Financial freedom and self-employment often go hand-in-hand, but they come with unique challenges that require smart planning and strong credit habits. In the June 4th #CreditChat hosted by Experian, Jeanne Kelly shared her insights and personal strategies for navigating finances as a self-employed professional.
Q1: What are some financial surprises someone may encounter when they become self-employed?
Jeanne: It all adds up quickly! Health insurance, office equipment, your phone bill, payroll… the list goes on. I always suggest starting with a side hustle first if you can—it helps you ease into the reality of running your own business before going full-time.
Q2: How do you create a budget when your income fluctuates month to month?
You need to estimate an average monthly income and plan your budget based on the lower side. When the money flows in above that, great! But always make sure you have enough to cover your essentials when income is lean.
Q3: What tools or apps do you recommend for tracking income and expenses as a freelancer or entrepreneur?
I’m old-school and love pen & paper! But for those who love tech, do your research and find a budget tracker that fits your vibe. I’m working on something new—stay tuned!
Q4: How do you handle taxes and plan for quarterly payments without falling behind?
This is where your dream team comes in. Have a solid accountant and payroll service that keeps you accountable. I also put money aside throughout the year, so tax time doesn’t feel like a surprise.
Q5: What strategies have you used to keep your personal and business finances separate, and how has that helped?
Use different banks. It might feel easier to have it all in one place, but separating them helps keep things clean and organized.
Q6: In what ways can your personal credit affect your business, and why should you build a separate credit profile?
When I started, I used personal cards. Eventually, I built up business credit with store cards and even got an auto loan under the business. Build both your personal and business credit profiles—they’re both important.
Q7: How do you manage slow seasons or income drops?
You manage the slow seasons during the good ones. I put extra income into savings until I hit 6 months of business expenses saved. That peace of mind is priceless.
Q8: What strategies have helped you create a financial safety net?
Multiple income streams! Even as a business owner, I believe in having side income that aligns with your main work. Passive and residual income streams have helped me a lot. DM me if you want to know what I do on the side!
Q9: How do you plan for retirement or long-term goals when you’re self-employed?
Just like someone working for a company, you need long-term planning. Ask your friends who they use, do your research, and make sure your dream team includes a great financial planner.
Q10: What’s one resource, habit, or mindset shift that’s made the biggest difference in your financial success?
Resource: My accountant.
Habit: Automatically saving a percentage of income.
Mindset: Money is abundant, and I’m building wealth with intention.
Final Thoughts
Thank you @Experian for hosting such a powerful #CreditChat! This topic hits home. So many of us are self-employed or running small businesses and often don’t know where to start. I loved the tips and support shared today. Let’s keep learning and thriving together!
If you’re self-employed, remember—you’ve got this. Plan ahead, build your team, protect your credit, and don’t be afraid to dream big.
