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7 Smart Decisions That Successful Self-Employed People Make

7 Smart Decisions That Successful Self-Employed People Make

You have the freedom to make your own hours, write your own paycheck, and make your own decisions. But it's that freedom to make your own decisions, however, that can be the difference between business and personal success and failure. Here are seven common decisions that savvy self-employed business owners make:

  1. They make saving for retirement a priority. One of the downsides of self-employment is that you have to fund your own retirement savings. Savvy self-employed people understand that it's critical to save for their own retirement and regularly contribute to small business retirement plans, such as SEP-IRAs.
  2. They create and stick to a budget. Self-employment income can vary from month-to-month. Savvy business owners recognize that and develop budgets to ensure they can manage seasonality and downturns in business.
  3. They avoid debt. Savvy self-employed people know that taking on too much debt can be detrimental. They are careful to spend wisely and to avoid accumulating expenses and debt.
  4. They surround themselves with good advisors. Self-employed people may not have the resources to employ professional staff, but they do enlist the services of good advisors, such as accountants and attorneys.
  5. They take advantage of tax opportunities. Savvy self-employed people understand the types of expenses that are tax-deductible and ensure they take advantage and keep track of them.
  6. They maintain good credit. Successful business owners know that if they want to grow their business, they may need access to affordable credit at some point. They know that by paying bills on time, they can establish a solid credit history for their business, which will make it easier for them to get the financing they may need in the future.
  7. They plan. Savvy self-employed people think ahead. They identify opportunities and challenges in the future and make decisions that ensure long-term success.

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