“How much should I be saving?” – “How much deposit is needed for a property?” – “How do I apply for a loan?”
Has anyone else Googled this recently? It can be daunting thinking about your financial future in an industry where we don’t have a guaranteed income. A lot of the time it’s easier to just not think about it and just save our cash in a shoebox until rent is due. How can we save for our future when we don’t know how much we make in a week, in a month or even in a year? These are questions I hear from our clients often. Below are some tips which can get you started on your financial freedom journey.
TIPSEE is a free mobile application available on the App Store or Google Play that can be used to track your income. It allows you to track hours worked, it calculates what your hourly rate works out to be and gives you a report. This is a great way to start looking at your work and let’s you put on your financially-savvy coloured glasses on to see the bigger picture. One of the great benefits is that you start picking up on your earning patterns. On Fridays do I make more because I am fresh into the weekend? Or because of this cute new outfit I bought? TIPSEE also holds you accountable to how much money you are making. Cash is very easy to spend – and often at the end of a month we are all left wondering where it all went. When you see a physical number that you made for the month you are more likely to save or at least be mindful when spending.
Pick the right time of year for holidays/breaks/time off. If you have been in the industry for at least a year, you know when the quiet times roll around they are tough, and they do come! If you can plan to have some time off when it’s quiet and work more in the busy season, this can help you achieve a bigger goal. It can also be stressful working when it is quiet, can you even make house? Is it worth going in at all? It could be better for your mental health to have those few weeks off, recharge, reset and get ready to hustle hard when it kicks off again.
Own your brand!
No matter what hustle you are in, could you be advertising yourself better? Think about if it’s worth branching out and setting up a business Instagram page, Only Fans, Snapchat or a Twitter account if you haven’t already. Social media is such a big part of our society (and let’s be real, we are all on it 24/7) and is an inexpensive way to market your business and build a following. I’d recommend researching some great examples of women and men who have upped their income by branding themselves on socials. If privacy is an issue for you, there are ways around managing a discrete identity. Many girls do not show their face on these platforms or use an alias to manage how they wish to be seen online.
Be aware of tax!
If you are a Sole Trader and bank cash throughout the year, when it rolls around to tax time and you’ve earnt higher than the tax-free threshold and your work-related expenses haven’t brought this figure down, it’s common that you’ll have a tax payable. If you have a large payable, the ATO will often automatically register you to ‘Pay As You Go (PAYG) Instalments’. PAYG is paid quarterly (every 3 months) and is an estimate of your total income for the current financial year. Essentially, it saves you having a huge tax bill at the end of the financial year as you’ve made regular payments into your tax account. Empire Industry Finance can set you up with this if you think it will be beneficial to you. Another tip is to try transferring a percentage of what you’re depositing into a separate ‘Tax’ bank account, that way when either PAYG or your Income Tax is due, you’ve already accounted for it. It’s a great habit starter, makes you think about the percentage split
Until next time,
The Empire Ladies