Budget Plan – An Unexpected Windfall
Let’s see what happens if Santa Claus visits your home and leaves you an excellent financial win under the Christmas tree. It would be a wonderful surprise! This could be your reward for taking the chance on a lucrative assignment that, by some miracle, you won. You should not only ensure that you meet or exceed the expectations of your client but also think about how to effectively divide the revenue from the billable hours.
We tend to approach financial contingency planning with a negative perspective. We prepare ourselves for unexpected expenses that can ruin our budgets or deplete our savings. However, it is possible to manifest prosperity by thinking about what you can do in the event that your ship does not sail. Here are some examples of how extra money can be used:
Pay off all outstanding debts. The interest rates at loan shark levels are high, and you will have a higher credit score and a lower stress level. You can pay your monthly installments if you don’t have any debt. These types of accounts payable are recorded as assets on your Balance Sheet.
Are there courses or continuing education workshops that can help you to improve your brand and stature? Are there conferences that provide valuable information and good networking opportunities? Find out how to raise your skills and become a more employable, highly-paid Solopreneur in consulting.
Investment in business
Perhaps your billable hours allow you to purchase a new vehicle. Ask your accountant or business lawyer if you can designate the vehicle as a company vehicle. This will allow you to deduct some of the expenses and depreciation to make the investment more attractive. Consider upgrading to a faster computer or purchasing office equipment such as a desk or ergonomically-correct office chair. Branding upgrades that are worthwhile, even though they are smaller, include new invoice statements, business cards, stationery, or holiday greeting cards.
Your retirement account should be funded to the maximum amount each year with pre-tax dollars. Open a Roth IRA account with extra money to enhance your financial future using after-tax dollars. Check first whether you are able to simultaneously hold these retirement funds.
If you have the right investment level and are able to trust someone, you might consider meeting with a wealth manager. You can also research and invest a few thousand dollars in mutual funds that are indexed to the stock market. It will grow, even though it may have some downs.
Enjoy the indulgence
Oh, go ahead! Have you ever taken a great vacation? Solopreneurs are so focused on their clients and worry about finding new clients, winning back clients, creating relevant content marketing, identifying ourselves from other competitors, and so on. It’s not something I know, but sometimes I feel so exhausted that it’s ridiculous! Although I have been able to enjoy a few short vacations in the area recently, I still dream of spending two weeks or more in Marrakesh. Or Bahia, Brazil. Or Shanghai. Or Rome. Or Tokyo. Or Mumbai.
Thank you for reading.