employed.
  • SIMPLE IRA — employer contributions are tax-deductible in the form of business expenses.
  • Self-managed super funds — a superannuation fund you manage on your own.

Whichever one of these you pick, remember to always contribute to your plan, and contribute often.

Tracey Clayton is a working mom of three girls. She's passionate about marketing and everything tech related. Her motto is: "Live the life you love, love the life you live."

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Business

Navigating the Process of Selling Deceased Estate Shares

This article aims to provide a comprehensive guide to selling shares from a deceased estate. Process of Selling Deceased Estate Shares.

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Navigating the Process of Selling Deceased Estate Shares

1. Understanding the Basics of Selling Deceased Estate Shares

Dealing with a deceased estate can be a challenging and emotional process, especially when it comes to handling financial assets like shares. This article aims to provide a comprehensive guide to selling shares from a deceased estate.

2. What are Deceased Estate Shares?

Deceased estate shares refer to the stocks and shares that were owned by an individual who has passed away. These shares become part of the deceased’s estate and are subject to the terms of their will or estate plan.

3. The Importance of Valuing the Shares

The first step in selling deceased estate shares is to obtain a current valuation. This valuation is crucial for several reasons: it helps in distributing the estate among beneficiaries, it may be necessary for tax purposes, and it gives an idea of the market value of the shares.

4. Legal Requirements and Executor Responsibilities

The executor of the estate plays a pivotal role in the management and distribution of the deceased’s assets. This section will cover the legal responsibilities and steps the executor needs to take to lawfully sell the shares.

5. Obtaining Probate

Before any action can be taken with the shares, it’s often necessary to obtain probate. Probate is a legal process that confirms the executor’s authority to deal with the deceased’s assets.

Transferring Shares into the Executor’s Name

Once probate is granted, shares may need to be transferred into the name of the executor. This process varies depending on the company and the type of shares.

6. The Process of Selling Shares

After completing legal formalities, the executor can proceed with selling the shares. This section will outline the steps involved in this process, including choosing a brokerage or financial service, understanding market conditions, and making informed decisions.

Deciding on the Right Time to Sell

Timing can significantly impact the returns from selling shares. Executors need to consider market conditions and financial advice to determine the best time to sell.

Completing the Sale

This subsection will detail the actual process of selling shares, including placing orders, handling transaction fees, and ensuring all regulatory requirements are met.

Accounting Write For Us Guest Post - Finance, Tax, GST, Economics, Banking

7. Navigating Tax Implications and Reporting

Managing tax obligations is a critical aspect of selling deceased estate shares. This section will explain the potential tax implications and the importance of accurate reporting for both capital gains tax and inheritance tax considerations.

Understanding Capital Gains Tax Responsibilities

When shares are sold, any profit made from the time of the deceased’s passing to the sale date may be subject to capital gains tax. Executors need to be aware of these implications and plan accordingly.

Inheritance Tax Considerations

In some jurisdictions, the value of the deceased estate’s shares might impact inheritance tax calculations. It’s essential for executors to understand these aspects in order to ensure compliance with tax laws.

8. Common Challenges and How to Overcome Them

Selling deceased estate shares can present unique challenges. This section will discuss common issues such as disputed wills, fragmented information about the shares, and market volatility.

Dealing with Disputed Wills and Beneficiary Disagreements

Disputes over the will or disagreements among beneficiaries can complicate the process. Executors must handle these situations delicately and legally.

Managing Market Volatility

Shares can be subject to market fluctuations. Executors should be prepared for this volatility and may need to consult financial advisors to navigate these waters effectively.

9. Tips for Executors Handling Deceased Estate Shares

This section will provide practical advice for executors, including the importance of seeking professional advice, keeping thorough records, and communicating clearly with beneficiaries.

Seeking Professional Financial and Legal Advice

The complexity of selling shares from a deceased estate often necessitates professional advice. This can range from legal counsel to financial advisory services.

Record Keeping and Communication with Beneficiaries

Maintaining transparent and thorough records is crucial. Executors should also prioritize clear and consistent communication with all beneficiaries to avoid misunderstandings.

Conclusion

Selling shares from a deceased estate is a responsibility that requires careful attention to legal, financial, and interpersonal dynamics. By understanding the process, staying informed about tax obligations, and tackling challenges head-on, executors can fulfill their duties effectively and respectfully.

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